Annual Report 2019 1440 - 1441 www.mcit.gov.sa
Annual Report 2019
Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud
4 5 Annual Report 2019
His Royal Highness Prince Mohammad bin Salman bin Abdulaziz Al Saud Crown Prince, Deputy Prime Minister & Defense Minister of Saudi Arabia
6 7 Annual Report 2019
Table of Contents
Statement by Minister of Communications and Information Technology 10 • Digital Ecosystem Integration 110
Vision of Digital Transformation 14 • E-Government Effectiveness 138
ICT Ecosystem 28 • Telecommunications Sector Transformation 150
• Vision of ICT Sector 31 • Human Capacity Development 152
• Values 32 Developing Technology; Supporting, Stimulating Innovation; Expanding the 164 Market • Executive Summary 33 Regulation of the Postal Sector 178 • ICT Ecosystem 33 • Institutional Excellence 180 • MCIT 34 • Enhancement of Sector’s Regulatory and Legislative Environment 183 • National Digital Transformation Unit (NDU) 35 • MCIT Contribution to Vision 2030 184 E-Government Program (Yesser) 36 • Objectives 188 • National Center for Digital Certification (NCDC) 38 National Transformation Program 2.0 192 • Communications and Information Technology Commission (CITC) 39 Indicators 198 • Saudi Post 41 Initiatives 222 • Digital Transformation 44 International Participations and Events 228 Digital Transformation Ecosystem 46 Appendices 236 Digital Transformation Governance 54 • Appendix (A) - International ICT-related Indicators 239 Digital Transformation Framework 62 • Appendix (B) - Terms and Definitions 246 • Role of ICT Ecosystem in Digital Transformation 64 • Appendix (C) - National Transformation Program’s Initiatives’ Cards 250 • ICT Sector Strategy 78 • Appendix (D) - Proposed MCIT Organizational Chart 256 • Achievements 96
8 9 Annual Report 2019
Foreword
In the name of Allah, the Most Gracious, the Most and enhanced the Kingdom’s inter- Merciful national presence.
Praise be to Allah. Peace and blessings be upon his In this report detailing MCIT’s Prophet Mohammed. actions and achievements in 1440/1441H (2019G), it is my hon- Our beloved Kingdom moves forward in realizing or to present to you the outcomes more achievements and opening new horizons for of the collaborative efforts by my the information and communication technology colleagues at MCIT during this pe- (ICT) sector, inspired by the vision of our wise lead- riod, which was built upon a basis of ership – may Allah support them – as well as their generous support and limitless en- endless support to build a connected present and ablement by the leadership of this an innovative future. country -may Allah bless them. Minister of
Communications and In line with the support and enablement to expedite On behalf of myself and my col- Information Technology digital transformation, MCIT strived to increase its leagues, I extend my thanks and efforts in order to build a vibrant digital society, gratitude to the Custodian of the
H.E. Eng. Abdullah Amer Al-Swaha a prosperous digital economy, and an effective Two Holy Mosques King Salman bin smart government. Abdulaziz and the Crown Prince His Royal Highness Prince Mohammed In 2019, MCIT capitalized on its efforts by making bin Salman bin Abdulaziz -may Al- significant leaps forward toward its aspirations in lah bless them- for their generous establishing a robust digital infrastructure, sup- support and wise directions, which porting entrepreneurship and innovation in digital were the main catalyst for the ad- fields and launching several initiatives, in addition vancements and flourishment wit- .to enabling individuals, companies and government nessed in the ICT sector اﻟﺘﻘﺮﻳﺮ اﻟﺴﻨﻮي 2019 entities, developing human capabilities and im- proving the IT industry, which had a positive impact Peace, mercy and blessings of Allah on the experiences of individuals and businesses be upon you. ﻛﻠﻤﺔ 10 11
ا وا ة وام رل ﷲ، و: ات. ا رات ر و ة ل ا ل ا اً ع ا ت و ات، أ ع دور ي ا د ا، وت اً رً ر ءة ودة ت
ا ، إ¬ »¡ه ا§ ر ى ¨§ات ادة و اة ا¦، ّو ¤ق ¢¡ اع وا¼م ² ور ﷲ وµ ﺗﺘﻤﺤﻮر ﻫﺬه اﻻﺳﺘﺮاﺗﻴﺠﻴﺔ ّ ً ¯ً ت أ، وا ² وا رة، ¯ أ² ±° ت ا ¯ ﺣﻮل ﺗﺤﻮل ﻗﻄﺎع اﻻﺗﺼﺎﻻت، .´ وﺗﻮﻃﻴﻦ اﻟﺘﻘﻨﻴﺔ واﻻﺑﺘﻜﺎر، و ¸ وزارة ا ت و ات و¬ ± ا¶ا د ور اع وأوµ ا ا رات وا ات ا ¿، وا دة ¾ ا½¤ت ا¼ودة µ، و« ا «º ا»´¹ ﻣﻌﺎﻟﻲ وزﻳﺮ اﻻﺗﺼﺎﻻت اÁ¾ وااÁ¾ وا². و ر ¿Âه ا¶ا ل ل ع ا ت، وÀÁ ا وا ر، وÈ ق ا . وذÆ ° ¡ث ر ” ر – ¡ وﺗﻘﻨﻴﺔ اﻟﻤﻌﻠﻮﻣﺎت ر – Ë ر “ ة ¾ اور ا ” ر – ا د ر – ر “. وÉ اﻻﺳﺘﺮاﺗﻴﺠﻴﺔ إﻟﻰ أن م. ﻋﺒﺪاﻟﻠﻪ ﺑﻦ ﻋﺎﻣﺮ اﻟﺴﻮاﺣﻪ ازارة ¾ ±ل ¿Âه ا¶ا إÍ أن ا ¾ اول ااة ى ا ﺗﺼﺒﺢ اﻟﻤﻤﻠﻜﺔ ﻣﻦ اﻟﺪول اﻟﺮاﺋﺪة وزﻳﺮ اﻻﺗﺼﺎﻻت وﺗﻘﻨﻴﺔ اﻟﻤﻌﻠﻮﻣﺎت ا ل ا . ﻋﻠﻰ ﻣﺴﺘﻮى اﻟﻌﺎﻟﻢ أÙف ¢ن ّأم ¿ ²ا ا اي م Ó 1440 / 1439 اا° 2018 م، واÂي ض أز ات ﻓﻲ اﻟﺘﺤﻮل اﻟﺮﻗﻤﻲ. وأ¯ل ازارة، و ¸ ازارة ¾ ±ل Æ اات وا»¯ل إÍ ° ا¶ا ّواÚ ً ¤ ° رؤ ا 2030 . ً ±Ý ا وان وÜ ² ازارة م ي ±دم اÀ اÀÙ اÆ ¯ن ¾ ا، وي وà ه ا»ß À ا اÞ ا» ¾ ¯ن ¾ ا – ²á ﷲ –، ا² اا² ا¼ود واÂي Éáµ ع ا ت و
02 01 Values Vision of ICT Sector Honesty
“Establishment of digital strategic pillars to enable an interconnected Dedication present and innovative future.”
Work Enjoyment
One Team
Mastery Executive 01 Summary Annual Report Executive Summary 2019
MCIT achievements are focused on seven main themes:
Executive Summary Integration Human E-government Transformation of digital capacity effectiveness of telecomm- ecosystem development The ICT sector is the key enabler and cornerstone unications of digital transformation in the Kingdom of Saudi sector Arabia (KSA), on which transformation process- es in the government sector and other economic 01 02 03 04 sectors are based, as well as the society’s digital transformation. In view of the rapid changes, de- velopments and dynamism of social, economic, educational, environmental and other vital life arenas, we find the clear impact of the ICT sector and its key and effective role in outlining these changes and developments directly and indirectly.
In its work for 2019, MCIT sought to establish Localization Regulation the right regulatory environment to support the of technology, of the Institutional advancement of the ICT sector’s development innovation and postal excellence and promote digital transformation, which was expansion of achieved by developing strategies for the ICT sec- sector the market tor and MCIT and harmonizing these strategies with the objectives and programs of the KSA’s Vi- sion 2030. Thereby, these strategies could become 05 06 07 the foundation on n MCIT’s works and achieve- ments are built.
16 17 Annual Report Executive Summary 2019
Integration of Digital Ecosystem
As part of MCIT’s efforts to achieve In an endeavor to achieve integra- the full integration of digital ecosys- tion between government services, 7 tem, it sought to upgrade the nation- single sign-on (SSO) of electronic al digital transformation strategy, government services was deployed Sectors aligned with the develop plans and initiatives to sup- to increase reliability and enhance national strategy for port the KSA’s digital transforma- ease of use, reaching 101 govern- digital transformation tion across 7 sectors and harmonize ment entities connected to SSO. them throughout the national digital Further, efforts were made towards transformation strategy. It further the governance of transferring the contributed to developing applica- Government Secure Network (GSN) 5 tions for digital transformation in and hosting the Government Service E-Government the health sector, with the aim of Bus (GSB) to the National Informa- providing high-quality digital health tion Center. For the digital transfor- Case-study reports Effectiveness services. Efforts in this area focused mation of government entities and published on the digital on the Tameny App, and Sarah SMS sectors, the first set of digital trans- transformation plans for App. At the level of e-commerce, a formation reports was published, in- government entities and At the level of e-government effec- projects and provided the necessary report on retail in e-commerce was cluding five 5 case-study reports on sectors tiveness, the efforts towards the technical extension services, thus developed with the aim of unifying the digital transformation plans for digital transformation of govern- achieving total savings of SAR 800 concepts, definitions and terms in these entities and sectors. ment services resulted in achieving million. At the level of training and 800 Million SAR the retail sector, which should facili- higher levels of digital maturity of developing personnel specialized government services, reaching a ma- in e-government fields, the Smart tate studies and data gathering and turity level of 81%. The new Unified Government Development Center Savings from IT projects contribute to developing plans and National Platform (MyGov.sa) was was established, with the aim of de- in government entities decision making based on clear un- launched. MyGov.sa represents an veloping the government human derstanding of the sector. Regarding ambitious initiative that seeks to capital in the ICT and business sec- smart cities, a guide for smart cit- build an integrated ecosystem that tors in government entities. More ies was prepared to support the de- provides high-quality and efficient government entities were connect- velopment and implementation of government services, by providing ed to government platforms. The smart city strategies and initiatives. customized services to the user’s number of government services that needs. The platform also covers the were identified in the Government % government services required by all Services Observatory amounted to 81 segments in the society. A new iden- 5,059. On the Government Service tity for the platform was designed to Bus (GSB), data providers reached 75, be consistent with the best experi- and data consumers were 132. Enti- Maturity level of digitally- ences in the field, with the aim of pro- ties connected to the e-Correspon- transformed government viding a distinguished and seamless dence System (Morasalat) were 34 services user experience. There are 3,300 ser- and those connected to the National vices available on the platform, which Contact Center (Amer) were 37, pro- were used by 890,000 visitors to the viding 336 services through Amer. portal. MCIT reviewed Government IT
18 19 Annual Report Executive Summary 2019
Transformation of Telecommunications Sector
Regarding the transformation of gram. In Phase I of the initiative, the the telecommunications sector, communications infrastructure was 3 Million and within the endeavors to pro- provided for 5 industrial cities and vide and improve efficient networks 1,300 plants were connected to fiber Homes covered with fiber to develop a reliable and effective optic networks. optic networks in urban telecommunications infrastructure These initiatives have significant- areas that accelerates digital transforma- ly improved the average internet tion and keep abreast of the KSA’s speed over mobile networks from Vision 2030, MCIT continues its ef- 29.31 Mbps at the end of 2018 to forts to deploy high-speed fiber op- 55.58 Mbps at the end of 2019, thus 374 K tic networks in urban areas. Homes surpassing the global average of mo- covered with fiber optic networks bile internet speed (28.02 Mbps). The Homes covered with high- amounted to more than 3 million, KSA ranked 13th globally for mobile speed wireless broadband raising the penetration rate to 53%, internet speed jumping from the 51st networks in rural areas while homes covered with wireless place at the end of 2018, surpassing broadband networks reached 48%. other developed countries like the Moreover, in cooperation with the United States, Japan, China, Spain, Communications and Information Hong Kong, the United Kingdom, 52.93 Mbps Technology Commission (CITC) and Germany, Greece and Italy. The av- operators, efforts were made to- erage internet speed over fixed tele- wards the commercial launch of the communications networks were fur- Average Internet fifth generation (5G) network and ther improved to 52.93 Mbps at the speed over fixed enabling its deployment. It is consid- end of 2019 compared to 31.41 Mbps telecommunications ered the largest 5G network in Eu- at the end of 2018. networks rope, Africa and the Middle East with coverage of more than 30 cities and over 5,400 5G towers installed by the end of 2019. 55.58 Mbps Seeking to provide a digital infra- structure across all State’s sectors Average Internet speed including the industrial sector to over mobile networks enable digital transformation in fac- tories and 4th Industrial Revolution (4IR), the ‘4IR Infrastructure Deploy- ment Initiative’ was launched this year as part of the National Indus- trial Development and Logistics Pro-
20 21 Annual Report Executive Summary 2019
Human Capacity 2.26 Million 51,531 18,635
Development Beneficiaries of Beneficiaries of the Trainees since launch ThinkTech's digital ‹raising digital awareness› of the ‹Saudi ICT cadres content program for the young training› initiative At the level of human capacity de- ing awareness and skills in these of education. A plan was launched generation velopment, the ThinkTech initiative technologies. The number of male/ to nationalize ICT jobs in collabora- continued its efforts to develop dig- female students visiting the Future tion with the relevant entities with a ital capabilities and spread aware- Trucks amounted to 31,842. The Vir- target of 15,000 jobs to be Saudized million ness across various technical fields in tual Lab initiative was launched to at the end of 2020. Saudization of 6 order to build a generation that con- provide individuals with the oppor- jobs in the ICT sector increased from tributes to promoting technology tunity to put their theoretical ideas 43% in 2018 to 44.8% in 2019. Na- Beneficiaries of Attaa development in the KSA and driving into real prototypes. The Digital tional cadres were trained in the Digital initiative for digital transformation. The initiative Skills Framework based on the Skills various technology fields along with digital giving succeeded in achieving widespread Framework for the Information Age major ICT companies, where 18,635 among target groups. The number (SFIA 7) was released and distributed, cadres were trained since the initia- of beneficiaries of digital content with the aim of facilitating the digital tive was launched. To support women amounted to 2.26 million, while the skills development and employment participation in the ICT sector, a com- number of beneficiaries of the initia- by putting clear and detailed levels prehensive program was designed tive events amounted to 76,000. of classifications for digital skills. The for enabling women in the ICT sector. MCIT was further keen on focusing digital giving initiative (Attaa Digital) The program includes spreading dig- on the young generation by develop- continued its efforts to spread digi- ital awareness, enhancing digital and ing a comprehensive program to raise tal knowledge and awareness among leadership skills, supporting female their digital awareness. The benefi- Arabs around the world by launch- entrepreneurs in the sector and de- ciaries of this program amounted to ing training sessions and spreading veloping business models for wom- 51,531. Moreover, MCIT launched a knowledge content in the digital en’s outsourcing centers. It is worth local competition for participation field. The beneficiaries of Attaa Digi- noting that women’s participation in in the World Robot Olympiad (WRO) tal amounted to 6 million. the labor market increased in 2019, to encourage the young generation The Saudi Digital Academy (SDA) where female workforce accounted to demonstrate their skills in this was launched for developing nation- for 14.48% of the ICT sector at the field and to prequalify those who al cadres for high-profile jobs in the end of 2019, compared to 13.2% in will participate in the WRO’s global field of the 4th Industrial Revolution 2018. final competition, where the Saudi as well as modern and advanced tech- team ranked 7th. The ‘Future Trucks’ nologies. SDA launched the ‘Data initiative, seeking to provide edu- Science’ and ‘Telecom Cyber Pio- cational vehicles equipped with the neers’ programs. Further efforts and tools and equipment of the 4th in- coordination were made to introduce dustrial revolution (4IR) technology digital and coding skills in elemen- and advanced scientific materials in tary school with the aim of devel- digital areas, contributed to spread- oping digital skills at an early stage
22 23 Annual Report Executive Summary 2019
Localization of Technology, Innovation and Expansion of Market
For localization of technology, inno- Several agreements were signed vation and expansion of the market, with a number of major firms in vari- 45.2 Billion SAR MCIT exerted efforts to support and ous technology fields to attract them enhance the local IT market, which led to the KSA with the aim of leverag- Value of IT and emerging to the growth of the IT and emerging ing their experiences and capacities technologies market in the Regulation of the technologies market, reaching SAR to enhance the local IT market and KSA 45.2 billion at the end of 2019. localize technologies of such firms. Postal Sector Within its endeavors to achieve sus- To enhance the adoption of emerg- tainable growth in this area, MCIT ing technologies and their growth MCIT sought to separate the regula- conducted a study for a national IT in the KSA, a portfolio for emerging SAR tory responsibilities from the oper- development program aimed at ac- technologies was launched with a 1 Billion ational responsibilities of the postal celerating and promoting the eco- total value of SAR 1 billion to sup- sector in order to raise the regulatory nomic ecosystem in the traditional port, finance and encourage entre- Value of the emerging maturity of the sector, stimulate in- and emerging IT sector in the KSA. preneurship projects and emerging technologies portfolio vestments and protect the rights of MCIT further continued developing technology activities. The number investors and consumers. the Cloud-First Policy, which serves of applicants requesting the port- Furthermore, MCIT prepared a new as a guide on new investments in folio support amounted to 700. To draft law with the aim of promot- IT from a perspective of adopting encourage entrepreneurship in the ing investment in the postal sector, cloud computing technologies, with sector, the ‘Tech Champions’ pro- enhancing users’ confidence in the the aim of rationalizing government gram was launched to provide a pack- postal services and developing busi- expenditure on IT, accelerating the age of technological, financing and ness transactions so that the sector pace by which government entities guiding services in order to support may become key supporter of the na- can transfer from traditional IT solu- entrepreneurs, including the organi- tional economy. Joint meetings were tions to cloud computing solutions. zation of bootcamps specialized in also held with private sector entities There were attempts to attract a entrepreneurship. There were 3,500 specialized in postal services to dis- number of leading global firms in people registered in the Tech Cham- cuss the challenges and the best rules cloud services. To promote the adop- pions program and 350 male/female and regulations that resolve those tion of open source solutions and en- trainees joined the bootcamps. challenges. A project to launch a new courage innovation in this field, MCIT strategy for the postal sector is being launched an open-source program worked on with the aim of developing (Masdar) supported by 26 strategic the sector and supporting postal ser- initiatives, including 8 key enablers, vices, in addition to raising the quali- 10 quick wins and 10 pivotal initia- ty and reliability of those services. tives.
24 25 Annual Report Executive Summary 2019
Institutional Excellence
In pursuit of enhancing its perfor- tors. MCIT also sought to improve mation in order to apply for all MCIT’s mance to achieve its goals and sus- the spatial environment of its head- various services anywhere and any- tain its achievements, MCIT was keen quarters by increasing the capacity time through their smart devices. on achieving institutional excellence of the building by adding 256 desks, MCIT’s technical architecture was within the Ministry’s departments. designing and executing 8 rooms for enhanced to keep abreast with the International quality and institu- the Ministry’s archives and holding volume of work. The platinum level in tional excellence standards were 543 events inside the Ministry. completing connectivity on ‘Eltizam’ followed by adopting the European platform was attained, with a ratio of To achieve financial transparency, Foundation for Quality Management 96%. MCIT launched the financial dash- (EFQM) excellence model. The ma- board that includes tools for the vi- turity of work procedures within the sual handling of data for the financial Ministry was emphasized by studying activity of all MCIT’s sectors. MCIT the present situation of procedures further worked on increasing its From 2,3 to 3,3 and developing a detailed action readiness to implement the new gov- plan to improve the level of maturity. ernment tender and procurement Increase in the maturity These efforts culminated in raising law. of MCIT's procedures the level of maturity of procedures within MCIT from 2.3/5 to 3.3/5. One To create a positive environment for of the most notable outcomes of the its staff, MCIT launched a number roadmap that helped enhance the of development and catalytic ini- maturity was the launch of the pro- tiatives, including the ‘supervision 543 cedure portal to manage MCIT’s work job training program’ and ‘employee procedures electronically. loyalty initiative’ (Because You’re Events held at MCIT's Worth It) that celebrates MCIT At the level of MCIT’s responsibili- headquarters staff’s special occasions through to- ties for international indicators, and ken gifts. Awareness and educational in pursuit of achieving the best re- messages were spread and personal sults to improve the KSA’s rankings coaching workshops were launched, in international indicators, a unit in addition to qualifying 40 personal was established to be in charge of 256 mentors certified by the Internation- conducting analysis on international al Coaches Union. At the technology indicators and providing recommen- Additional desks level, Phase II of ‘Mawared’ mobile dations and suggestions to improve available across the app was released, which allows easy the KSA’s rankings in these indica- various administrative access for employees to their infor- levels
26 27 ICT 02 Ecosystem Annual Report ICT Ecosystem 2019
ICT Ecosystem e-Government Program (Yesser)
Many roles and responsibilities relating to digital The Ministry of Communications in that regard. And authorize on 6. Develop mechanisms to stimu- transformation and the ICT sector rest with the and Information Technology (MCIT) rules and regulations on univer- late and encourage investment ICT ecosystem. These roles and responsibilities are is the authority supervising and re- sal service proposed by CITC. and innovation in the ICT sector distributed among several entities within the eco- sponsible for the ICT sector in the 3. Develop executive mechanisms and digital industries, attract system to meet the requirements of supporting KSA, pursuant to the Council of and programs to accelerate the foreign investments and lead- digital transformation and regulating and devel- Ministers Resolution No. 133 dated deployment of wired and wire- ing international ICT companies oping the ICT sector. National Center for Digital Certification (NCDC) 21/05/1424H (12/07/2003G) on less broadband services and to the KSA, support local tech- reregulation of MCIT in accordance ensure the very urgent imple- nology startups and SMEs and The ICT ecosystem consists of the following: with the tasks entrusted thereto. mentation of the necessary in- help them build their capacities The Resolution also included set- frastructure so as to ensure that to reach international markets ting the objectives assigned to MCIT, all areas of the KSA are covered in coordination with the compe- namely, to lead the digital transfor- with broadband as much as pos- tent authorities. The ICT ecosystem consists of the following: mation and supervise the develop- sible, to encourage national and 7. Supervise the application of the ment of the ICT sector in the KSA. international companies to par- provisions of Electronic Transac- The terms of reference and tasks of ticipate in broadband-related tions Law and lay out the tech- Communications and Information Technology MCIT in accordance with the chang- projects, and to manage a fund nical and contractual guidelines MCIT Commission (CITC) es, developments and tasks assigned for stimulating wired and wire- for government entities to ben- thereto are as follows: less broadband. efit therefrom when contracting 1. Develop strategic plans, policies, 4. Develop executive mechanisms on implementation of projects draft laws and regulations for and programs to accelerate the relating to digital government. the development of the ICT sec- development of digital capabil- 8. Supervise and manage the tasks tor and digital transformation in ities in the KSA and raise digital related to issuance of digital cer- the KSA. awareness, including general and tificates. 2. Oversee the postal sector, draft specialized digital capabilities, 9. Conduct studies in the ICT and policies and development plans, with a focus on emerging tech- digital transformation fields. National Digital Transformation Unit (NDU) Saudi Post propose laws and modify them, nologies in consistency with the 10. Coordinate with government align with related entities with various needs of the ICT sector. entities, private sector and other regards to the postal services 5. Develop executive mechanisms stakeholders and form strategic provided to government enti- and programs to build an IT sec- partnerships with regard to ICT ties, and represent KSA in local tor at a competitive global lev- and digital transformation. and international organizations el that develops local technical 11. Represent the KSA before local, concerning the postal sector and content and achieves economic regional and international bod- follow up on KSA’s commitments sustainability, leadership and ies of ICT and postal sector.
innovation at the regional and For further information, see Appendix D global levels. (MCIT’s Organizational Chart).
30 31 Annual Report ICT Ecosystem 2019
The National Digital Transformation Unit (NDU) is a center of excellence established pursuant to the Royal Order No. The e-Government Program (Yesser) was established The National Center for Digital Certification (NCDC) 49584 dated 291438/10/H (232017/07/G). NDU aims to accelerate the digital transformation in the KSA in pursuit in 1426H (2005G) pursuant to the Royal Order No. was established at King Abdulaziz City for Science of the objectives of Saudi Vision 2030 through joint cooperation with the public and private sectors in order to 7/B/33181 dated 101424/07/H (072003/09/G) and Technology pursuant to the Royal Order No. elevate the KSA’s standing to be among the digitally-developed countries, and to contribute to sustainable economic assigning all matters relating to development of a 7/B/9378 dated 171422/05/H 072001/08/G. The development based on promoting the values and concepts of innovation and investment in young talent. plan to provide services and government transactions NCDC›s terms of references and functions were electronically and provision of necessary resources for determined pursuant to the Electronic Transactions implementation of such plan to MCIT. Yesser serves Law promulgated in the Royal Decree No. M/18 dated NDU assumes the following tasks: as an enabler and stimulator of the performance 081428/03/ AH, pursuant to which the NCDC became of e-government transactions and reduces a subordinate of MCIT. 1. Prepare a draft national strategy formation currently in place initiatives to expand broadband centralization with regard to the application of for digital transformation. to determine the possibility of services and ensure implemen- e-government transactions as much as possible, with 2. Develop digital transformation benefiting from such programs tation of necessary infrastruc- NCDC’s Vision: minimal coordination between government entities. policies through application of a within the unified framework. ture in a manner that covers all comprehensive and integrated 9. Review and optimize all plans re- regions of the KSA. A digital certification sector that: framework and implementation lating to digital transformation 13. Work to make optimal use of 1. Is a local leader mechanism. currently in place as well as the assets and investments of the The main functions of Yesser are as follows: 2. Is internationally-recognized 3. Take necessary actions to acti- executive programs and oth- digital ecosystem and avoid du- 1. Increase the productivity and efficiency of public 3. Achieves digital transformation objectives vate legislation required for digi- er subplans relating to digital plication of projects. sector. tal transformation. transformation. 14. Set technical and contractual 2. Increase the investment revenues from 4. Activate digital governance and 10. Identify the challenges facing guidelines for public entities to government IT expenditure. ensure its consistency with the the transformation of the KSA benefit therefrom. NCDC’s Mission: 3. Provide better services to individuals and national strategies and priori- into a digital economy and so- 15. Accelerate development of digi- businesses more easily. ties. ciety and make the necessary tal services through appropriate To govern and develop the digital certification 4. Provide required information accurately and 5. Define the priorities required to proposals to overcome these testing mechanism. sector at the national level in order to support the timely. activate digital transformation challenges, benefiting from the 16. Develop a system that helps in digital transformation objectives in the KSA (Digital 5. Link government entities with each other and identify the necessary sup- best global practices relevant the privatization of digital ser- Government and Digital Economy) by ensuring that all through a number of systems and platforms that port to ensure prompt achieve- thereto. vices. types of electronic transactions are conducted with integrate the government transactions and joint ment of intended goals. 11. Submit proposals for the devel- 17. 17. Propose a mechanism to ac- high reliability and legal authenticity. data. 6. Adopt initiatives relating to dig- opment of legislative structure celerate development of digital 6. Develop common platforms to link and integrate ital transformation and funding relating to digital transforma- capabilities in the KSA. services provided by the government entities. thereof. tion, in order to increase the 18. 18. Set out criteria and indica- 7. Prepare periodic reports on digi- efficiency and quality of digital tors required to measure digital tal transformation. transformation efforts. transformation. 8. Review and optimize the pro- 12. Develop a mechanism to accel- grams relating to digital trans- erate, develop and implement
32 33 Annual Report ICT Ecosystem 2019
The Communications and The regulation of CITC determines its functions and Saudi Post has witnessed successive transactions and facilitating Information Technology Commission terms of reference as regulator of the ICT sector having stages of development during its e-commerce transactions. (CITC) is the entity responsible its legal personality and financial and administrative journey, starting with establishment Accordingly, Saudi Post launched for regulating the ICT sector and independence. The main functions of CITC include the of the first Directorate of Post, many new services such as e-mall the postal sector in the KSA. The following: Telephone and Telegraph in Makkah in service and Makani platform for Telecommunications Act issued 1345H (1926G), which was transferred sale of sport games tickets as well under the Royal Decree No. M/12 1. Regulate the ICT and postal sectors. to the Ministry of Communications as ‹Jamaee› and ‹Mureeh› services, dated 121422/03/H (042001/06/G) 2. Perform regulatory and supervisory tasks with under the name of ‹Deputy Ministry in addition to development of and the Telecom Act Bylaws issued regards to the postal sector. for Wireless and Postal Affairs› in traditional postal services such as by the Ministerial Decision No. 11 3. Monitor, follow up and benefit from development of 1372H (1953G), and then transferred letters, packages/parcels and express dated 171423/05/H (272002/06/G) information and communication technologies and into a public corporation under the mail. specify the legal framework for services. name of ‹Saudi Post› pursuant to Saudi Post is striving to transform regulating the ICT sector. 4. Create an environment that stimulates investment the Council of Ministers Resolution to modern digital activities, aiming The Act includes several objectives, in the ICT and postal sectors in the KSA. No. 78/I dated 291433/03/H to raise the quality of its work and including provision of advanced, 5. Protect users’ interests relating to public (212012/02/G) to transfer the postal increase its speed through advanced adequate and affordable telecommunications and Internet services, monitor facility into a public corporation. postal technologies and including telecommunications services, the performance of bodies licensed to provide such To support the ICT ecosystem, its clients with interactive postal creation of favorable atmosphere to services and take such measures that oblige those Saudi Post adopted an ambitious services, through which clients are promote fair competition, effective bodies to abide by licensing conditions. plan based on building a system of able to track packages through Saudi use of frequencies, localization of 6. Encourage investment in ICT services and multiple networks, establishing a Post’s website, in addition to focusing telecommunications technology and equipment, encourage provision of reliable services unified national address system and on applying postal technologies, keeping pace with its advancement, at affordable prices and good quality in all regions of rendering a package of nontraditional and applying connectivity projects and achievement of clarity and the KSA, and take all such measures that guarantee postal services in order to enable throughout the KSA, and expanding transparency in procedures, as the rights of investors in ICT and postal services. provision of logistics services, automatic sorting operations in all its well as realization of equality and 7. Enforce policies and procedures that ensure the enabling e-government programs offices to raise the level of quality and nondiscrimination principles and protection of competitiveness in the ICT and postal and e-commerce applications by speed when serving its clients. protection of public interest and markets. maximizing partnerships with interests of users and investors. entities of the public and private sectors, developing e-government
34 35 Digital Transformation 03 Ecosystem Digital Annual Report Transformation Ecosystem 2019
Digital Digital Transformation Transformation Ecosystem Digital Transformation Governance Digital transformation is a key enabler The digital transformation ecosystem is concerned with the In light of the need to accelerate digital (312018/07/G) was issued on the Court, Vice Minister of Interior, to achieving the KSA’s Vision 2030. It is a transition of procedures, processes, and services in sectors from transformation in the KSA and achieve formation of the National Committee Governor of National Cybersecurity key pillar in digital economy development the traditional methods to digital technologies-based new business its desired goals to serve the Vision 2030 for Digital Transformation under Authority and Director of National and enhancement of efficiency and models, which raises their efficiency and accuracy. This requires objectives, the Royal Order No. 49584 the chairmanship of Minister of Information Center (NIC), in addition performance of the public and private concerted efforts among different actors and integration of dated 291438/10/H (232017/07/G) was Communications and Information to the CEO of NDU as a Member and sectors, and a primary driver of the systems and applications used. Therefore, the ecosystem consists issued on the formation of the National Technology, with Minister of Health Secretary of the Committee. development of digital economy, due of the stakeholders concerned with the transformation of different Committee for Digital Transformation as Member and Vice-Chairman, The NDU was established in to digital transformation’s influence on sectors into digital transactions, in addition to the enablers of digital in the Ministry of Communications and the membership of Minister of accordance with Article 4 of the increasing the speed and efficiency of transformation. and Information Technology (MCIT) Commerce and Investment, Minister Royal Order No. 49584 dated operations and reaching the highest levels to develop digital transformation of Energy, Industry and Mineral 291438/10/H (232017/07/G), under of dependency and accuracy. policies and strategies, develop their Resources, Minister of Education, the supervision of the Committee›s Due to the various factors and wide scale of implementing plans and programs Minister of Finance, Minister of Chairman who will appoint, with a effect of digital transformation, reaching required, and ensure coordination Economy and Planning, Supervisor- decision to be issued by him, the CEO all economic sectors, in addition to the of related initiatives. The Royal General of the Center for Studies of the NDU. NDU’s headquarters will constant changes and rapid developments Order No. 59028 dated 181439/11/H and Information Affairs at the Royal be in MCIT. in digital transformation, maintaining digital transformation and ensuring its The functions of the Committee are as follows: proper application poses serious challenges on an international scale. Therefore, it is necessary to have a centralized governance defining the objectives and directions as well as the sectorial priorities with regard to digital transformation, while involving stakeholders and related entities to determine the activities and processes required to achieve digital transformation and come up with innovative solutions that are trialed and tested to decide on its Supervise Approve the Approve the periodic Propose and submit Approve a applicability and expected outcomes. the digital annual work plan reports on digital draft laws related to governance The following is a review of the digital transformation and operational transformation digital transformation framework program plans of the digital prepared by the NDU according to the for digital transformation ecosystem in the KSA, transformation procedures followed transformation its governance model and framework, in program initiatives addition to the role of the ICT ecosystem in enabling and consolidating the foundations of digital transformation.
38 39 Digital Annual Report Transformation Ecosystem 2019
Figure (1) illustrates the framework Digital Transforma- of the National Committee for Digital Transformation. tion Framework 2. Digitize government sector through supporting e-government and utilizing national data. In order to guarantee the integration and synergy of all digital transformation • Policies and Regulations: components, it is necessary to adopt a that establish the regulatory environment of the sector, and Royal Court framework that outlines a plan for digi- introduce the regulatory framework for operations and activ- tal transformation which describes the roles and responsibilities assigned to the ities of entities related to the sector whether it be regulators, Defines the responsibilities of the Submit outputs and recommendations entities concerned with digital transfor- companies or clients, and build partnerships to support inte- National Committee for Digital Submit periodic reports Transformation and NDU mation. This is illustrated by the digital gration between entities. transformation framework in Figure (2) which describes the most important • Provide and adopt technology: National Committee for Digital Transformation steps of transformation. including technology hardware and software in various fields, and the level of usage of such hardware and software, which Minister of make it possible to adopt and use them on a wide scale. Communications Minister of Minister of Minister of Minister of Minister of and Information Health Economy & • ICT Infrastructure: Commerce Finance Education Technology (Vice-Chairman) Planning through which it renders ICT services, such as fiber optics, mo- (Chairman) bile communications, advanced wireless transmission technol- ogies, data centers, and other essential hardware and software preparations for provision of services. Chairman of the Governor of Director of Saudi Data and Deputy Minister National National CEO of NDU Artificial • Human Capital: of Interior Cybersecurity Information (Secretary) Intelligence representing knowledgeable and skilled ICT cadres and talents Authority Center (NIC) Authority that contribute to the development of digital services and products.
• Research, Development, Innovation and Entrepreneurship: Secretariat of Digital transformation including all research efforts in ICT fields in order to support Committee Services the development of digital products, services and innovations that consolidate digital transformation, in addition to entre- preneurial projects that aim to benefit from such research and development activities.
Figure (1): The Framework of the National Committee for Digital Transformation
40 41 Digital Annual Report Transformation Ecosystem 2019