In a time and space marked by rapid technological advancements, shifting geopolitical dynamics, and evolving citizen expectations, governments in our region face unprecedented challenges and opportunities. Navigating this complex environment demands more than adaptation; it requires visionary leadership and proactive transformation – and the unique context of the region, particularly in KSA and the UAE, underscores the urgency for it.
Government and public sector organisations must embrace innovative approaches and new ways of thinking to improve their services to remain relevant and meet the needs of their citizens – and transformation has emerged as a critical tool.
Recognising the need for change
This urgency is highlighted in our 27th Annual CEO Survey: Middle East findings, where 48% of Middle East CEOs believe their companies will not be viable in a decade without significant evolution. Recognising that transformation is traditionally associated with the private sector, it also provides a powerful framework for public sector reform.
For governments, some of the region's primary challenges include technology adoption and climate change. To evolve into a sustainable, digital future, they must urgently address misinformation and cyber risks while tackling the severe threats posed by climate change. These pressing issues demand substantial investment in resources and strategies to mitigate both short- and long-term risks, necessitating a sharp focus on sustainable, forward-thinking solutions to ensure resilience and stability. Under these circumstances, innovative business models are essential in creating, delivering and capturing value; unlocking new avenues for efficiency and citizen-centricity.
From a digital transformation perspective, Government 5.0 sees governments align their service delivery and processes to citizens’ lives, structuring services around life events in a seamless, predictive manner. This approach minimises citizen intervention, with various agencies offering services through a single channel. For instance, a birth triggers actions from the Ministry of Health, Identity Authority, and Public Insurance Authority to issue a birth certificate, update identity documents and adjust insurance policies. While GCC governments are currently focused on improving digital accessibility and efficiency, many – particularly Saudi Arabia and the UAE – aim to evolve towards a whole-of-government and citizen-centric model in the coming years.
Visionary goals and strategic initiatives
The national visions and strategies of forward-thinking regional governments, such as Saudi Arabia's Vision 2030, the UAE's Vision 2071, Qatar's NDS-3, Kuwait's Vision 2035 and Oman's Vision 2040, prioritise innovation, technology and sustainability. These strategies underscore the need for a fundamental shift in how public services are designed and delivered, as governments seek to create more agile, efficient and citizen-centric models.
Saudi Arabia’s Vision 2030 is a bold and comprehensive roadmap for transformation, aiming to diversify the economy, reduce reliance on oil and enhance public sector efficiency. By focusing on renewable energy, tourism, and digital infrastructure, Saudi Arabia is building a resilient, forward-looking economy. Key initiatives such as NEOM, the Red Sea Project and the National Industrial Development and Logistics Program (NIDLP) are at the forefront of driving technological innovation and sustainability. The kingdom’s investment in AI, smart cities and digital government services demonstrates its commitment to embracing cutting-edge technologies to improve the quality of life for its citizens. Through strategic use of technology and a commitment to continuous improvement, Saudi Arabia is setting a global benchmark for comprehensive public sector transformation, paving the way for a future-ready nation.
Similarly, the UAE's national strategies, such as the UAE Strategy for Artificial Intelligence 2031 and the UAE Strategy for Digital Economy, emphasise the importance of technological adoption and digital transformation. Investments in AI through entities like the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) and MGX, a multi-billion dollar technology investment vehicle, focus on accelerating the growth and adoption of AI solutions. These investments ultimately benefit government operations, result in employee upskilling and an enhanced citizen experience.
An example of this is Abu Dhabi’s TAMM platform, which consolidates over 500 digital services into a single ecosystem that sees 98% of government transactions conducted online. This initiative enhances accessibility and efficiency for businesses, citizens, residents, and visitors.
At the World Economic Forum in Davos this year, UAE ministers showcased their government’s inspiring model in enhancing economic partnerships, promoting international trade growth and building bridges of cooperation with various countries. They emphasised technological capabilities as key enablers for innovation and sectoral development.
Enabling transformation through technology and collaboration
Transformation provides the framework and tools to achieve these ambitious goals and can empower governments in the region to:
Design and deliver citizen-centric services:
Leverage digital technologies and data-driven insights to better meet expectations.
Identify and eliminate inefficiencies:
Optimise resource allocation, freeing up investments for critical areas like education, healthcare and infrastructure.
Foster a culture of experimentation and collaboration:
Encourage the adoption of new technologies to address complex social challenges.
Develop flexible and adaptable systems:
Effectively withstand disruptions and respond to crises.
Overcoming challenges
The journey towards transformation is not without its challenges. Complex regulatory frameworks, governance structures and legacy technology infrastructures are just a few examples. It requires a willingness to challenge traditional assumptions, embrace new ways of working, and build the necessary capabilities and skills. However, given the scale of transformation around us, governments cannot delay in responding to these challenges. They must embark on a transformative path and think about sustainable solutions that will build trust and enhance citizen experience.
Partnering for solutions
At the World Governments Summit (WGS) 2024 earlier this year, PwC Middle East launched the key findings of the Global Ministers Survey, highlighting the perspectives of 50 government ministers from across the globe on the key challenges and opportunities that they face as they evolve, steering societies into a sustainable, digital future. In the region, PwC is committed to partnering with governments to drive this essential transformation. Our expertise in technology, strategy, and public sector reform enables us to support your journey toward a sustainable and innovative future. By working together, we can overcome the challenges and seize the opportunities that lie ahead. The future is bright, and with visionary leadership and proactive transformation, we can create lasting positive impacts for all stakeholders.
Conclusion
The transformation journey is critical for governments in the Middle East. By leveraging technology, fostering innovation and building resilient systems, they can meet the evolving needs of their citizens and set a global benchmark for governance. PwC stands ready to partner with regional governments to navigate this transformative journey, ensuring a sustainable and prosperous future for all.
Let’s be transformative together. Stay one step ahead of disruption.
