How cloud technology is accelerating Saudi Arabia’s digital transformation

The adoption of cloud computing is one of the most discussed topics in the Kingdom's ICT sector, as a way to accelerate digital transformation. (Getty Images)
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Updated 31 August 2022
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How cloud technology is accelerating Saudi Arabia’s digital transformation

  • Many organizations have turned to cloud computing as a competitive driver of operational efficiency
  • Rapid adoption of cloud services is a key driver of the Kingdom’s thriving digital economy

JEDDAH: With the amount of data increasing at an exponential rate, doubling every two years, information processing and analysis tools and storage technologies have become critical requirements for any nation with a clear strategy for digital transformation.

Saudi Arabia is no exception, thanks to a nimble information technology community whose rapid adoption of cloud-based technologies is supporting and accelerating the Kingdom’s digital transformation.

In recent years, many governments and organizations around the world have turned to cloud computing as a competitive driver of operational efficiency, mainly to find a balance between security and agility.

Last October, a study by research firm Markets and Markets estimated that cloud-services adoption will grow by 16.3 percent between 2021-2026. Similarly, Gartner, the technology research and consulting firm, estimates that more than 95 percent of new digital workloads will be deployed on cloud-native platforms by 2025, up from 30 percent in 2021.

The Kingdom’s investment in and utilization of cutting-age information and communications technology has prepared it well for the new era of e-government, a framework with benefits for citizens, the government and the economy.

Experts say the Saudi government has been proactive in its approach to the implementation of digital technologies driving economic diversification, boosting innovation and building a thriving digital economy.

The transformation to e-government is taking place as the ICT sector witnesses rapid change. In 2019, Saudi Arabia’s Ministry of Communications and Information Technology announced a “cloud first policy” that guides public and private sector companies as part of a cloud-led transformation.

The Communications and Technology Information Commission adopted a Cloud Computing Regulatory Framework, which aims to enhance cloud-computing services in the Kingdom and ensure regulatory transparency.




Cloud technology provides flexibility, scalability and access to the latest technologies, enabling teams to innovate faster and be more agile. (AFP)

The commission has laid out a path to become a 5G digital regulator, the most advanced category according to the International Telecommunication Union, to connect the Kingdom to a thriving digital economy, increase innovation, inclusiveness, and sustainability, growth and partnerships.

Two years ago, the commission updated its cloud-computing framework and outlined the separate responsibilities of service providers and users, namely individual customers, government agencies and enterprises. Currently, cloud services are deployed under four models: Private, public, community and hybrid.

The framework makes a clear distinction between “Saudi government data” and “non-government data.” Within these two categories, subscriber data uploaded into a cloud solution provider’s cloud system may then be subject to additional classification levels, depending on the required level to preserve the confidentiality, integrity and availability of the data in question.

Saudi government data may be classified as “top secret,” “secret,” “confidential,” or “public.” Non-government data is categorized as either “data received from Saudi government entities” or “other data.”

FASTFACTS

* Digitization is the transformation of information from analog or manual to digital, such as the conversion of handwritten records into computerized versions.

* Digitalization is the process of applying digital tech and capabilities to tasks normally handled by people, delivering improved outcomes.

In October 2020, the ministry published the Kingdom’s Cloud First Policy to accelerate the pace at which government authorities were migrating from traditional IT infrastructure to cloud platforms, and encourage the adoption of cloud services in the country.

The ministry said that the policy covered all government authorities with some exclusions. These authorities would consider cloud-computing options when making new IT investment decisions in line with a clearly defined strategy that caters for various technical, security and commercial requirements.

To date, there are 21 service providers in the Kingdom, according to the commission website, ranging between class A and C. Nine more cloud providers are in the process of qualifying.

CNTXT, a company established to spearhead cloud-computing adoption in the Kingdom, offers Google Cloud solutions and services, digital transformation software, and consulting for public and private sector customers seeking to secure their place in the digital future.




Companies wanting to secure their space in the digital future are advised to adopt cloud computing. (AFP)

The company is a joint venture by Saudi Aramco and Norwegian software firm Cognite.

“Many (clients) realize that cloud adoption is more than just adopting new technology,” its CEO, Abdullah Jarwan, told Arab News. “It is an all-encompassing organizational change. It is about establishing a new technology strategy for the company, identifying new ways of working, and undergoing change management processes that enable you to take the most from cloud technology.”

The global pandemic not only highlighted the vulnerability of national systems, but also showed that while foundational organizational infrastructure is essential, work is needed to strengthen the digital resilience of the Kingdom’s economic sectors.

Experts believe the Saudi government’s cloud-first policy goal will facilitate access to global cloud service providers, which in turn will attract investments, develop definitive data regulations, enable innovation, foster agility and scale up growth.

“Cloud-technology adoption, like any other technology adoption, also requires cultural change,” Jarwan said.

INNUMBERS

* 16.3 percent Global growth rate of cloud adoption in 2021-2026.

* $448bn Projected global cloud services market value by 2026.

* $10bn Projected demand for cloud services in KSA by 2030.

* 92 percent KSA executives expecting 50 percent+ shift to cloud over next three years.

“It requires the company to invest in training and up-skilling its workforce in order to make sure that employees know how to take the most advantage of new cloud-based tools. It can sometimes also be hard to convince people to start using new tools. So, this change needs to be embraced and communicated from the top, where the cloud is positioned as a fundamental enabler of a company’s innovation.”

Today, the adoption of cloud computing is one of the most discussed topics in the Kingdom’s ICT sector, as entities in both the public and private sectors look to accelerate digital transformation.

Cloud computing is a relatively mature and robust technology that offers its users several proven advantages, such as cost reduction, immediate scalability and resource sharing.

Security is cloud migration’s primary, if not most significant, characteristic. Cybersecurity threats across the digital landscape rose almost exponentially during the global pandemic. Many organizations opted for cloud migration owing to restrictions on operations with on-premise IT systems.

Though cybersecurity threats are still a significant concern today, cloud security concerns are also coming to the fore. Such threats include lack of user awareness of safe configuration practices for personal smart home security; lack of secure setup and checkups for remote access enterprise systems; and end-user education against social engineering as user information is increasingly stolen via fraudulent emails and web links sent via social media platforms, instant messages and others.




Participants including Saudi women attend a hackathon in Jeddah in 2018. (AFP/File Photo)

Despite the threats, a Mordor Intelligence study of migration to cloud services between 2018-2026 put the market value in 2026 at $448.324 billion, compared with $119.13 billion in 2021.

According to Jarwan, several points are usually considered before companies migrate to the cloud, such as “technology stack evaluation, on-premise hardware and software, security evaluation, identification of gaps, and cost.”

Once the assessments are made, companies prioritize their services for the transition.

“Companies that want to secure their space in the digital future must adopt the cloud,” Jarwan told Arab News. “It provides flexibility, scalability, and access to the latest technologies, enabling teams to innovate faster and be more agile.

“Companies can shift their focus from maintaining infrastructure, which is not their core business, to freeing resources for actual development and innovation.”

Looking ahead, Jarwan said: “The question is not if but when and how companies should adopt the cloud.”


Al-Qunfudah celebrates mango festival as production grows

Updated 7 sec ago
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Al-Qunfudah celebrates mango festival as production grows

  • Several types of mangoes, including Tommy Atkins, Sensation and Langra, are grown locally in Al-Qunfudah
  • Saudi mango production grew to 88,600 tons annually in 2023, with Al-Qunfudah producing a little over 50 percent of national output

RIYADH: The Saudi coastal city of Al-Qunfudah on the Red Sea is celebrating the 13th season of its mango festival this week.

Organized by the Ministry of Environment, Water and Agriculture’s branch in the Makkah region, the event began on Tuesday and will run for five days.

Through the festival, organizers hope to promote mangoes and other agricultural products, as well as help farmers with marketing and develop the Kingdom’s agricultural industry.

Several types of mangoes, including Tommy Atkins, Sensation and Langra, are grown locally in Al-Qunfudah.

Around the city, there are more than 3,000 farmers who own almost half a million mango trees, producing more than 45,000 tons of mango annually, the Saudi Press Agency reported.

Guests at the mango festival include Makkah Region Gov. Prince Khalid Al-Faisal, as well as Majid Al-Khalif, director general of the Ministry of Environment, Water and Agriculture’s branch in Makkah region.

“The mango festival is considered a marketing window, waited (for) by people every year because it attracts shoppers and those looking for high-quality agricultural products,” said Al-Khalif.

The festival includes activities for guests such as a heritage corner, games and prizes, and educational programs for farmers.

Farmers in Saudi Arabia have cultivated mangoes for more than 50 years. The production season begins in March, with harvest usually starting in May and lasting for three months.

Last year, statistics showed that Saudi mango production grew to 88,600 tons annually, with Al-Qunfudah producing a little over 50 percent of national output.

The seasonal fruit is grown in areas including Jazan’s Sabya, Abu Arish, Al-Darb, Samtah and Baish governorates.


Saudi crown prince meets with Arab leaders on sidelines of Manama summit

Saudi Arabia’s crown prince meets with Kuwaiti Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah in Manama, Bahrain. (SPA)
Updated 31 min 22 sec ago
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Saudi crown prince meets with Arab leaders on sidelines of Manama summit

  • Saudi Arabia’s crown prince urged international community to fulfil its responsibility by demanding an immediate end to Israeli aggression

RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman met with Arab leaders on the sidelines of an Arab League summit taking place in Manama on Thursday.

The crown prince met with Kuwaiti Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, Jordan’s King Abdullah, Syria’s President Bashar Al-Assad, and UN Secretary-General Antonio Guterres.

The summit has been dominated by the Israel-Hamas war and the crown prince said in a speech that the Kingdom “emphasizes the need for continued collaboration to confront the brutal aggression against Palestine.”

He urged the international community to fulfil its responsibility by demanding an immediate end to Israeli aggression and ensuring the delivery of humanitarian aid to Gaza.

The crown prince also stressed “the importance of pursuing a just and comprehensive solution to the Palestinian issue based on UN legitimate resolutions and the Arab Peace Initiative, guaranteeing the Palestinian people’s right to establish an independent state within 1967 borders, with East Jerusalem as its capital.”


Financial transactions easier with fintech, but there are obstacles, says expert

Updated 50 min 36 sec ago
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Financial transactions easier with fintech, but there are obstacles, says expert

  • Rapid development of global markets makes corruption a major threat, Saudi business leader warns
  • Investors should fund crime-fighting technologies, Arab Forum of Anti-Corruption Agencies and Financial Intelligence Units told

RIYADH: Financial transactions have been made easier by rapid and accelerating growth in technologies, but there are still obstacles to overcome, said Nabil Koshak, CEO of the Saudi Venture Capital Company.

“Investors should fund the development of technologies that help fight these obstacles and crimes,” said Koshak, a panelist at the Arab Forum of Anti-Corruption Agencies and Financial Intelligence Units on its second day on Thursday in Riyadh.

With the interconnectedness and rapid development of global markets, corruption represents a major threat and carries significant risks for investors.

Discussing ways in which businesses and financial institutions manage the dangers of market corruption, Koshak said: “Investing in this sector attracts capital from the world’s top venture capital and financial firms. These firms noticed a significant gap and difficulty that the authority, financial institutions, and governments face; as a result, as technology advances, investors will have more and bigger opportunities to invest.”  

Based on the effects of corruption, and its repercussions on economic stability and sustainable development, there is an increasing trend among corporate and institutional investors to adopt proactive methods to confront these risks directly, he said.

“In 2016, Saudi Vision 2030 emphasized the importance of sectoral investment, innovation, and entrepreneurship, particularly among developing companies and small and medium-sized organizations. In 2023, funding and venture investment in the Kingdom were increased, and from 2018 to today it became the top Middle Eastern country to invest. The Saudi Venture Investment Company’s initiative prompted over 50 investment funds to invest in technology and emerging companies in general,” he added.

By prioritizing anti-corruption measures and integrating them into decision-making frameworks, investors are reshaping the standards of responsible investment and demonstrating a commitment to ethical business conduct.  

“The digital economy is a strong regulatory framework for Saudi Arabia. Even to stimulate investment in technologies related to the field of combating digital crimes, we are proud of Saudi Arabia’s entrepreneurs and investors. Participation of startups and entrepreneurs to establish companies that contribute to developing technologies in combating crimes, such as Mozoon Company, Amwal Company, and others,” Koshak said.

He said that the significant changes that took place in this sector did not come out of nowhere. Vision 2030 was focused on innovation, entrepreneurship, and small and medium enterprises.

Koshak said that it is important to continue supporting and empowering entrepreneurs and innovators in order to find innovative solutions that keep pace with the challenges.

He added that It is critical to recognize that as the digital economic transformation accelerates, new and different challenges will emerge.

Innovation and creativity are important tools to find solutions that keep pace with this accelerating digital transformation in various sectors, the most important of which is the fight against financial crime, Koshak said.


Makkah scouts train to use digital quick-response tech to help pilgrims

Updated 16 May 2024
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Makkah scouts train to use digital quick-response tech to help pilgrims

  • Scouts trained on smart application that provides route planning, navigation and guidance to pilgrims at holy sites
  • Digital approach helps to protect the environment by eliminating the need for paper maps and signs

RIYADH: Saudi scouts are being taught how to use digital technology and quick-response codes on their smartphones to better help Hajj pilgrims with guidance, on-site navigation and route planning at the Kingdom’s holy sites.

The course, run by the Ministry of Education through the Saudi Arabian Scouts Association, began a 10-day training program in Makkah on Wednesday for scouts to help pilgrims during the annual Hajj, the Saudi Press Agency reported.

Thirty-two trainees from four scout vanguards are currently enrolled to receive training.

A smart application that provides route planning, navigation and guidance to pilgrims at the holy sites will be used.

Explaining the benefits of using digital technology and QR codes during scout trips to holy sites, scout leader Abdullah Alharthi said that this approach helps to protect the environment by eliminating the need for paper maps and signs, and avoiding visual clutter in sacred spaces.

Additionally, the digital system ensures the encryption of scouts’ messages.

SASA, which works with the Ministry of Hajj and Umrah to help pilgrims each year, plays an important role during Hajj season when, every year, scouts from all corners of the Kingdom gather to assist pilgrims during Hajj.

Regardless of age or gender, these volunteers devote their time and energy to enable pilgrims to fulfill the Hajj rituals with ease.

The scouts affiliated with the Ministry of Hajj and Umrah primarily focus on assisting lost pilgrims by providing guidance and directions, ensuring they reach their designated camps safely.

Last year, according to SASA, 3,500 scouts were stationed around the holy sites in Makkah.

The SASA volunteers told Arab News they are classified into two age groups: the advanced scout category and the ranger category. The advanced scout category is made up of scout members aged between 15 and 17. The ranger category comprises those from 18 to 22, including scout leaders (150 of whom last year were women) and friends and pioneers of SASA.


Saudi Arabia condemns assassination attempt on Slovakia’s prime minister

Updated 16 May 2024
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Saudi Arabia condemns assassination attempt on Slovakia’s prime minister

  • The ministry wished speedy recovery of the prime minister

RIYADH: Saudi Arabia on Thursday condemned the attempted assassination of Slovakia’s prime minister, Robert Fico, the foreign ministry said.

“The Kingdom rejects all forms of violence, reaffirming its full solidarity with Slovakia against everything that threatens its security and stability,” the statement read.

The ministry wished a speedy recovery for the prime minister, who remains, according to his deputy, in a “very serious condition” after the attack in Handlova.

Fico was admitted to hospital on Wednesday where he underwent a five-hour emergency surgery after being shot five times.

The shooting was the first major assassination attempt on a European political leader for more than 20 years, and drew international condemnation, with political analysts and legislators saying it was indicative of an increasingly febrile and polarised political climate across the continent.