Saudi Arabia Doubles Down on AI Ambitions; Declares 2026 as the Year of AI
The country ranked 14th in the 2025 Global AI Index, while leading the Arab world in AI model development.
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Image Credit- Diksha Mishra/ MIT Sloan Management Review Middle East
Amid the ongoing conflict in the region, Saudi Arabia has reinforced its commitment to becoming a global hub for data and artificial intelligence by designating 2026 as the Year of Artificial Intelligence.
The move, officially sanctioned by the Cabinet, highlights the increasing momentum of AI development in the country, spearheaded by the Saudi Data and Artificial Intelligence Authority (SDAIA). Notably, Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud also serves as Chairman of SDAIA.
Since its inception in 2019, SDAIA has led the national strategy for data and AI by focusing on six key aspects: ambition, competencies, policies, investment, innovation, and ecosystem. These efforts helped Saudi move from strategic planning to implementation.
It has regulated the AI sectors and developed an advanced digital infrastructure. Human capital development also remains a priority, with over 11,000 specialists being trained, and the SAMAI program reaching over 1 million participants.
Saudi Arabia’s tech narrative is strongly supported by its global standing. It ranked 14th in the 2025 Global AI Index, while leading the Arab world in AI model development. Government spending on emerging technologies increased by over 56% in 2024, and AI companies raised $9.1 billion in funding.
The country also aims to offer the world’s most affordable data centres. Saudi Arabia boasts approximately 40 operational co-location data centres, with 10 in Dammam alone. Its 480 MW-capacity Hexagon Data Centre in Riyadh, launched in early 2026, is touted as the world’s largest government-run data centre. Microsoft confirmed in February that its Saudi Arabia data centre region would be available to customers from Q4 2026.
Notably, it became the first Arab nation to join the Global Partnership on AI (GPAI).
These initiatives underscore Saudi Arabia’s dedication to the ethical and responsible deployment of AI and to becoming a global hub for data and artificial intelligence under Vision 2030.
