How Investment in IT and Tech Can Improve Saudi Arabia’s Economy
Last Updated on November 8, 2023 by Ameer Hamza
Undoubtedly, Saudi Arabia’s economy is one of the most developed economies in the world. However, even the most developed economies desire growth and progress. Investing in information technology (IT) is one way to bring about the desired growth. The Saudi Vision 2030 captures the kingdom’s key economic goals for Saudi Arabia. By 2030, Saudi Arabia aims to reduce its dependence on oil and diversify its economy. An additional goal is to develop public service sectors such as health, recreation, tourism, and education.
How can investment in Tech help Saudi Arabia achieve its Vision 2030?
In furtherance of its commitment to technological growth, the Saudi Arabian government announced in 2021 its investment in technological programs totalling over $1.2 billion. The investment aims to improve the digital skills of 100,000 Saudi youths by 2030. This is by focusing on cybersecurity, programming, AI and gaming. With this development, Saudi Arabia positions itself as a leader in digital transformation among other developed countries. Here is how investments in IT can improve Saudi’s economy.
The development of sophisticated digital infrastructures attracts investors and enhances the fundamental competitiveness of the Saudi economy. The government of Saudi Arabia aims to collaborate with private bodies to develop its information technology structure. This, in turn, will attract increased investors and propel the investment, development and growth cycle.
Investments in emerging technologies
Like its neighbouring Gulf countries, Saudi Arabia is racing to reduce its dependence on crude oil. To ensure this, the government launched investments worth $6.4 billion into future technologies. The announcement made in early 2022 saw the joint efforts of the government and several other wealthy groups to achieve this goal. For the kingdom’s digital market to be around $40 billion, which is the largest in the MENA region, there is vast space for emerging technologies to thrive.
Collaborations with other technologically driven economies:
Countries such as the US and the UK are technologically advanced economies that still seek the growth of their economies through IT. The ongoing cooperation between the US and Saudi Arabia in cybersecurity and emerging technologies will contribute to the kingdom’s economic growth. Investments from and collaborations with other technology-driven Gulf countries can also improve Saudi Arabia’s economy.
Development of start-ups:
Following the kingdom’s hosting of the big tech event LEAP, Saudi Arabia has offered the platform for the best business ideas from worldwide to leap. With this premise, the government launched an initiative known as ‘The Garage’. This aims to host start-ups specialized in new technologies. The government also invested $1.4 billion in entrepreneurship and allocated funds to support digital content, including The Garage.
All of these are ways in which Saudi Arabia is making use of tech to develop its economy. Technology is already changing the world. Every nation is beginning to grasp that investing in technology is a sure method to improve any economy. According to the Saudi Vision 2030, “In technology, we will increase our investments in, and lead, the digital economy”.
Technology is the future of any economy that aims to achieve economic growth, and the Saudi Arabian kingdom understands this. Little wonder it has set structures to ensure it eventually leads the world’s digital economy.