This week’s Saudi Round-Up highlights deepening China-Saudi ties and major strides in digtial and tourism sectors.
General Business and Economy
Saudi Arabia’s Digital Economy Leads MENA with $132 Billion Market Value
Saudi Arabia now holds the top spot in the MENA digital economy, with a market worth $131.9 billion, representing 15% of its GDP. Investments in AI and data centers reached over $14.6 billion, expanding capacity by 42% to 290.5 megawatts and reinforcing its role as a regional digital hub.
The Kingdom has made massive strides in digital services, topping global rankings in online governance and digital skills. Fiber coverage now spans nearly 4 million homes; internet access sits at 99%. Tech jobs have surged past 381,000, with women making up 35% of the sector.
Saudi Arabia and China Sign 57 Deals Worth $3.7 Billion
Saudi Arabia and China signed 57 agreements worth $3.7 billion, focusing on agriculture, environmental innovation, and industrial development. The deals cover areas like biofuels, aquaculture, and smart infrastructure.
These partnerships boost Saudi-China trade ties and support Vision 2030’s focus on food resilience, industrial growth, and sustainable supply chains. A planned agro-industrial city in Jazan aims to solidify local production capacity and reduce import dependence.
Technology
Saudi Arabia Expands AI and Tech Ties with US
Saudi Arabia signed multiple agreements with top US tech firms to boost AI, cloud computing, and cybersecurity. These deals are part of a $300 billion economic engagement.
Key agreements include MOUs with Oracle, PureStorage, and Palo Alto Networks, aiming to strengthen digital infrastructure and government efficiency. A parallel deal on privatization training with a US organization is set to support local talent development and deepen public-private collaboration.
HUMAIN and AWS Launch $5 Billion AI Zone in Saudi Arabia
Saudi AI firm HUMAIN and Amazon Web Services launched a $5 billion AI Zone to drive the Kingdom’s leadership in artificial intelligence. The zone will deliver cloud infrastructure, Arabic-language AI tools, and enterprise-ready solutions.
It’s a massive step for Vision 2030’s digital goals, with plans to train 100,000 Saudis in cloud skills and contribute $130 billion to the economy by 2030.
Saudi Arabia and UNCTAD Sign Deal to Measure E-commerce and Digital Economy
Saudi Arabia signed a $1.4 million agreement with UNCTAD to develop a national e-commerce and digital economy data framework. The project includes a comprehensive survey to inform policymaking.
This positions the Kingdom to align with global standards while building stronger foundations for digital trade, innovation, and competitiveness.
Cisco to Build Scalable AI Infrastructure in Saudi Arabia
Cisco has partnered with HUMAIN to design and deliver the Kingdom’s future AI infrastructure. The collaboration brings Cisco’s global expertise to support Saudi Arabia’s transformation into a digital innovation hub through investments in research, skills, and open AI platforms.
By advancing the local AI ecosystem with a new AI Institute at KAUST, providing training for 500,000 learners, and developing infrastructure plans for global events like Riyadh Expo 2030, the initiative directly supports Vision 2030. Cisco also announced plans for local manufacturing and cloud operations, strengthening Saudi Arabia’s digital capabilities from the ground up.
Automotive
PIF and Hyundai Break Ground on $500 Million EV Factory
Hyundai and the PIF launched a $500 million vehicle factory in King Abdullah Economic City. PIF owns 70% of the new joint venture, while Hyundai holds the remaining 30%. The plant will produce 50,000 cars annually by late 2026, including both EVs and traditional models.
This marks Hyundai’s first production facility in the region and supports Saudi Arabia’s push to become an auto-manufacturing hub.
Banking & Finance
PIF Secures $11 Billion Partnerships to Expand Asset Management
PIF secured up to $11 billion in deals with BlackRock, Franklin Templeton, and Neuberger Berman to boost Saudi Arabia’s asset management landscape. The partnerships will introduce multi-asset platforms and local equity products.
These moves reinforce Riyadh’s growing role as a global financial center and advance institutional development in the Kingdom.
PIF Teams Up with Northern Trust to Grow Asset Management Sector
PIF signed a non-binding MoU with Northern Trust Asset Management to launch a $1 billion mandate aimed at boosting Saudi Arabia’s capital markets. The deal will enable index strategies tailored to the Kingdom, backed by Northern Trust’s portfolio management tech and trading expertise.
This move supports Vision 2030 by encouraging global investment in Saudi financial markets and building a more competitive asset management sector. It also aligns with PIF’s broader efforts to position Saudi Arabia as a key player in international finance.
Energy & Sustainability
Aramco Signs $90 Billion in Deals with US Firms
Aramco signed 34 agreements worth $90 billion with major US firms across LNG, fuels, AI, and emissions tech. These deals, announced during the Saudi-US Investment Forum, include projects with ExxonMobil, AWS, and NVIDIA, marking a major leap in Saudi Arabia’s industrial diversification.
ACWA Power Deepens US Energy Partnerships with $500M Agreements
ACWA Power expanded its US partnerships with $500 million in agreements focused on solar tech, hydrogen, and turbine systems, bringing its US-linked portfolio to $6 billion.
This partnership strengthens local access to critical minerals used in AI, robotics, and EVs. It’s a strategic step toward reducing global dependence on limited suppliers and positioning mining as a key pillar of Saudi Arabia’s future economy.
Expansions
Arabsat Taps Telesat Lightspeed as Starlink Enters Saudi Market
Arabsat has signed a deal to secure broadband capacity from Telesat’s upcoming Lightspeed LEO satellite network. This follows Starlink’s regulatory approval to operate in Saudi Arabia, increasing pressure on regional GEO operators as competition in satellite broadband intensifies.
The move helps Arabsat stay relevant amid a rapidly evolving satellite landscape. Telesat’s capacity will boost regional connectivity and digital infrastructure, aligning with Vision 2030 goals to expand digital access and modernize telecom services.
Nemetschek Enters Saudi Market to Accelerate Smart Construction
The Nemetschek Group has launched operations in Saudi Arabia, bringing its construction and media software brands closer to the country’s booming AEC/O sector. The move supports digitalization across over $1 trillion worth of mega-projects.
By enabling smarter design and building processes through BIM and AI tools, Nemetschek will contribute to Saudi Arabia’s vision of tech-driven, sustainable development. Its presence strengthens the country’s digital infrastructure and smart city ambitions under Vision 2030.
Hospitality
Hilton to Add 21,000 Hotel Rooms, Expand Presence Across Saudi Arabia
Hilton is ramping up its Saudi presence with 21,000 hotel rooms across nearly 100 properties, creating over 15,000 jobs, many for local talent. The expansion includes 14 hotel brands across key cities and tourism hubs.
This supports Vision 2030’s push to boost tourism growth, especially in Makkah, Madinah, Riyadh, and heritage destinations like Diriyah.
IHG to Launch 50 New Hotels, Add 15,000 Keys in Saudi Arabia by 2030
IHG will roll out 15,000 rooms and seven new brands by 2030, doubling its Saudi workforce to 6,000. The group’s expansion aligns with major upcoming events like Expo 2030 and FIFA 2034.
It also reflects a broader shift toward midscale and sustainable hotel offerings with strong government support.
Wyndham to Launch Super 8 Hotels, Targets 100 Locations Across Saudi Arabia
Wyndham Hotels & Resorts is introducing its Super 8 brand to Saudi Arabia, targeting 100 properties over the next decade. The plan was announced during the Future Hospitality Summit and marks the brand’s debut in the Kingdom.
This expansion aligns with Vision 2030’s goal to diversify accommodations beyond luxury, opening access to broader market segments.
Construction
US Firm Joins Large-Scale Land Development Project in Makkah
A major US investment firm has partnered in the Al-Bushra Infrastructure Development Fund to develop over 734,000 sq. meters in Makkah’s Al-Aziziyah district. The fund will transform raw land into serviced plots, fueling urban expansion.
This move reflects growing foreign confidence in Saudi real estate and infrastructure, aligning with Vision 2030 goals to diversify the economy and increase private sector involvement.