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IBM: Saudi Arabia Poised to Lead Digital Transformation in the Middle East  

 IBM’s pavilion at the LEAP 2025 conference in Riyadh. (IBM) 
 IBM’s pavilion at the LEAP 2025 conference in Riyadh. (IBM) 
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IBM: Saudi Arabia Poised to Lead Digital Transformation in the Middle East  

 IBM’s pavilion at the LEAP 2025 conference in Riyadh. (IBM) 
 IBM’s pavilion at the LEAP 2025 conference in Riyadh. (IBM) 

As Riyadh welcomed US President Donald Trump on Tuesday, discussions have resurfaced around the profound transformations taking place in Saudi Arabia’s economic and technological landscape — a key focus of the Kingdom’s Vision 2030.

At the heart of this transformation are global tech companies, including American giant IBM. The company’s CEO Arvind Krishna is accompanying Trump on his trip as part of a large delegation of CEOs and top business leaders. IBM views Saudi Arabia as a promising regional hub for digital innovation and AI leadership.

Last year, IBM established a new regional headquarters in Riyadh and launched a $250 million software lab in the Saudi capital focused on accelerating digital innovation with over 70% of the workforce being Saudi nationals.

Earlier this year, IBM also announced a partnership with Lenovo to help expand the impact of generative AI for clients in the Kingdom. It further revealed plans to establish a joint AI innovation center in Riyadh in collaboration with Salesforce.

Additionally, IBM partnered with the Saudi Data and AI Authority (SDAIA) to promote AI adoption in areas such as carbon capture and industrial use and launched a generative AI Center of Excellence to support scalable and responsible AI deployment across sectors.

Dynamic digital market

In an exclusive statement to Asharq Al-Awsat, IBM’s Regional Vice President in Saudi Arabia Ayman Al-Rashed stated that the Kingdom is a dynamic and rapidly growing digital market, driven by bold national initiatives like the National Transformation Program.

“With the ICT market in Saudi Arabia valued at over $44 billion, there is an immense opportunity to accelerate digital transformation across public and private sectors,” Al-Rashed said.

He explained that IBM is well-positioned to support this momentum. With the rise of technologies such as quantum computing, hybrid cloud, and AI, “we foresee a future in which Saudi Arabia leads the region’s digital transformation.”

IBM’s innovations, such as Watsonx, are already bringing tangible changes to the business landscape, from developing Arabic language models like “ALLaM” to automating HR through tools like “AskHR” and “Watsonx Orchestrate,” he went on to say.

A global study conducted by IBM showed 61% of CEOs are already using AI agents, with AI investment expected to double in the next two years, he revealed. “These global trends are clearly reflected in the Saudi market, where demand for advanced and generative AI solutions is accelerating. Remarkably, 56% of business leaders in the Middle East believe that leadership in generative AI will be critical for gaining a competitive edge.”

Sectors undergoing rapid transformation

When asked about the fastest-transforming sectors in the Kingdom, Al-Rashed noted that Vision 2030 is driving significant shifts in key areas such as education, energy, and financial services. Meanwhile, the sports and entertainment sectors are emerging as promising spaces for growth.

“Saudi Arabia’s hosting of major events like Formula 1, the Club World Cup, the AFC Champions League, and the 2034 FIFA World Cup highlights the country’s ambition for global leadership and creates ideal opportunities to use technology to enhance fan engagement and operational efficiency,” he said.

He added that Saudi Arabia’s strong digital infrastructure and tech-savvy youth provide fertile ground for applying smart solutions. “We are committed to working with local partners to turn digital potential into measurable outcomes,” he stressed.

Strategic investment destination

On the investment front, Al-Rashed emphasized that IBM sees Saudi Arabia as a strategic center for innovation and long-term growth, praising the Kingdom’s attractive investment climate, advanced digital infrastructure, and vibrant entrepreneurial ecosystem.

“We established a new regional HQ and software lab in Riyadh last year, with 70% of hires being Saudi nationals. We also announced partnerships with Lenovo and Salesforce and are working with SDAIA on industrial AI and carbon capture projects,” he said.

Al-Rashed stressed that investing in local talent is a core priority. “In partnership with the Ministry of Communications and Information Technology, we’re on track to achieve our goal of training 100,000 young Saudis to help shape the Kingdom’s digital future,” he told Asharq Al-Awsat.

Saudi Arabia continues to achieve remarkable milestones on its transformation journey and is positioning itself as a global model in AI adoption, he remarked.

“In just two years, our AI solutions have delivered $3.5 billion in productivity savings globally, and we’re working to bring that impact to Saudi Arabia. Through our partnership with Riyadh Air, we aim to boost operational efficiency and enhance passenger experience, setting new benchmarks in the aviation industry,” he added.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.