The rise in digital economic contribution is attributed to significant advancements in sectors such as information and communication technology , fintech, and e-commerce. GASTAT's comprehensive update revealed that the non-oil economy's share of GDP reached 53.2%, up from earlier estimates, driven largely by increased activity among small and medium-sized enterprises.
Fintech has emerged as a pivotal sector, with the number of fintech companies in Saudi Arabia reaching 216 in 2023, surpassing the initial target of 150. Venture capital investment in Saudi fintechs surged sixfold compared to the previous year, with companies raising SR2.5 billion across 10 funding rounds. The Kingdom's fintech assets under management are projected to approach $64 billion in 2024.
The adoption of digital payment solutions has also accelerated. In 2023, electronic payments constituted 70% of all retail consumer transactions, up from 62% in 2022. Services like stc pay, Apple Pay, and Mada Pay have become increasingly prevalent, aligning with the government's goal of achieving 80% non-cash transactions by 2030.
E-commerce activity has seen a notable uptick, with the number of transactions increasing by 28.86% year-on-year to nearly 1.13 billion in 2024. December alone witnessed a 30.47% annual increase, reaching 105.73 million transactions. The Saudi e-commerce market was valued at $5.15 billion in 2023, accounting for 6% of the Kingdom’s $92.6 billion retail market.
Investments in digital infrastructure have been substantial. Over the past six years, Saudi Arabia has invested $24.8 billion in ICT, leading to a 99% internet penetration rate and mobile internet speeds of 215 megabits per second, nearly double the global average. The Kingdom was an early adopter of 5G technology, with coverage reaching 77% of the country and 94% in Riyadh.
Artificial intelligence is another focal point, with the government planning to invest $20 billion in AI by 2030. According to PwC, the projected economic impact of AI in the Middle East by 2030 is $320 billion, with an estimated $135.2 billion attributed to Saudi Arabia.
The Kingdom's commitment to digital transformation is further evidenced by initiatives like the Digital Cooperation Organization , headquartered in Riyadh. Established in 2020, the DCO aims to accelerate the growth of the digital economy and facilitate cooperation among member states.
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Saudi Arabia