In recent years, states have strived to harness digital innovation’s potential, transforming the global information technology (IT) landscape. One notable example is the strengthening IT cooperation between Pakistan and Saudi Arabia, spearheaded by the LEAP technology conferences in Riyadh, dubbed the “Digital Davos.”
Pakistan and Saudi Arabia share a long-standing, multifaceted relationship rooted in Islamic heritage and mutual cooperation. With over 2 million Pakistani workers in the Kingdom, bilateral ties are strengthened through economic, cultural, and diplomatic collaboration. Saudi Arabia is Pakistan’s largest petroleum supplier, and a significant source of foreign investment, highlighting the potential for expanded economic cooperation.
The partnership offers mutual benefits, with Pakistan’s young population providing Saudi Arabia with a skilled workforce in sectors like IT, healthcare, engineering, and academia. Conversely, Saudi investment can accelerate Pakistan’s development and growth, particularly in infrastructure and industry. The two nations have consistently supported each other on international platforms, fostering a strong and enduring friendship. As their strategic partnership continues to evolve, fostering stronger ties can bring significant benefits to both nations.
LEAPing Forward With 800 Delegates
Last year, Pakistani IT companies generated leads worth over $100 million at LEAP. This year’s conference showcased a large contingent of 74 Pakistani firms, underlining Pakistan’s increasing engagement with Saudi Arabia on IT.
The Pakistan pavilion highlighted the country’s rapidly advancing IT ecosystem, facilitating meaningful interactions with industry leaders and potential investors. Several noteworthy agreements were inked during LEAP 2024, including a memorandum of understanding (MOU) between the Pakistan Software Houses Association (P@SHA) and the IT Association of Bahrain, and an equity partnership between SuperNova Solutions and a Saudi investor group. These deals underscore growing confidence in Pakistan’s IT capabilities. With over 500 participating companies from around the world, LEAP provided a pivotal platform for globally marketing Pakistan’s IT potential.
Saudi Arabia’s Vision 2030 is underpinned by digital transformation, creating an attractive market for Pakistan’s growing digital sector. Pakistan’s IT exports to the Kingdom have
increased by up to $100 million in the past two years, and overall IT exports are expected to top $3 billion in 2024. The Pakistan Software Export Board (PSEB) plays a crucial role in promoting IT exports and facilitating growth. Multilateral forums like the Digital Cooperation Organization (DCO) aim to augment bilateral digital cooperation between Pakistan and Saudi Arabia.
Potent Partnership
Pakistan is striving to ensure its 75,000 annual IT graduates meet industry trends to support Saudi Arabia’s Vision 2030 projects. An MOU signed in October 2023 facilitates small and medium-sized enterprises (SMEs) and creates a special desk for streamlining Pakistani IT firm registrations in Saudi Arabia. By collaborating on projects related to e-health, e-education, and e-governance, Pakistan can accelerate its digitalization efforts and enhance the quality of life for its citizens. Pakistan should capitalize on IT cooperation momentum and leverage Saudi Arabia’s financial backing via the Special Investment Facilitation Council (SIFC) for expediting such projects.
Saudi Arabia’s plans to become the world’s largest artificial intelligence player, with an initial investment of over $40 billion, present opportunities for Pakistan. IT Minister Shaza Fatima Khawaja has assured that the government will facilitate IT export growth by cultivating youth talent. This development is crucial for Pakistan’s digital aspirations and strengthening the IT partnership with Saudi Arabia. With over 2 million Pakistani expatriates in Saudi Arabia, the potential for knowledge transfer and collaboration is significant.
Final Thoughts:
The Pakistan-Saudi Arabia IT partnership holds immense potential for growth and development. As the IT sector continues to expand, stakeholders must navigate challenges and leverage opportunities. With the right strategies and investments, Pakistan can become a leading IT hub in the region, driving economic growth and digital transformation. Key areas to focus on include talent development, infrastructure enhancement, innovative entrepreneurship, and enhanced human capital exchange. Concerted efforts from stakeholders will be necessary to realize the full potential of this partnership and propel Pakistan’s digital growth.
https://www.arabnews.pk/node/2476886
https://thediplomat.com/2024/04/leap-a-catalyst-for-the-pakistan-saudi-arabia-it-partnership
https://www.sifc.gov.pk/news/107
https://issi.org.pk/issue-brief-on-pakistan-and-saudi-arabia-bolstering-ties-further/
