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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

Saudi Arabia Bypasses ‘Hormuz’ Disruption with Transcontinental Network

Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
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Saudi Arabia Bypasses ‘Hormuz’ Disruption with Transcontinental Network

Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)

As global supply chains face unprecedented strain, and the Strait of Hormuz, one of the world’s most critical chokepoints, is disrupted, Saudi Arabia has positioned its transport system as a vital alternative, helping keep global trade moving.

Under the National Transport and Logistics Strategy launched by Crown Prince Mohammed bin Salman in 2021, the kingdom has built a transcontinental network that is now being tested in real time.

Officials say operational success rates exceed 97% in crisis management and evacuation.

The system, designed to position Saudi Arabia as a hub linking three continents, has been activated through new logistics zones, partnerships with global firms, and faster export and import procedures across air, land, and sea.

This has helped ensure the steady flow of goods, services, and energy, shifting the kingdom’s role from infrastructure developer to a key stabilizing force in times of crisis.

Air response

Logistics expert Hassan Al Helil told Asharq Al-Awsat that air transport now drives emergency response, handling 70% to 80% of rapid evacuations.

Sea transport is used for larger operations involving 500 to 2,000 people, with response times of 24 to 72 hours.

He said operations rely on tight coordination and strict safety protocols, including medical screening and in-transit care, despite challenges such as congested airspace, longer flight times of 20% to 30%, regulatory differences, delays of up to 48 hours, and weak infrastructure in crisis areas that can cut efficiency to 40%.

Even so, Saudi Arabia maintains a success rate above 97%, supported by flexible operations and tested emergency plans.

Red Sea shift

Maritime transport has emerged as a key alternative. Red Sea ports, led by Yanbu, are handling cargo that once passed through the Strait of Hormuz.

Integrated with the East-West pipeline, the system allows exports to be rerouted away from tension zones without disrupting supply.

Crude exports from Yanbu’s northern and southern terminals averaged 4.4 million barrels per day over five days through Tuesday. The kingdom is aiming to raise Red Sea exports to 5 million barrels per day.

Transport costs have dropped 58% as vessels move closer to Saudi ports. Large cargoes, including wind turbines, have been redirected from Jubail to Yanbu to speed delivery.

Smarter routes

Al Helil said diversifying export routes has cut exposure to chokepoints by up to 40%.

This helped absorb global shipping cost increases of up to 50%, alongside added geopolitical risk fees and higher insurance costs.

Despite global delays of three to 10 days, Saudi port efficiency and temporary exemptions for vessels reduced idle time by 25% and limited price volatility.

Land and rail

Saudi Arabia has also become a key land corridor for Gulf trade, backed by more than 500,000 trucks and expanded rail capacity exceeding 2,500 containers a day.

Thousands of trucks have moved goods to Kuwait and Bahrain, underscoring the kingdom’s growing role as a regional distribution hub.

The system has also supported passenger movement, including overland transport of Kuwaiti citizens from Riyadh and Iraqi flights arriving at Arar airport.

Regional links

The Saudi Ports Authority has launched a new trade bridge linking Dammam with Sharjah in partnership with Gulftainer, offering faster multimodal shipping.

A Gulf Shuttle service now connects Dammam’s King Abdulaziz Port with Bahrain’s Khalifa Bin Salman Port.

Saudi Arabia Railways has also launched a freight corridor linking eastern ports with the Al Haditha border crossing, strengthening trade links with Jordan and beyond.

Passengers and crisis response

The system has played a key humanitarian role, facilitating the movement of stranded travelers.

Arar International Airport has received flights from Iraq, while maintaining operational success above 97%.

Authorities have also introduced temporary exemptions for ships, cutting idle time by up to 25% and reducing costs without compromising safety.

This has lowered maritime transport costs by 8% to 18% and reduced price volatility by 10% to 20%.

Food security, shuttle shipping

The system has also supported regional food security.

Land crossings, particularly Abu Samra, have ensured steady supplies to Qatar.

Al Helil said Saudi Arabia has diversified imports from more than 25 countries and maintains strategic reserves of up to 12 months for some goods, with availability exceeding 95%.

Also speaking to Asharq Al-Awsat, logistics specialist Nashmi Al Harbi said rail has become a reliable alternative amid disruptions at sea.

A new freight route linking eastern ports to Al Haditha can carry more than 400 containers per train, cutting shipping time in half.

In February 2026, the Saudi cabinet approved a high-speed rail link between Riyadh and Doha, reducing travel time to two hours and supporting steady goods flows.

Al Harbi said that shuttle shipping, using smaller vessels that move frequently between ports, is reshaping supply chains and costs.

He said a parallel maritime link has eased pressure on the King Fahd Causeway, which handled 4.7 million vehicles in 2025, while supporting intra-Gulf trade nearing $1 billion.

Saudi Arabia is also attracting global logistics firms. DHL is investing 130 million euros to build a regional hub in Riyadh, while Maersk has opened a new bonded warehouse.

These efforts have lifted the kingdom 17 places in the World Bank’s Logistics Performance Index to 38th globally.

Saudi Arabia has moved beyond crisis response to strengthen its position in global trade. With integrated ports, stronger infrastructure and flexible operations, it can reroute trade and energy flows efficiently, turning disruption into opportunity.

Business

Sources: Spain, Algeria in Talks to Increase Pipeline Gas Supply by Up to 10%

Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA
Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA
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Sources: Spain, Algeria in Talks to Increase Pipeline Gas Supply by Up to 10%

Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA
Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA

Spain and Algeria are in talks to increase the supply of natural gas via the Medgaz pipeline from Algeria by as much ⁠as 10%, two ⁠sources familiar with the matter said.

Talks are in advanced stage, one of the ⁠sources said, adding that a preliminary agreement may be reached during Spanish Foreign Minister Jose Manuel Albares's visit to Algiers this week.

The increase would be possible as the ⁠pipeline ⁠between the countries has capacity to increase the flow of gas by around 1 billion cubic meters (bcm) per year, Reuters quoted them as saying.

Spain and Algeria agreed to strengthen their energy partnership, Albares said on Thursday after meeting Algerian President Abdelmadjid Tebboune.

Algeria is "a stable and reliable" supplier of gas, Albares said.

The Iran conflict has upended energy markets and increased volatility, leading some to look elsewhere ⁠for their gas. Spanish power ⁠utility Naturgy's CEO Francisco Reynes said this week the company wanted to strengthen its relationship with its Algerian supplier and shareholder Sonatrach.

Naturgy has gas contracts with the Algerian state oil and gas company for ⁠about 5 billion cubic meters per year, according to figures the Spanish company gave to the market in 2022.

Algerian gas made up more than 29% of Spain's total gas imports in the first two months of the year, according to data from Spanish gas grid operator Enagas.

It comes via the Medgaz pipeline, in which Naturgy is ⁠a minority ⁠partner and Sonatrach holds a 51% stake. Sonatrach also has a stake of about 4% in Naturgy.

Other countries are also asking Algeria for more gas in the face of disruption caused by the conflict in the Middle East.

Italian Prime Minister Giorgia Meloni said she hoped Algeria would send more gas to her country during a visit to Algiers this week.

Business

TotalEnergies to Honor All LNG Contracts Despite Qatar Outages

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo
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TotalEnergies to Honor All LNG Contracts Despite Qatar Outages

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo

TotalEnergies' CEO Patrick Pouyanne said on Thursday that the company made a decision not to declare force majeure to any of its liquefied natural gas customers, and that it would respect all the LNG contracts in terms of price and ⁠volume.

Qatar, the world's biggest ⁠LNG producer, has declared force majeure on all of its LNG output after being attacked as part of the US-Israeli war with Iran.

"We said to our customers we will ⁠not invoke force majeure and not deliver the gas... We want to be security of supply for our customers," Pouyanne said.

"Yes, we'll miss energy coming from Qatar and Abu Dhabi, but our portfolio is large enough to redirect part of it," he added, according to Reuters.

Analysts estimate TotalEnergies takes 5.2 million metric tons per annum (mtpa) from ⁠its ⁠share of the QatarEnergy LNG trains.

Sources have said Shell, the world's biggest LNG trader, had declared force majeure on cargoes it buys from QatarEnergy and sells on. Analysts estimate Shell takes 6.8 mtpa of Qatari LNG.

Pouyanne also said that the current energy crisis makes renewables more attractive as they are not subject to the volatility from geopolitical instability.