Digital economy accounts for 15.6% of Saudi GDP in 2023: GASTAT

The digital economy accounted for 15.6% of Saudi Arabia's GDP in 2023, marking a 1.6% increase compared to 2022, according to the Digital Economy Statistics Bulletin 2023 issued recently by the General Authority for Statistics (GASTAT).

As for the structure of the digital economy, the core level, consisting of activities that produce information and communication technology (ICT) goods and services, contributed 2.6% to GDP. The narrow level, which covers establishments relying on digital inputs, contributed 2.3%. The broad level, which includes establishments that significantly enhance their products and services through digital inputs, accounted for 10.7% of GDP.

This survey adheres to international standards set by the UN Conference on Trade and Development (UNCTAD) in its Handbook on Measuring Digital Trade, ensuring the international comparability of Saudi Arabia’s digital economy indicators.

Imports of ICT goods recorded a notable growth, reaching SAR 54.9 billion in 2023, reflecting a 20% growth rate.

Meanwhile, exports and re-exports of these goods grew by 76%, reaching SAR 11.8 billion.

According to the bulletin, 71.6% of establishments connected to the internet used smart devices or systems, with the most notable being alarm systems, smart meters, smart lighting, and smart surveillance cameras.

Regarding the sector’s financial performance, operating revenues for the ICT sector in 2023 totaled approximately SAR 236.4 billion, while operating expenses reached SAR 115.4 billion. Employee compensation in the sector amounted to SAR 27.5 billion.

The number of active commercial registrations for e-commerce reached about 37,500 in 2023, an increase of 24% compared to 2022. Commercial registrations for software publishing rose from 3,113 in 2022 to 4,009 in 2023.

Commercial registrations for cloud computing services providers also saw a 41% increase, reaching 1,759.

Source/ Argaam