Saudi Arabia Doubles Down on AI, Manufacturing Bets

Saudi Arabia is placing artificial intelligence, manufacturing, logistics, and technology at the center of its economic agenda in 2026, reallocating resources toward these sectors under رؤية السعودية 2030 and drawing renewed international attention from global investors.

National plans set ambitious digital targets. The Kingdom aims for the digital economy to contribute 19.2% of GDP by 2030, alongside 1.8 GW of data center capacity and 100 GW of AI compute capacity by 2026. The Public Investment Fund has allocated more than USD 40 billion to AI-related ventures, including national AI infrastructure platforms.

Several major projects are underway. Agreements with global chip manufacturers cover AI factories with 500 MW of computing capacity, while cloud providers are investing over USD 5 billion to build AI-optimized data center zones in the Kingdom. By mid-2026, digital infrastructure, cloud services, data centers, and digital identity have become central to the strategy, marking a shift away from some earlier physical megaprojects.

What it means for residents and businesses

Government services increasingly run online. By mid-2026, more than 4,600 public services — about 97% of the total — are available digitally, covering licensing, taxation, customs, and visa processes. The Ministry of Interior's main e-services platform processed over 448 million electronic transactions in 2025, serving more than 32 million citizens and residents and 1.8 million businesses.

For investors and employers, new rules apply. Premium Residency holders must now obtain a dedicated work permit through قوى for a fee of SAR 100, separate from standard work authorization. Standard employer annual work-permit fees for non-Saudi workers range from roughly SAR 100 to 800 depending on company size and workforce composition. Technology firms bidding on government tenders register and submit through the Etimad platform, using corporate accounts linked to national IDs and commercial registrations.

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