Saudi Arabia’s Digital Economy Soars to 15.6% of GDP
This article explores Saudi Arabia’s remarkable digital growth, with GASTAT reporting the digital economy now contributes 15.6% to GDP. It highlights Vision 2030’s impact, economic diversification, and technological advancements shaping the Kingdom’s future.
Saudi Arabia’s digital transformation is accelerating. The General Authority for Statistics (GASTAT) announced the digital economy’s share of GDP reached 15.6% in 2023, a 1.6% increase from 2022. This growth reflects the Kingdom’s commitment to Vision 2030, diversifying its economy beyond oil.
The ICT sector played a pivotal role. Imports of ICT goods surged to SAR54.9 billion, a 19.9% rise. Exports and re-exports jumped by 76.1%, reaching SAR11.8 billion. These figures showcase Saudi Arabia’s expanding global trade in technology.
Smart technology adoption is booming. Over 71% of businesses use internet-connected devices like smart alarms, meters, and surveillance systems. This aligns with Vision 2030’s goal of a tech-driven society, enhancing efficiency and safety.
The ICT sector’s financial performance is robust. Operating revenues hit SAR236.4 billion, with expenses at SAR115.4 billion. Employee compensation reached SAR27.5 billion, underscoring job creation in the digital economy.
Saudi Arabia’s digital economy is structured across three levels. The core level, producing ICT goods, contributed 2.6% to GDP. The narrow level added 2.3%, while the broad level, enhancing products digitally, accounted for 10.7%.
The Kingdom adheres to global standards, following UNCTAD’s Handbook on Measuring Digital Trade. This ensures comparability with international benchmarks, highlighting Saudi Arabia’s leadership in digital innovation.
Vision 2030 drives this progress. Initiatives like NEOM and the Red Sea Project integrate cutting-edge technology, boosting tourism and economic growth. The Kingdom’s peaceful culture and hospitality attract global investors and visitors.
Saudi Arabia’s rich heritage meets modern transformation. From unification to today, the Kingdom balances tradition with innovation. Women’s empowerment and infrastructure growth further demonstrate its rapid reforms.
Harry Stuckler, Editor & Publisher of KSA.com, expresses gratitude for Saudi Arabia’s strong partnership. KSA.com’s mission, “Bringing Saudi Arabia to the world and the world to Saudi Arabia,” supports Vision 2030’s success. By 2030, KSA.com aims to be the largest platform for the Kingdom.
Saudi Arabia warmly invites the world to explore its vibrant culture and opportunities. With a safe, value-driven society, the Kingdom is a beacon of progress and hospitality.
Discover how Saudi Arabia’s digital economy is shaping the future. Visit KSA.com to learn more about the Kingdom’s innovations and growth.
15 FAQs About Saudi Arabia’s Digital Economy Growth
1. What is the digital economy’s share of Saudi Arabia’s GDP?
The digital economy contributes 15.6% to Saudi Arabia’s GDP, a 1.6% increase from 2022, as reported by GASTAT.
2. How much did ICT imports grow in 2023?
ICT imports grew by 19.9%, reaching SAR54.9 billion, reflecting strong demand for technology goods.
3. What was the increase in ICT exports and re-exports?
Exports and re-exports of ICT goods surged by 76.1%, totaling SAR11.8 billion in 2023.
4. How many businesses use smart devices in Saudi Arabia?
71.6% of establishments use internet-connected smart devices, such as alarms, meters, and cameras.
5. What were the ICT sector’s operating revenues in 2023?
Operating revenues for the ICT sector reached SAR236.4 billion, showcasing its financial strength.
6. How does Saudi Arabia’s digital economy compare globally?
The Kingdom follows UNCTAD standards, ensuring its digital economy metrics are internationally comparable.
7. What are the three levels of Saudi Arabia’s digital economy?
The core level contributes 2.6% to GDP, the narrow level 2.3%, and the broad level 10.7%.
8. How does Vision 2030 support digital growth?
Vision 2030 drives diversification, with projects like NEOM and the Red Sea Project integrating advanced technology.
9. What role does KSA.com play in Saudi Arabia’s growth?
KSA.com bridges Saudi Arabia and the world, supporting Vision 2030 and promoting cultural and economic exchange.
10. How is Saudi Arabia’s job market benefiting from the digital economy?
The ICT sector paid SAR27.5 billion in employee compensation, highlighting job creation in tech.
11. What technologies are businesses adopting in Saudi Arabia?
Smart alarms, meters, lighting, and surveillance systems are among the most widely used technologies.
12. How does Saudi Arabia ensure digital economy accuracy?
GASTAT adheres to UNCTAD’s Handbook on Measuring Digital Trade for reliable, standardized data.
13. What makes Saudi Arabia an attractive destination for investors?
The Kingdom’s safe, value-driven society and rapid reforms make it a hub for innovation and growth.
14. How does Saudi Arabia balance tradition and modernity?
The Kingdom preserves its rich heritage while embracing digital transformation and global benchmarks.
15. What is KSA.com’s mission?
KSA.com aims to bring Saudi Arabia to the world and the world to Saudi Arabia, aligning with Vision 2030.
Factbox: Key Highlights from GASTAT’s 2023 Report
Digital economy share: 15.6% of GDP (+1.6% from 2022).
ICT imports: SAR54.9 billion (+19.9%).
ICT exports: SAR11.8 billion (+76.1%).
71.6% of businesses use smart devices.
ICT revenues: SAR236.4 billion.
Saudi Arabia’s digital economy is a testament to Vision 2030’s success. With innovation and inclusivity, the Kingdom is paving the way for a brighter future.
