Saudi Arabia’s government information and communications technology (ICT) contracts reached SR38 billion ($10.13 billion) in 2024, marking an 18.75 percent increase from 2023. This surge was primarily fueled by significant investments in the health, military, and infrastructure sectors, according to the Digital Government Authority’s Government Spending Report 2024.
The health and social development sector received the largest share, with SR6.54 billion across 1,085 contracts. The military secured SR5.16 billion through 1,125 contracts, while infrastructure and transport saw investments totaling SR5.26 billion. Education, economic resources, and public administration also received substantial allocations.
The report highlighted that 2024 spending priorities focused on artificial intelligence, emerging technologies, and cloud computing to enhance operational performance across public sector entities. This push underscores Riyadh’s growing investment in digital infrastructure, aligning with its Vision 2030 strategy for economic diversification and public service modernization.
National framework agreements played a crucial role in these outcomes, improving negotiation capabilities and financial planning, leading to faster, more efficient, and cost-effective procurement for government entities. These tools also helped government agencies achieve an estimated SR1 billion in savings during 2024 by optimizing spending efficiency.
Saudi Arabia’s digital government performance continues to gain global recognition. It ranked sixth globally and first regionally in the 2024 UN E-Government Development Index, a significant leap of 25 places from 2022. The Kingdom also topped the Government Electronic and Mobile Services Maturity Index for the third consecutive year, with a 96 percent score. Furthermore, based on Gartner data, Saudi Arabia led all countries in government ICT spending as a share of total ICT expenditure in 2024, reaching 34.1 percent.
