EMPOWERING THE INTERNET GENERATION
ome of the most visible trends in 2019 include the emphasis on digitalization and the increased attention on business-supporting technologies. Whether that is the growth of data centers offering cloud services, companies offering cybersecurity technologies, IoT solutions for public transportations, or new payment systems, demand for IT is on the rise. This follows a global trend, but it is clear that Saudi Arabia aims to take a lead and attract more investments into the sector.
One of the public-private collaborations on investing in technology is the Vision Fund, led by SoftBank and the PIF and with currently USD100 billion committed. In line with Vision 2030, the fund, the largest of its kind, aims to place its investments toward building a digital society. That means redefining engagement and empowerment in healthcare, education, and other industries for the prosperity of the Kingdom.
That also includes strong efforts to built a digital government, and with the launch of GovX by Yesser in April 2019, the government aims to take a global lead in the debate on digital governance. The entity aims to coordinate all efforts under the Ministry of Communications & IT to strive for better interactions between the government and citizens. Already, it is possible to get both a trade license and a passport within 24 hours.
Another entity with a key role in the coun
Stry's digital transformation is the National Digital Transformation Unit, which is developing industry-specific roadmaps and outlining how the transition can take place.
Saudi Arabia is ranked among the top-10 fastest growing nations in e-commerce, at an annual rate of 35%, exceeding a USD7.5 billion GDP contribution and projected to surpass USD10 billion in 2020. In investments in AI, big data, 5G and cloud alone another USD10 billion is set to be allocated in the coming year to boost the digital economy. In 1Q2020, the Kingdom aims to have 1,000 sites up and running with 5G, making it the largest commercial launch of the next generation network in the MENA region.
Cloud adoption rate stands at 7.5% per annum, and with the launch of a public cloud and adjustments in the country’s data sovereignty laws, this figure is set to increase. Already, global providers are entering the market, while SBM is leading the way as a local firm with strong data center capacity.
Lastly, the start-up scene is developing and thriving, with better access to funding, mentorship and talent. One example of a successful start-up is Foodics, a cloud-bases POS restaurant ordering system that has already been exported to 17 countries. With a range of incubators and university-linked funding organizations on the horizon, this is a space to watch in Saudi Arabia. ✖