RIYADH — Saudi Arabia’s government information and communications technology (ICT) contracts rose by 18.75 percent in 2024, reaching SR38 billion ($10.13 billion), driven primarily by the health, military, and infrastructure sectors, according to the Government Spending Report 2024 from the Digital Government Authority.
Health and social development led with SR6.54 billion across 1,085 contracts, while the military sector received SR5.16 billion through 1,125 contracts. Infrastructure and transport investments totaled SR5.26 billion. Other notable allocations included education at SR4.37 billion, economic resources at SR3.42 billion, and public administration at SR2.39 billion.
The report highlighted a strategic focus on artificial intelligence, emerging technologies, and cloud computing as core to enhancing operational performance across public sector entities. Riyadh’s ongoing investment in digital infrastructure aligns with its Vision 2030 goals to diversify the economy and modernize public services.
Significant gains were achieved by activating national framework agreements, which improved procurement efficiency and negotiation capabilities. These tools contributed to a 157 percent increase in purchase orders, totaling SR4.47 billion through 9,457 orders, accelerating service delivery and improving procurement quality.
Government agencies reported estimated savings of SR1 billion in 2024 by optimizing spending and budgeting processes.
Saudi Arabia maintained its global leadership in digital government, ranking sixth worldwide and first regionally in the 2024 UN E-Government Development Index, jumping 25 places since 2022. It also topped the Government Electronic and Mobile Services Maturity Index for the third consecutive year with a 96 percent score.
Gartner data cited in the report revealed Saudi Arabia led globally in government ICT spending as a share of total ICT expenditure, reaching 34.1 percent in 2024.
