A new report on government ICT spending in Saudi Arabia reveals that total expenditures reached 31.90 billion SAR during 2025.
The Digital Government Authority (DGA) issued the document to track investment trends in the public sector. Notably, this financial commitment supports the digital transformation goals of Saudi Vision 2030.
Overview of Government ICT Spending
According to the report, government contracts reached a value of 31.70 billion SAR across more than 6,145 contracts. This high volume of transactions reflects the maturity of the digital government system.
Meanwhile, the completion of essential digital infrastructure projects has significantly improved spending efficiency. The authority attributed this efficiency to the utilization of national framework agreements.
In addition, unified government procurement and targeted investments in high-impact projects helped optimize financial resources. Consequently, these measures supported operational and financial goals.
Growth in Cloud Computing and AI
Advanced technologies experienced continuous growth in public sector investments during 2025. Specifically, spending on cloud computing increased by 42% compared to the previous year.
Furthermore, expenditures on artificial intelligence and emerging technologies grew by 20%. This rapid adoption of modern digital solutions aims to encourage innovation within government entities.
The report highlights that these investments are shifting toward advanced systems to improve the overall beneficiary experience.
Economic Impact and Job Creation
The financial report details the direct and indirect economic benefits of this government ICT spending. Specifically, the sector contributed a direct added value of over 9.5 billion SAR to the national economy.
Meanwhile, the indirect economic impact reached 3.5 billion SAR. In addition to financial growth, these digital initiatives supported the creation of more than 7,000 jobs.
Local content in government software procurement reached 49%, demonstrating a strong commitment to local capabilities.
SME Participation and Procurement Efficiency
Small and medium-sized enterprises (SMEs) increased their participation in digital government projects during 2025. Their share of government ICT spending rose to 23% during the year.
Consequently, the value of contracts awarded to SMEs reached 9.23 billion SAR, representing 29% of total government contracts. Efficiency metrics also showed substantial progress through national framework agreements.
Purchase orders executed through these agreements exceeded 5.16 billion SAR. Notably, more than 500 government entities and 65 private companies benefited from this simplified procurement system.
