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Kingdom of Saudi Arabia Cyber Readiness at a Glance

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Kingdom of Saudi Arabia Cyber Readiness at a Glance KINGDOM OF SAUDI ARABIA CYBER READINESS AT A GLANCE Melissa Hathaway, Francesca Spidalieri, and Fahad Alsowailm September 2017 AC INST M IT O U T B T O E P F O G S E R I P D O U LICY ST Copyright © 2017, Cyber Readiness Index 2.0, All rights reserved. Published by Potomac Institute for Policy Studies Potomac Institute for Policy Studies 901 N. Stuart St, Suite 1200 Arlington, VA 22203 www.potomacinstitute.org Telephone: 703.525.0770; Fax: 703.525.0299 Email: [email protected] Follow us on Twitter: @CyberReadyIndex Cover Art by Alex Taliesen. Acknowledgements The authors would also like to thank Alex Taliesen for cover art and Sherry Loveless for editorial and design work. KINGDOM OF SAUDI ARABIA CYBER READINESS AT A GLANCE TABLE OF CONTENTS INTRODUCTION . 2 1 . NATIONAL STRATEGY . .8 . 2 . INCIDENT RESPONSE . 10 . 3 . E-CRIME AND LAW ENFORCEMENT . 13. 4 . INFORMATION SHARING . 17 . 5 . INVESTMENT IN RESEARCH AND DEVELOPMENT . 18 6 . DIPLOMACY AND TRADE . 21 . 7 . DEFENSE AND CRISIS RESPONSE . 22 CRI 2 .0 BOTTOM LINE . .23 . ENDNOTES . 24. ABOUT THE AUTHORS . 29 . KINGDOM OF SAUDI ARABIA CYBER READINESS AT A GLANCE Country Population 31 .54 million Population Growth 2 .1% GDP at market prices (current $US) $646 .002 billion GDP Growth 3 .5% Year Internet Introduced 1994 National Cyber Security Strategy 2013 (not published yet) Internet Domain .sa Internet users per 100 users 69 .6 Fixed broadband subscriptions per 100 users 11 .9 Mobile cellular subscriptions per 100 users 177 Information and Communications Technology (ICT) Development and Connectivity Standing International Telecommunications World Economic Forum’s Union (ITU) 45 33 Networked Readiness Index (NRI) ICT Development Index (IDI) Sources: World Bank (2015), ITU (2016), NRI (2016), and Internet Society. © 2017 Cyber Readiness Index 2.0, all rights reserved. 1 INTRODUCTION owned Internet back- bone and other Internet The Internet was first introduced in the Service Providers (ISPs). Kingdom of Saudi Arabia in 1993 as an aca- In 1998, Internet gov- demic project at the King Fahd University of ernance fell under the Petroleum and Minerals (KFUPM) in Dhahran, purview of the Internet with the first connections made available at Service Unit (ISU), a de- the College of Computer Sciences and Engi- partment of the KACST neering.1 This connection used a satellite link reporting directly to Saudi Arabia Internet to Bethesda, Maryland, and the limited Saudi KACST Vice President Penetration: 69.6% Internet infrastructure was managed by the for Scientific Research Washington Coordinating Center. It also host- Support.3 In 1999, the ed official Saudi government websites in the ISU officially opened its networks to licensed United States.2 At that time, only email service commercial ISPs, although STC remained the was available to University staff due to limited only ISP available in Saudi Arabia until 2005. international bandwidth and slow connection KACST – through the ISU – became the coun- speed. Access to the Internet remained lim- try’s single Internet exchange point and gate- ited to selected staff at academic, medical, way between the international Internet and research, and government institutions through the national intranet.4 The ISU controlled the the 1990s. These organizations – almost all based in the capital of Riyadh – were using a 64kbps channel provided by the King Fahd Specialist Hospital and Research Center (KF- SHRC) and administered by the King Abdulaziz Internet access became available City for Science and Technology (KACST) – the to all citizens in the Kingdom country’s national center for science, technol- of Saudi Arabia in 1999. ogy, and innovation. KFSHRC was connected to the Internet via a proprietary satellite link, and KACST was linked to KFSHRC via micro- wave. In 1994, KACST became the manager of the country’s Internet domain .sa and was country’s Internet services, operated the Saudi tasked with coordinating all Internet services domain name (.sa), and formulated rules and within the Kingdom. regulations to govern the use of the Internet in the country, including access control and In 1997, after several years of study and de- filtering of “harmful,” “illegal,” “anti-Islamic,” liberations, the Saudi Council of Ministries au- or “offensive” online material. As part of this thorized KACST to expand Internet access and responsibility, the ISU implemented a content services to the rest of the country. It also tasked control system (filtering both incoming and the Saudi Telecommunications Company (STC) outgoing traffic) in order to balance its desire – at that time, a government-owned company to facilitate public access to the Internet while and the sole provider of telecom services – with at the same time ensuring the content is in line building the domestic infrastructure necessary with the country’s conservative values and Is- to facilitate interconnection between the state- lamic teachings.5 © 2017 Cyber Readiness Index 2.0, all rights reserved. 2 In 2003, the Saudi Communications Commis- bracing the opportunities associated with the sion was renamed the Communications and Internet and setting the example for the rest of Information Technology Commission (CTIC) the Arab states.8 In addition, the Saudi people and was tasked with licensing, monitoring, are among the most active social media users and filtering processes previously managed by in the world – and largest adopters of Twitter KACST. In addition, it provides Internet access in the Arab region. Moreover, their high rate of to the private sector and resolves disputes mobile phone ownership (177 percent market among private telecommunication compa- penetration) is driving up Internet usage and nies.6 The ISU continues to provide Internet increasing the demand of mobile broadband access to government departments, as well as services. Finally, a large number of the popu- Saudi research and academic institutions, but lation is increasingly turning to circumvention Saudi Arabia is now connected to the Internet tools, such as Hotspot Shield, to access banned through two country-level data services pro- content and services. viders – the Integrated Telecom Company and Bayanat al-Oula for Network Services. These Saudi Arabia has the largest ICT market in ISPs must follow the same protocols as the the Middle East by both capital volume and state-run service (e.g., filtering content).7 spending, and this market is quickly becom- ing one of the most coveted by local and Since the Internet became widely available international companies. In fact, while the to the public in 1999 and the demand for In- Saudi IT industry currently contributes only to ternet services started to increase, especially a modest 0.4 percent of the country’s gross from the commercial sector, the number of In- domestic product (GDP) and the Kingdom’s ternet users in Saudi Arabia rapidly expanded ICT market continues to be import-driven – (from 100,000 in 1999 to one million in 2001, with over 80 percent of ICT expenditure by and to more than 16.5 million by the end of foreign companies9 – the IT sector is consid- 2016). In 2016, nearly all colleges and univer- ered one of the fastest growing industries, sities in the country offered free Internet ac- offering massive development opportunities. cess to faculty and students. Hospitals, banks, The cyber security market alone is expected and companies within the country also used to reach more than $3.4 billion by 2019.10 the Internet to provide citizen-facing services. More recently, the Saudi government placed The highly profitable STC, now a publicly increased emphasis on Internet uptake as a traded company, is still the dominant ISP in catalyst for economic growth, more efficient the country and among the largest operators government operations, and increased access in the Middle East, offering the majority of to education and public services. The govern- mobile, landline, Internet, and television ser- ment also viewed this as a means to diversify vices in Saudi Arabia.11 However, the compa- from an oil-dependent economy. ny lost its monopoly on mobile and Internet services when other ISPs, such as Mobily and Today, Saudi Arabia connects 21 million or Zain, entered the market place in the mid to nearly 70 percent of its population to the Inter- late 2000s. In 2008, STC began implementing net. While other Gulf countries like the United 3G technology, allowing for increased digital Arab Emirates, Qatar, and Kuwait have higher communications as well as greater reliability penetration rates, the Saudi population is em- and speed. That same year, Zain entered the © 2017 Cyber Readiness Index 2.0, all rights reserved. 3 Saudi Arabian mobile market with 4G Long of ICT, it must also facilitate the access to and Term Evolution (LTE) services. use of technologies such as cloud computing, and expand the variety of Internet-facing ser- Despite the 70 percent Internet penetration vices provided to citizens. The plan rests on and expanded mobile use, e-commerce is three main pillars: (1) Saudi Arabia’s position still under developed. There are at least three as the heart of the Arab and Islamic worlds; contributing factors to this delay. First, it is dif- (2) its role as an investment powerhouse; and ficult to start a new business in the Kingdom. (3) its strategic location as the hub connecting Second, ICT costs are still high (Saudi Arabia Asia, Europe, and Africa.15 This plan, like many ranks 101st in the world for ICT affordability12), other past efforts to move the Saudi economy and businesses often prefer to avoid the costly away from its reliance on oil production, tries investments required to embed ICTs into their to balance religious conservativism with mod- business operations. Third, the oil economy still ernization. This creates tension regarding how dominates the economy, representing more modern technology and the Internet should be than 90 percent of government revenues, with appropriately used and harnessed to enhance companies largely focusing on the extraction, the economic wellbeing of the Kingdom.16 refinement, and distribution of oil and liquid natural gas (LNG).
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