Security of data has always been a contested issue since the internet became the way of life. The internet and Web 2.0 followed by Web 3.0 have enabled many applications for the use of the citizens. E-government is one of them. Questions have always been raised about the security of data in E-government applications and services. Saudi Arabia is one of the developing countries when it comes to the internet-based services. This paper attempts to review the effectiveness of security policies when dealing with threats and vulnerabilities. We shall study these aspects in the context of Saudi Arabian E-government. E-government, anywhere in the world is a very sensitive area when it comes to ensuring security of the users as well as the corporate data. Breach in security of user data may have catastrophic implications in some cases.