RIYADH: Saudi Arabia invested more than SR31.9 billion in communications and information technology services during 2025 to strengthen digital government services and accelerate the Kingdom’s digital transformation efforts.

According to the Digital Government Authority (DGA), government entities signed more than 6,145 contracts valued at approximately SR31.7 billion over the year, reflecting improved spending efficiency and a more advanced digital ecosystem. The progress follows the completion of several major digital infrastructure projects that have supported the country’s technology development.

The report noted that the adoption of national framework agreements, unified government procurement procedures, and strategic investment in high-impact initiatives have enhanced both operational and financial efficiency. Continued investment in cloud computing, artificial intelligence, and user experience technologies has also contributed to the advancement of digital government services.

The 2025 Government Spending Report on Communications and Information Technology Services highlighted ongoing government support for digital transformation while reinforcing the objectives of Saudi Vision 2030 and strengthening the Kingdom’s global competitiveness.

Government spending on advanced technologies continued to rise during the year. Expenditure on cloud computing increased by 42 percent compared with 2024, while investment in artificial intelligence and emerging technologies grew by 20 percent, reflecting the wider adoption of innovative digital solutions across the public sector.

The report also emphasized the sector’s economic contribution, with a direct impact exceeding SR9.5 billion and an indirect contribution of around SR3.5 billion to the national economy. More than 7,000 jobs were supported, while the local content rate in government software procurement reached 49 percent, highlighting efforts to strengthen national capabilities.

Small and medium-sized enterprises (SMEs) further expanded their role in the government’s digital ecosystem. Their share of spending reached 23 percent in 2025, with contracts valued at approximately SR9.23 billion, accounting for 29 percent of the sector’s total government contract value.

In terms of procurement efficiency, purchase orders executed through national framework agreements exceeded SR5.16 billion, benefiting more than 500 government entities and 65 companies. The approach has helped accelerate procurement processes while improving financial and operational efficiency.

Overall, the continued growth in digital investment reflects the Kingdom’s accelerating digital transformation, enhancing the accessibility, reliability, and quality of government services for citizens, residents, and visitors. The investment has also contributed to improved government performance and strengthened Saudi Arabia’s standing in international digital competitiveness indicators.