Saudi Arabia to sustain growth by approving digital economy policy

Published 31 Dec,2020 via Asharq Alawsat (English Edition) - Saudi Arabia seeks speeding up the growth of economic digitization, technology adoption and digital entrepreneurship after the cabinet approved the digital economy policy earlier this week.

The policy is based on seven main principles, namely access (digital infrastructure, data and digital platforms), technologies, innovation, human capital, social prosperity and inclusiveness, confidence in the digital environment and market openness.

It comes as an extension of the Kingdom’s efforts during its presidency of the G20 in 2020 to overcome obstacles and address the challenges facing the greater inclusion of the private sector in the digital economy.

The policy targets supporting the development of the digital economy, creating competitive advantages for the Kingdom, achieving diversified and sustainable economic growth, and global leadership in promising sectors, as well as highlighting the country's international trends in digital economy-related issues.

According to specialists, the cabinet’s decision will speed up the pace of digitization in the Saudi economy.

Saudi Arabia is ranked the first in the world in the speed of the fifth generation (5G) mobile internet. It was also ranked seventh in world in the growth rate of innovative companies, according to the recent Global Competitiveness Report issued by the World Economic Forum.

It is among the 10 fastest growing countries in e-commerce, according to the United Nations Conference on Trade and Development (UNCTAD) Index.

Economist Dr. Loay al-Tayyar explained that the government decision pushes Saudi Arabia to top the countries investing in the digital economy.

The value of the global digital economy is expected to amount to more than $12 trillion, equivalent to about 20 percent of the global GDP, he explained to Asharq Al-Awsat.

He said the approval of the digital economy policy comes in line with these rapid global transformations.

The digital economy would open new investment opportunities and create great job opportunities, in addition to attracting foreigners to the Saudi market, he noted.

Moreover, he stated that digital economy has become a major component of the global economy in light of the coronavirus pandemic.

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