5G In Saudi Arabia
Last Updated on November 9, 2023 by newseditor
As a new technological standard, 5G offers many advantages over its predecessors. For one, estimates put 5G’s impact on Saudi Arabia’s GDP at more than $15 billion by 2030, up from $1.4 billion in 2021. In addition to facilitating progress in gas and oil, logistics, and services—three of Saudi Arabia’s most lucrative sectors—5G has the potential to spur innovation via the Internet of Things (IoT) in the country’s smart cities. The Kingdom is well-known as an early adopter of 5G technology, not just in the Gulf region (where it competes favorably with the UAE and Qatar) but also worldwide.
The Future Of 5G In Saudi Arabia
5G offers important advancements and breakthroughs for Saudi Arabia’s various sectors and industries. Some of these include:
Roughly 20% of Saudi Arabia’s GDP comes from the public sector; 5G can help improve both the quality of services and efficiency provided by this sector. IHS estimates that 5G will enable up to 6.5% of public services worldwide because of the need for much more powerful networks to make e-government services accessible to large numbers of people. Therefore, 5G will help the Kingdom of Saudi Arabia reach its Vision 2030 objective.
The expansion of 5G networks is a huge benefit to cloud computing, which improves business operations by facilitating the rapid and secure transfer of large amounts of data, thereby fostering a more collaborative and productive work environment. The cloud enables businesses to concentrate on strategic operations while decreasing expenses and expanding capacity. The Kingdom has made it a priority to move its government and private sector operations to the cloud in 2019 with the introduction of its Cloud First Policy. As companies like Saudi Aramco move their operations to the cloud, the country’s cloud market is expected to grow by 35% at a compound annual growth rate between 2021 and 2030.
The Saudi government is eager to improve urban life through a variety of smart city initiatives, most notably the purpose-built Neom, and hopes to capitalize on the capabilities of 5G efforts to do so. A remote 26,500 square kilometer area along the Red Sea coast is targeted for development as part of the $500 billion megacity project, which aims to create Saudi Arabia’s own Silicon Valley. As 5G enables massive IoT deployments for increased productivity and efficiency in key sectors like transportation, utilities, healthcare, and other crucial public services sectors, it will become an indispensable component of the functioning of these cities and the delivery of public services across the country.
The Saudi government’s extensive spending on 5G and the country’s digital economy is starting to bear fruit. CITC forecasts that by 2030, the country’s GDP will have benefited from 5G and Wi-Fi 6E by more than $18 billion, up from $4.7 billion in 2021. The potential for 5G in Saudi Arabia to revolutionize the IT industry is difficult to overstate. It will serve as the catalyst for the widespread adoption of cutting-edge innovations such as the internet of things, cloud computing, edge computing, and AI.