27 Nov 2019

Government ICT Spending to See Strong Growth in Saudi Arabia as Kingdom Pursues Robust Digital Transformation Agenda

Riyadh – Government organizations 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 compound annual growth rate (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 Program (NTP), much of the government's ICT spending focus will be directed towards digital transformation (DX) 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 fulfill 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."

IDC's upcoming Saudi Arabia Government Congress 2019 will explore these strategies – and the challenges they've been designed to overcome – in great detail when it convenes on Tuesday, December 10 during at the Crowne Plaza Riyadh RDC Hotel & Convention. Combining informative panel discussions, robust case studies, and essential insights from influential industry thought leaders, the event – hosted in association with IDC Government Insights – will provide expert guidance on delivering effective citizen experiences through digital transformation.

IDC's partners for the Saudi Arabia Government Congress 2019 include Riverbed as Premier Partner; DETASAD, AEC, MIS, and OpenText as Platinum Partners; and ITB as Exhibit Partner.

For more information about the event, please visit www.idc.com/event/ksagov19.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC

IDC in the Middle East, Turkey, and Africa

For the Middle East, Turkey, and Africa region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc.com/mea. You can follow IDC MEA on Twitter at @IDCMEA.