Digital Government Authority Reports Significant Growth In New Government Contracts To SAR 38 Billion For 2024

The Digital Government Authority has unveiled its 2024 report on government spending in the information and communications technology (ICT) sector. New government contracts have reached around SAR38 billion, showing an 18.75% rise from 2023. This increase highlights the Kingdom's leadership focus on ICT as a crucial driver of the national economy.

Government spending has notably increased in areas like artificial intelligence, emerging technologies, and cloud computing. These investments align with Saudi Vision 2030's goals, aiming to boost productivity and enhance digital services. The report also indicates a commitment to fiscal discipline and efficient resource allocation.

In 2024, government entities saved approximately SAR1 billion by improving spending efficiency and better managing budgets and procurement processes. This reflects the digital government's dedication to supporting digital transformation initiatives through careful financial management.

The report highlights a significant rise in purchase orders under framework agreements, which surged by 157%, reaching SAR4.47 billion through 9,457 orders. This growth underscores the Kingdom's strategic focus on enhancing procurement processes across various sectors.

Contract values increased across several sectors in 2024, particularly in health and social development, military, infrastructure and transport, public administration, and education. Notable growth was seen in both security and administrative regions as well as national development sectors.

According to Gartner, Saudi Arabia leads globally in government ICT spending as a percentage of total ICT expenditure at 34.1%. This positions the Kingdom ahead of many leading nations, further solidifying its global standing in digital transformation efforts.

Regional Leadership in Digital Services

Saudi Arabia achieved first place regionally in the 2024 Government Electronic and Mobile Services Maturity Index. It also advanced 25 places in the United Nations E-Government Development Index for 2024. Additionally, it ranked fourth globally and second among G20 countries in the Digital Services Index.

The Kingdom's advancements reflect its commitment to enhancing user experience and improving government efficiency through digital services. These achievements demonstrate Saudi Arabia's leadership role in regional digital transformation efforts.

The Kingdom's strategic investments have strengthened its position globally while supporting national economic goals. By prioritising ICT development, Saudi Arabia continues to drive forward its vision for a digitally advanced future.

With inputs from SPA