Digital Transformation in KSA: Assessing the Adoption of Blockchain and Smart Contracts under Vision 2030

Abstract

Background: Within the framework of Saudi Arabia’s Vision 2030, the Kingdom is prioritizing digitalized citizen services, including secure e-government payment systems. However, adoption rates remain suboptimal due to factors related to user trust and technological familiarity. Hypothesis: This research tests the implications of blockchain-enforced identity management, smart contracts, and cybersecurity protocols on e-government payment adoption through the mediating role of perceived security of digital transactions. Methods: A quantitative study using structural equation modeling (SEM) in SmartPLS 4 was conducted with a sample of 500 Saudi Arabian citizens. Constructs were tested in terms of reliability, validity, and the mediation effect. Findings: Smart contract implementation had the most significant direct impact on adoption, followed by blockchain identity and cybersecurity protocols. Perceived security acted as a partial mediator in the adoption of smart contracts. The model demonstrated significant predictive power. Conclusion: Technological innovation alone is insufficient for mass adoption; it must be coupled with user trust. The study highlights that perceived security is the critical mechanism translating FinTech infrastructure into citizen adoption. These insights offer actionable guidance for policymakers and developers tasked with realizing the digital governance goals of Vision 2030.