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DIGITAL ECONOMY 

YEAR OF AI: SAUDI ACCELERATES ITS DIGITAL TRANSFORMATION STRATEGY

Saudi Arabia’s digital transformation ambitions have been noticeably visible amid the deployment of advanced technologies during Hajj, one of the world’s largest annual gatherings. 

Religious services around the Grand Mosque in Makkah and the Prophet’s Mosque in Madinah are undergoing a significant technological evolution. The Presidency of Religious Aairs recently introduced an integrated operational model that combines traditional religious guidance with modern digital solutions. Through multilingual broadcasting, instant translation services, digital awareness programmes, and artificial intelligence (AI)-supported information systems, pilgrims can access religious content and guidance more eciently than ever before.

An example of this shift is the deployment of smart robots throughout the Two Holy Mosques. These interactive systems provide religious and spatial guidance in multiple languages, helping visitors navigate the holy sites while answering questions related to rituals and services. As millions of pilgrims converge on Makkah during Hajj, such technologies help manage visitor flows while ensuring timely access to information.

AI is also strengthening the delivery of religious services. AI-enabled tools are being used to organise awareness content, broaden the reach of educational messages, and support the translation and digital broadcasting of sermons and lessons. These capabilities allow the teachings and activities of the Two Holy Mosques to reach a global audience while enhancing accessibility for pilgrims from diverse linguistic backgrounds.

The Ministry of Communications and Information Technology also undertook extensive network upgrades to accommodate the surge in demand associated with the pilgrimage. The company completed more than 1,750 4G and 5G network expansions across Makkah, Madinah, and the holy sites, while achieving full 5G coverage throughout the pilgrimage areas.

Network capacity has also been expanded to 2.3 terabits per second (Tb/s), supported by AI-driven monitoring systems and automated network operations designed to optimise performance during peak periods. These investments aim to ensure uninterrupted connectivity for millions of users, demonstrating how digital infrastructure is increasingly integral to the management of large-scale events.

This underscores the kingdom’s investments in digital infrastructure, cloud computing, and AI, creating an ecosystem capable of supporting future economic growth..

 

ATTRACTIVE HUB FOR DATA CENTRES

Saudi Arabia officially declared 2026 as the year of AI. Investment in the sector has grown significantly, with government spending on emerging technologies rising by more than 56% in 2024 and AI companies securing USD 9.1 billion in funding. 

The progress is reflected in Saudi Arabia’s rising prominence in the global data centre market. According to a recent analysis, the kingdom ranks second globally, behind only the United States, among the most attractive markets for data centre investment. The ranking highlights the importance of power availability, land enablement, and operational readiness in attracting digital infrastructure projects. 
The scale of growth has been substantial. Operational data centre capacity in the kingdom increased from 68 megawatts (MW) in 2021 to 440 MW in 2025, representing more than sixfold growth in four years. By the first quarter of 2026, capacity had expanded further to 467 MW. Today, Saudi Arabia hosts more than 60 data centres across multiple regions, supporting rising demand for cloud services, AI applications, and digital platforms, according to a Saudi Press Agency report.

The scale of growth has been substantial. Operational data centre capacity in the kingdom increased from 68 megawatts (MW) in 2021 to 440 MW in 2025, representing more than sixfold growth in four years. By the first quarter of 2026, capacity had expanded further to 467 MW. Today, Saudi Arabia hosts more than 60 data centres across multiple regions, supporting rising demand for cloud services, AI applications, and digital platforms, according to a Saudi Press Agency report.

The kingdom’s location at the intersection of Asia, Europe, and Africa further enhances its attractiveness as a regional digital hub. Combined with significant investments in fibre networks, Internet infrastructure, and regulatory reforms, these developments are helping create an environment capable of supporting advanced digital services at scale.

Saudi Arabia’s broader digital ecosystem continues to strengthen. Internet penetration has reached approximately 99%, fibre coverage extends to 5.8 million homes, and the national technology market exceeded SAR 199 billion in 2025. Local Internet trac through the Saudi Internet Exchange surpassed 2.462 Tb/s, reflecting growing digital activity and the increasing sophistication of the kingdom’s communications infrastructure.

HEALTHCARE’S DIGITAL TRANSFORMATION

The country’s progress has also been recognised internationally. Saudi Arabia ranked first globally in the Digital Readiness Framework 2025, achieving a score of 94 out of 100 and placing ahead of several advanced digital economies. The ranking reflects improvements in digital governance, institutional eciency, regulatory frameworks, and technological adoption.

These digital capabilities are increasingly being applied to another strategic priority: healthcare. Saudi Arabia is pursuing a transformation of its health sector through AI, virtual care, medical robotics, and advanced diagnostics. The goal is to shift from a model centred primarily on treatment to one focused on prevention, early intervention, and value-based care.

A key example is the Seha Virtual Hospital, which connects hundreds of healthcare facilities across the kingdom and enables specialist consultations regardless of location. Digital health platforms, AI-supported clinical decision-making tools, and virtual care services are helping expand access while improving operational efficiency.

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