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Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ to Boost Data Economy

Abdullah Al-Ghamdi, President of Saudi Data and Al Authority, speaks during the Global Al Summit in Riyadh, Saudi Arabia October 21, 2020. REUTERS/Ahmed Yosri  
Abdullah Al-Ghamdi, President of Saudi Data and Al Authority, speaks during the Global Al Summit in Riyadh, Saudi Arabia October 21, 2020. REUTERS/Ahmed Yosri  
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Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ to Boost Data Economy

Abdullah Al-Ghamdi, President of Saudi Data and Al Authority, speaks during the Global Al Summit in Riyadh, Saudi Arabia October 21, 2020. REUTERS/Ahmed Yosri  
Abdullah Al-Ghamdi, President of Saudi Data and Al Authority, speaks during the Global Al Summit in Riyadh, Saudi Arabia October 21, 2020. REUTERS/Ahmed Yosri  

As the global race toward a digital economy accelerates and the world enters a new era driven by algorithms, Saudi Arabia is positioning itself as a key player in the future of advanced technologies.

The Saudi Cabinet has declared 2026 the “Year of Artificial Intelligence,” a decision that reflects a strategic direction placing AI at the center of the Kingdom’s development policies in the coming years.

“This step embodies the vision of Crown Prince and Prime Minister Mohammed bin Salman, aimed at strengthening the Kingdom’s global standing in advanced technologies and creating broad national momentum around their role in shaping a smarter and more sustainable future,” said Abdullah Al-Ghamdi, president of the Saudi Data and Artificial Intelligence Authority (SDAIA), in a statement issued after the decision.

Al-Ghamdi added that the “Year of Artificial Intelligence” reflects Saudi Arabia’s scientific, cultural and humanitarian commitment to deploying these technologies in service of humanity and making them an effective tool for improving people’s lives worldwide.

He said the nationwide celebration of the year highlights the kingdom’s position as an international hub for advanced technologies and an influential actor in shaping global AI policy.

According to Al-Ghamdi, artificial intelligence has become one of the most powerful drivers of the global economy. Advanced economies increasingly rely on it to boost growth and improve quality of life by transforming vital sectors such as healthcare, education, transport, energy and security, while accelerating innovation and strengthening competitiveness.

Building a National AI Ecosystem

In recent years, the Saudi Data and Artificial Intelligence Authority, established by royal decree in 2019 with direct support from Crown Prince Mohammed bin Salman, has worked to build an integrated national ecosystem for data and artificial intelligence.

This effort has included expanding digital infrastructure, launching the National Strategy for Data and Artificial Intelligence, developing regulatory and governance frameworks, and introducing national platforms and programs to encourage the adoption of AI technologies across multiple sectors.

The authority has also hosted major international events in the field, most notably the Global AI Summit, which is preparing to hold its fourth edition in September under the patronage of the Crown Prince. The summit brings together leading experts, policymakers, and major technology companies from around the world.

These initiatives have helped Saudi Arabia achieve advanced rankings in several global indices related to data and artificial intelligence. They have also expanded the use of smart technologies across government, private and nonprofit sectors, improving service efficiency, boosting innovation, and stimulating the digital economy.

As part of efforts to build national capabilities, SDAIA trained more than one million Saudi citizens in artificial intelligence technologies within a single year through the SMAI initiative, reflecting the kingdom’s strategy of preparing a generation capable of working with emerging technologies and leading the country’s digital transformation.

Saudi Arabia’s AI sector is also experiencing rapid investment growth. Government spending on artificial intelligence and emerging technologies rose 56.25 percent in 2024 compared with 2023, according to the Saudi Press Agency.

Meanwhile, Saudi companies operating in the AI sector secured $9.1 billion in funding last year through 70 investment deals, while the number of companies working in the data and artificial intelligence sector has reached 664.

Expanding Technological Infrastructure

At the same time, Saudi Arabia has significantly expanded its technological infrastructure.

Data center capacity increased 42.4 percent between 2023 and 2024, alongside the launch of advanced projects such as the high-performance supercomputer Shaheen 3 and the development of global-scale data centers designed to support artificial intelligence applications.

In early 2026, the Kingdom also inaugurated Hexagon, the world’s largest government data center, with a capacity of 480 megawatts. Saudi Arabia now hosts nine cloud regions, four of which are under construction by global cloud service providers.

In addition, more than 430 government systems have been integrated into the National Data Lake, strengthening the country’s data infrastructure.

Saudi Arabia’s efforts extend beyond the domestic arena. The Kingdom has supported international initiatives promoting the responsible use of artificial intelligence in line with the United Nations Sustainable Development Goals.

Among the most notable initiatives is the establishment in Riyadh of the International Center for Artificial Intelligence Research and Ethics (ICAIRE) under the auspices of UNESCO.

As part of strengthening the national AI ecosystem, Crown Prince Mohammed bin Salman announced in May 2025 the launch of Humain, a company owned by the Public Investment Fund, Saudi Arabia’s sovereign wealth fund. The firm aims to develop and manage artificial intelligence solutions and invest across the sector.

The company is working on advanced AI models, including one of the most prominent large language models in Arabic. It is also developing next-generation data centers and cloud computing infrastructure, strengthening local technological capabilities and opening new opportunities for the digital economy both regionally and globally.

The Public Investment Fund and its portfolio companies are also supporting the AI ecosystem through investments and international partnerships, leveraging Saudi Arabia’s strategic geographic position between three continents, which facilitates connections between global data networks and enables rapid processing of vast data volumes.

The Kingdom’s rapidly growing economy and large youth population interested in emerging technologies are also contributing to capacity building, research and innovation in the field.

 

 

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Middle East Bears Brunt of Tanker War as Saudi Arabia Weathers Crisis with Alternative Logistics Network

A vessel at the Strait of Hormuz, as seen from Musandam, Oman, July 8, 2026. (Reuters)
A vessel at the Strait of Hormuz, as seen from Musandam, Oman, July 8, 2026. (Reuters)
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Middle East Bears Brunt of Tanker War as Saudi Arabia Weathers Crisis with Alternative Logistics Network

A vessel at the Strait of Hormuz, as seen from Musandam, Oman, July 8, 2026. (Reuters)
A vessel at the Strait of Hormuz, as seen from Musandam, Oman, July 8, 2026. (Reuters)

At a time when the global economy is struggling to avoid a sharp recession, the International Monetary Fund’s updated World Economic Outlook showed a deeply divided picture.

A surge in artificial intelligence investment, productivity gains and US tax cuts helped keep global growth at 3% this year, slightly below the 3.1% forecast in April, absorbing part of the severe energy shock caused by the Iran war and the closure of the Strait of Hormuz.

But the regional cost was steep and unprecedented. The prolonged closure of the Gulf shipping artery prompted the IMF to sharply downgrade its outlook for the Middle East and North Africa, pushing the region into a 0.5% contraction, one of its worst annual performances since the start of the century.

Major oil producers were caught between lower output and disrupted supply logistics.

At the center of the turmoil, Saudi Arabia emerged as one of the most resilient economies.

Although the IMF cut its growth forecast for the Kingdom this year to 1.7%, it raised its projection for next year to 5.5%, defying the darker regional scenario.

The Kingdom was supported by alternative routes that protected its momentum, while major producers such as Iraq, Kuwait and Qatar face temporary contractions before a broad regional rebound in 2027.

Recent military developments delivered a severe logistics shock that paralyzed flows equivalent to one-fifth of global oil and gas. Although releases from strategic oil reserves and commercial production eased the crisis, prices remained 25% to 32% above pre-war levels.

The jump in energy costs directly froze two years of global progress against inflation.

The IMF raised its global inflation forecast by 0.3 percentage point to 4.7% in 2026, saying the monetary easing cycle had seen a “temporary pause, not a break in the broader trend.”

Regional growth map

The IMF’s new baseline scenario assumes the Strait of Hormuz will begin reopening gradually in mid-July and return to normal by March 2027. The prolonged closure redrew the region’s growth map as follows:

  • The Middle East and North Africa region is expected to contract. The IMF cut its 2026 estimate for the region for the second time in three months, forecasting a 0.5% contraction, down from 1.1% growth in its April update. That would make it the only region in the world expected to record a decline in gross domestic product, before a strong rebound in 2027 as exports recover and trade through the Strait of Hormuz returns to pre-war levels. Deniz Igan, head of the IMF’s research department, described the expected recovery as “V-shaped”.
  • Iraq, Kuwait and Qatar, among the commodity exporters most affected by transport disruptions and energy production constraints, are expected to face sharp, painful contractions this year, followed by a surge in expansion and double-digit growth in 2027.
  • Türkiye is also under pressure. The IMF cut its 2026 growth forecast for Türkiye for the second time this year to 2.9%, down from 3.4% in April, under pressure from weak domestic demand, higher energy prices and tighter financial conditions.
  • Iran, despite resilient oil exports early in the year and an upward revision to its forecast, remains weighed down by sanctions and war. Its economy is expected to contract sharply by 5.4% in 2026, pending the broader regional rebound in 2027.

Saudi resilience

At the center of the regional disruption, Saudi Arabia’s official indicators appeared more resilient. The IMF said the Saudi economy was “less affected” by the shock than its Gulf neighbors.

The Fund’s revisions to Saudi figures reflected recent geopolitical developments compared with its April report, lowering its 2026 growth forecast for the Kingdom by 1.2 percentage points to 1.7% this year.

By contrast, the outlook carried a more optimistic revision for 2027. The IMF raised its forecast for Saudi Arabia's growth by 1 percentage point from its April estimate, projecting growth of 5.5% as tensions ease and waterways reopen.

US and China hold up, Europe bears the cost

The IMF’s documentation showed a stark divergence among major powers, depending on their exposure to the technology boom and energy sources.

The United States stood apart. The world’s largest economy retained its strength, with its growth forecast steady at 2.3% in 2026. It was supported by a dual boost from massive investment in artificial intelligence, the effects of President Donald Trump’s 2025 tax cuts and strong stock markets.

China, the world’s second-largest economy, received a slight upward revision and is now expected to grow by 4.6%. Despite its property-sector crisis and the energy shock, Beijing was supported by public works spending, booming exports and a surge in high-tech manufacturing.

Asia seized the technology opportunity. The four major exporters of AI equipment and hardware — Taiwan, South Korea, Thailand and Malaysia — recorded strong and resilient growth, reflecting gains from the surge in technology demand.

Europe paid the price. The 21 eurozone countries were directly hit by rising prices, with their collective growth forecast falling to just 0.9%. France’s forecast retreated to only 0.6%, reflecting its direct exposure to the energy shock.

Conflict risks remain

Although the global economy proved more resilient than feared, the IMF ended its report with a sharp warning. Igan said renewed military conflict and the latest strikes between the United States and Iran in recent hours could leave the global economy in a “much worse position.”

The Fund warned that the depletion of countries’ strategic oil reserves would quickly narrow their room for maneuver, opening the door to sharp swings in commodity prices, disruption in global trade flows, or a sudden and painful correction in overblown expectations for technology and artificial intelligence markets.

Business

Libya Signs Exploration and Production Deal for Ghadames Basin with UCC Holding

The headquarters of Libya's National Oil Corporation. Reuters
The headquarters of Libya's National Oil Corporation. Reuters
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Libya Signs Exploration and Production Deal for Ghadames Basin with UCC Holding

The headquarters of Libya's National Oil Corporation. Reuters
The headquarters of Libya's National Oil Corporation. Reuters

Libya's National Oil Corporation signed an exploration and production sharing agreement for zone 47 in the Ghadames Basin with ⁠the Libyan Investment ⁠Authority and Qatari-based UCC Holding, Chairman Massoud Suleman ⁠said on Wednesday.

The partnership aims to boost oil output to about 80,000 barrels per day and use associated gas for ⁠power ⁠generation, with the investor funding the project in full.

Business

Alswaha at LEAP East: Saudi Arabia is Global Hub Connecting AI Ecosystem Between East, West

Minister of Communications and Information Technology Abdullah Alswaha. SPA
Minister of Communications and Information Technology Abdullah Alswaha. SPA
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Alswaha at LEAP East: Saudi Arabia is Global Hub Connecting AI Ecosystem Between East, West

Minister of Communications and Information Technology Abdullah Alswaha. SPA
Minister of Communications and Information Technology Abdullah Alswaha. SPA

Minister of Communications and Information Technology Abdullah Alswaha affirmed that under the Saudi leadership, the Kingdom is advancing toward building one of the world’s most accessible and AI-ready digital infrastructures, reinforcing its position as a trusted partner in enabling the digital economy and connecting the East and the West.

Speaking at the opening of LEAP East 2026 in Hong Kong, Alswaha noted that LEAP, which was launched in Riyadh five years ago, has evolved into a global technology movement that has generated a multiplier effect not only across the Kingdom and the region but around the world.

He added that LEAP’s expansion to the East reflects the region’s growing importance as a global hub for shaping the future of technology and artificial intelligence.

The minister highlighted that the East today represents a $34 trillion economy, accounting for nearly 30% of global GDP, with a $10 trillion digital economy and a population of 3.7 billion people, representing approximately 46% of the world’s population.

He emphasized that the East offers not only scale but is also building the very foundation of the artificial intelligence age.

He further noted that 82% of the world’s AI patents originate from the East, while the region accounts for 60% of the global semiconductor market and 90% of advanced chip manufacturing, making it a global powerhouse for computing and artificial intelligence.

Alswaha also highlighted Saudi Arabia’s achievements over the past several years, noting that the Kingdom’s digital economy has grown by 75% in the past eight years to reach $139 billion.

The contribution of the non-oil digital economy to GDP has increased to 16%, while the Kingdom’s operational data center capacity has reached 467 MW, representing 47% of the total data center capacity across the Middle East and North Africa.

He emphasized that the empowerment of Saudi women represents one of the Kingdom’s greatest global success stories.

Women’s participation in the ICT workforce has increased from 7% to 35%, surpassing the averages of both the European Union and Silicon Valley, while Saudi women now rank among the world’s leaders in AI participation and empowerment.

On digital infrastructure, Alswaha emphasized that Saudi Arabia is building 6.9 GW of data center capacity by 2034, including 3 GW by 2030, supported by 12.8 GW of available power capacity today.

This positions the Kingdom among the fastest countries globally in providing power for computing and AI infrastructure projects.

The minister stated that Saudi Arabia brings together the three essential pillars for success in the AI era—compute, customers, and capital—adding that leading global companies from the East have already begun investing and expanding in the Kingdom, including ByteDance, Lenovo, and Tencent.