In recent years, states have focused on leveraging the potential of digital innovation to reshape the global information technology (IT) landscape. A prominent example of this is the deepening IT collaboration between Pakistan and Saudi Arabia, particularly through the LEAP technology conferences in Riyadh, known as the “Digital Davos,” which attract tech firms from around the world.
During last year’s event, Pakistani IT companies generated leads exceeding $100 million. The LEAP 2024 conference in March played a crucial role in globally promoting Pakistan’s IT firms, with 74 Pakistani companies participating, highlighting the growing cooperation between Pakistan and Saudi Arabia in the IT sector.
The Pakistan pavilion at the event showcased the country’s advancing IT ecosystem and its ambition to become a tech hub in the region. It facilitated interactions with industry leaders and potential investors, opening doors for collaboration and attracting foreign investment to drive Pakistan’s digital growth.
Several significant agreements were signed during LEAP 2024, including partnerships between Pakistani and Bahraini IT associations and a Saudi investor group. These agreements demonstrate the rising confidence in Pakistan’s IT capabilities and highlight the growing digital cooperation between Pakistan and its Gulf partners.
These partnerships not only provide funding for Pakistani startups to expand their operations but also offer access to the vast Saudi market and beyond. Bilateral forums like the Digital Cooperation Organization aim to enhance digital cooperation between the two nations.
Saudi Arabia’s Vision 2030, centered on digital transformation, presents a lucrative market for Pakistan’s burgeoning digital sector. Reports suggest a significant increase in Pakistan’s IT exports to the Kingdom, with total IT exports expected to reach $3 billion in 2024, with the United States being the largest market.
The establishment of the Saudi-Pakistan Tech House, announced in March 2023, aims to boost talent development and capacity building in the IT sector. With an initial investment of $100 million, the Tech House is set to create jobs and foster growth in both countries’ IT sectors.
The focus of Pakistan-Saudi Arabia IT cooperation extends beyond infrastructure and investments to include human capital development. Pakistan is striving to equip its annual IT graduates with the skills needed for current industry trends to meet the requirements of Saudi Arabia’s Vision 2030 projects, benefitting both nations economically.
An MOU signed in October 2023 aims to facilitate SMEs and streamline the registration process for Pakistani IT firms in Saudi Arabia, emphasizing the vital role startups and SMEs play in driving digital innovation.
By collaborating on e-health, e-education, and e-governance projects, Pakistan can accelerate its digitalization efforts and improve quality of life for its citizens. Leveraging Saudi Arabia’s financial support through the Special Investment Facilitation Council (SIFC) can expedite such projects.
In conclusion, while Pakistan’s IT cooperation with Saudi Arabia is on an upward trajectory, addressing the opportunities and challenges in the digital realm will require coordination among stakeholders. The commitment of Pakistan’s new IT Minister to nurture talent in the youth to boost IT exports reflects the potential of Pakistan’s IT talent in realizing digital aspirations and strengthening the IT partnership with Saudi Arabia.