The Saudi General Authority for Data and Statistics (GASTAT) recently released data on the country's digital economy development for the first time. Nearly half of the country's companies have invested in cloud computing services. Official data shows that Saudi Arabia’s digital economy will contribute 14% to the country’s gross domestic product (GDP) in 2022, in line with expectations from the Organization for Economic Cooperation and Development (OECD) and the United Nations Conference on Trade and Development (UNCTAD).


Note: Chart of industry proportions investing in cloud computing services

The survey results show that48% of Saudi businesses and institutions currently invest in cloud computing services, including postal services, security software applications, file storage and database hosting and other services. Among them, information and communication institutions accounted for the largest proportion of investment, accounting for 68.3%, followed by educational institutions (66.9%) and professional, scientific and technical institutions (59.5%).

In addition, about 20.3% of institutions in Saudi Arabia provide related services through the use of electronic applications. Among them, educational institutions accounted for 44.5%, accommodation and catering institutions accounted for 39.9%, followed by art and entertainment institutions, accounting for 31.9%.

GASTA data also shows that about 18.5% of institutions choose to order goods and services through "online shopping". Among them, information and communication institutions accounted for 40.1%, followed by professional and technological institutions and financial and insurance institutions, both accounting for 35.7%.

At the same time, GASTAT also counts the proportion of institutions using networked devices or systems. Data shows that 60.1% of institutions use networked devices or systems including smart alarm systems, smart meters, smart lights and surveillance cameras. Among them, health and social work institutions have the largest number of users, accounting for 67.4%, followed by financial, insurance and educational institutions, both accounting for 65.2%.

In recent years, many countries in the Middle East have continuously introduced relevant policies and measures to encourage and support the development of the digital economy. UBS previously released a report stating that by 2030, the proportion of the digital economy in the GDP of Middle East countries will increase from 4.1% in 2022 to 13.4%. Among them, software, Internet and data centers will be the areas where investment is most concentrated.

Saudi Arabia also proposed a "National Transformation Plan" in the "Vision 2030" to support digital entrepreneurship, invest in digital technology, and carry out digital education and training. At present, 97% of Saudi government services (about 6,000 services) have been implemented electronically.