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.



Saudi Airports Handle 141 Million Passengers in 2025 as Aircraft Fleet Expands

Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)
Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)
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Saudi Airports Handle 141 Million Passengers in 2025 as Aircraft Fleet Expands

Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)
Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)

Saudi Arabia’s airports handled 140.9 million passengers in 2025, marking another year of strong growth for the Kingdom’s aviation sector as the national aircraft fleet expanded by 33.8%, according to data released by the General Authority for Statistics.

The number of passengers traveling through Saudi airports rose 9.6% from 2024, reflecting the Kingdom’s accelerating push to strengthen its position as a regional travel hub and global aviation gateway.

International traffic accounted for 75.8 million passengers, up 9.4% year-on-year, while domestic passenger traffic increased 9.8% to 65.1 million. On average, Saudi airports handled around 207,700 international passengers and 178,600 domestic passengers a day.

King Abdulaziz International Airport in Jeddah remained the Kingdom’s busiest airport, handling 53.5 million passengers during the year, an increase of 9.0% from 2024. King Khalid International Airport in Riyadh followed with 40.8 million passengers, up 8.7%, while King Fahd International Airport in Dammam handled 13.7 million passengers, posting annual growth of 7.0%.

The increase in passenger traffic was accompanied by a rise in flight activity across the Kingdom’s airports. Total arriving and departing flights climbed 8.3% year-on-year to 979,800 flights in 2025, including 506,300 domestic flights, up 6.8%, and 473,500 international flights, up 9.9%.

King Abdulaziz International Airport also recorded the highest number of aircraft movements with 314,400 flights, followed by King Khalid International Airport with 296,800 flights and King Fahd International Airport with 108,500 flights.

Saudi Arabia’s aviation fleet recorded one of the strongest areas of growth during the year, with the total number of commercial and general aviation aircraft rising to 483 from the previous year’s level. The fleet included 266 commercial aircraft and 217 aircraft dedicated to general aviation.

Aircraft with capacities ranging from 151 to 250 seats accounted for the largest share of the commercial fleet at 120 aircraft, while the sector continued to modernize its operations, with 99 aircraft less than five years old.

The Kingdom also expanded its global air connectivity during 2025, with Saudi airports linked to 66 countries worldwide, up 1.5% from a year earlier. The total number of domestic and international destinations connected to the Kingdom rose 2.3% to 176 destinations.

Saudi Arabia ranked 18th globally in the 2025 Air Connectivity Index, underscoring the sector’s growing international reach.

Saudia accounted for the largest share of flights operating in Saudi airspace at 25.5%, followed by low-cost carrier flynas at 13.3% and flyadeal at 8.6%.

Air cargo volumes handled through Saudi airports totaled 1.18 million metric tons in 2025, with imports accounting for the largest share at 695,600 tons. Transit cargo reached nearly 420,100 tons, while exports exceeded 69,700 tons.

March recorded the highest monthly cargo throughput of the year, with more than 113,400 tons handled during the month.

The Kingdom also continued to expand logistics infrastructure at its main airports to support cargo growth and broader supply chain ambitions. King Fahd International Airport operated nine cargo facilities, while King Khalid International Airport had eight facilities and King Abdulaziz International Airport operated four integrated cargo facilities.

The expansion forms part of Saudi Arabia’s strategy to position itself as a global logistics hub linking Asia, Africa and Europe.


Supertanker with Iraqi Oil Heads for Vietnam After Hold-up in US Blockade

Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)
Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)
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Supertanker with Iraqi Oil Heads for Vietnam After Hold-up in US Blockade

Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)
Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)

Supertanker Agios Fanourios I is heading for Vietnam to discharge its Iraqi crude oil cargo after it was held by the US Navy for five days in the Gulf of Oman, the vessel's manager said on Monday.

The Maltese-flagged Very Large Crude Carrier sailed out of the Strait of Hormuz on May 10 and was sailing in the Gulf of Oman before making a ‌U-turn on ‌May 11.

It resumed its journey ‌toward ⁠Vietnam on May 16 ⁠and is expected to arrive at the Nghi Son refinery on May 30, LSEG shipping data showed.

A VLCC can carry a maximum of two million barrels of oil.

A source at the vessel's Athens-based manager Eastern Mediterranean Maritime, who spoke on condition of ⁠anonymity, confirmed that the tanker was sailing ‌on to Vietnam after ‌it had received US Navy approval.

The US military's Central Command ‌said last week that the vessel was redirected as ‌part of ongoing enforcement of the blockade against Iran.

At least two other crude tankers sailed from the strait last week, but overall crude traffic through the strait has ‌remained limited.

Before the war on Iran began, the Strait of Hormuz was the conduit ⁠for 20% ⁠of the world's energy supplies, equating to 125 to 140 daily passages.

"Shipping confidence around Hormuz is still very weak," ship broker Clarksons said in a note on Monday.

A further 12 ships crossed the strait in the past 24 hours, including two liquefied petroleum gas tankers bound for India, according to satellite analysis from data analytics specialists SynMax.

A separate LPG tanker was sailing through the strait on Monday also bound for India, data on the MarineTraffic platform showed.


Asian Markets Cautious, Oil Dips after Trump Holds Off on Iran Attack

Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP
Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP
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Asian Markets Cautious, Oil Dips after Trump Holds Off on Iran Attack

Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP
Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP

Asian markets were mixed Tuesday as oil prices eased on hopes of a US-Iran deal, though elevated crude levels capped investor appetite for risk.

Energy markets held center stage after US President Donald Trump signaled "serious negotiations" with Tehran and called off planned strikes, boosting optimism that tensions could.

The war the United States and Israel launched February 28 has led to an effective blockade of the Strait of Hormuz, through which around 20 percent of global oil exports passed in peacetime.

The leaders of Qatar, Saudi Arabia and the United Arab Emirates asked him "to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place", Trump wrote on his Truth Social platform.

But Trump added that he instructed the US military to be "prepared to go forward with a full, large scale assault of Iran, on a moment's notice, in the event that an acceptable Deal is not reached".

Speaking later at a White House event, Trump said there had been a "very positive development" and that Arab allies said a deal was near that would leave Iran without nuclear weapons, which Tehran denies pursuing.

"There seems to be a very good chance that they can work something out. If we can do that without bombing the hell out of them, I'd be very happy," Trump said.

However, he also warned the United States was prepared to launch a "full, large-scale assault" if negotiations collapse, underscoring the fragility of the situation.

Oil dipped on the prospect of diplomacy, but the move offered only limited relief after weeks of volatility driven by the Middle East conflict.

International benchmark Brent was hovering around $109 while West Texas Intermediate at $107.

Equity performance wavered.

Tokyo's Nikkei 225 opened lower, with local jitters offset by local resilience. Japan's gross domestic product expanded 0.5 percent in the first quarter, exceeding market forecasts of 0.4 percent.

Seoul's Kospi slid by more than four percent, with tech stocks losing ground after taking their lead from Wall Street. Shanghai, Taipei and Jakarta also slid.

Hong Kong, Sydney and Wellington were ahead.

Safe-haven demand was higher, with both gold and silver edging up, suggesting investors remain wary.

All eyes are on Wednesday's quarterly results from US chip titan Nvidia, which will be scrutinized as investors question whether huge spending on AI data centers is justified by potential returns.