Exploring the uptake of business continuity in Saudi Arabia

• 27 Aug 2024
• Atiq,  Mohamed

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• Embracing Business Continuity
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Organizational stability is more important than ever when economies and infrastructure grows quickly.  Business continuity has become more important in Saudi Arabia, especially with new projects borne out of the new Vision 2030 economic policy rules. This project supports the government's strategy to diversify the economy away from oil towards sustainable growth in other areas. Thus, every Kingdom business must be resilient and able to rapidly recover from failures. This article examines the causes of increasing business continuity exposure in Saudi Arabia, its commercial problems, and future prospects.

The impact of Vision 2030 on business continuity

Vision 2030 in Saudi Arabia created new economic policy rules that shaped business continuity. The whole program is capital-intensive and requires resilience in all areas, from economic diversification to infrastructure enhancements that need cutting-edge technology. Business operations must continue as the Kingdom undergoes massive change to support the economy and Vision 2030 goals.

Vision 2030 expands its focus on reducing oil reliance to encompass finance, entertainment, tourism, and key resources like renewable energy. Implementing risk management and business continuity frameworks in each industry is critical to preparing organizations for the upcoming disruptive changes.

Tourism is one of the industries that is growing quickly, therefore it must be prepared for geopolitical crises, supply chain disruptions, pandemics, and other disasters that might drastically impact tourist arrivals. This market requires more detailed business continuity plans (BCPs) rather than disaster recovery plans due to the service offered.

Vision 2030's digital transformation increases technology dependency, which raises productivity but exposes organizations to new risks, including cyber security, outperforming competitors, and keeping data private during security incidents. Furthermore, the need to provide efficient online customer service requires top-notch strategies that force an entire business model to survive tough times. Technology should be included into business continuity planning to avoid disruptions and speed recovery.

The pillars of business continuity in Saudi Arabia

• Government policies and regulations have assisted Saudi Arabia in maintaining business-related continuity. The National Risk Council (NRC) developed a risk management, resilience, and cross-sector response strategy. Business continuity plans are necessary for highly regulated industries like banking and healthcare. The Saudi Arabian Monetary Authority (SAMA) requires banks to have comprehensive BCPs that cover financial stability and cyber risk. The National Cybersecurity Authority (NCA) maintains The Digital Government Authority (DGA) standards on risk or threat landscapes and business continuity plans for government service cyber attacks. 
• Global awareness: The recent IT outages triggered by faulty CrowdStrike updates raised global awareness of business continuity and resilience and highlighted potential risks with third party suppliers and organizations’ reliance on technology. Furthermore, the COVID-19 pandemic, supply chain interruptions, and growing cyber threats have necessitated thorough business continuity plans, encouraging companies to prepare for unexpected events.
• Saudi Arabia's global investment position necessitates worldwide integrity, risk management, and resilience standards. Many foreign corporations working in the Kingdom expect strong business continuity measures from their Saudi partners, thus local businesses have responded. The alignment will accelerate Saudi firms' recovery from disruption and increase their global competitiveness.
• Technological integration: The region's use of technology enhances business continuity. Businesses employ cloud computing for data backup, AI for risk assessment, and blockchain for secure transactions. These technologies may help organizations avoid risks and recover faster from shocks, but any transformation effort, especially in cybersecurity, has risks and pitfalls.
• Leading Saudi Arabian organizations prioritize Vision 2030 in their business continuity strategy. The Good Practice Guidelines (GPG) and the BCI KSA Chapter have led and provided resources.
  
  For the first time, the Arabic Good Practice Guidelines (GPG) platform will facilitate knowledge sharing and best practices among practitioners in building business continuity capability. The GPG helps Saudi organizations create and execute their own Business Continuity Management (BCM) plans.
  
  The KSA BCI Chapter is the Saudi Arabian branch of the Business Continuity Institute (BCI). It serves as a regional hub for professionals in Saudi Arabia who are involved in business continuity and resilience. The chapter provides networking opportunities, educational resources, and local events tailored to the needs of business continuity professionals in the Kingdom.

Challenges of business continuity implementation

• Regulatory Compliance
  • Saudi Arabia's regulatory framework is evolving, especially with Vision 2030. Businesses need to navigate complex regulations, which may not always be clear or consistently enforced.
• Cultural Considerations
  • Some organizations may not yet recognise the importance of business continuity (BC) if they have previously operated without it and favour traditional assurance methods.
• Technological Challenges
  • As the Saudi economy becomes more digital businesses face an increased risk of data breach, but this is not usually dealt with in BC plans. 
  • Saudi businesses are highly dependent on government-owned infrastructure, and any cessation in essential services could greatly hamper operations (through disrupted utilities or telecommunications).
• Risk factors attributable to geopolitical and environmental aspects
  • The geopolitical situation in the Middle East is unstable, and potential hazards from conflicts may affect BC planning mechanisms as well as response strategies.
  • Environmental challenges such as frequent sandstorms and high temperatures can disrupt the operations and efficacy of BC plans.
• Supply chain dependencies
  • Many Saudi businesses rely on international suppliers, exposing them to global supply chain disruptions. Ensuring BC in these situations means we also need comprehensive third-party risk management strategies and close working with procurement operations.
  • Finding reliable local suppliers, with strong BC plans in place.
• Awareness and communication
  • There are frequently low levels of awareness about BC among business leaders that may cause implementation difficulties.
  • Language is the main problem for communication between expatriate staff to local employees that can hinder making BC plans.

The future of Saudi’s business continuity

Thankfully, more organizations are realizing the need for business continuity. We expect Vision 2030 to increase the investment in resilience and continuity planning in the Kingdom.

Due to international organizations, or global competition, Saudi companies are adopting global business continuity standards. This alignment allows Saudi Arabia to recover from shocks and build confidence with international economic partners.

Business continuity methods will be crucial as the country develops new sectors, including tourism, entertainment, and renewable energy. In addition to instability in these sectors, Saudi Arabia needs comprehensive continuity planning to preserve a diverse and rising economy, which is a big concern.

The government will continue to regulate and promote business continuity. The National Risk Council will advise and assist government organizations and small and medium enterprises in addressing challenges with implementation. Saudi Arabia has prepared for global change by building resilience and planning.

Conclusion

As Saudi Arabia evolves toward a more sustainable future via Vision 2030, the requirement, and value, of business continuity grows. 

These changes have prompted organizations in Saudi Arabia to recognize the importance of continuity planning and adopt it as an essential part of doing business, particularly given the increased global risks that technological advancements bring with them and the need for companies to adhere to international compliance standards. 

Addressing issues such as poor awareness, resource restrictions, a lack of information, and sluggish updates will be critical in fostering efficient business continuity procedures throughout the Kingdom. However, the future of business continuity in Saudi Arabia looks to be on firm foundations, with continued government backing and a rising acceptance of resilience taking it forward. 

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