Digital Transformation in Saudi Boardrooms: How Technology is Shaping Decision-Making

In 2019, the United Nations agency International Telecommunication Union (ITU) recognised Saudi Arabia as a leader in the “generations of regulations” model. This is a clear testimony of the country’s significant progress in modernising its information and communications technology (ICT) in the last few years.

Also named the fastest-growing ICT market in the Middle East, Saudi Arabia has been prioritising advancements in regulatory flexibility and above all, digital transformation. Such actions are part of a broader agenda launched by The Kingdom of Saudi Arabia, Vision 2030.

Under this national program, the country aims to maximise investment capabilities by diversifying the thriving digital economy. For boards, this evolving landscape presents both challenges and opportunities. As digital transformation accelerates, board leadership must adapt to new regulatory expectations and the need for data-driven decision-making.

But is the nation truly on track to becoming a digital powerhouse? How is digital transformation reshaping board leadership in Saudi Arabia? And how do these changes impact the future of boardrooms?

Saudi’s Digital Economy: What’s Shaping the Future of Boards?

Vision 2030 has created significant foundations for rapid transformation in Saudi’s digital economy. From increasing adoption of emerging technologies to improving the quality of internet services, the country has proven to be a powerhouse in driving digital transformation.

In September 2024, Saudi Arabia ranked first regionally, fourth globally, and second among G20 countries in the United Nations E-Government Development Index (EGDI) — climbing 25 places. Hence, reflecting on the country and its government’s large-scale efforts in digital reforms, which are centred around driving sustainable growth.

In support of Saudi’s fast-growing digital economy, boards across industries are integrating technologies to drive strategic decision-making. Emerging technologies at the forefront include 5G, AI, cloud-native solutions, and IoT.

Another testament to the country’s commitment to digitalisation is the LEAP 2025 tech convention. With global tech leaders and directors in attendance, the conference is set to explore the latest tech advancements such as AI research and development, and how they influence board governance.

Cybersecurity and Risk Management: Are Saudi Boardrooms Prepared?

In a 2024 Cybersecurity Awareness Survey, 74% of the surveyed IT experts reported they experienced phishing attacks, with 49% naming ransomware as the second biggest cybersecurity concern. Hence, indicating the importance of cyber preparedness and continuous upgrade of security defences.

While Saudi’s digital transformation is quickly advancing, so are the rates of cyber attack rates. According to recent research, the KSA cybersecurity market is expected to surge to $6.65 billion by 2029. Such growth is driven by the increasing reliance on digital technologies and heightened cybersecurity threats.

As part of KSA’s cyber preparedness, the government established the National Cybersecurity Authority (NCA) to address cybersecurity needs. This includes providing clear cyber policies, frameworks, guidelines, and controls in support of national cyber resilience.

However, last year’s report from SOCRadar, showed that Saudi Arabia emerged as a key target for cyber threats. The most notable ones are dark web activities, ransomware incidents, credential-based attacks, and Distributed Denial of Service (DDoS) attacks. Among the most targeted industries are Manufacturing, Information, Construction, and Professional, Scientific, and Technical Services.

In a 2024 PWC survey, 40% of CEOs in KSA said they were moderately exposed to cyber risks, and 62% indicated cyber investment concerns as a top priority. With growing sophisticated cybercrimes, boards are expected to endorse cyber awareness and training to mitigate and address the attacks, or even recover from them. More so, this requires better cyber resilience strategies, from adopting zero-trust architectures to integrating AI-driven security solutions.

In support, the Saudi government is allocating $1.2 billion to train 100,000 young individuals to develop digital skills and expertise in fields like cyber security. The National Cybersecurity Authority also announced plans to invest $40 billion in Artificial Intelligence to create a more cyber-resilient digital infrastructure.

Sustainability and Green IT: What is the Saudi Green Initiative?

Saudi Arabia’s digital transformation is not only intended to create interconnected services across industries but also to develop sustainable infrastructures. Notably, Vision 2030 was proven successful with 87% of its initiatives either completed or on track — even helping advance major visionary projects such as The Red Sea and NEOM.

Advancing towards a greener future, the country also launched the Saudi Green Initiative (SGI) in 2021, intending to reach net-zero carbon emissions by 2060. This whole-of-society initiative mobilises all sectors to achieve three targets:

1. Reducing Emissions — Have 50% of power generated from renewable sources by 2030.
2. Greening Saudi — Grow 10 billion trees across the country, aiming to rehabilitate over 74 million hectares of land.
3. Protecting Land and Sea — Protect 30% of the nation’s land and marine ecosystems, and secure habitats for indigenous flora and fauna.

Adopting the Concept of Green IT

With 85+ initiatives under the SGI, the country is investing over $180 billion to develop its green economy. One critical part of this mission is adopting Green Information Technology (IT), also called green computing. This approach refers to the sustainable design, utilisation, and disposal of technology.

• Green Design — The design of servers, computers, peripherals, and other electronic equipment that are environmentally sound and energy efficient. Examples include energy-efficient power supplies and SSDs, optimised cooling and airflow management, and sustainable data centers.
• Green Utilisation — The use of features like automatic shutdown for monitors and hard drives after periods of inactivity, or hibernation moderns to disable CPU and RAM, conserving energy.
• Green Disposal — The recycling and reusing of old computers and peripherals to minimise electronic waste. Proper disposal methods also help reduce the presence of toxic, non-biodegradable substances that can pose serious health risks.

For Saudi boardrooms, Green IT is a critical part of corporate sustainability strategies, aligning with SGI and Vision 2030 targets. Digital solutions like board portals also play a crucial role in this by reducing paper waste, improving eco-efficiency, and lowering carbon footprints — contributing directly to the green agenda. Data shows that the Green IT services market in Saudi Arabia is expected to reach $719.5 million in revenue by 2030

Challenges in Digital Transformation: How Saudi Boards Can Overcome Them

From establishing a knowledge economy to reinventing business through technology, Saudi Arabia has been a key player in transformation. Boards, however, are facing challenges that hinder their organisations from sustainable growth and the full realisation of digital transformation.

1. Resistance to Change

According to PwC’s 2024 Middle East report, 80% of organisations in KSA experience resistance to change when implementing new technologies. This challenge stems from factors such as lack of digital understanding, fear of job displacement, and rigid corporate hierarchies. To address such issues, boards must encourage their organisations to:

• Create targeted digital awareness campaigns
• Adopt phased implementation strategies
• Facilitate continuous training programs
• Encourage leadership involvement for clear direction

2. Resource Availability Constraints

Resource constraints have always been a huge obstacle to digital transformation, both in Saudi Arabia and worldwide. Digital projects typically require substantial software, data infrastructure, and human capital investments. Many businesses even struggle with budget limitations and inefficient resource allocation.

The PwC survey found that 90% of Saudi executives cited resource availability as a big challenge when executing digital initiatives. To mitigate resource limitations, organisations and their boards must:

• Leverage government funding and incentives (e.g. offered by the Digital Government Authority (DGA) and Vision 2030)
• Utilise public-private partnerships (PPPs)

3. Talent Acquisition and Development

Another huge struggle in Saudi Arabia’s transformation is the shortage of skilled individuals in modern technology. The country is making strides in upskilling its workforce, with initiatives such as the Saudi Digital Academy and the National Strategy for Data & AI (NSDAI).

Studies suggest that 70% of employers in Saudi Arabia identified technological literacy as a rising skill. Additionally, there’s also a growing demand for skills in cybersecurity and networks, and big data and AI. To address the talent gap, companies and boards should:

• Partner with training institutes to create specialised digital skills programs
• Offer internship and apprenticeship programs
• Invest in upskilling existing employees through industry certifications
• Implement remote work options to attract more talent

4. Data Management and Utilisation

One critical element of digital transformation is effective data management. However, boards in Saudi Arabia face difficulties in harnessing data for decision-making. Issues such as data silos and low data literacy prevent businesses from extracting digital insights — with 70% of Saudi executives naming data availability as a transformation challenge.

Adding further complexity are cybersecurity risks and non-compliance with regulations such as the Saudi Personal Data Protection Law (PDPL). The PDPL comes with stricter standards for data privacy and protection, issued in September 2021 and fully enforceable in September 2024. For proper data management and compliance, boards are recommended to:

• Establish centralised data governance frameworks
• Invest in AI and big data analytics
• Conduct robust cybersecurity measures
• Schedule regular audits and data quality assessments
• Build a data-driven culture for more strategic decision-making

2025 Tech Trends: What’s on the Horizon for Saudi Boards

Over the past years, the Kingdom of Saudi Arabia has taken significant actions in its digital transformation journey. Spending about $25 billion on developing its digital infrastructure, the county also plans to allocate another $20 billion for future projects. Find out what tech trends boards and organisations must keep an eye on this 2025 and beyond.

1. Nationwide Integration of AI

Saudi Arabia’s AI scene is one to watch for. According to a recent market analysis, the Kingdom’s AI market is expected to reach a value of $61 million by 2033 at a CAGR of 46.6%. From 2025 and beyond, AI will be a transformative force across various sectors in Saudi Arabia — including government, healthcare, banking, and finance.

In fact, Saudi’s $500 billion smart city project, NEOM, uses artificial intelligence to create a smarter yet sustainable urban environment. AI will be applied to initiatives such as building a multi-modal sustainable transport system and providing personalised medicine and better disease diagnosis.

This widespread adoption of AI will likely increase the demand for high-skilled talent across various fields. Saudi Arabia is then investing heavily in education and workforce development to bridge the skills gap. For instance, initiatives like the Saudi Data and AI Authority (SDAIA) and the National Strategy for Data and AI (NSDAI) aim to position the country as a global leader in AI by fostering research and digital literacy.

2. Next-Level Cybersecurity Strategies

The Saudi Arabia cybersecurity market size is projected to reach $2.19 billion by 2025 and rise to $3.67 billion by 2030. As the country advances its Vision 2030 initiatives in tech innovation, the need for stronger cyber defense is more important than ever.

The growing sophistication of cyber threats is pushing for the deployment of robust security measures. Organisations are increasingly implementing zero-trust architectures and AI-powered threat detection and response systems. In support, Saudi Arabia’s National Cybersecurity Authority issued controls, frameworks, and guidelines to protect national security and critical infrastructures.

Organisations are expected to align their strategies with evolving cyber and data protection regulations, mitigating risks linked to rapid tech advancements. Honeywell Saudi Arabia recently launched a new centre to enhance industrial cybersecurity in the country. Through advanced Operational Technology (OT) security solutions, this project is set to help businesses in Saudi Arabia address the threats while maintaining regulatory compliance.

3. The Next Cloud Computing Hub

The adoption of cloud technology in Saudi Arabia is likely to grow at a rapid phase by 2025, driven by its digital transformation goals and government initiatives. According to the latest market analysis, the Kingdom’s cloud services market is expected to reach $13.97 billion by 2033, from a value of $3.82 billion in 2024.

The rapid expansion of cloud computing in Saudi Arabia is also caused by investment from global tech companies. Major cloud providers, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, are launching new cloud regions and data centers to meet the growing demand for scalable cloud solutions. As new cloud investments are made, Saudi Arabia is on track to becoming a leading cloud computing hub in the Middle East.

Create Faster, Smarter Digital Workflows with Convene

Boards in Saudi Arabia are evidently facing challenges in digital transformation. Some are having difficulties streamlining their operations, others have numerous data security concerns. To overcome these challenges, modern boards are turning to board management software to boost efficiency.

Convene, a leading board portal software, is designed to support boards in their digital transformation journey — from protecting sensitive data to streamlining corporate governance. The platform offers industry-level security features such as account management and role-based access control, multi-factor authentication, and on-the-fly decryption model to safeguard confidential board data.

Convene also offers seamless document management capabilities, allowing easy centralisation and organisation of board materials. Our platform transforms board and council meetings with tools such as video conferencing, agenda builder, and shared annotations — keeping everything in one place.

For fast, secure approvals, Convene offers integration with DocuSign, Adobe Sign, eSignabox, and Sayen, enabling hassle-free e-signatures. Flexible hosting options are also available with cloud hosted for convenience and on-premise for full data control.

Saudi Credit Bureau (SIMAH) has this to say about Convene, “The meeting process now is much easier than ever, which speeds up decision-making from the board of directors.”

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