How digital ID is unlocking Saudi Arabia’s vision for smarter cities

Saudi Arabia’s relentless pursuit of digital transformation propels the nation to the forefront of technological innovation in the Middle East.

With a burgeoning ecosystem of over 100 fintech companies and a thriving array of digital wallets and services such as STC Pay, UrPay, and Friendi Pay, the kingdom is making significant strides towards diversifying its economy and reducing its reliance on oil, in perfect alignment with the visionary goals of Vision 2030.

At the epicentre of this transformative journey, Saudi Arabia has embarked on ambitious giga-projects such as NEOM and its linear smart city The Line, the Red Sea Project, Diriyah Gate, Qiddiya, and ROSHN.

These visionary initiatives are poised to catalyse new sectors driven by technology, innovation, and sustainability, setting the stage for broader economic growth and nurturing the kingdom’s digital infrastructure.

The overarching aspiration is to establish Saudi Arabia as a global technological hub, promoting sustainable development, enhancing international connectivity, and providing world-class infrastructure and tourism facilities.

However, the rapid evolution of digital infrastructure in Saudi Arabia brings a pressing need for trust and security in the digital realm. Without robust methods for verifying identities, the digital world risks becoming a haven for cybercriminals. With that, digital identity emerges as the linchpin that enables seamless interactions between individuals, enterprises, government entities, and the digital sphere.

Accenture‘s Technology Vision 2023 report, When Atoms Meet Bits: The Foundations of Our New Reality, underscores the criticality of digital identity, revealing that 92 per cent of public service executives believe authentication challenges negatively affect citizen experiences, while an overwhelming 94 per cent consider digital identity a strategic business imperative.

Bridging the physical-digital divide in Saudi Arabia

Digital identity is the cornerstone for seamlessly navigating both the digital and physical realms, challenging the traditional conventions we’ve long adhered to.

In line with the United Nations’ Sustainable Development Goals, which aim to establish a legal identification for every individual by 2030, governments across the globe are increasingly recognizing the paramount importance of prioritising digital identity.

Well-designed digital identity systems hold the potential to reduce fraud, enhance government-to-person transfers, improve service delivery, and boost administrative efficiency in the public sector. Moreover, they unlock noneconomic benefits, including social empowerment, rights protection, and transparency.

The World Bank estimates that digital identity could grant access to financial services to over 1.7 billion financially excluded individuals, further propelling the journey toward cashless societies.

Saudi Arabia is actively undertaking strategic measures to harness the advantages of the digital economy and bridge the gap between the physical and digital realms.

Key initiatives, such as the National Transformation Program, which is focused on enhancing government operations to achieve greater efficiency and effectiveness, and the establishment of the Digital Government Authority, which is aimed at shaping the future of governance in the digital age, reflect the country’s commitment to building a more digitally accessible and citizen-centric government ecosystem, fostering transparency and responsiveness.

Furthermore, the national digital ID programme, accessible to citizens and expatriates, represents a pivotal step toward a government that prioritises identity and citizenship in its digital transformation.

Providing secure and efficient digital identity solutions simplifies access to government services while reinforcing trust and inclusivity in the digital realm.

In tandem with these initiatives, Saudi Arabia is placing a significant emphasis on digital literacy programs to ensure broad digital inclusivity and empower its population. In addition, the kingdom has risen as a prominent hub for hosting prestigious technology conferences, featuring noteworthy events like LEAP and Seamless.

Unlocking digital ID’s potential with trust

However, in pursuing digital identity, privacy and security must not be sacrificed. As digital technology evolves, so do the risks of managing personal data. Protecting data, ensuring inclusion, and safeguarding user rights are critical to the success of Saudi Arabia’s digital identity programmes.

Governments, businesses, and civil society actors must address several critical questions in shaping the course of digital identity programmes. These include mitigating potential misuse of the digital identity system, preserving user privacy, ensuring control over personal data, and expediting implementation and adoption.

In the face of growing investments aimed at narrowing the identification gap and adapting to the evolving demands of the digital age, a remarkable opportunity emerges to construct next-generation systems that prioritise both individuals and their privacy. These transformative systems are poised to extend their influence to the ambitious giga projects that define Saudi Arabia’s vision for the future.

By seamlessly integrating digital identity into these monumental initiatives, the kingdom ensures secure access and efficient delivery of services and nurtures an environment of trust and inclusivity within these cutting-edge developments.

They are poised to flexibly cater to the diverse needs of both public and private sector institutions, promoting innovation and collaboration as integral components of Saudi Arabia’s journey towards a digitally advanced future.

The writer is the managing director, and technology delivery lead in the Middle East.