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ICT Sector Could Contribute $53 Bln to Saudi GDP in 2022

The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)
The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)
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ICT Sector Could Contribute $53 Bln to Saudi GDP in 2022

The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)
The ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%. (Asharq Al-Awsat)

The information and communication technology (ICT) sector’s contribution to the Saudi GDP reached SAR 146.9 billion ($39 billion) during the past year, with predictions it could reach SAR 200 billion ($53 billion) in 2022, a recent report revealed.

Published by the Research and Information Center of the Chamber of Commerce and Industry in Riyadh, the report revealed that the ICT sector’s contribution to the Kingdom’s GDP in Q1 2021 reached 5.48%.

Moreover, the report shed light on the digital economy’s contribution to global GDP, which amounted to about 15.5%, including the most important investment opportunities provided by the sector in the fields of e-commerce, tourism, smart cities, education, human capital and innovation.

The report emphasized that Saudi Arabia has a strong digital infrastructure. It stressed that the Kingdom has accelerated its process of digital transformation, which contributed to facing crises that disrupt all services in the public and private sectors.

Infrastructure readiness also contributed to the continuity of business, education and all the requirements of the daily life of citizens and residents in light of the coronavirus pandemic, ranking the Kingdom among the top 10 developed countries in the world due to its robustness in digital infrastructure, the report added.

It said the Ministry of Communications and Information Technology aims to raise the digital economy’s contribution to the GDP in the coming years to more than 19 %, compared to 5.48 % in 2021.

Saudi Arabia has witnessed clear steps in the efforts to expand its economic base and keep pace with the qualitative transformations driven by digital acceleration around the world, added the report.

It made several recommendations to achieve the Kingdom's goals in the digital economy during the next stage.

Most notably, it recommended providing safer applications to protect customer data, paying attention to technical education in the field of networks and cybersecurity, as well as establishing electronic industries inside Saudi Arabia to keep pace with global technology, reduce import costs and create job opportunities.

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Saudi Arabia Provides $500 Million in Financial Support to Yemen

Saudi Arabia Provides $500 Million in Financial Support to Yemen
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Saudi Arabia Provides $500 Million in Financial Support to Yemen

Saudi Arabia Provides $500 Million in Financial Support to Yemen

The Kingdom of Saudi Arabia has given new economic support to Yemen, worth $500 million, to strengthen the Yemeni government's budget and bolster the Central Bank of Yemen.
The Saudi support package consists of a $300 million deposit in the Central Bank of Yemen, to improve the economic and financial situation, and $200 million to deal with the Yemeni budget deficit, out of a total pledge of $1.2 billion.
According to SPA, the funding, through the Saudi Development and Reconstruction Program for Yemen (SDRPY), aims to enhance food security, support salaries and wages, cover operating expenses, and help the government implement its economic reform program.
It also seeks to help set the basis for economic, financial, and monetary stability in the Republic of Yemen, strengthen this country’s public finances, enhance the capacity of government institutions, and improve governance and transparency. It also aims to empower the private sector to drive sustainable economic growth and create job opportunities, ultimately placing the national economy on a more sustainable path and driving economic and social development.
Previous Saudi deposits positively impacted the foreign exchange reserves of the Central Bank of Yemen, reduced the exchange rates, and contributed to the growth of the GDP. They also helped lower fuel and diesel prices, as well as the cost of imported food commodities.
Together with previous assistance, including grants and deposits, this aid aims to buttress Yemen's economic stability.
Key contributions of Saudi support include covering imports of essential food commodities (wheat grains, wheat flour, rice, milk, cooking oil, and sugar), strengthening the Central Bank's foreign exchange reserves, stabilizing the local currency, and reducing fuel and diesel prices.
While Saudi grants have positively impacted economic and social development in Yemen, and supported the national economy, they also helped mitigate the economic deterioration by increasing the foreign exchange reserves and boosting confidence in the Central Bank of Yemen.
Moreover, these grants led to greater financial transfers and foreign aid, thus strengthening the balance of income and transfers in Yemen.
The grants effectively stimulated economic growth while lessening inflationary pressures. By enabling the government to cover salaries and wages, they significantly reduced the budget deficit, which, in turn, improved the financial stability of the country and lowered the government's reliance on borrowing to finance its expenditures.
The grants greatly helped improve the performance of critical sectors. In healthcare, it funded essential medicines for chronic diseases and cancer treatment. It also came to the help of education and other vital sectors, and covered the cost of petroleum derivatives for electricity generation.
The Kingdom also significantly contributed to Yemen's economic growth by providing grants for petroleum derivatives. These grants enabled 80 power generation stations to operate in all Yemeni governorates, thus stimulating the Yemeni economy and enhancing the efficiency of vital, productive and service sectors in Yemen.
Through SDRPY, the Kingdom has implemented 263 development projects and initiatives in various Yemeni governorates. These projects serve the Yemeni people in eight crucial sectors: education, health, water, energy, transportation, agriculture and fisheries, capacity building of the Yemeni government, and development programs.