Riyadh: The Digital Government Authority (DGA) issued the Government Spending Report on Information and Communications Technology (ICT) Services 2025, which tracks government spending trends across the sector and reflects the support of Saudi Arabia's wise leadership for digital transformation. The report highlights continued investment in digital enablers and enhanced spending efficiency, supporting the objectives of Saudi Vision 2030 and strengthening Saudi Arabia's global competitiveness.
According to Saudi Press Agency, the report revealed that total government spending reached SAR31.90 billion in 2025, while the value of government contracts amounted to approximately SAR31.70 billion across more than 6,145 contracts. This reflects the maturity of the digital government ecosystem and increased spending efficiency following the completion of several core digital infrastructure projects that represented a major component of government technology investments in previous years. The report also highlighted the role of national framework agreements, unified government procurement, and directing investments toward high-impact projects in enhancing spending efficiency and achieving digital transformation objectives at both the operational and financial levels, alongside continued investment in advanced technologies, including cloud computing, artificial intelligence, and improving beneficiary experience.
Government spending on advanced technologies continued to grow during 2025, with spending on cloud computing increasing by 42% compared to 2024, while spending on artificial intelligence and emerging technologies rose by 20%, reflecting the accelerated adoption of modern digital solutions and strengthened innovation across the government sector.
The report highlighted the economic impact of government digital spending, which generated more than SAR9.5 billion in direct value added to the national economy, in addition to SAR3.5 billion in indirect economic impact. It also supported the creation of more than 7,000 jobs, while local content accounted for 49% of government software procurement, reflecting the sector's role in supporting economic growth and empowering national capabilities.
Small and medium-sized enterprises (SMEs) continued to strengthen their presence within the government digital ecosystem, with their share of spending reaching 23% in 2025. The value of contracts awarded to SMEs amounted to approximately SAR9.23 billion, representing 29% of the total value of government contracts in the sector, underscoring the success of efforts to empower the private sector and expand its participation in government digital projects.
In terms of spending efficiency, the value of purchase orders executed through national framework agreements exceeded SAR5.16 billion during 2025, benefiting more than 500 government agencies and 65 companies. This contributed to accelerating procurement processes, achieving financial and operational efficiencies, and maximizing the utilization of government resources.
This growth reflects the accelerating pace of digital transformation and its direct impact on improving access to services for citizens, residents, and visitors through more efficient, reliable, and user-friendly digital services. Increased spending has also contributed to enhancing government performance and operational quality, supporting digital transformation objectives and strengthening Saudi Arabia's position in international indexes.