SAP to Asharq Al-Awsat: Saudi Arabia Is Now Home to One of Our Largest Global Investments

SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)
SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)
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SAP to Asharq Al-Awsat: Saudi Arabia Is Now Home to One of Our Largest Global Investments

SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)
SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)

Saudi Arabia is accelerating AI adoption across various sectors, enabling businesses to harness data-driven insights, enhance efficiency, and scale operations with agility. At the LEAP 2025 conference, which concluded in Riyadh on Wednesday, SAP, the global leader in enterprise software, reaffirmed its long-term commitment to the Kingdom.

In an exclusive interview at the conference, Ahmed Jaber Al-Faifi, Senior Vice President for SAP in the North Middle East and Africa, highlighted the company’s significant investments in cloud infrastructure, AI-powered business solutions, and workforce development in Saudi Arabia.

Speaking to Asharq Al-Awsat, he stated: “AI is not just another tool for improving efficiency; it is a revolution that will redefine industries. Just as the internet transformed business operations, AI is set to become an essential component of every organization’s strategy.” He further warned: “Companies that fail to adopt and scale AI will become irrelevant within the next five years.”

SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. Over the years, this investment has focused on two key areas. The first is building a strong local partner network, with SAP working alongside more than 100 Saudi partners to expand its reach and provide tailored solutions for local businesses.

The second focus has been talent development. SAP has provided over 400,000 training days for students, partnered with 33 universities, and launched a free two-year diploma program to equip Saudi professionals with the skills needed to succeed in the digital economy.

Al-Faifi emphasized: “Talent development is critical to digital transformation. We are not just bringing technology to Saudi Arabia; we are building the skills and expertise necessary to support and scale these innovations over the long term.”

One of the most defining aspects of Saudi Arabia’s digital transformation is the rapid shift to cloud computing. As companies increasingly migrate their operations to the cloud, SAP has been at the forefront of facilitating this transition. In Saudi Arabia alone, 75% of SAP customers have already moved to the cloud, and this figure is projected to reach 95% by next year.

Al-Faifi explained: “Saudi Arabia has embraced a cloud-first strategy at a pace faster than most markets. Through our data centers in Riyadh, SAP ensures that critical business data remains within the Kingdom while providing enterprise-grade security, scalability, and AI-driven automation.”

Despite the rapid adoption of AI and cloud technologies, Saudi businesses face three major challenges in scaling these innovations, according to Al-Faifi. The first challenge is legacy system migration, as many organizations still rely on outdated infrastructure that must be modernized before they can fully leverage AI and cloud solutions.

The second challenge is data quality and management, since AI-powered decision-making depends on clean, well-organized, and high-quality data, which many businesses struggle to maintain. The third and most pressing challenge is the talent shortage, with demand for AI and cloud computing experts far exceeding the available talent pool, leading to fierce competition for skilled professionals.

“Migrating to the cloud is not just about transferring data; it requires a fundamental shift in how organizations manage, analyze, and secure their information. AI can only deliver value if the underlying data is clean and structured,” Al-Faifi said.

Recognizing that talent is the key to unlocking AI’s full potential, SAP has launched exclusive training programs in Saudi Arabia, including the SAP Engineering Academy—the only one of its kind outside the United States. The academy has already trained over 600 Saudi professionals, including talent from the Ministry of Interior and Aramco.

Beyond technical training, SAP is also focused on executive AI education, helping CEOs, CFOs, and other decision-makers understand how to integrate AI into their business strategies. The company has established partnerships with Saudi universities to provide hands-on experience with SAP’s latest technologies. Additionally, SAP is launching AI literacy programs for organizations to ensure that businesses maximize AI-driven efficiencies and data-driven decision-making.

Al-Faifi noted: “Forty percent of companies that have implemented AI solutions have reported a clear return on investment, while another 40% are in the process of refining their AI use cases. AI is rapidly transitioning from an experimental technology to a core business function.”

SAP’s Business Network, one of the world’s largest B2B trading platforms, was previously hosted in the United States. However, with the rapid digital expansion in Saudi Arabia, SAP recognized the need for a localized version of the platform to comply with Saudi data residency regulations.

Today, the SAP Business Network operates at full capacity from Riyadh, ensuring that all transactions, procurement activities, and supply chain data remain within the Kingdom’s regulatory framework. Al-Faifi highlighted the network’s economic impact, stating: “In 2023 alone, SAP Business Network facilitated $550 billion in transactions—equivalent to 5% of Saudi Arabia’s GDP. This demonstrates the scale at which Saudi businesses rely on SAP’s solutions.”

The network now includes 156,000 local Saudi suppliers, enabling businesses to source from domestic partners, reduce dependency on international procurement, and strengthen national supply chains.

Discussing this transformation, Al-Faifi said: “With Saudi Arabia’s Vision 2030 mega-projects, the need for a localized business network became clear. The SAP Business Network in Riyadh enables Saudi companies to trade more efficiently while ensuring compliance with local regulations.”

With Saudi Arabia preparing to host Expo 2030 and the 2034 FIFA World Cup, the Kingdom is gearing up for massive technological advancements in infrastructure, smart city planning, and event management. SAP has previously deployed its enterprise solutions at Expo 2020 Dubai, where it helped manage logistics, ticketing, and crowd control. Al-Faifi revealed that SAP is currently in discussions with Saudi authorities to implement similar AI-driven solutions for upcoming mega-events.

From AI-powered crowd management to real-time logistics optimization, SAP’s solutions will play a pivotal role in ensuring smooth operations for large-scale events. The company is particularly focused on intelligent ticketing platforms, smart transportation systems, and digital security solutions, ensuring seamless experiences for millions of expected visitors.

Beyond the events sector, SAP is actively collaborating with major Saudi entities such as Aramco, NEOM, and the Red Sea Project to integrate AI, cloud computing, and business intelligence into some of the Kingdom’s most ambitious development projects.

Al-Fafi stressed: “Saudi Arabia is now home to one of SAP’s largest global investments. Our goal is to empower the Kingdom with AI-driven solutions, ensuring that businesses and government entities have the tools to innovate, scale, and thrive in the digital economy.”



Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo

The dollar rallied on Wednesday ahead of the Federal Reserve's decision on interest rates, but retreated from the day's highs after markets stabilized from an early shock caused by the detention

of Turkish President Tayyip Erdogan's main rival.

Traders are also digesting the Bank of Japan's earlier decision to hold interest rates steady, while the Fed's policy decision later will be crucial for investors eager to know what the central bank makes of Trump's policies and their impact on the US economy, and how that affects the rate outlook.

Fed policymakers are widely expected to keep rates on hold, and will also release new economic projections at the conclusion of the meeting later in the day, Reuters reported.

Feeding into an earlier rally in the dollar was news out of Turkey which saw the lira briefly tumble by the most in a day on record, rippling through major currencies as investors shifted into safe-haven assets.

By 1226 GMT, the euro was down 0.3% versus the dollar to $1.091, having fallen as much as 0.6% earlier. Even so, it remains near a five-month high of $1.0955 scaled in the previous session.

"The news from Turkey is having an impact on G10 currency markets and risk appetite in general," said Jane Foley, head of FX strategy at Rabobank.

"But I would think some of the initial impact of what's happened will begin to filter out from some of the euro trade once the market has become a bit more accustomed to it."

The yen weakened against the dollar, which rose 0.3% to 149.805 in volatile trade as investors mulled the BOJ decision to hold rates steady and comments from Governor Kazuo Ueda .

The widely expected BOJ decision underscored policymakers' preference to spend more time gauging how mounting global economic risks from higher US tariffs could affect Japan's fragile recovery.

"The decision to leave monetary policy unchanged itself is not a surprise, so its impact on exchange rates is limited. However, the earlier-than-usual timing of the announcement seems to have led financial markets to initially interpret that the BOJ (did not consider) bringing forward a rate hike," said Hirofumi Suzuki, chief FX strategist at SMBC.

Adding to nervousness among investors, Israeli airstrikes pounded Gaza overnight, while US President Donald Trump and Russian President Vladimir Putin failed to reach an agreement on a Ukraine ceasefire.

The more risk-sensitive currencies edged lower, with sterling down 0.2% at $1.29795, not far from the previous session's four-month high of $1.3010, while the Australian and New Zealand dollars fell 0.4% and 0.5%, respectively.

Against a basket of currencies, the dollar ticked up 0.2% to 103.55, coming off a five-month low of 103.19 on Tuesday.

The dollar has fallen nearly 4% for the month, pressured by Trump's erratic approach to tariffs and as fears mount of a recession in the world's largest economy.

Traders are currently pricing in nearly 60 basis points of Fed rate cuts by the year end.

"The March FOMC meeting will likely be all about policy uncertainty. The Fed will almost certainly stay on hold, emphasising patience over panic," said analysts at Bank of America Securities.

"The (Summary of Economic Projections) forecasts and distribution of risks are both likely to reflect stagflation: weaker growth and higher inflation."