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Saudi Arabia to Sustain Growth by Approving Digital Economy Policy

Saudi Arabia to speed up growth of economic digitization, technology adoption and digital entrepreneurship.
Saudi Arabia to speed up growth of economic digitization, technology adoption and digital entrepreneurship.
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Saudi Arabia to Sustain Growth by Approving Digital Economy Policy

Saudi Arabia to speed up growth of economic digitization, technology adoption and digital entrepreneurship.
Saudi Arabia to speed up growth of economic digitization, technology adoption and digital entrepreneurship.

Saudi Arabia seeks speeding up the growth of economic digitization, technology adoption and digital entrepreneurship after the cabinet approved the digital economy policy earlier this week.

The policy is based on seven main principles, namely access (digital infrastructure, data and digital platforms), technologies, innovation, human capital, social prosperity and inclusiveness, confidence in the digital environment and market openness.

It comes as an extension of the Kingdom’s efforts during its presidency of the G20 in 2020 to overcome obstacles and address the challenges facing the greater inclusion of the private sector in the digital economy.

The policy targets supporting the development of the digital economy, creating competitive advantages for the Kingdom, achieving diversified and sustainable economic growth, and global leadership in promising sectors, as well as highlighting the country's international trends in digital economy-related issues.

According to specialists, the cabinet’s decision will speed up the pace of digitization in the Saudi economy.

Saudi Arabia is ranked the first in the world in the speed of the fifth generation (5G) mobile internet. It was also ranked seventh in world in the growth rate of innovative companies, according to the recent Global Competitiveness Report issued by the World Economic Forum.

It is among the 10 fastest growing countries in e-commerce, according to the United Nations Conference on Trade and Development (UNCTAD) Index.

Economist Dr. Loay al-Tayyar explained that the government decision pushes Saudi Arabia to top the countries investing in the digital economy.

The value of the global digital economy is expected to amount to more than $12 trillion, equivalent to about 20 percent of the global GDP, he explained to Asharq Al-Awsat.

He said the approval of the digital economy policy comes in line with these rapid global transformations.

The digital economy would open new investment opportunities and create great job opportunities, in addition to attracting foreigners to the Saudi market, he noted.

Moreover, he stated that digital economy has become a major component of the global economy in light of the coronavirus pandemic.

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French MP: We Look Forward to Sustainable Cooperation with Saudi Arabia under Vision 2030

French MP Amélia Lakrafi. (Asharq Al-Awsat)
French MP Amélia Lakrafi. (Asharq Al-Awsat)
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French MP: We Look Forward to Sustainable Cooperation with Saudi Arabia under Vision 2030

French MP Amélia Lakrafi. (Asharq Al-Awsat)
French MP Amélia Lakrafi. (Asharq Al-Awsat)

As Saudi Arabia undergoes economic and social changes under its Vision 2030, attention is turning to strengthening strategic partnerships with France in areas such as innovation, technology and cybersecurity.

Amélia Lakrafi, a French member of parliament and representative for French nationals abroad, stressed the importance of Vision 2030 as a platform for long-term cooperation between the two nations.

Vision 2030 presents unique opportunities to boost economic ties between France and Saudi Arabia, she stressed.

She emphasized the need to support innovation and technology as key areas of collaboration.

To advance this partnership, she suggested empowering French-Saudi business councils and holding regular meetings for companies and experts to discuss legal and tax issues, such as setting up companies without a local partner.

She also proposed creating a unified platform to streamline information access for businesses and coordinate with entities like embassies and the “Business France” agency.

France should highlight the investment opportunities it offers to Saudi investors, ensuring quick and clear solutions to legal and procedural challenges, Lakrafi went on to say.

Innovation and AI

Innovation and technology are vital for future cooperation. Lakrafi noted that artificial intelligence (AI) and renewable energy are key areas for collaboration.

She explained that AI is a strategic priority for both France and Saudi Arabia, and French President Emmanuel Macron’s recent visit to Riyadh highlighted its potential.

Paris will host a global AI event in February, with Saudi Arabia as a partner guest, said the MP.

The event will help strengthen partnerships between institutions and businesses from both countries. She proposed creating competitive hubs in Saudi Arabia, similar to those in France, to bring together large companies, startups and researchers.

Boosting capital

Lakrafi stressed the importance of intangible capital, which includes branding, reputation and internal processes, for improving competitiveness.

“Intangible capital represents about 60% of a company's value,” she said. “Companies should invest in securing these assets, through trademark registration, enhanced cybersecurity, or better internal management.”

She called for the development of tools to measure intangible capital, which could help businesses build trust and attract investors and customers.

Cybersecurity

Given the rise in global cyber threats, Lakrafi called for stronger cooperation between France and Saudi Arabia in cybersecurity.

She underscored France’s expertise through institutions like the National Agency for the Security of Information Systems.

This collaboration could help Saudi Arabia develop shared cybersecurity standards, including rules to secure companies receiving government funding. She also warned that 80% of companies hit by major cyberattacks close within three years.

Lakrafi concluded by stressing that the cooperation between France and Saudi Arabia extends beyond economic ties, focusing on building cultural and social connections that support shared goals.

“Our relationship with Saudi Arabia goes beyond economics. We are building new links every day, whether between leaders, lawmakers, or citizens. I see a bright future for this partnership that will strengthen both countries’ global standing,” she remarked.