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Saudi Arabia Ranks 4th Globally in Digital Services

The headquarters of the Digital Government Authority (Asharq Al-Awsat)
The headquarters of the Digital Government Authority (Asharq Al-Awsat)
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Saudi Arabia Ranks 4th Globally in Digital Services

The headquarters of the Digital Government Authority (Asharq Al-Awsat)
The headquarters of the Digital Government Authority (Asharq Al-Awsat)

Saudi Arabia has excelled in the United Nations E-Government Development Index (EGDI) and its related sub-indices, rising 25 positions in 2024 to join the ranks of leading nations globally.

The Kingdom now ranks fourth worldwide, first regionally, and second among G20 countries in the Digital Services Index. It also secured sixth place in the overall E-Government Development Index, seventh in the E-Participation Index, while Riyadh placed third in the Local E-Services Index, behind Tallinn and Madrid, out of 193 cities globally.

This achievement reflects the government’s extensive efforts and digital reforms under the Vision 2030 initiative, particularly through its Digital Transformation Program and various e-government projects. The private sector also contributed to this progress, as enhanced digital services and infrastructure boosted investor confidence and encouraged investment.

Saudi Arabia’s rise of 25 places marks the first time a Middle Eastern country has entered the global top 10 in the E-Government Index. In 2022, the Kingdom had already advanced 12 places, supported by e-government initiatives. Now, Saudi Arabia, South Korea, and Singapore are the only Asian countries in the top 10.

Additionally, the Kingdom ranked second globally in digital government services among G20 nations, first in the Middle East, and second in Asia. It also made substantial leaps in other areas, climbing 53 spots in the Telecommunications Infrastructure Index and 31 in the Human Capital Index.

The United Nations highlighted Saudi Arabia’s remarkable progress in the E-Services Index, where it jumped 67 places to rank fourth globally. Government digital regulations and the availability of open government data both reached 100%, while the Kingdom advanced 60 places in e-participation and consultations with citizens and businesses.

The Saudi Minister of Communications and Information Technology, Abdullah Al-Swaha, expressed his gratitude to King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman for their unwavering support of the digital sector and government transformation efforts. He credited this backing for Saudi Arabia's historic rise in global digital rankings, reflecting the goals of Vision 2030 and strengthening the country's role as a leader in the regional and global digital economy.

Governor of the Digital Government Authority Ahmed Al-Suwayan highlighted that the Kingdom’s progress in the UN E-Government Development Index is a direct result of leadership support. He emphasized that reforms and investments under Vision 2030 have enhanced cooperation between government entities, leading to the adoption of emerging technologies and the launch of key digital initiatives.

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Lebanon’s Economy in the Grip of War: From Int’l Support in 2006 to Financial Disaster in 2024

Smoke rises from the site of an Israeli airstrike targeting the southern village of Khiam. AFP
Smoke rises from the site of an Israeli airstrike targeting the southern village of Khiam. AFP
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Lebanon’s Economy in the Grip of War: From Int’l Support in 2006 to Financial Disaster in 2024

Smoke rises from the site of an Israeli airstrike targeting the southern village of Khiam. AFP
Smoke rises from the site of an Israeli airstrike targeting the southern village of Khiam. AFP

Lebanon has experienced several devastating wars throughout its modern history, which have left catastrophic impacts on its economy and social stability. One of the most notable was the July 2006 war between Israel and Hezbollah. Today, a similar conflict is unfolding between the two sides, but under vastly different economic and institutional circumstances.

During the 33-day war in 2006, Lebanon had a functioning president and government, and its economy was on a promising trajectory, with expected growth rates of 4 to 5 percent. Large-scale investments had helped the balance of payments generate a financial surplus, and the banking sector played a key role in bolstering confidence in Lebanon's economy. Additionally, the financial markets benefited from a surge in Gulf investments, driven by rising oil prices.

During that war, Arab countries, particularly in the Gulf, rushed to help. In 2006, Lebanon received a total of $1.174 billion in aid from friendly countries, international organizations, and Arab donors.

The Central Bank was able to intervene to protect the Lebanese lira and stabilize its exchange rate. Shortly after the war began, Lebanon's Central Bank received a $1.5 billion deposit from Kuwait and Saudi Arabia. International donor conferences, such as the August 2006 Stockholm Conference and Paris III in January 2007, generated significant support from the international community, alleviating the pressure on Lebanon’s public finances. The Paris III conference provided Lebanon with $7.6 billion in grants and soft loans, aimed at revitalizing the private sector after the war and implementing the economic reform plan set by the Lebanese government.

Today, however, Lebanon faces unprecedented economic challenges as it enters the 2024 war. The country is grappling with a severe financial crisis. The Lebanese lira has collapsed, losing more than 90% of its purchasing power, while inflation has skyrocketed. Crucially, Beirut now lacks the international and Arab financial support it once had. The Central Bank's reserves have dwindled significantly, the banking sector has suffered losses exceeding $70 billion, and the GDP has contracted by 50%, leaving 80% of the population living below the poverty line.

Since the beginning of the conflict on Oct. 7, fear has gripped the country’s tourism and services sectors, which were preparing to welcome expatriates. The number of arrivals at the airport has dropped by 33%, while departures have risen by 28%. According to the International Organization for Migration, around 29,000 people have been displaced from South Lebanon.

As the war enters its second month, S&P Global predicted that the decline in tourism could result in a loss of up to 23% of Lebanon's GDP. The World Bank also projected that the economy would slip back into recession, after initially forecasting slight growth of 0.2% for this year. In December, the United Nations Development Programme warned that the country could lose between 2% and 4% of its GDP due to the conflict. The private sector’s economy has been negatively impacted, with the Purchasing Managers' Index (PMI) dropping to 49.1. In October 2023, real estate transactions saw a 60% decline compared to the previous year.

In June, BMI Research, part of Fitch Ratings, revised Lebanon’s economic contraction forecast to around 1.5%, citing a significant drop in tourism revenue compared to the 2006 war, where losses were estimated at around $3 billion. According to the Arab Monetary Fund, every 1% increase in tourism revenues contributes to a 0.36% rise in GDP, meaning that Lebanon, whose GDP currently stands at just $20 billion, is losing a critical opportunity to boost its economy.

Recent data from August indicated that the war has prevented farmers from cultivating 17 million square meters of agricultural land. The industrial sector is also expected to see a contraction exceeding 50%, resulting in losses estimated at around $2 billion. Furthermore, disruptions at the ports will exacerbate the living crisis, leading to additional losses estimated at $1.5 billion.

Although there are no precise data on the devastating losses from the ongoing conflict, it is certain that the true cost far exceeds current estimates. The complete paralysis of essential economic sectors threatens the collapse of Lebanon’s infrastructure and is pushing the economy toward the brink. Preliminary estimates suggest that the losses have already surpassed $10 billion, an amount that represents more than half of Lebanon’s total GDP.