Saudi Arabia Emerges as Global AI Hub as Tech Firms Base Regional Operations in Riyadh

The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
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Saudi Arabia Emerges as Global AI Hub as Tech Firms Base Regional Operations in Riyadh

The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia is no longer preparing for the age of artificial intelligence; it is helping shape it. After designating 2026 as the Year of AI, the Kingdom has evolved from a promising market into a major technology hub, attracting global companies eager to establish regional operations.

Reflecting that momentum, US data and AI company SAS selected Riyadh as its regional headquarters for the Middle East and North Africa a year ago. Founded in 1976, SAS is marking its 50th anniversary this year and is among the world’s leading providers of predictive analytics, data management, and machine learning solutions, serving industries including energy, finance, and healthcare.

Speaking to Asharq Al-Awsat on the sidelines of the Global AI Show, held in Riyadh on June 29-30, Khaled Moussa, Senior Customer Account Manager at SAS, said Saudi Arabia’s Vision 2030 has accelerated the adoption of advanced and sophisticated technologies.

He noted that the Kingdom’s modern digital infrastructure has enabled increasingly complex technological operations, fueling demand for SAS solutions and those of other technology firms across multiple sectors.

“The remarkable growth taking place in Saudi Arabia is attracting significant attention in the United States and beyond,” Moussa said. “That has encouraged international companies to make serious commitments to the market because of its rapid adoption of intelligent technologies.”

Although SAS has operated in Saudi Arabia since 1984, he added, “the market has reached a new level of maturity, both in terms of regulation and technology adoption.”

Moussa said SAS maintains a strong presence across several strategic sectors, particularly energy, through its collaboration with Saudi Aramco, the world’s largest energy company.

The company also works with the Saudi Electricity Company, providing advanced forecasting tools to predict electricity demand and support long-term planning, helping improve operational efficiency and future preparedness. SAS also supplies analytical solutions for the water sector to strengthen sustainability efforts.

Moussa highlighted two areas where predictive analytics deliver particular value. The first is market forecasting, where SAS helps organizations anticipate trends and make data-driven decisions while reducing unnecessary costs. The second is predictive maintenance, which allows industrial operators to identify potential equipment failures before they occur, minimizing downtime and avoiding costly repairs.

He also underlined SAS’s long-term commitment to developing Saudi talent. The company partners directly with universities to offer six-month paid internships, equipping students with practical experience before they enter the workforce.

In addition, SAS extends its training initiatives to schools and universities, teaching students how to apply AI technologies and preparing them for future careers.

The Global AI Show brought together more than 100 experts and global leaders from 80 countries, including government officials, innovators, and digital transformation specialists.

The event attracted more than 10,000 participants, 100 exhibitors and sponsors, and coverage from 200 international media organizations, reinforcing Riyadh’s growing role as a global platform for AI policymaking and international technology cooperation.



Saudi Tourism Minister Announces Launch of Second Edition of TOURISE Forum in March

Tourists are seen at Saudi Arabia's AlUla. (SPA)
Tourists are seen at Saudi Arabia's AlUla. (SPA)
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Saudi Tourism Minister Announces Launch of Second Edition of TOURISE Forum in March

Tourists are seen at Saudi Arabia's AlUla. (SPA)
Tourists are seen at Saudi Arabia's AlUla. (SPA)

Saudi Minister of Tourism and Chairman of the TOURISE Forum Board Ahmed Al-Khateeb announced on Wednesday the launch of the second edition of the “TOURISE 2027” Forum, under the theme “Alliances That Move the World,” to be held in Riyadh from March 23 to 25, 2027.

The forum, held under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, brings together leading figures from the tourism, technology, investment, sustainability, culture and transport sectors from around the world to discuss the key opportunities and challenges facing these sectors and help shape the next phase of global tourism.

The forum comes as Saudi Arabia presents a prominent example of what can be achieved in the tourism sector as an integrated economic ecosystem. The Kingdom surpassed its initial target of welcoming 100 million visitors annually in 2023, seven years ahead of schedule, and raised its ambition to 150 million visitors annually by 2030.

The TOURISE Forum serves as an attractive platform for investment. Its inaugural edition last year succeeded in catalyzing investments worth $113 billion, spanning destinations, hotels, retail, talent development and AI-powered platforms, demonstrating how cross-sector collaboration can turn ambition into investment and practical action.

The theme of the forum’s second edition, “Alliances That Move the World,” underscores the importance of forging alliances that transcend sectors, borders and business fields, connecting tourism with capital, technology and infrastructure to unlock investment opportunities, accelerate innovation and facilitate the traveler experience, supporting a more growing, sustainable and inclusive global tourism economy.

Minister Al-Khateeb said: “No single destination, company or organization will shape the future of tourism. Rather, it will be determined by the strength of the alliances we build together. Saudi Arabia has witnessed first-hand what can be achieved when ambitions, investments and strategic partnerships come together.”

“Through the second edition of the TOURISE Forum, we are inviting the world to Riyadh to build the alliances that will shape the next 50 years of the tourism sector,” he added.

The Ministry of Tourism announced the first group of speakers for the 2027 edition, comprising leading figures from the tourism, hospitality, technology and destination development sectors. They will showcase their organizations’ contributions to facilitating travel, tourism and mobility, as well as the most promising areas for investment in the global tourism sector.


Riyadh Opens the Way for Driverless Parcel Delivery

One of the autonomous trucks (Asharq Al-Awsat)
One of the autonomous trucks (Asharq Al-Awsat)
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Riyadh Opens the Way for Driverless Parcel Delivery

One of the autonomous trucks (Asharq Al-Awsat)
One of the autonomous trucks (Asharq Al-Awsat)

As the mobility landscape within Saudi cities continues to evolve, Riyadh is preparing to embark on a new experience in which no driver sits behind the wheel and the success of a journey does not depend on a driver's ability to navigate the road. By mid-November, 24 autonomous trucks are expected to begin trial operations on the capital's roads, opening the door for the technology to move from passenger transport into parcel and freight delivery.

The move follows the General Transport Authority's sponsorship in May of a memorandum of understanding between Abdul Latif Jameel Motors and China's Zeelos Technology, a company specializing in autonomous driving technologies, with the aim of adopting and enabling autonomous mobility solutions in the Kingdom.

The trucks expected to operate in Riyadh represent one of the practical applications of this cooperation. The first phase will focus on testing the ability of autonomous vehicles to transport parcels within the capital, paving the way for an assessment of their performance and efficiency before moving to broader stages of operation.

Ammar Baterdok, General Manager of Mobility Solutions Projects at Abdul Latif Jameel Motors, told Asharq Al-Awsat that the pilot operation will begin after the completion of geospatial mapping and the training of autonomous driving systems on local roads.

He explained that the fleet allocated to the first phase comprises 24 trucks of different sizes and models. Four have already arrived in the Kingdom, while another 20 are currently in transit, amid logistical challenges affecting shipments from China due to developments in the region.

The trucks have payload capacities of 0.5 tons, 1.5 tons, and 2.5 tons. The fleet includes refrigerated and non-refrigerated models, with the remaining batches expected to arrive successively during October and November.

Free Trials with SPL

Abdul Latif Jameel Motors is carrying out the pilot phase in cooperation with Saudi Post | SPL to transport parcels from the main center to neighborhood centers in Riyadh. The service will be provided free of charge throughout the trial period.

Baterdok said the company is prepared to extend the pilot period for several months if necessary in order to collect sufficient operational and investment data to assess the fleet's performance and economic viability before making a decision on commercial expansion.

The phase will allow the company to test the vehicles under actual driving conditions within the capital, including their ability to navigate local roads and traffic, while also measuring their performance during different operating hours.

Millions Invested to Test Viability

The cost of the pilot phase amounts to millions of riyals, according to Baterdok, covering the purchase of vehicles, customs clearance, fees, and taxes. He explained that the investment is not intended to generate a direct financial return, but rather to test the technology's economic and technical viability and collect the data needed before decisions are made regarding commercial expansion and the size of the future fleet.

Illustrative photo of the inside of the truck (Asharq Al-Awsat)

Operating Savings Could Exceed Truck Costs

The company is banking on autonomous trucks being able to reduce operating costs compared with conventional vehicles. Baterdok explained that the price of an autonomous truck is approximately half that of a conventional fuel-powered truck, whether gasoline or diesel.

The cost gap becomes wider during operation due to lower labor and maintenance expenses, in addition to the possibility of operating the trucks around the clock, except for the periods required for recharging.

In an analysis, logistics expert Hassan Al Halil told Asharq Al-Awsat that the most significant economic impact would come from reducing operating costs and improving supply-chain efficiency. He noted that autonomous trucks could increase fleet utilization, improve route planning, and allow for longer operating periods, particularly on repetitive and defined routes.

Al Halil added that it is too early to establish a fixed percentage for reductions in logistics costs in Saudi Arabia, given that savings vary depending on the type of shipment, distance, and operating model. He said that "the greatest opportunities for savings lie in operating labor costs, increasing truck utilization, reducing waiting times, improving fuel consumption, and maintenance," adding that "the economic value will come from increasing fleet productivity and completing more trips efficiently."

Baterdok, meanwhile, said the absence of a driver allows supply and delivery operations to be shifted to nighttime hours, increasing the efficiency of fleet utilization in major cities such as Riyadh by taking advantage of periods when road traffic is less dense.

According to company estimates, electricity costs account for only about 20 percent of the cost of conventional fuel, while maintenance expenses decline due to the absence of conventional engines and transmissions. Routine servicing therefore focuses to a greater extent on components such as brakes and tires.

The trucks rely on sensors and radar systems for autonomous driving, enabling them to operate in nighttime driving conditions without relying on human vision.

Road Readiness Determines the Path to Expansion

Despite these advantages, Al Halil believes that large-scale operation of autonomous trucks in Riyadh requires more than well-maintained roads. It requires highly accurate maps that are continuously updated, reliable communications systems, smart infrastructure, and coordination among the relevant authorities.

He pointed out that the main challenges within cities include congestion, sudden changes in routes, roadworks, unexpected behavior by some vehicles, dusty conditions, and the handling of loading and unloading points. He said that "the most realistic starting point will be defined, repetitive roads and logistics routes before moving to more complex urban operations."

From Passenger Transport to Parcel Delivery

The truck trial comes as Saudi Arabia expands its testing of autonomous mobility applications, as the technology moves from passenger transport into freight and delivery.

Last year, Saudi Arabia launched autonomous passenger vehicles and is currently operating more than five routes, including the Roshn area, Princess Nourah bint Abdulrahman University, and the route connecting Riyadh Gallery and Hayat Mall.

The service has transported more than 3,100 passengers across 1,600 trips under the supervision of the General Transport Authority, as part of efforts to test autonomous driving technologies in the Saudi urban environment.

The expansion of these applications into the freight sector opens a new field for testing the impact of autonomous driving on the efficiency of delivery operations within cities, at a time when e-commerce is expanding and supply chains are seeing growing demand for more efficient and flexible solutions.

From Roads to the Sky

Abdul Latif Jameel Motors' plans do not stop at ground transportation. The company has begun studying the market for drone-based goods delivery in preparation for entering the field once the necessary regulatory frameworks are in place.

Baterdok expects the process of developing regulations governing goods delivery by drones to take between one and a half and three years. He noted that the company is in discussions with global suppliers of trucks and drones designed to transport goods and individuals.

In evaluating these solutions, the company is focusing on technical readiness, range, speed, the ability of vehicles and aircraft to operate under different weather conditions, and resistance to wind, with the aim of achieving operational readiness as soon as official licenses are issued.

Accordingly, Abdul Latif Jameel Motors' plan is not limited to testing autonomous trucks in Riyadh. It extends to developing a broader system of autonomous mobility solutions, beginning with ground transportation and eventually reaching air-based goods delivery, while testing the technical and economic viability of each solution before moving from trials to commercial expansion.


Strait of Hormuz Ship Crossings Remain in Single Digits

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
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Strait of Hormuz Ship Crossings Remain in Single Digits

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo

Vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, preliminary shipping data showed on Wednesday, falling well short of the 10-day average of 18.

The drop in traffic through the waterway that handled one-fifth of the world's oil and liquefied ⁠natural gas supply before ⁠the Iran war comes after attacks in the region intensified.

Of the total on Tuesday, two ships were exiting and two were entering, according to the data.

No very large crude carriers ⁠or liquefied natural gas tankers were involved.

Some ships may be sailing through the waterway with their transponders turned off and they are therefore not counted.

One very large gas carrier, Salute, carrying around 470,000 barrels of liquefied petroleum gas exited via the Iranian route, while Panamax-sized tanker Nautilus, carrying around 510,000 barrels of naphtha, exited ⁠via ⁠an unknown dark route, Reuters reported.

The two ships that entered were both laden, with one being a short-range dirty products tanker and the other a dry bulk carrier. Both entered via the Iranian route.

Meanwhile, the number of ships sailing through the Bab el-Mandeb Strait was at 22, little changed on Tuesday compared with a day ago at 24.