In 2021, the world around us is changing faster and more dramatically than ever before. Much of this is attributable to tech and its growing impact on our society and lifestyles. This is a trend in evidence across the globe, with no country left untouched by the hand of modernity.
For many nations, the onward march of technology has posed an opportunity – one to advance their positions on the world stage. Saudi Arabia is capitalising on this and has made a real effort to become a hub for tech innovation in recent years. This has led many to dub it ‘the Silicon Valley of the Middle East’.
In the article below, we take a look at what’s happening in the country and what this might mean for the rest of the world.
Shifting priorities
A vibrant country, Saudi Arabia’s population is one that’s both young and educated. With its citizens having an average age of just 31.8, it’s little wonder it’s primed to make an impact on the technology sector.
Not only does its primarily millennial population mean the technology is gaining an increasing foothold in the country, but Saudi Arabia also ranks fifth among OECD and partner countries for the number of graduates in the fields of information and communication technologies. It, therefore, has a huge talent pool to draw upon and the ideal infrastructure for innovation.
Nor has the country made any secret of its digitally-focused ambitions, which are set out in its Vision 2030 objectives. The move toward these has been supported by heavy investment in tech innovation and entrepreneurship, with the long-term aim of moving the country away from its dependency on oil. Billions of dollars have thus been diverted into high-tech funds, with dozens of economic reforms ushered in alongside this to strengthen the digital sector.
Much of the focus has been centered on the entertainment industry specifically, with the country contributing $650 million per year to the mobile, online, and offline gaming sectors. eSports are hugely popular, as are online casinos.
Demand for the latter is so high that there are a growing number of these operating in Saudi Arabia, with entire directory sites set up to vet internet providers and keep the country’s growing gaming population safe online. These not only review casinos but share various bonuses and promotions for games like online poker with players, listing the sites by their quality and the steps needed to qualify for their promotions.
While entertainment is one of the highest-grossing areas for tech innovation, this trend is widespread across all sectors, from retail and education to more niche concerns like translation. There’s no area that’s been left untouched.
The keystone of Vision 2030
Many of the trends we discussed above can arguably be seen in countries across the world. What marks Saudi Arabia out is its vocal commitment to technology moving forward. Experts have described this as ‘the keystone of Vision 2030’.
To explain it in a little more detail, Vision 2030 is a national transformation strategy. It’s composed of a framework that sets out how to reduce the country’s dependence on oil and diversify its economy, and it makes it clear that technology is the way forward.
Certainly, Saudi Arabia has the capital to back its ambitions. As the biggest economy in the Middle East, it has a GDP of more than $680 billion. What’s more, 70 percent of its 33 million-strong population are 30 or younger, meaning there’s a vast market for tech companies to sell to.
Already, this ambition is being put into action. In early October, regional telecommunications firm Zain deployed 5G commercial operations across 20 Saudi cities. Near universal internet and mobile penetration rates have also been achieved, and smartphone usage is surging. With the foundations of a digital economy very much in place, there seems little that can halt this onward progress.
What this might mean in the long term is impossible to say with any certainty, but what we do know is that Saudi Arabia’s leaders have been vocal about their ambitions to become the Silicon Valley of the Middle East. If they continue making progress at their current rate, this seems increasingly likely. Were they to keep investing heavily – and if they manage to attract enough world-class technology companies – they may well become the biggest tech power outside of the West.
