EC News DeskGovernment organisations in Saudi Arabia are expected to spend $2.13 billion on information and communication technologies, ICT, in 2020, a 6.1% increase on the anticipated spend for this year. The latest forecast from global technology research and consulting services firm International Data Corporation, IDC, shows that government ICT spending in Saudi Arabia will increase at a CAGR of 6.4% over the 2018–2023 period, outperforming the overall enterprise market’s CAGR of 4.7%.
“As the Kingdom continues to pursue the goals of its National Transformation Programme, much of the government’s ICT spending focus will be directed towards digital transformation enabling technologies,” says Massimiliano Claps, IDC’s Research Director for Government Insights across Europe, the Middle East, and Africa. “In this era of rapid evolution, pressures on resources and structural changes across government agencies can constrain opportunities. Given that the Saudi government is at the forefront of driving DX in the Kingdom as part of its ambitious Saudi Vision 2030 initiative, the need for a comprehensive platform that addresses the various aspects of DX in government is more pressing than ever before.”
The drive to fulfil Saudi Arabia’s DX potential is a clear indication of the government’s maturity vis-à-vis public administration and service delivery. Indeed, the Kingdom has made significant improvements on the Global Competitiveness Index 4.0 published by the World Economic Forum, rising to 36th in the latest edition after seeing considerable improvements in the innovation ecosystem category. This is a clear indication of greater government maturity across administration, public services, and the country as a whole.
“Responding to changing citizen needs through process innovation continues to be the driving force behind government transformation in Saudi Arabia,” says Hamza Naqshbandi, IDC’s Country Manager for Saudi Arabia and Bahrain. “The quest to deliver seamless, data-driven citizen experiences by leveraging innovative technologies is a major focus area, while the need to maintain state security, ensure economic stability, and regulate key aspects of technology proliferation remain key challenges. But, as the Kingdom rapidly approaches the business end of government transformation, strategies are being built, fine-tuned, and executed to address some of these challenges, a process that will help to develop a thriving digital society and catapult Saudi Arabia further into the future.”
