Digital Government Authority: New Government Contracts Grow by 18.75% to SAR38 Billion in 2024

The Digital Government Authority has released its report on government spending in the information and communications technology (ICT) sector for 2024, revealing that the value of new government contracts reached approximately SAR38 billion, marking an increase of 18.75% compared with 2023.
 This growth reflects the substantial support and attention the Kingdom’s leadership devotes to the ICT sector, recognizing it as a key enabler of the national economy. The sector plays a fundamental role in enhancing productivity, improving government efficiency, and advancing the user experience in digital services. It also reflects the digital government’s commitment to fiscal discipline and efficient resource allocation in support of digital transformation initiatives, in line with the goals of Saudi Vision 2030.
 According to the report, government spending increased in areas such as artificial intelligence, emerging technologies, and cloud computing. Government entities achieved estimated savings of approximately SAR1 billion in 2024 through enhanced spending efficiency and improved budget and procurement management. The report also recorded a 157% increase in purchase orders under framework agreements, totaling SAR4.47 billion through 9,457 orders.
 Government contract value also rose across several sectors in 2024, most notably in health and social development, military, infrastructure and transport, public administration, and education. Notably, increases were observed in both security and administrative regions and among national development sectors.
 According to global research firm Gartner, Saudi Arabia leads the world in government ICT spending as a proportion of total ICT expenditure, reaching 34.1%, ahead of many leading nations.
 These investments have further strengthened the Kingdom’s global standing in digital transformation. Saudi Arabia ranked first regionally in the 2024 Government Electronic and Mobile Services Maturity Index, advanced 25 places in the 2024 United Nations E-Government Development Index, and ranked fourth globally, first regionally, and second among G20 countries in the Digital Services Index.