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Technology, Investments Boost Saudi Arabia's Shift to Digital Economy

People attend LEAP 2022, which concluded on Thursday. (Asharq Al-Awsat)
People attend LEAP 2022, which concluded on Thursday. (Asharq Al-Awsat)
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Technology, Investments Boost Saudi Arabia's Shift to Digital Economy

People attend LEAP 2022, which concluded on Thursday. (Asharq Al-Awsat)
People attend LEAP 2022, which concluded on Thursday. (Asharq Al-Awsat)

LEAP 2022, the global technology platform, uncovered Saudi Arabia's readiness to address technical solutions and requirements that can address future challenges amid the development of the sector in the Kingdom.

Several international companies asserted to Asharq Al-Awsat the importance of the conference, which revealed the future technologies, stressing that Saudi Arabia is steadily racing to become among the first countries that invest in future technology.

Several businessmen and economists said the conference explored the importance of partnerships between the public and private sectors to accelerate the Saudi drive towards achieving digital transformation.

They also believed that it would enhance the knowledge-based and green economies and develop technology for advanced industries that are possible for clean energy, seeking to achieve zero emissions.

Saudi Arabia is defining technology features in the Middle East through LEAP 2022.

Entrepreneurs

Unifonic CEO Ahmed Hamdan told Asharq Al-Awsat that companies seek such exhibitions to present the public with new solutions, given that the establishments are aware of market developments in the field of technology.

Hamdan indicated that the conference witnessed fantastic technical innovations and presentations, bringing together all local and international companies under one roof.

He revealed that several agreements were concluded between significant companies, highlighting their desire to develop and provide their best.

Through the conference, Unifonic tried to produce and showcase products to the market very quickly, said Hamdan, adding that the company will launch several initiatives.

He noted that the Saudi Ministry of Communications and Information Technology encourages small companies to become large and compete with high technologies.

The CEO added that Saudi Arabia is developing in the sector by adopting technologies and financial support to entrepreneurs.

The Ministry is also directing startups and providing them with appropriate solutions to achieve their desired goals, said the CEO, adding that this will empower startups and grant them a chance to develop in the future.

Supporting inventions

Vice President for Software AG in the Middle East Ahmad Salama explained that LEAP 2022 is a platform for a global vision for the technical community and is compatible with Vision 2030.

Salama indicated that projects, such as NEOM and the Red Sea, aim to achieve a future fueled by inventions, livability and sustainability for a prosperous economy.

He believes that this vision is also founded on a "connected enterprise" philosophy, which is adopted and supported by Software AG to support its progress and achieve transformation goals in Saudi Arabia and the world.

Software AG will continue to share global best practices and innovate new ones as a member of the thriving Saudi digital community, invest in the Kingdom's economy and its youth, and align with the Vision of mobilizing this technological advancement across the public and private sectors.

Saudi investor Abdullah al-Malehi, and head of Tamayouz, confirmed to Asharq Al-Awsat that the conference provided an opportunity for the business sector in technical industries to cooperate through opportunities that enhance the Saudi goals in cooperation with the public sector.

Malehi indicated that these partnerships are possible for digital transformation and shaping the future of banks in advanced technologies, noting that the local market is significant in advanced technology.

He explained that Saudi Arabia seeks to diversify its oil-dependent economy, noting that the announced investment includes contributions from major Saudi companies.

Gulf countries are working on initiatives to promote non-oil growth, said Malehi, stressing at the same time that the Kingdom will pump hundreds of billions of dollars in economic transformation represented by Vision 2030.

A large number of investments will be injected into the local market.

Artificial superintelligence

SingularityNET CEO Ben Goertzel pointed out that artificial intelligence is still limited, indicating that the development accompanying the digital infrastructure will transform it to Superintelligence.

Speaking at the "Scaling Up Decentralized AI to Power Global Transformation" session, during the third day of LEAP, Goertzel explained that everyone would be able to maximize the use of this technology.

Meanwhile, CEO of RMA Advisory Renato de Castro explained during "Metaverse VR Immersive" that the demand for virtual reality immersive experiences is accelerating, especially as it allows moving with ease.

De Castro explained that the number of Metaverse VR users has grown during the coronavirus pandemic, with over 90 players registering in a short period.

He explained that users spent over $40 million in purchases from this big and exciting market, predicting its volume to reach $100 billion soon.

Digital infrastructure

VMware regional director Saif Mashat said that the company is continuing to achieve its strategies and record-high levels of success in digital infrastructure projects, pointing out that it will expand to new projects in the Saudi market.

He explained that VMware is establishing future projects in line with the significant goals of Vision 2030, which necessitates that everyone unite their efforts and engage in professional cooperation.

The company focuses on training Saudi youth in cooperation with Saudi universities, said Mashat, announcing an agreement with the Prince Sultan University to train young men and girls on many digital skills and qualify faculty members to provide educational programs and content.

He indicated that the company would grant accredited certificates to the trainees.

Mashat also announced the company has several future agreements with some universities and sectors to train and qualify youths on technical programs and skills that the labor market requires.

He revealed plans with various sectors in 2022, namely projects to establish a distinguished digital infrastructure that matches the tremendous digital transformation witnessed by the Kingdom.

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Business

Saudi Arabia Ranks 2nd Globally in World Bank’s GovTech Maturity Index 2025

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Arabia Ranks 2nd Globally in World Bank’s GovTech Maturity Index 2025

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Saudi Arabia has achieved an unprecedented milestone, ranking second worldwide in the 2025 GovTech Maturity Index (GTMI) released by the World Bank, covering 197 economies.

The results were announced at a press conference in Washington on Thursday.

According to the GTMI findings, Saudi Arabia excelled across all the report’s indices, placing it in the “very advanced” category with an overall score of 99.64%.

The assessment examined digital infrastructure, core government systems, online service delivery, and citizen engagement, with the Kingdom achieving some of the highest scores recorded worldwide.

Governor of the Digital Government Authority (DGA) Eng. Ahmed Mohammed Alsuwaiyan said the achievement reflects the unlimited support provided by the Kingdom’s leadership, the integration of government efforts, and strong partnerships with the private sector.

He noted that national teams over recent years have redesigned government services and developed advanced digital infrastructure, enabling the Kingdom to achieve this global standing.

Alsuwaiyan stressed that the DGA will continue to promote innovation and enhance the quality of digital services to support the national economy and advance the objectives of Saudi Vision 2030.

The 2025 GTMI results show Saudi Arabia achieving 99.92% in the Core Government Systems Index (CGSI), 99.90% in the Public Service Digitalization Index (PSDI), 99.30% in the Digital Citizen Engagement Index (DCEI), and 99.50% in the GovTech Enablers Index (GTEI), securing an “A” rating among “very advanced countries” and reflecting an extensively mature digital government ecosystem.

This achievement caps a rising trajectory for Saudi Arabia’s digital government since the launch of Vision 2030, which prioritizes the citizen in the digital transformation process by improving government service delivery, enhancing user experience, and boosting operational efficiency.

These commitments have been supported by broad governmental integration, comprehensive development of digital systems, and the adoption of artificial intelligence and emerging technologies.

Saudi Arabia has made significant leaps in GovTech maturity, rising from 49th globally in the first GTMI in 2020 to third in 2022 and second in 2025, cementing its status as a global leader in digital transformation and innovation.

Business

European Central Bank Leaves Rates Unchanged with Economy Showing Signs of Modest Growth

The Euro currency symbol is seen prior to a press conference after an ECB's governing council meeting in Frankfurt, Germany, Thursday, Dec. 18, 2025. (AP Photo/Michael Probst)
The Euro currency symbol is seen prior to a press conference after an ECB's governing council meeting in Frankfurt, Germany, Thursday, Dec. 18, 2025. (AP Photo/Michael Probst)
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European Central Bank Leaves Rates Unchanged with Economy Showing Signs of Modest Growth

The Euro currency symbol is seen prior to a press conference after an ECB's governing council meeting in Frankfurt, Germany, Thursday, Dec. 18, 2025. (AP Photo/Michael Probst)
The Euro currency symbol is seen prior to a press conference after an ECB's governing council meeting in Frankfurt, Germany, Thursday, Dec. 18, 2025. (AP Photo/Michael Probst)

The European Central Bank left interest rates unchanged Thursday for the fourth meeting in a row as the economy in the 20 countries that use the euro increasingly looks strong enough to get by without the stimulus of lower borrowing costs for businesses and consumers.

Bank President Christine Lagarde said that while the economy had remained “resilient,” there was too much uncertainty over trade and international conflicts to give any hints about future moves.

“We reconfirmed that we are in a good place” with interest rates, she said. “Which does not mean that we are static.”

Instead, the bank's rate setting council would take things meeting by meeting, starting with the next gathering in February. There is “no set date for any move,” she said. “There are lots of factors that that are in play and that will evolve over the course of '26.”

The council left the benchmark deposit rate unchanged at 2%, where it has been since a rate cut in June. Economists now think the rate could stay there for months - and possibly into 2027.

That’s because the ECB remains poised between inflation that’s just a bit too persistent and growth that’s underwhelming but steady after a trade deal with the US remove some of the uncertainty that had held back business planning. Higher rates fight inflation while cuts support growth.

The bank said in its decision statement that economic growth “is expected to be stronger” than in the bank's last projections in September, while inflation in services businesses was declining more slowly, even as overall inflation was expected to stabilize at the bank's 2% target.

Surveys of purchasing managers by S&P Global slipped slightly for December but still showed business activity expanding as the year comes to an end, reinforcing expectations that the 20 countries using the euro currency will continue to see growth of around 0.3% per quarter over the previous quarter.

That outcome is better than feared during turbulent trade negotiations with the United States over the summer, which finally settled with a 15% tariff, or import tax, imposed on European goods by US President Donald Trump.

Trump had threatened higher rates and the deal struck with the European Union's executive commission appears to have removed uncertainty and made it easier for businesses to make decisions. So the economy can get by without the added boost from a cut, analysts say.

“The haze of economic uncertainty has somewhat lifted, especially regarding trade,” The Associated Press quoted economist Lorenzo Codogno as saying.

On top of that, inflationary pressures remain too high for the ECB to contemplate a cut. The headline rate of 2.1% for annual inflation in November is roughly in line with the bank's goal of 2%, thanks in part to a drop in volatile energy prices. But inflation was higher at 3.5% in the services sector, which encompasses much of the economy from hairdressers and hotels to concert tickets and medical services.

While the ECB stood pat, the Bank of England on Thursday cut its key interest rate for the first time in four months as stubbornly high inflation starts to ease.

Policymakers voted 5-4 to reduce the base rate by a quarter of a percentage point to 3.75% on Thursday. Consumer price inflation slowed to 3.2% in the 12 months through November, from 3.6% a month earlier.

Central bank rate cuts can support growth because they strongly influence borrowing rates throughout the economy, lowering credit costs and promoting credit sensitive purchases such as new homes by consumers or new production facilities by businesses. Higher rates have the opposite effect and are used to contain inflation by dampening demand for goods.

Business

Saudi Arabia Achieves 2nd Position Globally in ITU’s Digital Regulatory Maturity Index 2025

Saudi Arabia Achieves 2nd Position Globally in ITU’s Digital Regulatory Maturity Index 2025
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Saudi Arabia Achieves 2nd Position Globally in ITU’s Digital Regulatory Maturity Index 2025

Saudi Arabia Achieves 2nd Position Globally in ITU’s Digital Regulatory Maturity Index 2025

The International Telecommunication Union (ITU) announced that Saudi Arabia has ranked second globally in the Digital Regulatory Maturity Index 2025, placing just behind Germany among 193 countries, and maintaining its position in the highest “Leading” category of the global classification, according to a statement issued by the Communications, Space and Technology Commission (CST).

CST Acting Governor Eng. Haitham bin Abdulrahman Alohali stated that this achievement is the result of the support and enablement of the wise leadership, alignment of national digital economy directions with international multi-stakeholder initiatives, and strong collaboration between public and private sector entities through cooperative and participatory regulation, SPA reported.

He added that the Kingdom’s progress was further driven by adopting regulatory policies based on measuring social and economic impact, launching digital inclusion programs to empower all segments of society, implementing policies that promote development and innovation across sectors such as science, agriculture, and finance, and joining the Tampere Convention to facilitate the provision of telecommunications resources for disaster mitigation.

Alohali highlighted that attaining the highest “Leading” maturity level has contributed to accelerating the growth of Saudi Arabia’s digital economy, expanding the telecom and technology market, stimulating competition, attracting investment, and strengthening the Kingdom’s leading and active role within the ITU.

The statement added that this achievement reflects the efforts led by CST in collaboration with the National Regulatory Committee, Ministry of Communications and Information Technology, Ministry of Health, Ministry of Education, Ministry of Economy and Planning, Ministry of Environment, Water and Agriculture, Digital Government Authority, Saudi Central Bank, Saudi Data and Artificial Intelligence Authority, Transport General Authority, General Authority of Media Regulation, National Cybersecurity Authority, Saudi Water Authority, Saudi Electricity Regulatory Authority, General Authority for Competition, and Consumer Protection Association.