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MENA Watch: Survey finds digital sector contributed 14% to Saudi Arabia’s GDP in 2023

The purpose of the survey is to create a database for research projects and the creation of indicators about Saudi Arabia's digital economy

A first-of-its-kind assessment by the General Authority for Statistics revealed that the digital sector in Saudi Arabia generated 14% of the Kingdom’s GDP.

This 2023 analysis outlined the sectors in this industry that have had notable growth during the preceding 12 months.

The survey was in line with suggestions made by the “United Nations Conference on Trade and Development” and the “Organisation for Economic Co-operation and Development”.

The “Digital Economy Survey” states that 48% of all businesses have made investments in cloud computing services, which include things like file storage, database hosting, security software, and postal services.

With 68.3% of institutions in this sector acquiring cloud services for information and communication activities, information and communication activities led the pack. Education came in second at 66.9%, and professional, scientific, and technical activities at 59.5%.

Approximately 20.3% of enterprises offered services through electronic apps; the highest percentage was in education (44.5%), followed by lodging and food services (39.9%), and arts and entertainment (31.9%).

Information and communication establishments led the way, with 40.1% of institutions making electronic orders for products and services. Overall, 18.5% of institutions made electronic purchases. Then came the financial and insurance industries, both at 35.7%, and professional, scientific, and technological activities.

In addition, some 61% of the institutions made use of internet-connected devices or systems, which included smart lights, metres, surveillance cameras, and alarm systems.

At 67.4%, health and social work institutions were the most frequent consumers, followed by financial and insurance operations and education activities, both at 65.2%.

The purpose of the survey is to create a database for research projects and the creation of indicators about Saudi Arabia’s digital economy. It offers dependable research foundations and useful information to decision-makers for local, regional, and global comparisons.

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