Saudi Arabia's Minister of Communications and Information Technology stated today, Tuesday, that the country has launched investments worth $6.4 billion in future technologies as it seeks to diversify its economy away from oil. Wealthy Gulf states have launched initiatives to boost growth in non-oil sectors and reduce dependence on oil due to pressures from environmental activists and fluctuations in oil prices impacting government finances.
The Kingdom has already announced that it is injecting billions into an economic transformation plan known as Vision 2030, led by Crown Prince Mohammed bin Salman. Minister Abdullah Al-Swaha revealed that the investments announced today include a $2 billion joint venture between EWTPE Arabia Capital, a fund supported by the Saudi sovereign wealth fund, and Alibaba and J&T Express Group from China.
He added that the Saudi oil giant Aramco will invest $1 billion through its Prosperity7 Ventures fund to help entrepreneurs around the world build startups that serve technological transformation goals, while Saudi Telecom Company will invest $1 billion in marine cable infrastructure and data centers.
In an interview with Reuters, Al-Swaha said, "Currently, the size of the technology and digital market in the Kingdom is about $40 billion, the largest ever in the region. We are very proud of the growth we have seen in the region, especially in areas related to e-commerce, digital content, and cloud computing."
He noted that the Prosperity7 initiative by Aramco will focus on green technologies, while the joint venture with J&T Express Group will work on building a smart hub for the region that could improve efficiency by up to 100 percent.
Al-Swaha mentioned that NEOM, the massive futuristic city being built by the Crown Prince on the Red Sea coast, has launched $1 billion in investments related to simulating a digital environment using augmented reality, known as the metaverse, to serve its residents and visitors, along with another platform that will help users control their personal data.
He added, "We expect that over the next eight years, there will be no fewer than between 100,000 and 250,000 additional jobs, which will effectively mean doubling the number of programmers we have today, and in some cases tripling."
The government also anticipates spending $1.4 billion on entrepreneurship, allocating it to funds to support digital content, which includes an initiative known as (The Garage), a space in the capital Riyadh that will host startups specializing in new technologies.
The minister concluded, "All figures... are verified and validated by third parties. Again, we are not speaking out of showiness but rather from a place of commitment and implementation."
