THIS ARTICLE IS POWERED BY
B Swaminathan
In recent years, the Kingdom of Saudi Arabia has embarked on a remarkable journey of transformation, marked by a series of sweeping reforms and ambitious projects that are reshaping its economy, society, and international standing. With a vision that extends beyond oil dependency, the country is leveraging technology, culture, and investment to secure a sustainable future. Some of the leading industry leaders share their views on how investment climate is happening in the region.
One of the most significant trends under Vision 2030 is the shift toward a knowledge-based economy. The Saudi government has made substantial investments in education, technology, and innovation, fostering a generation of skilled professionals ready to compete in a global market. The establishment of institutions like the King Abdulaziz City for Science and Technology exemplifies the Kingdom’s commitment to research and development.
Technological Advancements
Mahir Alghamdi, Business Analyst, P2C, says, “ Actually, digital transformation in Saudi Arabia is booming now with a lot of sector and the private and the government sector. There are now a concentration on the strategic side of all the situation and one of the key goals of that is the digital transformation in the government sector, also in the private sector they are focusing also to follow on the vision of the Saudi Arabia.” Asked if the companies started looking at tech expenditure as an investment and not as an expense, he said, because a lot of companies started believing that if they are not automating, not transforming digitally, they are not competing and they die.
“With a lot of projects that the government is pushing for, it will create a lot of opportunities for the private sector. So opportunities are there in each industry even in the environmental side also. The opportunities are booming and diverse.”
Saudi Arabia is also making strides in technological innovation. The nation is embracing digital transformation across various sectors, including finance, healthcare, and education. The introduction of the Saudi Digital Government Strategy aims to improve public services through e-governance, enhancing transparency and efficiency.
The fintech sector is experiencing rapid growth, with numerous startups emerging to provide digital payment solutions, crowdfunding platforms, and blockchain technology. This digital evolution is not only modernizing the economy but also attracting foreign investment, positioning the Kingdom as a hub for tech innovation in the Middle East.
Investment in Mega Projects
To drive economic diversification, Saudi Arabia is investing heavily in mega-projects that aim to attract tourists and bolster the economy. NEOM, a futuristic city planned to be built in the northwestern region of the Kingdom, is a centerpiece of this initiative. Covering an area of 26,500 square kilometers, NEOM is envisioned as a hub for innovation, sustainability, and tourism, featuring smart city technologies and renewable energy solutions.
Ahmed Alhusayni, Cybersecurity Manager, Medad Cloud Platform Manager, Naseej, a leading company established 35 years ago in Saudi Arabia says and having offices in Dubai, Kuwait, Jordan, Egypt and Morocco helps companies in the digital transformation mainly helping ministry, associations, organisations, departments, banks. “Right now, we are focusing on the higher education specially, we have a platform called Medad cloud platform, helping the universities for enhancing their digital transformation, from recruiting or admission of the students, until they depart and be alumni of the university.” Speaking on the investment avenues, he says that there is willingness to spend and don’t see tech as a expenses as most industries, especially with the government have transferred to cloud solutions.
“There is a lot of requests for the development on different levels. Enterprise level, Government level, also the SMEs in Saudi Arabia. We had jumped in our numbers last 2-3 years by digitalising everything while in some areas, there is still not much avenues there.” Speaking on the expansion plans, he said their company is looking at going international covering the Europe and the USA.
The Saudi government and government entities are definitely interested in AI solutions. “Most of the clients we are talking to, have great interest in the AI. It will differ on the application level so the, if it’s a secure system or it’s a public system, don’t forget that cyber security will play a major role in the involvement of AI or the use of AI.”
Many organizations investing in AI will not be an expense as the use of AI will definitely reduce the expenses in many areas. “Yes, you may have an initial investment in it but It will definitely be a return of investment, a great return of investment. I believe that AI is going to be involved in almost everything. But you have to understand, AI is another name for machine learning. I studied AI more than 35 years ago or 40 years ago. 40 years ago, in the United States, it was a syllabus. It has been enhanced but it’s not a new concept.”
Connected industries pave way for connected avenues
Abdullah Bin Qirad, GRC consultant and Saad Al Hadhwan, COO, Green Circle, says that every sector in KSA is connected with each sector. “The good thing about it is the connectivity between all the sectors. For example, the Government sector is related to the banking sector which is again connected with other sectors like insurance, finance, retail etc which is very good for companies like us.”
Predicting the future investment avenues, he says, “With technology, it’s very fast and unpredictable but in our point of view now our country will be mature enough and one of the leaders in the digital transformation.”, they observed further adding that many investments predominantly happen for the cybersecurity space. They also said that companies pay a lot of money for cyber security as it is independent data and everything should be secure.
Speaking about the new ventures coming from KSA, he said, the climate is very good because of the awareness the Government gives out. “ There are workshops about how you open a business, what’s the steps you have to follow and the regulations you have to follow, so basically like startup companies, most likely they have to start a good management, good IT background and good finance.” Now its hard to find a good technical background as much and finding a people with the certain certifications, its hard and if we find it, its so expensive. But I think it will end within five years because most of the people, they are getting more knowledge.
As Saudi Arabia moves forward, it exemplifies how ambitious vision and strategic investment can lead to profound change, inspiring other nations to pursue their paths of modernization and development.