Saudi Arabia Builds its Own Digital Sovereignty Model

A woman stands in front of an information screen at the LEAP tech exhibition in Saudi Arabia (SPA)
A woman stands in front of an information screen at the LEAP tech exhibition in Saudi Arabia (SPA)
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Saudi Arabia Builds its Own Digital Sovereignty Model

A woman stands in front of an information screen at the LEAP tech exhibition in Saudi Arabia (SPA)
A woman stands in front of an information screen at the LEAP tech exhibition in Saudi Arabia (SPA)

In a world where digital borders are blurring and countries are racing to control data and build technological power, Saudi Arabia has chosen to carve out its own digital path.

Through an ambitious strategic vision, the Kingdom has launched a network of policies, investments, and high-value partnerships that have turned it into a global model for digital transformation. It ranked first in the International Telecommunication Union’s 2025 Digital Readiness Framework, scoring 94 out of 100.

But the score tells only part of the story. More important is what it signals, a deep shift in how Saudi Arabia views digital sovereignty. It is no longer just a shield for protecting data. It has become a driver of growth and a tool for shaping the future.

To understand that shift, the concept itself must be redefined.

Ayman AlRashed, IBM’s regional vice president in Saudi Arabia, says digital sovereignty is often wrongly reduced to a technical question of where data is stored.

“It is important to look at digital sovereignty as an integrated operational capability,” AlRashed told Asharq Al-Awsat.

He said it covers an organization’s ability to control and govern its data, operate its digital systems, and manage outcomes with confidence and continuity over the long term.

That broader definition gives digital sovereignty a far deeper meaning. It is not a wall built to stop data from leaving. It is a full governance system that ensures accountability, access controls, oversight and auditability, while preserving the reliability of digital systems and their ability to scale securely and in compliance with regulations.

Mohamed Talaat, vice president for Saudi Arabia, Egypt, North Africa and the Levant at Dell Technologies, said the Kingdom has translated that approach into practical policy through clear regulatory frameworks, led by the Personal Data Protection Law.

He told Asharq Al-Awsat that the law helped create an environment that supports global expansion while maintaining strict control over data.

Saudi Arabia has also made itself more attractive to international technology companies through economic zones, tax incentives, and partnerships with cloud service providers.

How fintech flourished

The fintech sector offers one of the clearest examples of how digital sovereignty is reshaping the Saudi economy.

The sector has expanded sharply in recent years. AlRashed says digital sovereignty was one of the main factors behind that growth.

The reason is straightforward. Once sensitive financial data could be processed and stored inside the Kingdom under local regulatory frameworks, investors, banks, insurers and end users became more confident in fintech solutions.

Digital sovereignty removed one of the biggest barriers to growth, concern over where sensitive data sits and who controls it.

Crucially, that did not come at the expense of innovation. IBM provided sovereign and hybrid cloud solutions that allow financial institutions to keep sensitive data locally while still using advanced cloud capabilities.

That model gave fintech firms a practical way to balance fast innovation with strict regulatory compliance, without sacrificing either.

From compliance to expansion

Digital sovereignty has not only helped large institutions. It has also changed the equation for Saudi startups.

AlRashed says that storing and processing data within the Kingdom under clear regulatory frameworks has enabled startups to launch and grow while remaining compliant from day one.

But the economic impact goes beyond easier compliance. Digital sovereignty has strengthened trust among customers and partners in local solutions. That has helped speed up the adoption of digital products, expand customer bases, improve access to investment, build partnerships with major institutions, and increase the likelihood of early revenue.

AlRashed says the deeper impact lies in preparing startups for regional expansion.

By building digital solutions on strong, sovereign standards within the Kingdom, Saudi companies have gained a clear competitive edge, especially as regulatory policies across several regional markets converge. What they built locally has become easier to export and scale.

A delicate balance

One of the toughest questions is how Saudi Arabia managed to attract major global technology firms to invest locally without giving up control over national data.

Talaat says the Kingdom struck a careful balance. It offered international companies a clean regulatory environment and attractive incentives, while imposing strict guarantees to keep sensitive data under national control.

He said this approach has taken practical form in a secure local infrastructure that supports national artificial intelligence agendas.

One example is Dell Technologies’ opening in 2024 of a new merger and distribution center in Dammam, part of a multimillion-dollar investment to strengthen local operations and supply chain resilience.

The move reflects a model in which global companies become partners in building sovereignty, not threats to it.

A regional digital hub

What will this ecosystem look like by 2030?

Talaat sketches an ambitious picture, a sovereign digital economy expected to be the largest in the Middle East, with artificial intelligence alone forecast to contribute $135 billion to the economy and local data center capacity exceeding 1.5 gigawatts.

Saudi Arabia is working to cement its position as a global hub for cloud computing, artificial intelligence innovation and sustainable technology manufacturing, supported by integrated smart cities and secure sovereign data systems.

AlRashed says the Kingdom has a real chance to move beyond the domestic arena and help shape global models for digital sovereignty through a growing network of local, regional and international partnerships.

That marks a shift from importing technology to exporting models and standards.

Still, both men acknowledge that the vision faces a central challenge, closing human skills gaps.

Advanced infrastructure is essential, but it is not enough. Saudi Arabia also needs deep, parallel investment in developing national talent capable of managing and leading its digital future.

In the end, Saudi Arabia’s experience shows that digital sovereignty is not a defensive strategy designed to cut data off from the world. It is a way for countries and companies to engage with global innovation from a position of strength, not dependence.



Riyadh Air Adds Two Flights to London Heathrow, Increases Service to Nine Weekly

Riyadh Air’s first two Dreamliners at King Khalid International Airport in Riyadh, June 5, 2026. (SPA)
Riyadh Air’s first two Dreamliners at King Khalid International Airport in Riyadh, June 5, 2026. (SPA)
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Riyadh Air Adds Two Flights to London Heathrow, Increases Service to Nine Weekly

Riyadh Air’s first two Dreamliners at King Khalid International Airport in Riyadh, June 5, 2026. (SPA)
Riyadh Air’s first two Dreamliners at King Khalid International Airport in Riyadh, June 5, 2026. (SPA)

Riyadh Air, Saudi Arabia’s national carrier, announced on Thursday that it will operate two additional flights between Riyadh and London Heathrow, expanding its service between the two cities to nine times weekly from the current daily service.

Following its successful launch to London Heathrow on June 10, the airline now flies eight aircraft to 14 destinations across Europe, the Middle East, and Asia and aims to be on sale to almost 30 destinations by the end of 2026.

Riyadh Air CEO Tony Douglas said: “Since launching our London service four months ago, we have continued to build our presence in the UK by launching flights to Manchester and now increasing two additional roundtrip flights to Heathrow.”

“The additional flights help us meet the growing demand on this important route while giving guests more choice and flexibility while strengthening the connection between Riyadh and London,” he added.

The additional return services are planned for Monday and Wednesday, with a daytime flight from Riyadh to London followed by an overnight departure to Riyadh and are scheduled to begin on November 2.

The expanded schedule will give guests more options for travel between the two cities, including business trips, short breaks and extended weekends.


Italian Official to Asharq Al-Awsat: We Will Work with Saudi Arabia to Enter Third Markets

Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)
Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)
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Italian Official to Asharq Al-Awsat: We Will Work with Saudi Arabia to Enter Third Markets

Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)
Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)

Riyadh and Rome are moving their economic relations toward a more practical track, with plans for joint cooperation in third markets, alongside expanding channels of cooperation between Saudi and Italian companies, particularly small and medium-sized enterprises.

The move comes as Italy's national promotional institution, Cassa Depositi e Prestiti (CDP), signed two agreements in Riyadh, one with Saudi Arabia's National Development Fund and another with the Federation of Saudi Chambers, aimed at expanding financing and investment cooperation and facilitating companies' access to opportunities in both countries.

A senior Italian official told Asharq Al-Awsat that cooperation between Riyadh and Rome is not limited to the Saudi and Italian markets, but also extends to working together in "third markets." He noted that Saudi Arabia's economic diversification offers broad opportunities for Italian companies, given Italy's diverse industrial base and expertise across multiple sectors.

On Wednesday, the Federation of Saudi Chambers and CDP signed an agreement in Riyadh aimed at activating the Saudi-Italian strategic partnership launched in AlUla, opening financing channels for joint projects, integrating small and medium-sized enterprises into cooperation between the two countries, and strengthening the federation's role as the institutional representative of the Saudi private sector in cooperation with its Italian counterpart.

The agreement provides a practical framework for strengthening partnerships between the business sectors of the two countries by supporting a business-matching platform that connects Saudi companies with their Italian counterparts, introducing projects and investment opportunities, and establishing communication channels to help Italian companies explore the Saudi market and facilitate their entry.

CDP is part of the Saudi-Italian strategic partnership launched in AlUla, while the agreement enables the Federation of Saudi Chambers and its Saudi-Italian Business Council to play a greater role in advancing private-sector cooperation between the two countries and turning partnership opportunities into joint projects and business ventures.

Joint Strategic Cooperation

Dario Scannapieco, President of CDP (Cassa Depositi e Prestiti), told Asharq Al-Awsat that cooperation between Italy and Saudi Arabia "is not limited to bringing the two countries closer together or working within the Saudi market, but also includes cooperation in other countries and third markets."

He explained that the Italian delegation's visit to Riyadh has several objectives, foremost among them meeting with investors and strengthening cooperation with Saudi institutions. He said the meeting with the National Development Fund was "very fruitful" and had paved the way for excellent cooperation with it in many fields.

He added that the agreement signed with the Federation of Saudi Chambers represents "a further step" toward moving from institutional cooperation to more operational cooperation, with the aim of helping Italian SMEs that want to explore the possibility of entering Saudi Arabia, providing them with direct contacts and facilitating their access to the market.

"We are launching and revamping a platform that will put Italian SMEs in contact with Saudi SMEs. So business opportunities may develop from this new opportunity. This is another signal that Italy and Saudi Arabia must cooperate more," Scannapieco said.

He noted that there are many opportunities for cooperation between Italy and Saudi Arabia through Cassa Depositi e Prestiti, Italy's national promotional institution, adding that CDP is working to foster this cooperation and expand its scope.

Regarding the agreement's details, Scannapieco said its first objective is to support and expand the business-matching platform, which will connect Saudi SMEs with Italian SMEs and help them identify potential partners.

"The second is the idea to work on selected projects here in Saudi Arabia and allow Italian companies to know about these projects. The Expo is one of this kind where clearly Italian projects may be involved," he said.

"The third is to create a contact point between these two organizations, so to iron out all the doubts and to clearly push developing this relationship." He explained that when an Italian company wants to enter the Saudi market, it needs support in obtaining authorizations and handling other requirements.

"So it's very concrete, goes in the direction to make easier the access to Saudi Arabia for Italian companies," he said.

On the extent to which the strategic relationship between the two countries can help address challenges that may arise in the region, Scannapieco said Italy has "a very diversified industrial base" and produces a wide range of products.

"We are the third most diversified industry after China and the United States," he said.

This diversity, he added, enables Italian companies to provide specialized technical expertise and become useful partners in efforts to diversify the Saudi economy. "We could be extremely valuable partners."

He said the next phase requires bringing the Italian business sector's presence in Saudi Arabia to a broader level. Many large companies are already present in the Kingdom, he noted, but "now is the time to also give the opportunity to SMEs to internationalize in this region," thereby expanding the base of economic cooperation between the two countries.

Saudi-Italian Partnership Moves Toward Implementation

Kamel Al-Munajjed, Chairman of the Saudi-Italian Business Council, told Asharq Al-Awsat that the agreement is a direct extension of the meeting held in AlUla in January 2025 between Crown Prince and Prime Minister Mohammed bin Salman and Italian Prime Minister Giorgia Meloni, which elevated relations between the two countries to the level of a strategic partnership and made economic relations one of its main pillars.

He added that the agreement signed Wednesday between CDP and the Federation of Saudi Chambers represents a practical step toward strengthening cooperation between the business sectors of the two countries and provides a new channel for turning existing relations into commercial and investment partnerships and projects.

Al-Munajjed said the agreement strengthens the partnerships built by the Saudi-Italian Business Council with Confindustria and CNA through delegations, forums, and direct business meetings. He noted that CDP's capabilities and the scope of the Federation of Saudi Chambers' work would help turn these links into more sustained business opportunities.

He said the agreement offers two main advantages. The first is CDP's business-matching platform, which allows Saudi and Italian companies to enter information about their capabilities and business interests and then identify potential partners whose needs match those capabilities.

The platform can shorten the path for companies seeking suitable partners. A Saudi industrial company looking for Italian technology, for example, can identify companies capable of meeting its needs, while an Italian company seeking to enter the Saudi market can search for a local partner. The federation and the business council will work to encourage companies to use the platform and follow up on cooperation opportunities that emerge through it.

The second advantage, Al-Munajjed said, is strengthening cooperation with SIMEST, a subsidiary of the CDP Group. Its presence in Riyadh and support for the international expansion of Italian companies could help more companies, particularly SMEs, establish and expand their businesses in Saudi Arabia.

He added that the joint channel provided by the agreement will enable Saudi companies seeking to trade, invest, or operate in Italy to reach suitable Italian partners and identify new opportunities. He called on the Saudi business community to take advantage of the partnership and work to turn it into sustainable projects and shared growth opportunities.

Al-Munajjed said Italian companies have specialized expertise in engineering, technology, and manufacturing, while Saudi companies provide knowledge of the local market and the ability to expand. Opportunities for cooperation extend to trade, infrastructure, telecommunications, industry, energy, tourism, and other sectors.

He added that Expo 2030 Riyadh represents an important opportunity to bring these capabilities together and open new areas for companies in both countries. He stressed that the priority now is to move to implementation by bringing companies onto the platform, identifying priority sectors, establishing clear points of contact, and following promising opportunities through to actual projects.


Oil Prices Rise 2% as China Suspends Fuel Exports

The Klesch oil refinery, formerly BP, produces petrol, diesel, and jet fuel in Gelsenkirchen, Germany, one day before the German government starts a fuel tax discount, Wednesday, Sept. 30, 2026. (AP Photo/Martin Meissner)
The Klesch oil refinery, formerly BP, produces petrol, diesel, and jet fuel in Gelsenkirchen, Germany, one day before the German government starts a fuel tax discount, Wednesday, Sept. 30, 2026. (AP Photo/Martin Meissner)
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Oil Prices Rise 2% as China Suspends Fuel Exports

The Klesch oil refinery, formerly BP, produces petrol, diesel, and jet fuel in Gelsenkirchen, Germany, one day before the German government starts a fuel tax discount, Wednesday, Sept. 30, 2026. (AP Photo/Martin Meissner)
The Klesch oil refinery, formerly BP, produces petrol, diesel, and jet fuel in Gelsenkirchen, Germany, one day before the German government starts a fuel tax discount, Wednesday, Sept. 30, 2026. (AP Photo/Martin Meissner)

Oil prices rose around 2% on Thursday after China suspended oil products exports, potentially tightening fuel markets already coping with supply shortages globally, while investors continued to assess renewed diplomatic efforts to end the US-Iran war.

The new front-month December Brent crude futures contract traded at $100.09 per barrel at 0829 GMT, up 2.1%, or $2.06, from Wednesday's close, Reuters reported.

The November contract expired on Wednesday, settling at $103.50 per barrel, marking a monthly gain of around 14% in September for the front-month contract.

US West Texas ⁠Intermediate crude was ⁠up $2.06, or 2.28%, to $92.48 a barrel.

Prices were volatile on Thursday, having slipped more than 1% in early trading, before rebounding.

Chinese refiners have suspended exports of oil products to regions beyond Hong Kong and Macau until further notice, four people briefed on the matter said on Thursday, a move that will further crimp war-constrained fuel markets.

"The Chinese export ban suggests concerns about domestic product availability," UBS analyst Giovanni Staunovo said, adding that it remains to ⁠be seen whether the measures will support higher crude imports after recent drawdowns in Chinese crude and fuel stocks.

Global diesel supplies have tightened as a result of falling refining capacity due to attacks linked to the Middle East and Ukraine wars, raising pressure on governments to intervene to shield consumers.

The Trump administration has told Germany and France to draw down emergency diesel inventories to help ease global fuel prices or face a potential US diesel export ban, three people close to the discussions said.

European diesel refinery profit margins were trading at around $80.05 per barrel at 0829 GMT, down around 4% from the previous session. The margin hit an all-time high of $95 per barrel on September 23.

Investors ⁠continued to watch ⁠diplomacy efforts and oil exports in the Middle East.

Saudi Arabia resumed oil tanker loadings from Yanbu, Reuters reported on Tuesday, after earlier restarting operations on its East-West Pipeline.

Iran said on Wednesday it had received a US response to its latest proposal to resurrect the collapsed ceasefire in the Gulf.

However, US President Donald Trump denied reports by Axios and CNN citing US officials as saying he was willing to give Iran sanctions relief and release frozen Iranian funds in return for "concrete" steps by Tehran on its nuclear program.