Information and Communication Technology (ICT) Investment in the Kingdom of Saudi Arabia: Assessing Strengths and Weaknesses

Abstract

The adoption of Information and Communication Technology (ICT) is one of the key factors explaining growth discrepancies across countries in general and in the Kingdom of Saudi Arabia in particular. ICT has been the most dynamic component of investment in recent years, and until recently the explosive growth of investment in ICT has been at the center of the 'new economy' paradigm, shifting the Kingdom's reliance on growth away from oil. ICT investment contributes to capital deepening in all industrial and commercial sectors, thereby assisting in generating economic growth that is more sustainable in the long term. The main objective of this research study is to identify the impact of ICT investment in Saudi Arabia and the role that the government has played through its series of 'five year plans'. The current circumstances in Saudi Arabia relating to IT usage and development as well as the factors affecting economic growth are examined and analyzed. This research also assesses the strategies and policies relating to ICT and its investment in Saudi Arabia, and discusses the role of public and private organizations as well as educational institutions at all levels. The findings reveal that, despite the considerable strides made by the government, certain factors need addressing, in particular, the current state of the Kingdom's ICT infrastructure, the need for adequate numbers of skilled personnel to meet the anticipated growth in ICT, the need for educational establishments to incorporate ICT more fully into their programs, the need to develop the financial markets to facilitate further investment in ICT, and the need to raise the public's awareness of the importance of ICT to the county's prosperity. Accordingly, a number of recommendations are made.