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Saudi Vision Drives Digital Transformation, Boosts Knowledge Economy Progress

Digital City in Riyadh, Saudi Arabia (Asharq Al-Awsat)
Digital City in Riyadh, Saudi Arabia (Asharq Al-Awsat)
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Saudi Vision Drives Digital Transformation, Boosts Knowledge Economy Progress

Digital City in Riyadh, Saudi Arabia (Asharq Al-Awsat)
Digital City in Riyadh, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia has cemented its position as one of the world’s leading emerging digital economies, driven by an ambitious strategic vision under its “Vision 2030” plan, which places digital transformation at the heart of sweeping economic and social reforms.

The Kingdom’s push has been underpinned by major investments in telecommunications and information technology infrastructure, helping to build the region’s largest and fastest-growing tech market.

The Saudi digital economy is now valued at 495 billion riyals ($132 billion), accounting for 15% of the Kingdom’s GDP, according to the 2024 Vision 2030 progress report, which highlighted significant growth in the country’s digital business environment, supported by modern regulations and legislation that boosted government efficiency and strengthened the appeal of the local market.

The launch of the Absher platform marked the first major milestone in Saudi Arabia’s digital shift, serving as a springboard for broader e-government services. It was followed by advanced platforms such as Tawakkalna and Nafath, which revolutionized the relationship between the state and its citizens through automated, high-efficiency services.

To drive its digital ambitions, the Kingdom established the Digital Government Authority and the Saudi Data and Artificial Intelligence Authority (SDAIA) to coordinate digitalization efforts and harness big data.

These moves accelerated the digital transformation and bolstered Saudi Arabia’s standing in global rankings.

The Kingdom climbed to sixth place globally in the United Nations E-Government Development Index for 2024, surpassing its timeline target and moving closer to its goal of ranking fifth by 2030. It also ranked first regionally, second among G20 countries, and fourth worldwide in the Digital Services Index.

Saudi Arabia continued to strengthen its global digital leadership in 2024, topping several international benchmarks, including first place worldwide in open government data and digital government skills, and seventh in the e-participation index, reflecting the maturity and integration of its digital ecosystem.

The Kingdom’s telecommunications and technology market is expanding rapidly, reaching 180 billion riyals ($48 billion) in 2024. Female participation in the tech sector surged from 7% in 2017 to 35% in 2024, while more than 381,000 specialized tech jobs have been created.

Saudi Arabia maintained its position as the world’s second-highest ranked country in the ICT Development Index for the second consecutive year. Internet penetration reached 99%, and over 3.9 million homes are now connected to fiber-optic networks.

In cybersecurity, the Kingdom secured first place globally in the 2024 Global Competitiveness Report’s cybersecurity index. Key initiatives included the launch of the national “Haseen” portal and the establishment of the National Cybersecurity Academy to secure the digital environment and bolster trust in electronic services.

Saudi Arabia’s cybersecurity market is estimated at 13.3 billion riyals ($3.5 billion), with private sector spending accounting for 69% and government spending for 31%. The sector employs more than 19,600 professionals across 355 companies offering advanced cybersecurity solutions.

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Business

UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
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UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)

Britain's economic ‌growth prospects this year received the sharpest downgrade of any major economy in the OECD's interim forecast update on Thursday following the US-Israeli war ​on Iran, while inflation is set to rise faster too.

The Paris-based international body cut its 2026 forecast for British economic growth by half a percentage point to 0.7%, compared with a 0.4 percentage point downgrade for the euro zone and a 0.3 percentage point upgrade for the United States.

"Planned fiscal tightening and higher energy prices ‌are anticipated to keep ‌growth subdued in the United ​Kingdom, ‌though the ⁠impact ​will be ⁠attenuated by lower policy rates next year," Reuters quoted the OECD as saying in its report.

Following are further highlights from the report and other context:

Britain's growth forecast for 2027 is unchanged at 1.3%.

Britain's inflation forecast for 2026 is revised up by 1.5 percentage points from December to 4.0%, the ⁠biggest upward revision of any large, advanced ‌economy.

UK inflation in 2027 ‌is forecast to be 2.6%, 0.5 percentage ​points higher than in ‌December and above the Bank of England's 2% target.

Poorer UK households spend more on gas and electricity than in other rich countries, though total energy spending makes up a smaller share of UK inflation than elsewhere.

The OECD expects the ‌BoE to keep interest rates unchanged this year then cut in Q1 2027 as inflation ⁠eases.

⁠Britain's Office for Budget Responsibility, in forecasts finalized just before the start of the conflict, predicted GDP growth of 1.1% this year and 1.6% in 2027.

The BoE this month forecast inflation would rise to 3.0-3.5% over the next couple of quarters.

Prime Minister Keir Starmer has made boosting growth and reducing the cost of living top goals for his government.

Finance minister Rachel Reeves said the forecasts showed the war in the Middle East ​was affecting Britain but ​she would still focus on "regional growth, embracing AI and innovation, and establishing a closer relationship with the EU."

Business

Gold Drops More than 1% as Markets Assess Mideast Ceasefire Prospects

FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
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Gold Drops More than 1% as Markets Assess Mideast Ceasefire Prospects

FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa

Gold prices fell on Thursday, weighed down by increased expectations of US Federal Reserve rate hikes this year as elevated oil prices stoked inflation worries, with investors awaiting clarity on Middle East de-escalation efforts.

Spot gold fell 1.2% to $4,451.47 per ounce by 0811 GMT. US gold futures for April delivery lost 2.3% to $4,448.

"You're ‌seeing an ‌acceleration of the idea that... this war will ‌mean ⁠inflation and inflation ⁠will mean a response from central banks, which will mean higher interest rates," said Ilya Spivak, head of global macro at Tastylive.

Brent crude futures climbed back above $100 a barrel on concerns that protracted fighting in the Middle East will further disrupt energy flows.

Higher crude prices tend to fuel inflation, and while rising inflation typically boosts gold's appeal ⁠as a hedge, high interest rates weigh on ‌demand for the non-yielding asset.

Markets see ‌a 37% chance of a US rate hike by December this year ‌with almost no chance of a cut now, according to ‌CME Group's FedWatch Tool. Before the conflict, markets were expecting at least two rate cuts.

US President Donald Trump said Iran was desperate to make a deal to end nearly four weeks of fighting, contradicting the Iranian foreign ‌minister who said his country was reviewing a US proposal but had no intention of holding talks ⁠to wind down ⁠the conflict.

"In the next 24 to 48 hours, (gold prices) will just be about reacting to headlines about negotiations," said Kyle Rodda, a senior financial market analyst at Capital.com.

"The really big moves will happen probably at the start of next week when it becomes clearer whether the US launches a ground invasion in Iran over the weekend."

Trump has vowed to hit Iran harder if Tehran fails to accept that the country has been "defeated militarily", White House press secretary Karoline Leavitt said on Wednesday.

Spot silver fell 2.7% to $69.36 per ounce. Spot platinum was down 2.3% at $1,874.90, while palladium dropped 2.5% to $1,387.53.

Business

Oil Climbs and Equities Sink amid Mixed Messages on 'Talks'

FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo
FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo
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Oil Climbs and Equities Sink amid Mixed Messages on 'Talks'

FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo
FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo

Oil prices jumped and equities fell Thursday as investors tracked developments in the Middle East amid hopes that US and Iranian officials will bring an end to a conflict that has ramped up fears of an unprecedented global energy crisis.

Markets have been buoyed since late Monday after Donald Trump backed down on a threat to destroy Iran’s energy infrastructure and said the two sides were in peace talks.

But while crude prices are down from last week and the mood on trading floors has been better than most of March, uncertainty and the virtual closure of the Strait of Hormuz -- through which around 20 percent of oil and gas passes -- continue to cast a dark shadow.

Washington presented a 15-point plan to end the war, including Iran giving up its enriched uranium and opening up the waterway, while Tehran's state-run TV reported officials had put forward their own five conditions for hostilities to end.

Trump on Wednesday threatened to "unleash hell" if Iran did not strike a deal, but Foreign Minister Abbas Araghchi said his country does not intend to negotiate.

But the US president also said Iran was taking part in peace talks and the denials were because negotiators feared being killed by their own side.

"Pressure on energy prices, shipping flows and broader financial conditions remains one of the few meaningful sources of leverage (Iran) retains," said Saxo Markets' Charu Chanana.

"There is therefore little incentive to relinquish that leverage prematurely, particularly if market stress strengthens its negotiating position.

However, she added: "It would be imprudent to assume diplomacy is absent simply because it is not visible. In conflicts of this nature, public rhetoric and private negotiation often diverge materially.

"Markets understand this dynamic, and they also tend to inflect before the political endgame is formally in place."

With investors holding on to hope that a deal can be struck, oil prices have stabilized this week, with Brent just above $100 and WTI around $90.

Both contracts rallied Thursday.

Stocks in Wall Street and Europe rose but Asian markets struggled after a two-day rally.

Tokyo, Hong Kong, Shanghai, Seoul, Sydney, Taipei, Singapore, Manila, Bangkok and Jakarta fell along with London, Paris and Frankfurt.

City Index's Fiona Cincotta said for any recovery to gain traction, "investors will want to see clearer signs of de-escalation, including the reopening of the Strait of Hormuz".

Her remarks come after the head of the International Chamber of Commerce, John Denton, warned the conflict could cause the "worst industrial crisis" in decades.

"The head of the International Energy Agency has warned that the world is facing an energy crisis more severe than the oil shocks of the 1970s," he added.

"From a business perspective, we believe this could yet become the worst industrial crisis in living memory."

Meanwhile, the World Trade Organization said disruptions to fertilizer supplies posed a double threat to global food security through scarcity and high prices, with a third of the global fertilizer supply normally transiting the Strait of Hormuz.