RIYADH: Saudi Arabia’s health, military, and infrastructure sectors led an 18.75 percent rise in government information and communications technology contracts in 2024, reaching SR38 billion ($10.13 billion), official data showed. 

According to the Government Spending Report 2024, published by the Digital Government Authority, the value of contracts climbed from SR32 billion in 2023, with the health and social development sector receiving SR6.54 billion through 1,085 contracts. 

The report said that 2024 spending priorities focused on artificial intelligence, emerging technologies, and cloud computing, positioning these areas as central to enhancing operational performance across public sector entities. 

The government’s sustained push to bolster digital services underscores Riyadh’s growing investment in digital infrastructure, part of its Vision 2030 strategy to diversify the economy and modernize public services. 

The report added that activating national framework agreements significantly contributed to these outcomes, enabling improved negotiation capabilities and more effective financial planning. 

“These tools have enabled government entities to obtain goods and services more quickly, efficiently, and at lower cost,” the report said. 

“They also highlight the added value achieved by enhancing supply chains and improving the quality of procurement, which in turn raises the efficiency of government entities in managing expenditures in contracts and agreements,” it also said. 

Among other sectors, the military received SR5.16 billion across 1,125 contracts, while infrastructure and transport saw investments totaling SR5.26 billion. The education sector was allocated SR4.37 billion, followed by economic resources at SR3.42 billion, and public administration at SR2.39 billion. 

There was a 157 percent increase in purchase orders through national framework agreements, amounting to SR4.47 billion through 9,457 orders. The report said these tools helped accelerate service delivery and improve procurement quality. 

Government agencies achieved an estimated SR1 billion in savings during 2024 by improving spending efficiency and optimizing procurement and budgeting practices. 

Saudi Arabia also continued to demonstrate global leadership in digital government performance. It ranked sixth globally and first regionally in the 2024 UN E-Government Development Index, climbing 25 places from 2022. 

It also topped the Government Electronic and Mobile Services Maturity Index for the third consecutive year, achieving a score of 96 percent. 

According to the report, and based on data from global research firm Gartner, Saudi Arabia led all countries in government ICT spending as a share of total ICT expenditure in 2024, reaching 34.1 percent. 

RIYADH: The International Monetary Fund has approved a $834 million support package for Jordan’s economy which includes a $700 million loan and a $134 million disbursement from a previously agreed fund.

The institution’s executive board has completed the third review of Jordan’s Extended Fund Facility, allowing for an immediate distribution of the $134 million, according to a press release. This brings total disbursements so far under the four-year, $1.3 billion program, approved in January 2024, to $595 million.

Additionally, the new 30-month Resilience and Sustainability Facility arrangement will grant Jordan access to $700 million to address structural challenges in the water and electricity sectors and strengthen preparedness for public health emergencies, including future pandemics.

Jordan’s economy has faced mounting pressures in recent years, intensified by regional instability, including the ongoing war in Gaza and the prolonged hosting of large numbers of refugees from neighboring conflicts. These challenges have strained public finances, increased unemployment, and disrupted trade and tourism, key sectors for the Jordanian economy.

The IMF and World Bank have stepped up their support, backing reforms aimed at stabilizing finances and spurring growth under Jordan’s Economic Modernization Vision.

Kenji Okamura, IMF deputy managing director, praised Jordan’s “steadfast pursuit of sound policies” and urged continued reforms to boost private investment and job creation.

“Monetary policy remains appropriately focused on safeguarding monetary and financial stability and supporting the exchange rate peg that has served Jordan well and helped keeping inflation low,” the deputy managing director said.

Okamura observed that Jordan’s banking sector remains robust, with the central bank bolstering risk analysis, oversight, and crisis response.

The IMF emphasized the need to boost revenue, streamline spending, and implement contingency measures to reduce public debt while safeguarding key social and capital expenditures. It also stressed improving public utilities’ efficiency and viability to ensure fiscal sustainability and better service delivery.

“The authorities continue to make progress with a gradual fiscal consolidation and strengthening fiscal sustainability, thanks to fiscal reforms that have improved revenue administration and expenditure efficiency,” the organization said.

Economic resilience amid regional challenges

Despite external pressures from regional conflicts and global uncertainty, Jordan’s economy has shown steady growth, reaching 2.5 percent in 2024, with inflation remaining low, according to the IMF.

The Central Bank of Jordan has maintained strong foreign reserves of over $20 billion and a stable exchange rate peg. 

The Extended Fund Facility program has supported fiscal reforms, helping Jordan reduce public debt while protecting social spending. The new Resilience and Sustainability Facility loan will focus on improving energy and water sector sustainability, strengthening financial resilience, and enhancing pandemic preparedness.

In February, the IMF commended Jordan for effectively managing economic headwinds from the Gaza war through prudent fiscal measures, though the institution did revise down the country’s 2024 growth forecast to 2.6 percent due to regional spillovers. 

In April, the World Bank bolstered Jordan’s economic development efforts with $1.1 billion in new financing to expand social protections and drive private-sector growth, targeting the country’s 22.3 percent unemployment rate and 117 percent debt-to-gross domestic product ratio. 

Both institutions emphasized the need to sustain reforms to address structural challenges exacerbated by refugee inflows, the pandemic, and regional conflicts.