Head of International Data Center Authority to Asharq Al-Awsat: Saudi Arabia Leads AI Race

A Microsoft data center. (Microsoft)
A Microsoft data center. (Microsoft)
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Head of International Data Center Authority to Asharq Al-Awsat: Saudi Arabia Leads AI Race

A Microsoft data center. (Microsoft)
A Microsoft data center. (Microsoft)

Saudi Arabia is leading the Middle East in attracting artificial intelligence (AI) data center investment, thanks to its abundant energy resources, economic scale and long-term diversification strategy, according to Mehdi Paryavi, founder and CEO of the International Data Center Authority (IDCA).

In an interview with Asharq Al-Awsat, Paryavi said the Kingdom is expected to attract the largest share of regional data center investment, followed by the UAE.

He described data centers as the backbone of the digital economy - “the refineries of the modern era” that process humanity’s most valuable resource: data.

Saudi Arabia, home to the world’s largest oil production facilities, is therefore well positioned to lead the next generation of AI data centers, he stated.

His remarks came shortly after the release of the IDCA’s 2026 Global Energy Report on July 15, which identifies the Middle East as one of the world’s biggest growth opportunities for AI data centers. While data centers account for about 2 percent of global electricity consumption, they represent just 0.5 percent of electricity use in the Middle East, leaving significant room for expansion.

Paryavi said Saudi Arabia and the UAE currently dominate the regional market, with data centers consuming about 440 megawatts and 340 megawatts of electricity, respectively. Together, they account for nearly 80 percent of the Middle East’s total data center electricity consumption of roughly 1 gigawatt.

However, competition is intensifying as Oman, Kuwait and Qatar pursue ambitious projects, while Syria and Iraq undergo major transformations.

He also highlighted Egypt’s national AI strategy, which aims for artificial intelligence to contribute 7.7 percent of GDP by 2030, Jordan’s digital transformation plans, and Iraq’s efforts to attract data center developers and investors.

Returning to Saudi Arabia, Paryavi said the Kingdom’s advantages include the region’s largest economy, political stability, a strategic location, a larger population than other Gulf Cooperation Council countries, a substantial sovereign wealth fund and a clear commitment to economic diversification.

Saudi Arabia, the region’s only G20 member, ranks 44th in the IDCA’s 2026 Global Digital Readiness Index and plans to develop AI data centers with a combined capacity of 6 gigawatts by 2034.

He distinguished between conventional small- and medium-sized data centers, which are expanding across the Gulf, and hyperscale facilities, where Saudi Arabia has emerged as the region’s leading contender.

He cited the Public Investment Fund’s HUMAIN initiative, along with operators including Center3, Mobily and DataVolt, as key drivers of the Kingdom’s ambitions.

He also highlighted Oman’s Oman Digital Triangle (ODT) project and the UAE’s Khazna Data Centers, whose entire portfolio was recently certified by the IDCA.

Paryavi said that the Middle East combines abundant, scalable energy, a strategic geographic location, financial strength and agile decision-making, giving it a competitive edge as energy shortages and grid constraints slow AI expansion in established markets such as the United States, Singapore, Germany and South Korea.

Energy - not chips or capital - is the biggest constraint on AI growth, followed by workforce availability and public policy, he added. Every AI model ultimately runs in a data center, and data centers require reliable electricity.

As power shortages increasingly limit AI expansion in both advanced and developing economies, the Middle East remains one of the few regions with the capacity to support the next generation of AI infrastructure, he stressed.

The IDCA’s 2026 Global Energy Report stated that AI is driving a profound shift in the data center industry. It projects that AI-powered data centers will increase their electricity consumption by 50 percent by 2025, placing unprecedented pressure on power grids worldwide and making access to energy the decisive factor in determining where future AI investment will flow.



World Bank Projects Lebanon Economy to Contract by 6.4% Due to War

People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
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World Bank Projects Lebanon Economy to Contract by 6.4% Due to War

People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)

The World Bank on Friday projected that Lebanon's economy would contract by 6.4 percent this year, as the latest Israel-Hezbollah war derailed the country's efforts at recovery.

Lebanon has been dealing with an unprecedented financial crisis since 2019 and was still reeling from the 2024 Israel-Hezbollah war when the Iran-backed group drew it into the Middle East conflict by attacking Israel in March.

Israel responded with a heavy air campaign and ground invasion that Lebanese authorities say have killed more than 4,300 people.

Due to the war, "real GDP is projected to contract by 6.4 percent in 2026, reflecting the collapse in tourism, weaker consumption, disrupted supply chains, heightened insecurity, and prolonged displacement," the World Bank said in a report.

Inflation is also expected to rise to 17.5 percent this year, according to the report.

The World Bank said Lebanon's economy had strengthened before the latest conflict, with an estimated real GDP growth of 4.2 percent in 2025, "the fastest since the onset of the 2019 financial crisis".

"Advancing reforms -- particularly on banking sector restructuring and fiscal management -- will be critical to restoring confidence, protecting stability, and mobilizing the financing needed for reconstruction and recovery," Dahlia Khalifa, the World Bank's Middle East director, said.

The international community has been demanding that Lebanese authorities enact financial reforms in order to secure much-needed economic aid.

Last week, parliament passed amendments to a bank resolution law aimed at restructuring troubled banks and addressing the country's banking crisis.

The International Monetary Fund welcomed the law, describing it as "a very good step that reflects Lebanon's commitment to aligning its legislation with the best international practices".

Lebanon has been in discussions with the IMF, which said it would resume its meetings in Beirut next month.


Tunisia Olive Oil Exports Surge 55%, Bringing in $1.6 billion

Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
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Tunisia Olive Oil Exports Surge 55%, Bringing in $1.6 billion

Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui

Tunisia's olive oil exports surged 55.3% to a record 368,000 metric tons in the first nine months of the 2025/26 season, bringing in $1.6 billion in export revenue, up 44.4% from a year earlier, official data showed on Friday.

The surge in olive oil shipments, a vital source of foreign currency and Tunisia's top agricultural export, will provide a much-needed boost to the country's finances as the government grapples with persistent economic and fiscal pressure.

The jump in exports was driven by strong global demand during the first nine months of the season, which began in November.

Extra virgin olive oil accounted for 83.6% of total shipments, the National Observatory of Agriculture said, Reuters reported.

The European Union remained the biggest destination, taking 57.1% of Tunisian olive oil exports, while North America accounted for 24%. More than 70 countries imported Tunisian oil during the period.

Exports to other markets included Saudi Arabia, which took 4.6%, Jordan with 3.1% and African markets at 3.8%, with Egypt accounting for 3.3%.

Bottled olive oil exports rose 50.8% to 51,500 tons, but bulk oil still accounted for the vast majority of shipments, underscoring Tunisia's challenge in capturing more value from one of its most important export products.


South African Rand Hits Strongest Level since Start of Iran War

South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration
South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration
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South African Rand Hits Strongest Level since Start of Iran War

South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration
South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration

The South African rand strengthened on Friday to its strongest level since the United States and Israel launched attacks on Iran on February 28, as rising gold prices and a weaker dollar boosted the commodity-linked currency.

At 1229 GMT, the rand traded at 15.9925 against the dollar , about 0.8% stronger from its previous close.

Gold, one of South Africa's main exports, rose to a more than three-month high on Friday and was on track for a third straight weekly gain.

The precious metal was supported by a weaker dollar and the US Treasury's announcement that it would increase buybacks of longer-dated securities, Reuters reported.

US Treasury Secretary Scott Bessent said he may further increase the government's repurchases of Treasuries. That came after the Treasury said it would double the size of buybacks on longer-dated securities over the next quarter.

The US dollar was set to end a bumpy week lower, making greenback-priced bullion more affordable for buyers overseas.

Like other emerging market currencies, the rand has been at the mercy of global market sentiment, particularly since the start of the Iran war.

On the Johannesburg Stock Exchange, the Top-40 index was last up 2.2%.

South Africa's benchmark 2035 government bond was also firmer in early deals, as the yield fell 0.5 basis points to 8.56%.