The Ministry of Communications and Information Technology (MCIT) has launched the National Information Technology Development Program (NTDP) to speed up the development of the information technology sector in the Kingdom.
NTDP is one of the Ministry’s many projects and technical programs aimed at making Saudi Arabia a global hub for information technology, in what is already one of the world’s 20 largest economies.
The program aims to create a supportive environment for the development of the information technology sector by coordinating with government agencies to ensure alignment and integration between their work to support entrepreneurs and technology companies, stimulate research and technical innovation, build up digital capabilities, and attract technical capabilities, according to a report released by MCIT for the years 2021-2022. By 2026, the program seeks to boost scientific research in the Kingdom to a degree that it will generate SR10 billion in revenue and 10,000 jobs.
By 2026, the program seeks to boost scientific research in the Kingdom to a degree that it will generate SR10 billion in revenue and 10,000 jobs
Empowering Billion Dollar Start-ups
The initiative, which has a budget of SR 2.5 billion, intends to encourage and empower technical entrepreneurs, technology enterprises, and potential ‘billion-dollar’ valuation start-ups, as well as nurture technical talents, promote innovation, and technical research.
Local and international technology enterprises, research and technical innovation centers, and technology entrepreneurs will be among the beneficiaries of the NTDP. This is due to a 28.8% increase in local content in the communications and information technology sector, as well as a 40% reduction in the electricity tariff for cloud computing companies after the MCIT approved the regulations for cloud service providers, which are a pillar of new technology solutions such as artificial intelligence, blockchain, encryption, augmented reality (AR), wireless services, and technical devices. It was discovered that these activities necessitate the efficient use of electrical energy, which is a cost borne by businesses and ultimately passed on to consumers.
The initiative, which has a budget of SR 2.5 billion, intends to encourage and empower technical entrepreneurs, technology enterprises, and potential ‘billion-dollar’ valuation start-ups
As a result of the Council of Ministers’ consent, the tariff for power usage in cloud computing activities was decreased by 40%. This action is intended to help the information technology sector flourish, as cloud computing increases GDP growth and creates a fertile environment for investment due to its low operational costs, high level of data security, and ease of access.
The companies operating in this sector and the new companies that apply to connect the electricity before the end of 2023 will benefit from the reduction in the electricity tariff.