RIYADH: Saudi Arabia is uniquely positioned to become a technology powerhouse in the Middle East, with the Kingdom already having a comprehensive and structured ecosystem to drive growth in advanced sectors such as artificial intelligence, experts told Arab News.
The comments come against the backdrop of the Saudi cabinet’s decision in March to declare 2026 the Year of AI, underscoring the Kingdom’s accelerating technological transformation and positioning it as a key lever for economic diversification.
Central to that strategy is Humain, an artificial intelligence company launched in 2025 to support local innovation, develop intellectual property, and attract global AI talent and investment.
Raymond Khoury, partner and public sector practice lead at Arthur D. Little Middle East, said: “At its core sits Humain, emerging as the national AI powerhouse across infrastructure, applications, and sector enablement. Humain has the potential to function as the execution engine of AI deployment, providing the compute backbone, platforms, and solutions that translate strategy into real-world impact.”
Earlier in 2026, Humain invested $3 billion in Elon Musk’s xAI shortly before the startup merged with SpaceX. It also agreed on a financing framework worth up to $1.2 billion with Saudi Arabia’s National Infrastructure Fund to expand AI and digital infrastructure in the Kingdom.
Khoury added: “2026 can be more than a symbolic milestone. It can be the year Saudi Arabia made AI real — at scale, with measurable impact, and with momentum that endures well beyond a single declaration.”
Echoing similar views, Ahmad Issa, regional vice president for Saudi Arabia at Cloudera, said designating 2026 as the Year of AI marks a decisive step forward in the Kingdom’s Vision 2030 and National Strategy for Data and AI.
According to Issa, these frameworks have already established a strong national direction, with clear priorities around data governance, digital infrastructure, and innovation, while bringing sharper focus and momentum to long-term ambitions.
“In the coming years, this designation is expected to drive tangible advancements across infrastructure, investment, and adoption. Organizations will increase investments in AI-ready data platforms, cloud environments, and advanced computing capabilities to support large-scale use cases,” said Issa.
Cloudera’s 2026 data-readiness survey showed the Kingdom is well positioned to accelerate this shift, with all surveyed Saudi IT leaders saying they are ready to adopt new data governance frameworks, while 79 percent expressed a strong willingness to transform their operations.
Sectoral outlook
Jason D. Schloetzer, associate professor at the McDonough School of Business, outlined the sectors most likely to benefit from Saudi Arabia’s AI push.
According to him, government services, energy, smart cities, and healthcare are expected to see the most transformative impact.
“Government services are where results are already visible, as Saudi Arabia ranks highly globally in government AI strategy, and banks and ministries are actively adopting document intelligence, automated citizen services, and AI-driven fraud detection,” said Schloetzer.
In the energy sector, Saudi Aramco is using AI for predictive maintenance and drilling optimization, helping protect the revenue base that funds broader economic transformation while showing that AI and hydrocarbons are complementary rather than competing priorities.
Customer-facing sectors are also starting to apply AI in ways that directly influence user experience and engagement.
Ahmad Abu Hantash, consulting Middle East digital and cyber leader at PwC Middle East
Schloetzer said smart cities, particularly NEOM, represent an ambitious long-term bet, serving as testing grounds for AI applications ranging from autonomous public transport to predictive energy management.
“AI in healthcare is gaining momentum, with hospitals exploring AI for clinical decision support, imaging triage, and remote patient monitoring,” added Schloetzer.
Firas Al-Beirut, country manager for META Saudi Arabia at Milestone Systems, said AI can deliver transformative value by optimizing complex physical environments and large infrastructure projects, particularly in smart cities, through data analytics that improve safety, energy efficiency, and traffic management.
“Transportation and logistics may also provide measurable gains through intelligent analytics that increase capacity at ports and airports to support the national goal of becoming a global trade hub. Tourism benefits from these technologies as well, since AI helps manage visitor flows and enhances safety at cultural sites or hospitality venues,” added Al-Beirut.
Ahmad Abu Hantash, consulting Middle East digital and cyber leader at PwC Middle East, said the strongest momentum for AI is in sectors where operational scale, data availability, and customer demand intersect.
“Customer-facing sectors are also starting to apply AI in ways that directly influence user experience and engagement. Financial services are using AI across fraud prevention, digital payments, and personalized experiences, while tourism and media are applying it in customer engagement, planning, and content development,” said Hantash.
Building AI talent
Speaking to Arab News, Anil Singh, chief business officer for Saudi Arabia at TASC Outsourcing, said building a strong AI ecosystem requires investment in education and practical skills.
According to him, international expertise will continue to play an important role in developing AI talent in the Kingdom, particularly in the early stages, but the focus should remain on learning from global expertise rather than relying on it.
“AI and digital learning should be introduced early, and universities should work more closely with industry, so graduates are ready for real jobs and challenges. At the same time, it’s important to invest in training programs that help existing workers learn new skills so they can move into AI-related roles as industries evolve,” said Singh.
Schloetzer said Saudi Arabia has made more progress on workforce development than many observers recognize, though major challenges remain.
He noted the Kingdom has introduced a national curriculum for data and AI across undergraduate disciplines, helping strengthen AI competency among younger generations.
Alignment with market demand is essential to strengthening the Kingdom’s AI talent ecosystem.
Raymond Khoury, partner and public sector practice lead at Arthur D. Little Middle East
“International partnerships with Microsoft and Google Cloud are strong points as well. The critical challenge going forward is converting AI literacy into deep technical capabilities. Training people in AI fundamentals provides a foundation, but it is a long way from the finish line,” added Schloetzer.
Khoury echoed similar views, saying alignment with market demand is essential to strengthening the Kingdom’s AI talent ecosystem.
“The Ministry of Education, CUA, MHRSD, and the Ministry of Civil Service must ensure that AI education and training are tied to employment outcomes. This includes scaling AI curricula across K-12, expanding specialized university programs, and embedding work-based learning models such as co-ops and apprenticeships,” said Khoury.
Challenges ahead
Khoury said the remaining months of this year will be critical if Saudi Arabia is to fully shape 2026 as the Year of AI, with all stakeholders needing to act with urgency.
The Arthur D. Little executive said Humain’s immediate priority should be rapid deployment at scale, including rolling out flagship AI applications across priority sectors and establishing a shared national AI stack that democratizes access to compute, data, and advanced models, including Arabic-language capabilities.
“For ministries, the shift must be toward becoming demand engines. This means launching national AI challenges tied to real problems, committing procurement budgets to AI-enabled solutions, and unlocking access to critical datasets,” said Khoury.
He added: “The Ministry of Investment must package these opportunities to attract global partners and investors, positioning Saudi Arabia as both a development hub and a scale market.”
Al-Beirut said becoming a global AI leader will require overcoming complex challenges, including establishing responsible frameworks for data usage and building a workforce capable of innovating at scale.
According to him, the Kingdom must also ensure AI solutions remain culturally relevant while meeting global standards for security and transparency.
“Achieving these goals requires steady progress on infrastructure milestones and the successful deployment of large-scale AI applications across critical industries. The realism for this ambition remains high because the strategy is backed by strong government commitment, and a clear timeline for delivery,” said Al-Beirut.
Issa of Cloudera highlighted broader geopolitical, operational, and cultural hurdles facing Saudi Arabia’s AI ambitions.
According to Cloudera’s data-readiness survey, 29 percent of Saudi IT leaders identified weak integration of data into workflows as their biggest challenge, while 50 percent cited insufficient data literacy and 32 percent pointed to a lack of executive sponsorship.
Geopolitically, the Middle East also faces digital fault lines, where reliance on centralized third-party platforms creates vulnerabilities linked to internet restrictions or physical infrastructure damage.
“Meaningful progress by 2030 will be measured by organizations closing this accountability gap and achieving true data readiness, where leaders have complete visibility and governance over all fragmented environments,” added Issa.
