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Saudi Arabia Raises Private Sector Efficiency by Accelerating Digital Procurement

Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber
Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber
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Saudi Arabia Raises Private Sector Efficiency by Accelerating Digital Procurement

Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber
Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber

Saudi Arabia has called on the private sector, specifically communications and information technology contractors, to join the Saudi Digital Investment Frontier (SDIF) to accelerate the pace of digital purchases in the next stage.

SDIF, which was launched last year by the Digital Government Authority (DGA), aims to enhance the means of joint work between the public and private sectors, increase the efficiency of the private sector’s participation in digital government projects, and encourage local and foreign investment in digital government.

According to official information, the DGA directed the Federation of Saudi Chambers to request communications and information technology contractors to call on all relevant companies and institutions to join the SDIF platform to enable them to win government tenders.

In remarks to Asharq Al-Awsat, Eng. Mansour Al-Obaid, Chairman of the Information and Communications Technology Committee at the Riyadh Chamber, underlined the importance for contractors to register on the platform in order to obtain a classification certificate approved by the Ministry of Municipal, Rural Affairs and Housing, and then access government procurement tenders.

He added that the benefits of the platform also include access to government procurement information, including tender notices, contract opportunities and supplier evaluation criteria.

Al-Obaid added that the main objectives of the program are to improve the efficiency of digital government procurement, by developing a central procurement platform that provides training and support to public entities, as well as increasing private sector participation in digital government projects to create a more favorable investment environment.

According to Obaid, SDIF also seeks to raise the work quality of providers and operators of digital government services, and to stimulate foreign and local investment.

The Saudi government launched the SDIF program to enhance investment and efficiency of government spending in the field of digital government, improve budget planning and avoid duplication of projects.

SDIF falls within the DGA’s initiatives aimed at leading the digital government of Saudi Arabia. It was announced during the first quarter of 2022.

The DGA has recently issued the Readiness to Adopt Emerging Technologies Report 2023, which measures capabilities related to “Research, Communication, Proof, and Integration.”

The report is designed to assist government agencies in determining their readiness levels, exploring gaps and optimization opportunities and providing plans for capacity building in a manner commensurate with requirements, as well as ensuring the achievement of desired benefits.

According to the report, the overall score for assessing the readiness of government agencies to adopt emerging technologies reached 60.35%, at the “Competent” level.

The participating agencies have shown progress in most of the capabilities related to adopting emerging technologies, as well as remarkable potential for excellence and achieving an integrated creative experience, the report added.

 

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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.