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.
