Many developing countries are in the initial stages of implementing electronic government to improve public sector services and deliver them in an effective and efficient manner. Some cities of the Kingdom of Saudi Arabia are focusing on public sector transformation efforts to increase accessibility and availability of their services and to enhance services in civil administration. Madinah City is one such example where large investments have been made since 2003 to implement electronic services and develop various delivery channels in the public sector. Thus, the government of Madinah has launched the “Khdamatec” electronic offices (e-offices) concept under their national electronic government (e-government) modernisation agenda to facilitate service delivery to citizens and seamless interaction to communicate their needs. This paper uses an empirical study to examine the role of intermediaries in facilitating the adoption and diffusion of e-government in Saudi Arabia. A survey of citizens in Madinah City is used to examine perceptions of using online public services through the Internet. The survey is complemented by a case study to identify issues that influence the progress of the Madinah local egovernment project from the viewpoint of government officials responsible for managing intermediaries. These empirical findings highlight computer literacy, Internet access, trust (perceived security and privacy), and awareness in using e-services as the most salient factors currently influencing e-government diffusion and adoption in Saudi Arabia.