Saudi Arabia's digital economy has experienced significant growth, contributing 14% to the Kingdom's gross domestic product (GDP) according to a first-of-its-kind survey conducted by the General Authority for Statistics (GASTAT). This groundbreaking study, conducted in 2023 and encompassing the previous 12 months, sheds light on the specific areas driving this digital boom.
The GASTAT survey aligns with recommendations from international organizations like the Organisation for Economic Co-operation and Development (OECD) and the United Nations Conference on Trade and Development (UNCTAD), highlighting the growing importance of the digital sector in national economies.
The survey delves deeper, revealing that nearly half of all establishments in Saudi Arabia (48%) have invested in cloud computing services. These services encompass a wide range of offerings, including data storage, security software applications, file hosting, and postal services.
Interestingly, the survey also identified the sectors leading the charge in cloud adoption. Information and communication activities emerged as the frontrunners, with a staggering 68.3% of institutions in this sector utilizing cloud services. The education sector followed closely behind with 66.9% adoption, while professional, scientific, and technical activities saw a 59.5% uptake of cloud services.
These findings paint a picture of a dynamic and evolving digital landscape in Saudi Arabia. The significant contribution of the digital economy to GDP underscores the Kingdom's commitment to digital transformation and its efforts to diversify its economy beyond its traditional reliance on oil.
Furthermore, the widespread adoption of cloud computing across various sectors indicates a growing recognition of the benefits associated with scalability, cost-efficiency, and improved data security. This trend suggests that the digital transformation journey in Saudi Arabia is likely to continue gaining momentum in the years to come.
The GASTAT survey serves as a valuable resource for policymakers, businesses, and individuals alike, providing insights into the current state and future prospects of the Saudi digital economy. As the digital landscape continues to evolve, this information will be crucial for navigating the opportunities and challenges that lie ahead.