The national Vision 2030 statement has always been a guideline for digital transformation within Saudi Arabia but now it has the capital inflows to become the global leading nation in government services.
Strong adoption and delivery, and higher implications for emerging digital government services have placed Saudi Arabia in 7th position globally, according to a new Boston Consulting Group study released titled Personal and Proactive Digital Government: Accelerating GCC Journey, indicating that digital government services have become an integral part of residents’ daily life in Saudi Arabia.
BCG’s study shows that the level of satisfaction of digital government services in Saudi Arabia is in the top rankings of global net experience scores, marked at 75% for 2022. Additionally, the digital service offering in Saudi Arabia has been met with a positive response, with the country’s residents placed highly in terms of frequency of access. In total, 68% of Saudi Arabia respondents revealed they use digital government services at least once per week, compared with the global average of 49%.
In 2022, pandemic-related services have emerged as a benchmark for customer expectations, with their fast go-to-market times, frequent new feature updates, and advanced functionality. In fact, the most used digital government services in the GCC echo global patterns, with pandemic-related services ranking #1 both regionally and globally.
The level of satisfaction of digital government services in Saudi Arabia is in the top rankings of global net experience scores.
Increasing maturity
Overall, GCC countries offer more sophisticated digital government services, which equates to more complex transactions – including registering or using a job search, accessing pandemic services, and processing visa, residency, or work permits – which all rank higher in terms of usage than the global averages, where simple transactions like accessing information are still more common.
This level of integration is particularly significant considering people’s high expectations. The vast majority of GCC residents expect their government to provide services comparable to the best private companies in the world or global digital leaders. These include auto-filling forms with available customer data, tailoring or recommending additional offerings, and even automating complex tasks like travel bookings or loan approvals.
When governments enter this traditionally private-sector territory, they must make a balanced trade-off between convenience on one hand and concerns about privacy on the other.
Digital government is fundamental to Saudi Arabia’s long-term plan for world-class public sector services, in line with Vision 2030. The new digital government survey highlights Saudi Arabia’s progress in this space. Further exploring the exciting potential of generative leadership and technology, and how governments can adopt these concepts to maximise their impact and outcomes, will be a key theme.
The Digital Government Citizen Survey study, which includes citizens and residents, spanning 40 countries, 26 digital government services, and almost 30,000 individual responses, also highlighted other findings to understand the broader trends in digital government service delivery. Overall, GCC residents are satisfied with digital government services, appreciating benefits including understandable language, multiple platform accessibility, and easy access to information.
Saudi Arabia is looking to become one of the top 15 nations in artificial intelligence by 2030. To this end, the Saudi Arabia aims to train 20,000 data and AI experts, launch more than 300 active AI startups, and attract $20 billion in foreign investments by 2030. Clearly one approach will not fit all countries – each must find the level of personalisation and proactive delivery that meets their residents’ needs and expectations, without trespassing on boundaries and trust.
Although the Saudi Arabia government has performed well across many indicators, it cannot be complacent in a fast-paced, high-expectation, post-pandemic world. It has an opportunity to be a leader in advancing personalised, proactive service delivery. Overall, Saudi Arabia should continue to track people’s evolving needs, while innovating and investing in technology that yields efficiency gains, community benefits, and most importantly, value for residents and residents.
Funding transformation
The banking sector in Saudi Arabia experienced a period of high profitability in 2022 because of the ambitious Vision 2030 initiative and an economic boom experienced across the Gulf Cooperation Council countries. A report by Boston Consulting Group, titled Saudi Arabia’s Banking Sector: 2022 in Review and The Path Ahead, highlights that elevated energy prices, the abatement of pandemic-related measures, and an increase in tourism resulting from major global events have precipitated highly dynamic economic activities.
High energy prices are benefitting hydrocarbon economies and the International Monetary Fund, IMF estimates that energy exporters in the Middle East and Central Asia will net a windfall of US$320 billion more than it had earlier forecast, approximately US$1.4 trillion over the next five years if current global economic conditions persist. Much of this will flow to exporters in the GCC, which number among the top energy-exporting nations in the world.
According to Markus Massi, Managing Director and Senior Partner, BCG, “The banking sector in Saudi Arabia is well-positioned for growth in the coming years.”
The Vision 2030 initiative, along with high energy prices and an increase in tourism, are driving an economic boom in the GCC, and Saudi Arabia is at the forefront of this trend.
Additionally, Saudi Arabia is accelerating the transformation of its economy in line with its ambitious Vision 2030 initiative. This is driven by a raft of mega-projects, modernisation initiatives, as well as reforms and development plans that are already diversifying Saudi Arabia’s economy and opening it to the world in a way that it has not attempted before. These developments are being mirrored in the performance of the banking sector in Saudi Arabia, which is experiencing a period of much-welcomed profitability.
Despite a challenging global economic climate, inflation in the GCC has not been as problematic as in other countries. “Inflation in Saudi Arabia has been controlled, thanks to high oil prices and less impact from current geo-political events. This, coupled with the Saudi Arabia’s efforts to diversify its economy, bodes well for the future of the banking sector,” said Martin Blechta, Principal, BCG.
The banking sector in Saudi Arabia is poised for continued growth in 2023, as the Saudi Arabia continues to implement its 2030 strategy and the GCC economy remains strong.
To counter new digital competitors, banks should consider tapping into growing consumer spending trends to expand their portfolio of partnerships. For instance, by partnering with e-commerce businesses and retailers on agency banking and POS microfinancing solutions, banks can expand their customer base. Banks can also work with non-banking financial institution partners to extend low-cost financing options to targeted SMEs.
BCG’s recommendation for national digital agenda
Trust and transparency
Government must be transparent about how data will be collected, stored, accessed, and used, and how breaches will be reported.
Value exchange
Customers are willing to consent for their data to be used for an exchange for good and services they value.
No secondary use of data
There should be a single purpose for each consent. Customers see secondary use or combining data as the creation of new data.
Right to opt-out
Customers value the right to withdraw consent or to opt-out of services. This process should be simple and complete.
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