World Bank Praises Saudi Arabia’s Experience in Data Governance and AI Developmenthttps://english.aawsat.com/business/5327587-world-bank-praises-saudi-arabia%E2%80%99s-experience-data-governance-and-ai-development
World Bank Praises Saudi Arabia’s Experience in Data Governance and AI Development
General view of Riyadh, Saudi Arabia. (SPA)
In its regional economic report for the Middle East and North Africa, the World Bank highlighted the Kingdom of Saudi Arabia’s experience in data governance and the development of national infrastructure supporting artificial intelligence (AI).
The report —released in October 2026 and titled "From Gap to Opportunity: AI, Jobs, and Growth"— underscored the Kingdom's progress in developing AI models and computing capabilities, as well as in technology investments, the Saudi Press Agency reported Friday.
The bank commended the Kingdom's progress—represented by the Saudi Data and AI Authority (SDAIA)—in building a national data and AI ecosystem. It regarded the Saudi experience as a benchmark for developing institutional models for data and AI governance, while highlighting the role of institutional integration and national support in accelerating capacity building in this field.
The World Bank dedicated a standalone case study to SDAIA’s experience. The study examined the authority's role in governing the national data ecosystem and accelerating the adoption of AI technologies through the National Data Management Office, the National Center for Artificial Intelligence, and the National Information Center, as well as the regulatory, developmental, and technical roles it plays in supporting the Kingdom’s digital transformation.
The World Bank highlighted the Kingdom's progress in adopting AI technologies, noting that the adoption rate among Saudi enterprises reached approximately 28% in 2024—surpassing the 20% average recorded by OECD countries in 2025—with the highest adoption rates observed in the telecommunications, information technology, finance, and insurance activities.
The report also presented findings from an International Finance Corporation (IFC) study showing a 100% AI adoption rate among companies headquartered in the Kingdom.
The report also highlighted the Kingdom's advancement in the Stanford University AI Index, recognizing it as a global leader in developing cutting-edge AI models—a field in which the Kingdom was among the region's first to innovate.
It also commended SDAIA's efforts to develop national data infrastructure—specifically through the Data Bank—and its role in fostering data integration and exchange among entities, while minimizing data duplication and fragmentation to support reliable AI applications.
Regarding governance, the report highlighted the Kingdom's progress in establishing regulatory frameworks for data governance and protection. This includes SDAIA’s role in implementing the Personal Data Protection Law and developing national controls and standards, alongside the National Data Index—which monitors government entities' compliance with data management and governance controls—and the National AI Index, which measures government entities' readiness to adopt AI technologies and tracks their progress in this field.
The World Bank highlighted the Kingdom's efforts to build AI human capacity, citing SDAIA's "SAMA" initiative. This initiative exceeded its target by training over 1.2 million people in AI skills—reflecting the Kingdom's commitment to expanding AI knowledge and making these skills accessible to broad segments of society.
The report underscored the Kingdom's experience in establishing robust national foundations for data and artificial intelligence. It noted that effective data governance is a cornerstone of digital transformation, fosters innovation, and supports safe, responsible AI applications, adding that the Saudi model offers a valuable reference for nations seeking to build their own national ecosystems in this field.
Council of Economic and Development Affairs Stresses Saudi Economy’s Resiliencehttps://english.aawsat.com/business/5327582-council-economic-and-development-affairs-stresses-saudi-economy%E2%80%99s-resilience
Council of Economic and Development Affairs Stresses Saudi Economy’s Resilience
A previous CEDA meeting chaired by the Saudi Crown Prince. SPA
The Saudi Council of Economic and Development Affairs (CEDA) has discussed during a virtual meeting developments in the global economy amid rapidly changing geopolitical conditions and their effects on the national economy with the Kingdom’s Purchasing Managers’ Index (PMI) rising to 53.8 in August 2026 from 53.1 in July.
CEDA discussed the Ministry of Economy and Planning’s monthly report and examined developments in the global economy, including rising inflationary pressures and tighter monetary policies adopted by major central banks, the Saudi Press Agency reported on Thursday.
It also discussed the implications for Saudi Arabia, highlighting the national economy’s resilience and ability to navigate regional and international challenges while identifying opportunities arising from the changing economic environment.
The report showed that the Kingdom’s Purchasing Managers’ Index (PMI) rose to 53.8 in August 2026 from 53.1 in July, marking the fifth consecutive month of growth.
The Business Confidence Index also increased to 56.7, up 0.2 points from the previous month, reflecting continued confidence in the outlook for the Saudi economy.
The council reviewed a separate report from its Strategic Management Office on the performance of Saudi Vision 2030 programs and national strategies during the second quarter of 2026.
The report highlighted the transformation achieved over the past decade and outlined the next phase of Vision 2030, focused on maximizing impact, consolidating gains and sustaining progress across its three pillars: a vibrant society, a thriving economy and an ambitious nation.
The council also examined the Quality of Life Program Center’s 2025 annual report, which showed that the program’s initiatives contributed 44% in local content by the end of 2025, exceeding the target of 37%.
The initiatives contributed SR78 billion ($20.8 billion) to gross domestic product, surpassing the target of SR77.1 billion ($20.6 billion).
In addition, the council reviewed the 2025 annual report of the Citizen Account Program.
The council also discussed a second-quarter report from the National Center for Performance Measurement (Adaa), covering government agencies’ performance and progress toward Vision 2030 targets.
The report outlined efforts to improve government performance through strategic reviews, performance monitoring, addressing implementation challenges and identifying opportunities for improvement.
The council also discussed a second-quarter report from the National Center for Performance Measurement (Adaa), covering government agencies’ performance and progress toward Vision 2030 targets.
The report outlined efforts to improve government performance through strategic reviews, performance monitoring, addressing implementation challenges and identifying opportunities for improvement.
US Stocks Pull Back on Oil, Iran War Worrieshttps://english.aawsat.com/business/5327448-us-stocks-pull-back-oil-iran-war-worries
A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, US, November 11, 2022. REUTERS/Andrew Kelly/File Photo
A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, US, November 11, 2022. REUTERS/Andrew Kelly/File Photo
Wall Street stocks slipped early Thursday, after oil prices soared on reports that the United States could launch fresh attacks on Iran before key midterm elections.
The Dow Jones Industrial Average dipped 0.2 percent to 51,074.31, while the broad-based S&P 500 Index lost 0.3 percent to 7,776.28.
The tech-focused Nasdaq Composite Index retreated 0.5 percent to 27,405.11, AFP reported.
The gloomier start was "based on two factors that have been haunting the market: both oil prices rising sharply and also (bond) yields that are returning to yesterday's peak levels," said Peter Cardillo of Spartan Capital Securities.
He told AFP that these will be an "ongoing problem for the market in the near term."
Cardillo said that oil prices have jumped as US President Donald Trump said he did not want to deal with Iran.
"And now it looks as though there's been a shift in strategy from an economic squeeze on the Iranian economy to a new round of massive bombing," he warned.
After reports that Washington could open new attacks against Iran, international benchmark Brent North Sea crude rallied to $105.46 per barrel.
The main US contract, West Texas Intermediate rose to $92.82 per barrel before cooling slightly.
Meanwhile, the yield on the 10-year Treasury note advanced to 5.3 percent and that on the 30-year note was at 5.7 percent.
A Year After Riyadh Halted Rent Hikes, the Market Tests a New Balancehttps://english.aawsat.com/business/5327399-year-after-riyadh-halted-rent-hikes-market-tests-new-balance
A Year After Riyadh Halted Rent Hikes, the Market Tests a New Balance
Development work on plots during the first year of the Real Estate Balance Program in Riyadh (SPA)
A year after regulations freezing rent increases began to take effect, the rental market in Riyadh has begun to show a clear shift in the trajectory of prices. Residential rents grew by 4.5 percent in August 2026, the slowest pace of increase in more than three years, while the share of household income absorbed by rent declined to about 15 percent, from more than 17.5 percent a year earlier.
These developments point to a gradual easing of the price pressures that drove rents to high levels in recent years, but they are not enough on their own to conclude that the market has entered a sustainable equilibrium. Rental activity continues to grow, while the market still needs to absorb new supply and determine the impact of the regulations on the decisions of investors, developers and tenants.
The regulatory provisions governing the relationship between landlords and tenants in Riyadh were issued on September 25, 2025, pursuant to the directive of Crown Prince and Prime Minister Mohammed bin Salman to take measures to achieve balance in the capital’s real estate sector, with the approval of the Council of Ministers and by royal decree. The provisions were later published in the official gazette, Umm Al-Qura, and took effect on November 7 of the same year. They remain in effect for five years and provide for a freeze on annual rent increases for residential and commercial properties within Riyadh’s urban boundaries, in addition to regulating rents for vacant properties that had previously been leased and setting rules governing contract renewals and evictions.
These provisions formed part of a broader package of measures aimed at restoring balance to the capital’s real estate market. The package included increasing the supply of residential land, developing the system of white land and vacant property fees, strengthening the regulation of rental relationships, and raising levels of documentation and transparency.
Development works on plots during the first year of the Real Estate Balance Program in Riyadh (SPA)
About a year after the provisions took effect, the capital’s rental market has begun to show signs of gradual repricing, with slower rent growth and a decline in the burden of rent on household income. However, the extent to which the market moves toward a more sustainable equilibrium will remain linked to the trajectory of new supply, development and financing costs, and households’ ability to afford housing.
The latest available data indicate that residential rents in Riyadh rose by 4.5 percent year-on-year in August 2026, marking the 12th consecutive month of slower growth and the lowest pace of increase in more than three years, according to an analysis based on data from the General Authority for Statistics.
Although rents continued to rise year-on-year, the slower pace reflects a gradual easing of the price pressures that the capital experienced in recent years, alongside a package of government measures aimed at restoring balance to the real estate market.
The regulation of the rental market was part of this package, which included increasing the supply of residential land, developing the system of white land and vacant property fees, as well as strengthening the regulation of rental relationships and raising levels of documentation and transparency in the market.
In an indicator directly linked to households’ ability to afford housing costs, the share of rent in household income in Riyadh declined to about 15 percent, compared with more than 17.5 percent in September 2025.
Abdullah Al-Hammad, CEO of the General Real Estate Authority, said last September that this decline was one of the initial effects measured from the real estate balance decisions in the capital.
This indicator is particularly significant because it measures the share of rent in household income, providing a clearer reading of changes in housing affordability and the impact of market movements on tenants.
This coincided with a continued slowdown in housing-related inflation across the Kingdom. The growth rate of prices in the housing, water, electricity, gas and other fuels category declined to 3.9 percent year-on-year in August, from 4.2 percent in July.
By contrast, the slowdown in price growth was not accompanied by a similar contraction in rental activity across the Kingdom. The number of rental transactions rose to about 446,300 in August, compared with 325,200 in the same month of 2025, an annual increase of 37 percent.
The value of rental transactions also increased by 32 percent to 10.62 billion riyals ($2.83 billion), compared with about 8.03 billion riyals a year earlier. The residential sector accounted for about 343,700 transactions, an increase of 36 percent, while the value of its transactions rose 28 percent to 5.59 billion riyals.
Although these figures reflect the performance of Saudi Arabia’s rental market as a whole and do not separately measure the impact of the measures implemented in Riyadh, they indicate that slower rent growth has not, so far, been accompanied by a broad contraction in rental activity.
Balance or a Transitional Phase?
A year after the regulations were implemented, the picture raises the question of whether the current indicators represent the beginning of a sustainable equilibrium in Riyadh’s rental market, or whether they reflect a transitional phase during which the market is reshaping price levels, returns, and the behavior of tenants and investors. According to real estate specialists, determining the direction of this trend will depend on developments in new supply, development and financing costs, and households’ ability to afford housing in the coming period.
Real estate expert and commentator Abdullah Al-Mousa told Asharq Al-Awsat that the current indicators reflect a tangible impact from the latest regulatory measures on Riyadh’s rental market, particularly the freeze on annual increases. He noted that slower rent growth and the decline in the burden of rent on household income reflect an easing of some of the price pressures that the capital has experienced in recent years.
He explained that this improvement cannot be attributed solely to the freeze on increases, but comes within a comprehensive package of measures that included regulating the relationship between landlords and tenants, fixing rents under specific regulations, increasing the supply of land, developing the white land fee system, and strengthening documentation and transparency in the market.
Al-Mousa said it was too early to consider the rental market to have reached “full equilibrium,” saying that what is currently taking place is closer to a transition from a period of rapidly rising prices toward stability, repricing and testing new levels of equilibrium.
He added that sustainable equilibrium is not measured by slower prices alone, but by the market’s ability to provide sufficient supply, maintain affordable housing costs relative to household income, and keep occupancy rates stable while ensuring that investment in the rental sector remains attractive.
Regarding the impact of the regulations on the behavior of landlords and tenants, Al-Mousa noted that their effect may be behavioral and contractual as much as it is related to prices. They give tenants greater ability to anticipate their future obligations and limit sudden increases, which could encourage them to remain in a unit for longer periods.
At the same time, the regulations may encourage landlords to place greater priority on tenant stability and regular payment rather than relying on raising rents at every renewal.
He noted that the regulations have also reshaped the way units are priced and negotiated, particularly for properties entering the market for the first time, where the initial rent becomes more important in determining the subsequent course of the contract. This is prompting owners and developers to study pricing more carefully and link it to the unit’s location, quality, level of services and the value it provides to the tenant.
Al-Mousa considered that this shift could, over the long term, move competition in the rental market away from focusing on raising prices and toward improving the quality of real estate products and retaining tenants for longer periods. This would reflect a market moving toward greater competition over value and stability, rather than price alone.
Reshaping Investment Economics
Real estate expert and marketer Saqr Al-Zahrani told Asharq Al-Awsat that rental regulations are likely to reshape the economics of investment in the residential sector, rather than simply limiting investment activity. He explained that limited growth in rental revenues, alongside rising land, financing and construction costs, will push investors to scrutinize target returns more closely and focus on assets capable of generating stable cash flows and achieving greater operational efficiency.
He added that the next phase could see a greater shift by institutional investors toward towers and integrated, professionally managed residential complexes, benefiting from economies of scale in reducing operating costs, improving occupancy efficiency, and diversifying products and services. At the same time, standalone residential units may become less attractive as rental assets, as a larger share of them shifts toward ownership by end users.
According to Al-Zahrani, demand for housing in Riyadh will not necessarily decline, but it may become more selective, with tenants paying greater attention to balancing price, location, space, product quality and services. Landlords, meanwhile, will rely more heavily on asset quality and sustainable occupancy rather than relying solely on rent growth.
He noted that among the key indicators that should be monitored over the next two years are rent growth rates, the volume of new supply, occupancy and vacancy rates, net investment returns, the movement of households from renting to homeownership, the length of time units remain on the market, and the ratio of housing costs to household income.
Al-Zahrani said one of the most significant potential shifts is the movement of some investment away from individual residential units toward integrated residential assets, particularly as projects capable of relying on actual local demand and generating stable cash flows become increasingly important.
At the same time, he warned that continued increases in development costs, combined with limited rent growth, could prompt some investors to reduce the supply allocated for rental or redirect capital toward homeownership projects.
Conversely, improved homeownership affordability could gradually encourage some tenants to shift from bearing rental costs toward building homeownership, potentially reshaping the pattern of demand in the capital’s housing market.
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