IBM CEO to Asharq Al-Awsat: Saudi Arabia Enters AI Implementation Phase

IBM: Saudi Arabia should use digital technologies to boost productivity and make them part of the workforce, not just an added technology layer.
IBM: Saudi Arabia should use digital technologies to boost productivity and make them part of the workforce, not just an added technology layer.
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IBM CEO to Asharq Al-Awsat: Saudi Arabia Enters AI Implementation Phase

IBM: Saudi Arabia should use digital technologies to boost productivity and make them part of the workforce, not just an added technology layer.
IBM: Saudi Arabia should use digital technologies to boost productivity and make them part of the workforce, not just an added technology layer.

At IBM Think 2026 in Boston, IBM’s bet on Saudi Arabia went beyond expanding its role in AI infrastructure. The US technology company sought to position itself as a partner in a tougher phase, turning that investment into large-scale industrial and institutional execution.

That message came through in remarks by IBM Chief Executive Arvind Krishna to Asharq Al-Awsat. Speaking about the kingdom and the challenge it now faces, Krishna said infrastructure is not the problem in itself, adding that what needs to be done on that front is already largely clear.

It is now closer to a matter of spending and execution than a strategic dilemma.

But Krishna quickly shifted to what he sees as the more important question: how these technologies can improve citizens’ lives and help new industries emerge faster.

Krishna linked Saudi Arabia’s AI path to broader economic and operational needs. He said the kingdom, given its population size and development ambitions, needs digital tools that raise operational capacity and productivity. Digital technologies and AI, he said, should become “part of the workforce” and help lift productivity over the long term.

Beyond infrastructure

To make his point, Krishna did not use a purely technical example. He turned instead to a Saudi case tied to Hajj, tourism, and related services.

He said that if Saudi Arabia wants to receive tens of millions of visitors, it cannot simply bring in millions more workers to run hospitality, logistics, and services.

Digitalization and AI must become part of the solution, he said, allowing those sectors to scale within five years rather than twenty.

The discussion, in other words, moved beyond energy and major government projects. It extended into services, the daily economy, and how they can grow faster. Krishna said he sees little disagreement over the kingdom’s vision.

The challenge now, he added, is the cultural and operational adoption of technology across industries.

A new operating model

That Saudi reading fit the broader message Krishna pressed throughout the conference.

In his keynote, he presented AI not as a tool to improve certain functions or speed up tasks, but as the start of a new “operating model” for institutions.

The question, he said, is no longer about budget size or computing investment. It is about how deeply AI is embedded in business operations, and whether it becomes part of the institution itself or remains on the margins.

Krishna supported that argument with figures meant to show that the debate has moved beyond promises. He spoke of the potential to achieve productivity gains of around 40% by 2030.

He said more than two-thirds of organizations plan to reinvest those gains in innovation and growth, rather than treating them only as cost cuts.

He also said IBM itself has achieved $4.5 billion in annual productivity gains from using AI and automation inside its own operations.

With that message, IBM seemed to tell the market that AI is no longer just a technology upgrade or a new tool. It is becoming a business model issue.

Redesigning the enterprise

In an “Ask Me Anything” session, Krishna compared many current AI uses to the “light bulb” phase of the electricity era. They are useful and convenient, he said, but they do not fundamentally change how a company operates.

Speaking to Asharq Al-Awsat, he said real transformation begins when AI is used to rebuild processes from end to end, across procurement, human resources, accounts payable, compliance, and other functions.

Only then does the real impact appear, and productivity in some areas can rise sharply.

IBM is no longer framing AI as an assistant for some employees. It is presenting it as an operating layer that must move into the heart of the institution.

The Saudi market moves to scale

IBM’s view of the Saudi market follows the same logic.

In a separate interview with Asharq Al-Awsat, Ayman AlRashed, IBM’s regional vice president in Saudi Arabia, said companies in the kingdom are moving from “isolated experiments” to “deployment at scale.” AI, he said, is no longer a side addition, but “a core part of how companies operate and compete.”

AlRashed said computing power is no longer the main bottleneck. The bigger challenges are now “AI-ready data, governance, and enterprise execution.”

He said the sectors closest to moving AI from pilots to large-scale production are banking and financial services, telecommunications, energy, and government. Progress in those sectors, he said, depends on data maturity, clear regulatory frameworks, and operational scale.

AlRashed added that the sovereignty debate in Saudi Arabia is no longer limited to where data is stored. It now includes how workloads are governed while running, especially as AI moves into more sensitive and regulated environments.

Saudi clients, he said, are asking sharper questions about return on investment, ranging from cost savings and higher productivity to lower risk and measurable outcomes, rather than merely focusing on launching new pilots.

In that sense, IBM’s local reading echoed Krishna’s message on stage in Boston. The Saudi market lacks neither ambition nor infrastructure. It is entering a phase in which AI will be measured by its ability to deliver real operational impact within institutions.

Sovereignty as operating power

Other parts of IBM’s message made its Saudi positioning more coherent.

This year, the company presented hybrid infrastructure, digital sovereignty, live data, automation, and governance as connected elements, not separate products.

Krishna repeatedly said countries and institutions need infrastructure they can control, systems that cannot be shut down, tampered with, or exposed to geopolitical risk, including disruptions to undersea cables.

In Saudi Arabia, that message carries added weight. Sovereignty over infrastructure is not an end in itself. It is part of the ability to run AI across strategic sectors with flexibility and stability over the long term.

Aramco takes the stage

Saudi Aramco’s Senior Vice President for Digital and Information Technology, Sami Al-Ajmi, appeared on the opening stage at IBM Think 2026 as the practical example IBM wanted to highlight.

IBM did not put Aramco in the spotlight simply to present it as a major client or longtime partner. It used Aramco as proof that the move from pilots to industrial execution is no longer theoretical.

Krishna recalled that the relationship between the two companies dates back to 1947, when IBM helped install Aramco’s first information processing system, the first of its kind in Saudi Arabia. But the conference was not focused only on that history. It was focused on what the relationship looks like today.

Al-Ajmi said the relationship is no longer one between a vendor and a buyer. It has become “a strategic alliance around joint innovation.” He said IBM’s opening in Saudi Arabia brought the company closer to Aramco and helped “localize some expertise.”

He summed up the shift in a phrase that captured IBM’s message: “Eighty years ago we were buying machines from IBM, today we are working together to build the future of digital technologies.”

In that sense, IBM is no longer presenting itself only as a technology seller. It is presenting itself as a partner that wants to help build the kingdom’s next industrial AI use cases.

From pilots to the field

The strongest part of Al-Ajmi’s remarks was his definition of what Aramco wants from AI.

He said the company is “not interested in proofs of concept or early experiments.” It wants to “move ideas from the lab into the field.”

That statement placed Aramco at the center of IBM’s message this year. The next phase, IBM argues, will not be won by the number of experiments a company launches. It will be won by the ability to build a real and operational AI model.

Al-Ajmi said the two sides can “close the loop from idea to impact” by identifying real problems, designing solutions, testing them, and scaling them when they work.

His figures gave weight to that argument. Aramco generates nearly 10 billion data points a day from its assets, he said, describing data as “the fuel of the AI journey.”

He also said Aramco has trained more than 6,000 AI specialists, speeding up idea generation and deployment and bringing the technology closer to field operations.

Al-Ajmi said digital technology initiatives created $5.2 billion in value last year, with “more than 50%” of that coming from AI deployments.

With those numbers, Aramco was not talking about AI’s theoretical promise. It was talking about direct financial and operational impact.

AI and energy

Al-Ajmi added another important dimension. AI, he said, is changing the energy sector in two ways at once. It raises efficiency and reliability while lowering costs, but it also increases energy demand.

He pointed to practical applications within Aramco, including petrophysical models that address rock formations and fluids, enhancing reserve value, reducing drilling time, and lowering costs. He also cited global optimization tools that provide a full view of assets and help improve refinery and petrochemical margins, an “engineering adviser” that supports engineers in the field, and AI applications in finance and supply chains.

AI at Aramco, in other words, is no longer a limited office tool or a digital assistant. It is spreading across the value chain.

IBM’s Saudi bet

In Boston, IBM was not making a conventional technology pitch to Saudi Arabia. It was offering a full narrative.

Infrastructure matters, but the real challenge begins after it is built. The vision exists, but adoption and execution will decide the outcome. AI will not prove its value in the kingdom through demonstrations, but by entering energy, tourism, services, government, and finance as part of how those sectors operate.

IBM’s message from Boston was not that Saudi Arabia simply needs more computing power. It is that the kingdom is entering a phase in which AI will be judged by its ability to change how institutions and industries operate on the ground.



Saudi Arabia Expands Investment Prospects in Military Industries

The Saudi pavilion reinforced the Kingdom’s position as a leading investment destination in the military industry sector. (Asharq Al-Awsat)
The Saudi pavilion reinforced the Kingdom’s position as a leading investment destination in the military industry sector. (Asharq Al-Awsat)
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Saudi Arabia Expands Investment Prospects in Military Industries

The Saudi pavilion reinforced the Kingdom’s position as a leading investment destination in the military industry sector. (Asharq Al-Awsat)
The Saudi pavilion reinforced the Kingdom’s position as a leading investment destination in the military industry sector. (Asharq Al-Awsat)

Saudi Arabia used the Eurosatory 2026 defense and security show to open new investment horizons, showcasing promising opportunities and a regulatory environment designed to attract capital.

The participation helped sharpen the appeal of the Kingdom’s military industries and drew the attention of major global companies seeking strategic partnerships that support Saudi localization targets.

The Saudi pavilion, held at the Paris exhibition from June 15 to 19, reinforced the Kingdom’s position as a leading investment destination in the military industry sector.

Organized by the General Authority for Military Industries (GAMI), the pavilion brought together 10 government and private entities alongside the authority.

The participation underlined Saudi Arabia’s welcome to investors from around the world seeking opportunities in the military industries sector. It also highlighted the Kingdom’s efforts to localize more than 50% of military spending by 2030.

On the sidelines of the exhibition, GAMI Governor Ahmad Al-Ohali met Patrick Pailloux, French Director General for Armament (DGA), as well as representatives of major global defense companies.

The meetings focused on ways to strengthen cooperation in military industries and exchange expertise, supporting the development of a sustainable sector, improving the readiness of military equipment, boosting self-sufficiency and contributing to the national economy.

The Saudi participation also saw the signing of several agreements and memorandums of understanding, part of GAMI’s efforts to develop military industries, strengthen supply chains and enable strategic partnerships.

The authority organized a workshop titled “Developing Supply Chains in Military Industries,” which discussed how an attractive investment environment for local and international investors can help build a diversified and prosperous economy in the sector.

The pavilion showcased the integration of government efforts, national industrial and service capabilities, and the innovative technologies presented by participating Saudi companies. It also highlighted the country’s attractive investment environment and the rapid growth of its military industries sector.

The sector’s contribution to GDP rose from 2.2 billion riyals, or about $587 million, in 2021 to 6.6 billion riyals, or about $1.76 billion, in 2024. The localization rate of military spending also climbed to nearly 25% in 2024, as the Kingdom works toward localizing more than 50% of military spending by 2030.

GAMI said the Saudi pavilion’s participation strengthened the Kingdom’s position as a trusted international partner, expanded its network of relations with major global companies and enabled national firms to showcase their capabilities while exploring opportunities for growth and expansion in global markets.


Iraq Raises Southern Oil Output to 1.75 Million bpd

Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)
Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)
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Iraq Raises Southern Oil Output to 1.75 Million bpd

Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)
Technicians working at the Majnoon oil field in Basra, Iraq. (Reuters)

Iraq has increased crude oil production from its southern fields by 250,000 barrels per day to around 1.75 million barrels per day as more tankers load crude from the country's ports, Iraqi oil officials told Reuters on Friday, Reuters reported.

 

The officials said Iraq plans to raise production further to two million barrels per day in the coming few days.

 

Iraq, like other Gulf oil producers, has suffered the biggest drop in oil revenue as a result of the effective closure of the Strait of Hormuz amid the US-Iran War.

 

 

 


Saudi Arabia Showcases Tourism Success at FII Europe Summit

The minister's participation in the leading global forum aims to underline the global success story of Saudi Arabia's tourism sector - SPA
The minister's participation in the leading global forum aims to underline the global success story of Saudi Arabia's tourism sector - SPA
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Saudi Arabia Showcases Tourism Success at FII Europe Summit

The minister's participation in the leading global forum aims to underline the global success story of Saudi Arabia's tourism sector - SPA
The minister's participation in the leading global forum aims to underline the global success story of Saudi Arabia's tourism sector - SPA

Minister of Tourism Ahmed Al-Khateeb participated in the FII PRIORITY Europe Summit, held in Rome from June 17 to 19, 2026, where he showcased Saudi Arabia's remarkable transformation of its tourism sector in line with the ambitious goals of Saudi Vision 2030.

As part of the summit's official program, the minister participated in a fireside chat titled "Resilient by Design: Vision 2030 and the Architecture of Enduring Value." During the session, he shared insights into the evolution of Saudi Arabia's tourism sector, highlighting its robust performance amid regional challenges over the past six months and emphasizing the sector's resilience, its ability to recover quickly, and its continued momentum toward sustained growth, SPA reported.

Al-Khateeb also underscored the Kingdom's significant investments in developing world-class tourism destinations, noting the tangible economic and social impact these investments are generating, including the creation of employment opportunities for Saudi nationals.
Addressing the role of emerging technologies, Al-Khateeb spoke about the integration of artificial intelligence (AI) in the tourism sector: "In Saudi Arabia, we are using AI, and we will continue to use AI, because we are very advanced when it comes to technology.

At the same time, we are committed to preserving the human element in the sector. We want AI to empower people, support them, and help them in welcoming our guests and sharing our culture and hospitality".

The minister's participation in the leading global forum aims to underline the global success story of Saudi Arabia's tourism sector, which in less than a decade has evolved into a dynamic, integrated ecosystem, offering a wide range of investment opportunities across destinations, hospitality, infrastructure, digital services, and human capital development.

The participation also served as a platform to highlight what the Kingdom's tourism sector offers European partners: a fast-growing and stable market, positioned as a global gateway for collaboration in investment, artificial intelligence, and innovation.

On the sidelines of FII PRIORITY Europe, Al-Khateeb held a series of bilateral meetings with international investors and industry leaders, focused on strengthening strategic partnerships and unlocking new opportunities for investment and tourism experience development in the Kingdom.

Coinciding with the summit, the Ministry of Tourism released its annual statistical report 2025, showing how Saudi Arabia's tourism sector moved from ambition to scale, emerging as one of the Kingdom's strongest growth drivers in non-oil sectors.

According to the report, Saudi Arabia recorded historic results in 2025 with around 123 million inbound and domestic tourists, representing growth of approximately 6% compared to 2024. This included 29.3 million inbound tourists and 93.3 million domestic tourists. Total tourism spending reached approximately SAR304 billion, reflecting growth of 7% compared to 2024, with inbound tourism contributing SAR176.6 billion and domestic tourism contributing SAR127.1 billion.