RIYADH — Saudi Arabia has made investments worth more than SR31.9 billion during 2025 in communications and information technology services aimed at advancing digital government services. Government contracts reached around SR31.7 billion across more than 6,145 agreements during the last year, reflecting a maturing system and improved spending efficiency. This development follows the completion of several major digital infrastructure projects, which have formed a significant share of technology investments in recent years. In addition, the adoption of national framework agreements, the unification of government procurement processes, and the strategic allocation of funding toward high-impact initiatives have all contributed to greater spending efficiency and the advancement of digital transformation objectives at both operational and financial levels. This progress is occurring alongside continued expansion in investment in advanced technologies, including cloud computing, artificial intelligence, and enhanced user experience services. The Digital Government Authority released its 2025 Government Spending Report on Communications and Information Technology Services, which tracks spending trends in the sector, highlights sustained government support for digital transformation, ongoing investment in digital enablers, and improved spending efficiency, thereby supporting the objectives of Vision 2030 and strengthening the Kingdom’s global competitiveness. Advanced technologies witnessed continued expansion in government spending over the past year, with cloud computing expenditure rising by 42 percent compared to 2024, while spending on artificial intelligence and emerging technologies increased by 20 percent. This growth reflects the accelerated adoption of modern digital solutions and the strengthening of innovation across the government sector. The report further underscored the economic impact, noting a direct contribution to the national economy exceeding SR9.5 billion, alongside an indirect economic impact of SR3.5 billion. It also supported the creation of more than 7,000 jobs. The local content rate in government software procurement reached 49 percent, highlighting the sector’s role in driving economic growth and empowering national capabilities. Small and medium-sized enterprises (SMEs) continued to expand their presence within the government’s digital ecosystem. Their contribution to spending rose to 23 percent in 2025, while the value of contracts awarded to them reached approximately SR9.23 billion, representing 29 percent of the total value of government contracts in the sector. This reflects the success of ongoing efforts to empower the private sector and broaden its participation in government digital initiatives. In terms of spending efficiency, the value of purchase orders executed through national framework agreements has exceeded SR5.16 billion in 2025, benefiting more than 500 government entities and 65 companies. This has contributed to accelerating procurement processes, achieving financial and operational efficiencies, and enhancing the utilization of government resources. This overall growth reflects the accelerating pace of digital transformation and its direct impact on improving access for beneficiaries—citizens, residents, and visitors—by enhancing the efficiency, reliability, and usability of digital services. The increase in spending has also contributed to improving government performance and raising operational quality, thereby supporting the objectives of digital transformation and strengthening the Kingdom’s position in international indicators.
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