Recent studies of e-government activity have highlighted adoption and diffusion issues as important subjects for rating e-government success. However in developing countries inadequate resources and limited citizens’ capabilities regarding new e-government have resulted in low diffusion and adoption of e-government services. This paper examines the role of intermediaries, which can be played by a third party; in bridging the gap between e-government implementation and social reality, and looks at the roles a third party can add within the e-government services mechanism. This paper uses a case study approach in order to reflect e-government progress within the context of the Kingdom of Saudi Arabia (KSA) as one developing country. The result of this paper shows that intermediaries play an important role in the diffusion of e-services in relation to improving the availability, accessibility and enhancing privacy and security