Expanding possibilities in Saudi digital economy

RIYDAH: For several years, Saudi Arabia has been an early adopter of new technology, and today the ICT sector has become a key enabler for Saudi Arabia’s transition to a digital and more diverse economy. If one looks at projects like King Abdullah Economic City and the numerous other smart cities under planning and construction, it is clear that ICT infrastructure will have the ability to foster social development and improve people’s lives.

Businesses in the Kingdom are already active in transitioning to this digital industrial era. According to Huawei’s latest Global Connectivity Index, last year Saudi Arabia was ranked 19th globally in terms of creating a competitive market, affordable services and excellent quality of service, thanks to the country’s significant investment in ICT. These investments are driving the upgrade of nearly all traditional industries in the Kingdom.
As Saudi Arabia’s leadership pushes forward efforts to diversify the national economy, enterprises in financial services, tourism and real estate in particular will be able to use ICT advancements to strengthen their information-analysis capabilities, enhance collaboration, and launch new products into the market in a better and faster way. Solutions that drive cost efficiency and flexibility are expected to see strong demand from local enterprises.
Saudi Arabia is not only a strategic hub between the worlds of trade, finance and energy. Government leaders and authorities such as Saudi Arabia General Investment Authority (SAGIA) are committed to creating a more technology-focused economy, unveiling ambitious investment plans across key sectors. At Huawei, we have worked with various institutes such as King Fahd University of Petroleum and Minerals (KFUPM) as well as training institutions like the Technical and Vocational Training Corporation (TVTC) providing labs and, in some cases, training students and teachers for specific vertical industries.
Amidst this dynamic environment, Huawei is privileged to be a trusted technology partner to government entities, operators, enterprises as well as a consumer brand of choice. For over 15 years, we have viewed Saudi Arabia as a significant market where we can contribute to the development of the ICT industry and collaborate with our partners to build a better connected world. Since the beginning, our values have largely remained the same: we exist to serve our customers. Their demands are the driving forces behind our development. Then, like now, we can only succeed through our customers’ success.
Along that journey, we have expanded in line with the needs of our local partners. In Saudi Arabia alone we now have around 1,300 employees who have contributed to some incredible achievements in serving the Saudi public. As just one example, last year Huawei commemorated the 11th anniversary of our Haj services partnership together with Saudi Telecom Company (STC). The annual Haj is a serious test of the nation’s telecommunication services. To guarantee pilgrims and residents have smooth access to telecommunication services during Haj, Huawei has mobilized and transferred experts from all over the world to Saudi Arabia in the last 11 years.
Yet a large part of what makes these achievements possible is the wealth of talent within the Kingdom that is capable of pushing the boundaries of technology— not only for the region, but also for the world. Investing in local talent through regional training centers and joint innovation centers has been a defining characteristic of our journey during the last 15 years. One of the particularly exciting aspects of Saudi Arabia is that there is a large population of youth who have grown up as digital natives— born into a world where technology and connectivity have always been at their fingertips. It is imperative that we focus on bringing these highly-skilled young people into the industry.
This past year alone Huawei invested greatly in this area. Together with the Saudi Communications and Information Technology Commission (CITC) for example, we cemented an agreement for cultural and educational exchanges aiming to support young talent and encourage the use of technology thereof to boost productivity and raise the efficiency of the national economy. The collaboration was part of Huawei’s Seeds for the Future CSR program which gives top students the opportunity to develop their practical skills at Huawei’s global headquarters. Thanks to the new opportunities provided by scientific development in the ICT market, the priority of national skills development in technical fields has enjoyed high priority from groups like CITC, Huawei, and many more.
In the last few months, we have also launched a Joint Innovation Center with Saudi Aramco and King Fahd University of Petroleum and Minerals (KFUPM), enabling ICT technologies for the oil and gas industry. We even have another innovation center in the pipeline with King Abdulaziz City for Science and Technology (KACST) focused on the advancement of mobile technologies.
In light of all this, Huawei is often asked about what we believe the future holds for Saudi’s ICT sector over the next 15 years. We believe that a new technological transformation is actually just around the corner, and I think three major advancements will characterize that ICT landscape. First, a fully connected world will be established as 5G mobile broadband changes our lives. 5G will be deployed as a mainstream technology to support applications and IoT scenarios. In addition, we anticipate seeing at least 20 smart cities emerging in the GCC, including Saudi Arabia, to support the aspirations of the public to live more comfortably and efficiently. Third, more cross-sector innovations will appear in the form of new energy technologies, artificial intelligence, Industry 4.0, and smart homes.
Innovations in ICT will become an enabler for all of these socio-economic advancements, and today’s investments are key to the development of the technology industry, the economy, and future generations of professionals in the Kingdom.
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(The author is CEO of Huawei Saudi Arabia)