A new white paper on Urban Tech, commissioned by Mastercard, outlines opportunities for Saudi Arabia in light of accelerating urbanization, as the global Urban Tech market is expected to soar from $81 billion in 2018 to $158 billion by 2022, based on data from International Data Corporation.
The paper has shone a spotlight on how Saudi Arabia’s e-government, tourism, healthcare, and transit sectors stand to benefit from smart city revolution in the Kingdom.
Human-centric design principles
The white paper identifies three design principles for smart cities building a strong urban tech strategy that is human-centric: it must deliver a seamless experience, be inclusive and engage individuals as co-creators.
Inclusivity can be boosted by increasing access to high-quality connectivity and promoting digital literacy programs – as has been done by the Saudi Digital Academy, an initiative by the Ministry of ICT. On the topic of engagement, the paper explains how cities can tap into the collective intelligence of residents by partnering with GovTech startups.
Enablers to stimulate smart city growth
Keeping these human-centric design principles in mind, the report calls for the cities to invest in the key enablers needed to stimulate the growth of inclusive cities: connectivity and infrastructure, data and analytics, and regulations.
The paper highlights 5G, Wi-Fi 6, cloud computing, virtual reality and geospatial technology as focus areas for digital infrastructure to develop cities that can collect and respond to data in real-time.
Building a “data culture” is crucial, especially as data-driven technologies such as machine learning, artificial intelligence (AI) and data visualization have the potential to increase a city’s capita GDP by 21%, according to an ESI Thoughtlab study. In addition, the document shares recommendations for a legal and policy framework enabling the free-flow of data across international boundaries.
Saudi Arabia as a shining example
Figures released by the Saudi Ministry of Municipal and Rural Affairs (MOMRA) reveal the Kingdom has witnessed a steep rise in its urban population, with more than 83 percent now living in urban areas. This is expected to grow to 97.6 percent by 2030.
In pursuit of its Vision 2030 which aims to fundamentally reshape the economy and society, the Kingdom has invested around $4 billion in the country’s digital infrastructure. The process has already started, with Saudi Arabia’s mega-city, NEOM, set to project the country into the future with its smart, connected metropolis powered by robotics and artificial intelligence.
“The core aim of urban technology is to improve the quality of life of residents in cities and this white paper outlines the elements that can bring this to life, and the sectors that are likely to benefit first,” said J.K. Khalil, Cluster Head and Country Manager, Saudi Arabia, Bahrain and Levant at Mastercard.
“The progress that Saudi Arabia has made so far in this respect is admirable, and we look forward to continue our collaboration with the government and other stakeholders,” he added.
Mastercard has collaborated with numerous players to support Saudi Arabia’s digital transformation. Last year, Saudi Payments, operator of the national payment infrastructure, under the supervision of SAMA, launched Saudi Arabia’s instant payments system ‘sarie’ in cooperation with IBM and Mastercard. The system aims to improve Saudi Arabia’s financial ecosystem, mainly through the adoption of faster payments and improvements to banking reconciliation.
Another key high-profile Saudi project that Mastercard is a key stakeholder of, is the Riyadh Metro project. The selected gateway for all ecommerce transactions related to the metro project is the Mastercard Payment Gateway Services (MPGS) and Mastercard transit experts have worked closely with Saudi British Bank (SABB) and the Central Bank while leveraging global best practices to help define the open loop infrastructure for this initiative.
“MENA is well-positioned to be a world leader in Urban Technology, with mega-projects like Neom expected to set the global standards for smart cities moving forward,” said Omar Christidis, CEO & Founder, Arabnet. “Through Arabnet’s research services and extensive network of experts, we’re thrilled to launch this White Paper with Mastercard to provide insights and best practices for the entities that are driving this ambitious vision of the future,”
According to KPMG, annual spending by smart cities across the Middle East and Africa is forecast to double from $1.3 billion to $2.7 billion this year, powered by progressive smart city projects, plans, and initiatives across the region.
The future of urban tech is also being shaped by digital initiatives originally developed during COVID-19, for example Saudi Arabia’s applications for remote healthcare services, medication delivery, and contact-tracing.
Another example that reflects the increasing spend on urban technology is in the area of eSports which is growing rapidly in the Kingdom and expected to add $21billion to the nation’s GDP. Studies by the Saudi eSports Federation show that 85% of gaming fans in the Middle East and North Africa are in Saudi Arabia of which 78 percent are Saudi nationals. 70 percent of these fans say they are excited and curious about the Metaverse and willing to use associated technologies to spend, play and view eSports.