Digital Economy Share Rises To 15.6% Of GDP In Saudi Arabia For 2023

The General Authority for Statistics (GASTAT) has disclosed that the digital economy's contribution to Saudi Arabia's GDP increased to 15.6% in 2023, a rise of 1.6% from the previous year. This information was highlighted in the 2023 Digital Economy Statistics Bulletin. The report also noted a significant growth in imports of information and communication technology (ICT) goods, which reached SAR54.9 billion, up from SAR45.8 billion in 2022, marking a 19.9% increase.

Operating revenues within the ICT sector amounted to approximately SAR236.4 billion in 2023, while operating expenses were recorded at SAR115.4 billion. Employee compensation within this sector reached SAR27.5 billion during the same period.

Exports and re-exports of ICT goods experienced a substantial rise of 76.1%, increasing from SAR6.7 billion to SAR11.8 billion over the past year. This growth underscores the expanding role of ICT goods in international trade for Saudi Arabia.

The survey conducted by GASTAT follows international guidelines set by the UN Conference on Trade and Development (UNCTAD). These standards ensure that Saudi Arabia's digital economy indicators are comparable on a global scale, as outlined in UNCTAD's Handbook on Measuring Digital Trade.

A significant portion of establishments, about 71.6%, connected to the internet utilised smart devices or systems linked to it. Among these technologies, smart alarm systems, meters, lighting, and surveillance cameras were notably prevalent.

The digital economy is structured into three levels: core, narrow, and broad. The core level includes activities producing ICT goods and services and contributed 2.6% to GDP. Establishments relying on digital inputs fall under the narrow level, contributing 2.3%. The broad level encompasses those enhancing products through digital inputs and accounted for 10.7% of GDP.

With inputs from SPA