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Why innovation and regulation are key to driving a sustainable tech future in Saudi Arabia

by CXO Staff
February 13, 2025
in Feature, Future

Thibault Werle, Managing Director & Partner at BCG, explains why balancing innovation with thoughtful regulation is essential for Saudi Arabia’s sustainable tech future and long-term economic growth

Why innovation and regulation are key to driving a sustainable tech future in Saudi Arabia

How do you see Saudi Arabia’s role in shaping the future of technology in the MENA region?

Saudi Arabia’s investments and policies are driving a shift in how technology is developed, deployed, and scaled across the MENA region. By partnering with global technology leaders like Google and Amazon and expanding venture capital investments, the Kingdom is building local capabilities in talent, knowledge, and innovation. These efforts are not just about attracting international expertise but ensuring that advanced technologies are developed and adapted within the region.

Through its giga projects and sovereign wealth fund investments, Saudi Arabia is becoming a major anchor for demand, accelerating the adoption of AI, automation, and digital infrastructure across industries. Investments in 5G, Fiber-optic networks, and AI-driven applications are reinforcing its position as a benchmark for digital transformation.

The Kingdom’s AI strategy and ethical framework provide a structured approach to integrating artificial intelligence, not only in government and enterprise but in large-scale applications, such as crowd management for the Hajj pilgrimage, where AI-driven monitoring and logistics solutions are setting an example for other countries managing large-scale events. As these technologies become more embedded in everyday life and business operations, Saudi Arabia’s role extends beyond national development—it is influencing the wider adoption of digital infrastructure and emerging technologies across the MENA region.

Saudi Arabia is investing heavily in emerging technologies as part of its national agenda. How are you contributing to the Kingdom’s Vision 2030 goals?

Saudi Arabia’s investments in emerging technologies are directly aligned with Vision 2030, shaping a diversified economy, fostering innovation, and creating high-skilled jobs. By integrating smart city infrastructure, AI, and digital services, the Kingdom is building a society where technology enhances urban living, streamlines services, and empowers citizens. These advancements also support economic diversification, with sectors like FinTech and AI-driven industries localising the technology value chain and attracting capital to sustain long-term growth.

However, innovation alone is not enough—thoughtful regulation is essential to maintaining stability while enabling new business models. At the same time, workforce development is a critical factor, as global economies face talent shortages. Saudi Arabia’s focus on reskilling and upskilling ensures that its workforce is equipped for the demands of an evolving digital economy, particularly in AI, software engineering, and advanced technology fields. By balancing investment, policy, and talent development, Saudi Arabia is laying the groundwork for a resilient, knowledge-based economy that will drive long-term technological leadership in the region.

How do you see AI strategy reshaping Saudi Arabia’s tech landscape?

AI is becoming a foundational element of Saudi Arabia’s transformation, reshaping industries, urban development, and governance. Across the Kingdom’s giga projects, AI is driving smarter urban planning and infrastructure management, optimising everything from energy use to transportation networks. In industries like oil and gas, manufacturing, and logistics, companies are integrating AI-driven automation to enhance efficiency, reduce costs, and improve sustainability. The public sector is also leveraging AI to provide secure, efficient and simplified public services, further enhancing citizen trust and setting a precedent for digital governance in the region.

Beyond operational improvements, AI is acting as an economic catalyst, attracting investment and accelerating the development of localised technology infrastructure, including AI data centres. This shift is creating strong demand for high-skilled talent in machine learning, data science, and software engineering, making workforce development a key priority. As AI adoption scales, companies will need to reassess their technology strategies, embedding AI into core operations to drive long-term competitiveness. Saudi Arabia’s AI-driven transformation is not just about deploying technology—it is about aligning AI with economic diversification, job creation, and the long-term vision of a digitally empowered economy

Tags: AIInnovationLEAPregulationSaudi Arabia
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