Saudi Arabia Boosts AI Investments, Eyes 2026 AI Year

Saudi Arabia is accelerating its push into artificial intelligence, with 2026 formally designated the Year of Artificial Intelligence following Cabinet approval in March 2026. The move underscores AI's growing role in government operations and the wider drive toward economic diversification.

At LEAP 2025, the Kingdom announced AI and emerging technology investments exceeding SAR 14.9 billion, positioning the sector as a core engine of economic growth and digital transformation. These commitments feed into a broader national plan targeting a cumulative AI contribution of roughly SAR 200 billion to GDP by 2030.

Under the National Strategy for Data and AI, more than 300 government AI use cases are targeted. By the fourth quarter of 2025, over 180 use cases were already in production, with 65 in pilot or testing and 55 in development or procurement. AI tools are being deployed across internal operations — including human resources, finance, procurement, supply chains, and beneficiary services — to raise productivity and simplify procedures.

Digital economy on the rise

The Kingdom's digital economy has grown by more than 75% over eight years, expanding from roughly SAR 300 billion to about SAR 522 billion and lifting the non-oil digital economy's share of GDP to 16%. Government AI-related spending reached around SAR 8 billion in FY2025, up from SAR 5.5 billion the year before.

New governance frameworks introduced or consulted on in 2026 include a Responsible AI Policy, a draft AI-First Policy, a National AI Risk Management Framework, AI Cybersecurity Guidelines, and a Data Monetization Policy that allows revenue from licensed data products while barring the sale of raw government data.

Infrastructure is expanding too: operational data center capacity has reached about 467 MW, or 47% of total capacity across the Middle East and North Africa. For residents and businesses, the shift promises faster, smarter public services and new opportunities in a rapidly growing tech economy.

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