Information Technology and Communications
The Kingdom is keen to harness the benefits that technological innovation can bring to the economy, and Saudi Vision 2030 identifies technology and innovation as one of the most important areas for investment. The government is partnering with the private sector in order to help develop the telecommunications and information technology sectors and, ultimately, the digital economy.
Saudi Arabia’s massive defence spend will be increasingly brought on-shore, resulting in an increase in technology transfers. This is expected to stimulate other sectors of the economy, such as general industrial manufacturing, and communications and information technology.
Additionally, the Kingdom aims to become a global leader in e-government by expanding online services, streamlining processes, diversifying communications channels, boosting transparency and reducing delays. E-commerce is another area where there are high expectations, with the government anticipating approximately 80% of retail transactions being by way of e-commerce by 2030.
The Badir Program, initiated under the auspices of the King Abdulaziz City for Science &Technology (KACST), is a nation-wide program aimed at accelerating the growth of emerging, technology-based businesses in the Kingdom. As a result of the Badir Program, at the time of writing, 250+ new companies have already become active in the fields of e-commerce, communications, software and smart device applications. With advanced technological centres (such as KACST), and plans for a five hundred billion US dollar technology-focused mega city, the potential for businesses operating in the areas of technology and innovation will continue to grow.
Recent cloud computing regulatory initiatives may have the effect of encouraging greater establishment of cloud services infrastructure in the Kingdom.
Some particular points to note:
Saudi Arabia has legislation providing for electronic transactions and for addressing cyber crime.
It does not currently have a modern data protection law, although this will likely be addressed in the near future. Despite no data protection law as such, there are local law privacy considerations that may be material to personal data processing.
There are no generally applicable information security laws that require the adoption of prescribed standards or processes. There are, however, sector specific considerations, such as the SAMA Cyber Security Framework applicable to the financial services sector.
Similarly, there are no generally applicable rules relating to outsourcing of IT services, although there are sector specific considerations, such as the SAMA Rules for Outsourcing Processes.
The government has issued rules that apply when the government entities contract with private-sector establishments to fund and implement e-government and e-commerce projects based on the principle of shared expected revenue.
The Communications and Information Technology Commission (CITC) is the regulator responsible for telecommunications and information technology sector, and is responsible for licensing and regulating various activities. CITC has issued a Cloud Computing Regulatory Framework that governs the provision of cloud services to cloud customers in Saudi Arabia.
