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Saudi Arabia Sets Digital Innovation Benchmark, Says DGA Chief

Governor of Saudi Arabia’s Digital Government Authority (DGA) Ahmed Alsuwaiyan
Governor of Saudi Arabia’s Digital Government Authority (DGA) Ahmed Alsuwaiyan
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Saudi Arabia Sets Digital Innovation Benchmark, Says DGA Chief

Governor of Saudi Arabia’s Digital Government Authority (DGA) Ahmed Alsuwaiyan
Governor of Saudi Arabia’s Digital Government Authority (DGA) Ahmed Alsuwaiyan

Saudi Arabia is leading the way in digital technology for citizens, residents, visitors, and businesses, according to Ahmed Alsuwaiyan, Governor of the Kingdom’s Digital Government Authority (DGA).
The Kingdom has made major advances in sectors like health, municipalities, and education, affirmed Alsuwaiyan.
Speaking to Asharq Al-Awsat, Alsuwaiyan noted that Saudi Arabia is now among the top 10 countries globally for digital government.
It ranks sixth in the Global E-Government Development Index, reflecting the government's dedication to becoming a top digital state and improving service efficiency.
Alsuwaiyan reminded that Saudi Arabia is fourth worldwide, first in the region, and second in Asia in the United Nations e-Government Development Index and related measures.
Moreover, Saudi Arabia has achieved significant success in digital government, ranking second globally for digital services among G20 countries and seventh in the e-Participation Index.
The Kingdom surged 25 places in the 2024 UN e-Government Development Index, joining the top 10 worldwide and becoming the first Middle Eastern country to do so.
Saudi Arabia’s national transformation plan, “Vision 2030,” has driven this progress, boosting the Kingdom from 52nd place in 2018 to sixth this year.
Saudi Arabia also rose 32 spots in the Human Capital Index, now leading globally in digital government skills.
Riyadh is third worldwide in the UN e-Government Development Index, following Tallinn and Madrid, and ranks first in the G20 region. The city excels in regulatory frameworks and providing key public service information.
Alsuwaiyan credited these achievements to a focus on creating impact through technology and effective public-private partnerships.
Efforts to improve infrastructure and foster a supportive investment environment have also contributed to Saudi Arabia's leading role in digital government practices.

 

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.