ICT as a Direction for Diversifying the Economy of Saudi Arabia

The article examines one of the main directions of the implementation of a large-scale program of economic reforms in Saudi Arabia (Saudi Vision-2030), aimed at ridding the Kingdom’s economy of an alarming dependence on oil export revenues – the digital transformation of society, governing structures, and the economy as a whole. In the past few years, the information and communication technology (ICT) sector, which has become the largest in the Middle East, is increasingly visible not only in this region. Its development is particularly dynamic due to large investments in the latest technologies. The success of the ICT sector was also facilitated by the creation of new supervisory bodies and the improvement of the regulatory framework for various areas of digitalization. The country’s leadership aims to make Saudi Arabia one of the world’s leading countries in the field of ICT by building a digital economy based on the principles of the Fourth Industrial Revolutionanddigitalgovernanceofsociety. The five-year digital development strategy (2019–2023) provides for the growth of the ICT sector by 50% and an increase in the rate of “Saudization†of this sector to 50% by 2023. This strategy is expected to increase the contribution of the ICT sector to the economy by at least $13.3 billion. Assessing the prospects for the development of digitalization in Saudi Arabia, the author found four factors that make it possible to assess them as very favorable – sufficient funding, acceleration of the privatization process, the impact of the COVID-19 pandemic, and the inevitability of the diversification of the national economy, which is impossible without digitalization.