Saudi Arabia in prime position to become global leader in AI regulation, expert says

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The Saudi Authority for Data and Artificial Intelligence, which oversees and manages the development and use of AI in the Kingdom, has undergone amazing growth and is leading that mandate. (SPA)
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Updated 04 February 2024
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Saudi Arabia in prime position to become global leader in AI regulation, expert says

  • Author and technology futurist Ian Khan says the Kingdom is doing a lot with AI in terms of setting the standards
  • ‘Jobs will transform into AI, which doesn’t mean people will lose their jobs but that the industries in Saudi Arabia will benefit from the creation and deployment of AI,’ he says

LONDON: Saudi Arabia is well placed to become a global leader in the regulation of artificial intelligence by initiating the discussions that will help craft a consensus on how such rules should operate, an expert on the emerging technology said.

Ian Khan, a technology futurist and author who writes on the subject of AI, told Arab News that the Kingdom is “doing a lot with AI” in terms of setting the standards, and is “in a position to take leadership and ownership of setting the framework for AI regulations at a global level.”

He added: “This is where AI regulations can start and this is where the discussion and dialogue for AI regulations can begin, because this is where AI is being implemented in everyday life.”

The Saudi Authority for Data and Artificial Intelligence, which oversees and manages the development and use of AI in the Kingdom, has undergone “amazing growth” and is “leading that mandate” in the country, he said.

In 2020, Khan predicted that AI technology will increasingly become a dominant force in the job market in Saudi Arabia, and said authorities in the Kingdom envision the nation becoming a global leader in AI.

“Jobs will transform into AI, which doesn’t mean people will lose their jobs, but that the industries in Saudi Arabia will benefit from the creation and deployment of AI,” he said.

“You look at (smart city projects in Saudi Arabia) like NEOM, which is so complex, or The Line, they are all driven by artificial intelligence, from managing transportation systems to managing homes.

“We need to have those (AI) regulations in place and at this moment in time, one of the countries from the Middle East will be the one that will start AI regulations.”

It might be Saudi Arabia that fills this role, or the UAE, or both of them working together, because the rules governing AI are beyond the scope of just a single government to decide, Khan added.

“But I think a collaborative force needs to emerge from the Middle East and I think (Saudi Arabia) is in a good position to do it,” he said. 

Khan, who is the CEO of Toronto-based technology-advisory firm Futuracy, said the US is lagging other countries in terms of implementation of AI, although the research and knowledge are available and being utilized by some of the biggest companies, but he predicted that “regulations-wise, it’s going to be a nightmare.”

He added: “There’s no regulation on AI, there’s no privacy control, there’s no intellectual property rights on AI, and there are many other issues.”

Still, Khan expects major growth in the use of AI, particularly in Saudi Arabia, where he said curiosity about how the technology will affect aspects of daily life has spiked in the past year.

For example, authorities in the Kingdom have announced plans to develop electric vehicles and the infrastructure for autonomous transportation, in other words, driverless vehicles that utilize AI technology, alongside wider plans to manufacture more than 300,000 cars a year in the country by 2030

Hyundai Motor Group and Lucid Motors have both signed agreements to build manufacturing plants in Saudi Arabia. Meanwhile, Ceer Motors, the first Saudi electric vehicle brand, was founded in 2022 and plans to begin sales in Middle Eastern markets by 2025.

Saudi Arabia is also “building the largest network of EV charging stations in the Middle East,” Khan said, and has established the Electric Vehicle Infrastructure Co. to promote the provision of fast-charging points in all regions of the Kingdom.

And in October 2023, Saudi developer Red Sea Global implemented the largest off-grid electric vehicle charging network in the Kingdom, a move seen as a significant stride toward sustainability.

“You are looking at AI technologies permeating the lives of everyday people, so we have to have regulations, guard rails, protections and safety mechanisms in place,” Khan said.

“Everybody’s loving the growth, and the attention that the (Saudi) leadership is giving to initiatives. There are organizations and sectors, such as energy and manufacturing, that are the stable ones that have been in the Kingdom for decades, and they are growing, but then they are now also investing in sustainability.

“They are looking at carbon footprints … and you’ve got initiatives that are not just about the youth but about growing talent, and that is happening through funding of different agencies.

“But it’s the convergence right now that you’re seeing, and the growth, in the tech sector. For example, King Abdullah University of Science and Technology or Aramco Ventures are really putting in a lot of investment in new, innovative technologies,” Khan continued.

You are looking at AI technologies permeating the lives of everyday people, so we have to have regulations, guard rails, protections and safety mechanisms in place.

Ian Khan, Technology Futurist and Author

“Saudi Arabia is looking to position itself not just as a G20 player, but probably one of the biggest players in the world when it comes to the economy being a financial hub. They’re also looking at climate change, looking to be leaders in oil and gas, but also alternative energy, and in the cultural fields, and the political field as negotiators between conflicting parties.”

Khan praised the Future Investment Initiative — a nonprofit organization launched in 2017 by the Saudi Public Investment Fund and dubbed the “Davos of the Desert” — for the “world-class and pure quality of content, ideas and thought leadership” that takes place at its annual forum, during which major global announcements are made each year.

In terms of developments in the Kingdom in the short term, Khan predicted that Saudi Arabia will have a regulatory framework for AI in place within one or two years, if not sooner.

Looking further ahead, he said: “By 2030, we are looking at some parts of these large infrastructure projects to actually be on stream and to be live and working, so you’re looking at AI being functional in those areas.

“By 2030, I am envisioning that the job market in Saudi will be driven by AI. In terms of AI, talent is needed. Data scientists are needed. People who can use AI in a better way are needed. People, leaders, engineers, doctors who are able to work with AI for their jobs are needed. So AI skills are going to be in demand.”

FASTFACT

Emerging Technologies

In 2020, Khan predicted that AI technology will increasingly become a dominant force in the job market in Saudi Arabia, and said authorities in the Kingdom envision the nation becoming a global leader in AI.

The pace of development of the technology will accelerate in general, he said, with applications in the fields of healthcare and curing diseases, child development, education, tourism, climate change, the food industry, transportation and manufacturing.

“Technology has been evolving at an exponential pace over the past 30 to 40 years, and now we are entering an era of the next machine age, or the fifth industrial revolution, where a lot of our world is going to be automated using artificial intelligence,” said Khan.

“By 2040, I believe that we will have mastered AI regulation, have frameworks and policies that protect people, have formalized and deployed global rules and laws that not just govern people in a country or a region, but globally.”

The majority of the world is increasingly going to be automated and there will be a tool for everything, he added, which will result in what he called “the integration of things,” whereby one or two systems will essentially control everything we use, so that use of numerous different applications is no longer required.

“By 2040 we will also see a lot more intuitive and experiential services that will be part of an AI-driven future, so that the quality of life of people will be much better than it is today,” he predicted.

 


Closing Bell: Saudi main index slips to close at 10,714

Updated 17 June 2025
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Closing Bell: Saudi main index slips to close at 10,714

  • Parallel market Nomu shed 214.39 points to close at 26,458.24
  • MSCI Tadawul Index declined by 1.14% to 1,378.44

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 153.22 points or 1.41 percent to close at 10,713.82.  

The total trading turnover of the benchmark index was SR4.97 billion ($1.32 billion), with 20 of the listed stocks advancing and 228 declining. 

Saudi Arabia’s parallel market Nomu also shed 214.39 points to close at 26,458.24. 

The MSCI Tadawul Index declined by 1.14 percent to 1,378.44. 

The best-performing stock on the main market was Saudi Research and Media Group. The company’s share price increased by 6.88 percent to SR170.80. 

The share price of SABIC Agri-Nutrients Co. advanced by 4.82 percent to SR108.80.

Zamil Industrial Investment Co. also saw its stock price climb by 4.71 percent to SR40. 

Conversely, the stock price of media giant MBC Group Co. dropped by 6.56 percent to SR33.45. 

On the announcements front, Tadawul, in a statement, said that shares of Saudi low-cost air carrier flynas will begin trading on the main market under the symbol 4264 from June 18. 

The daily and static fluctuation limits for the company’s stocks will be set at 30 percent and 10 percent, respectively, during the first three days of trading.

On June 17, Saudi National Bank announced the issuance of US dollar-denominated Tier 2 debt instruments through a special purpose vehicle, targeting qualified investors both inside and outside the Kingdom.

The financial institution added that the final issuance value and offering terms will be determined based on market conditions, according to a Tadawul statement. 

The minimum subscription value is $200,000, with a 10-year maturity period. 

The debt instruments will be listed on the London Stock Exchange’s International Securities Market. 

The share price of SNB edged up by 0.58 percent to SR34.50. 

Advance International Co. for Communication and Information Technology announced that it completed the offering and subscription of SR-denominated Murabaha sukuk valued at SR6 million. 

Murabaha sukuk is a financial instrument based on Islamic finance principles, offering an interest-free investment option. 

In a Tadawul statement, AICTEC said that the offering aims to strengthen the company’s working capital as well as support capital expansions. 

The stock price of AICTEC rose by 3.57 percent to SR2.90. 


IsDB Group partners with Turkiye to drive green industrial growth

Updated 17 June 2025
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IsDB Group partners with Turkiye to drive green industrial growth

  • Initiative supports Turkiye’s 2053 net-zero emissions target

JEDDAH: The Islamic Development Bank Group has partnered with Turkiye’s Ministry of Industry and Technology to advance sustainable manufacturing and infrastructure as part of a broader push to modernize the country’s industrial zones and accelerate its green transition.

The initiative supports Turkiye’s 2053 net-zero emissions target and aligns with the 12th National Development Plan (2024–28) and the 2030 Industry and Technology Strategy.

According to the Saudi Press Agency, the project aims to cluster industrial enterprises within designated zones, reducing environmental impact and promoting climate-conscious development.

While Turkiye has committed to peak emissions by 2038 and reach net zero by 2053, independent assessments question the feasibility of this goal.

Climate Action Tracker has rated the strategy as “poor,” citing a lack of ambition and transparency, and warning that the 15-year window to net zero is overly compressed.

Still, some subsectors—such as cement, iron and steel, aluminum, and fertilizers—have set clearer reduction targets, although they remain exceptions, CAT notes.

Walid Abdelwahab, director of the IsDB Group’s regional hub in Turkiye, described the project as “a vital step in fulfilling the IsDB’s commitment to supporting sustainable industrial transformation, enhancing economic resilience, and promoting climate-conscious development.”

A multidisciplinary team from IsDB’s Jeddah headquarters and Ankara office has been working closely with various government bodies and industrial zone authorities. Discussions have focused on collecting data, identifying challenges, and shaping the project in line with national investment and climate resilience goals.

According to SPA, the initiative will also address key areas such as wastewater management, improved water use efficiency, and green infrastructure, laying the groundwork for long-term sustainable industrial growth.


Energy security is not a luxury but key to inclusive growth, says Saudi minister

Updated 17 June 2025
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Energy security is not a luxury but key to inclusive growth, says Saudi minister

  • Al-Jadaan warned the absence of reliable energy access undermines critical sectors
  • He underscored the far-reaching consequences of energy poverty

RIYADH: Energy security is not a luxury but “a fundamental pillar for achieving development and inclusive growth,” said Saudi Arabia’s Finance Minister Mohammed Al-Jadaan.  

Delivering the opening remarks at the OPEC Fund for International Development Forum 2025 in Vienna, Al-Jadaan warned that the absence of reliable energy access undermines critical sectors, including healthcare, education, productivity, and food and water systems. 

“With rising geopolitical tensions, market volatility, and surging global energy demand, it has never been more urgent to achieve a more secure and diversified energy landscape,” Al-Jadaan said. 

He added: “This requires a strategic push to diversify energy sources, scale up investment in clean technologies, and adopt innovative financing solutions to accelerate energy access and strengthen long-term energy security.” 

Four-point reform plan 

Al-Jadaan outlined four policy recommendations for multilateral development banks aimed at boosting global energy resilience. He stressed the need to support all energy sources without bias and cautioned against emissions policies that exclude major energy contributors. 

He said such policies risk destabilizing markets and disproportionately impact developing economies and vulnerable populations. 

 

 

His second recommendation focused on expanding concessional financing to underserved regions. The minister praised the World Bank’s “Mission 300” initiative, which aims to provide energy access to 300 million people in Africa, and acknowledged the contributions of the Islamic Development Bank and the OPEC Fund. 

Al-Jadaan also commended Saudi Arabia’s Forward7 Clean Fuel Solutions for Food initiative under the Middle East Green Initiative, which promotes clean fuel deployment globally. The program has partnered with institutions including the OPEC Fund, the World Bank, the Islamic Development Bank, and the International Islamic Trade Finance Corp. 

De-risking and innovation

Al-Jadaan’s third point emphasized the need to de-risk investments in the energy sector to encourage private sector involvement.  

He cited mechanisms such as partial risk guarantees, political risk insurance, and blended finance structures as essential tools to mitigate risks and enhance the feasibility of energy projects, particularly in low-income and high-risk countries. 

“These tools help mitigate expected risks and enhance the bankability of energy projects, especially in low-income and high-risk countries,” the minister said. 

In his final point, Al-Jadaan called for stronger investment in technologies such as carbon capture and sustainable hydrocarbon applications to reduce emissions and maintain supply during the transition to net-zero. 

He underscored the far-reaching consequences of energy poverty, including economic instability, forced migration, and increased humanitarian pressures. 

Al-Jadaan reaffirmed the Kingdom’s aim to generate 50 percent of electricity from renewables by 2030 and achieve net-zero emissions by 2060. These goals are being pursued under the Circular Carbon Economy framework. 

“In the Kingdom of Saudi Arabia, we are working with everyone to enhance energy security and eliminate energy poverty, while continuing efforts to combat climate change,” he said. 

Development crisis warning 

OPEC Fund President Abdulhamid Al-Khalifa also addressed the forum, warning of a worsening global development gap.  

He said the world is facing what the UN secretary-general has described as a “development emergency,” pointing out that only 18 percent of Sustainable Development Goals have made measurable progress since their inception in 2015. 

“Developing countries face a $4 trillion annual funding gap, worsened by rising debt servicing costs that are draining resources from essential services,” Al-Khalifa said. 

To address this, he said the OPEC Fund is ramping up efforts and leveraging momentum from previous forums. Among its recent actions, the fund has joined the “Mission 300” initiative to expand energy access. 

It has also deployed $1 billion as part of its food security action plan, committed an additional $2 billion to support food supply chains in partner countries, and allocated $1 billion to combat desertification under the Arab Coordination Group's $10 billion Riyadh Global Drought Resilience Partnership. 

New trade facility 

Al-Khalifa also announced the launch of the OPEC Fund Trade Facility Initiative, a program designed to mobilize billions of dollars in support through 2030. 

The facility aims to help countries secure strategic imports, address trade-related liquidity gaps, and strengthen resilience against external economic shocks. 

“This is a direct response to an urgent need, and a reflection of our commitments to stand by our partners when it matters most,” he said. 

Al-Khalifa emphasized the growing strain on trade as a development cornerstone, citing disrupted supply chains, rising costs, and foreign exchange volatility that are affecting the most vulnerable communities.  

Project milestones 

In 2024, the OPEC Fund committed $2.3 billion to 70 projects across the globe — a 35 percent increase compared to the previous year. 

These projects connected 300,000 households to electricity, built over 500 km of roads, and supported 75,000 farmers and 35,000 women. 

As the Arab Coordination Group marks its 50th anniversary this year, Al-Khalifa noted the significance of this milestone, saying the OPEC Fund is honored to stand alongside other member institutions in celebrating five decades of collaborative development efforts. 

“We know from experience, when partners align their resources, expertise, and approaches, the results are transformative,” he said. 

Both Al-Jadaan and Al-Khalifa stressed that global cooperation and innovation are critical to overcoming current challenges and advancing toward a future of inclusive and sustainable development. 


Saudi Arabia, Panama sign air transport agreement to strengthen global connectivity

Updated 17 June 2025
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Saudi Arabia, Panama sign air transport agreement to strengthen global connectivity

  • Deal signed during 55th edition of Paris Air Show
  • It reflects Kingdom’s broader efforts to expand its global aviation footprint

RIYADH: Saudi Arabia and Panama have signed a bilateral air services agreement to enhance air connectivity between the two countries and expand access to global aviation markets.

The deal was signed during the 55th edition of the Paris Air Show by Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, and establishes a regulatory framework for safe, efficient, and fair air services, according to the Saudi Press Agency.

The new agreement complements the 1944 Chicago Convention on International Civil Aviation, the legal foundation for global air travel. It includes provisions on traffic rights, airline designation, and licensing, as well as the enforcement of international safety and security standards.

It is also designed to promote fair competition and support the long-term commercial interests of national carriers in both countries.

The deal aims to serve the common economic interests of national carriers and enhance their participation in the air transport market by applying modern market-entry models and supporting all forms of air traffic, SPA reported.

It reflects the Kingdom’s broader efforts to expand its global aviation footprint in line with Vision 2030. As part of its National Aviation Strategy, the country is building international partnerships, strengthening regulatory frameworks, and increasing air connectivity to link to 250 global destinations and transport 330 million passengers annually by 2030.

“The organization’s participation aims to highlight the role of the civil aviation sector in the Kingdom as an important driver of the national economy, the promising investment opportunities it offers, and to learn more about the latest innovative global technologies in the sector,” the report added.

Saudi Arabia, represented by GACA, concluded its participation at the Paris Air Show with a wider range of strategic announcements aimed at bolstering its aviation sector. Key outcomes included a memorandum of understanding with Airbus on environmental sustainability and aviation safety, a leasing deal for 77 new aircraft by Avilease, and Riyadh Air’s order for 50 Airbus A350-1000 jets, increasing its future fleet to 182 aircraft in line with Vision 2030’s goal of positioning Riyadh as a global air hub.

The Saudi delegation was led by Saleh Al-Jasser, minister of transport and logistic services and chairman of GACA, accompanied by GACA president and senior executives from across the Kingdom’s aviation ecosystem. Their participation focused on strengthening partnerships with leading aerospace companies, attracting investment into the Saudi aviation sector, and advancing bilateral cooperation.

During the show, Al-Jasser and the delegation toured various pavilions showcasing innovations in advanced air mobility, aerospace, sustainability, and smart manufacturing.

They observed emerging solutions featuring high levels of automation and digitization across both commercial and military aircraft.

In addition to the MoU with Airbus, the show saw key commercial signings. Avilease, a Public Investment Fund-owned leasing firm, agreed to purchase 77 new-generation aircraft, including A350 freighters and A320 narrow-body jets. Riyadh Air confirmed an order for 50 A350-1000 aircraft, part of its plan to turn Riyadh into a global aviation hub.

A separate agreement was signed between Cluster 2 Airports Co. and Airbus to explore collaboration opportunities in training, development, and investment.

Al-Duailej also met with several global aviation leaders, including Damien Caze, director general of the French Civil Aviation Authority; Arjan Meijer, CEO of Embraer; and Bahrain’s Minister of Transportation and Telecommunications Sheikh Abdulla Al-Khalifa, to discuss regional cooperation.

The Kingdom’s presence at the Paris Air Show underscored its commitment to civil aviation as a driver of economic growth, innovation, and international connectivity. The event is one of the world’s most prominent in the aerospace industry, attracting thousands of participants and showcasing the latest in aviation, defense, and space technologies.


SIC, Investindustrial forge alliance to drive Saudi industrial expansion


Updated 17 June 2025
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SIC, Investindustrial forge alliance to drive Saudi industrial expansion


  • Deal aims to catalyze new industrial investments in the Kingdom

RIYADH: SIDF Investment Co., the financial arm of the Saudi Industrial Development Fund, has entered into a strategic partnership with European private equity firm Investindustrial, marking its first international private equity commitment.

The agreement is aimed at catalyzing new industrial investments in the Kingdom by localizing advanced manufacturing and integrating Saudi small and medium-sized enterprises into Investindustrial’s global value chains.

The partnership is a significant milestone for SIC as it broadens its international engagement and supports Saudi Arabia’s Vision 2030 objectives. These include attracting institutional capital, localizing industrial expertise, and contributing to the National Industrial Strategy, which targets increasing the number of factories to 36,000 by 2035.

The announcement follows a previous agreement in March between SIC and Ashmore Investment Saudi Arabia to launch a private closed-end industrial fund. The SR400 million ($106.6 million) initiative — the first of its kind in the Kingdom — is managed by a global asset manager and aims to support a wide array of industrial assets. That move laid the foundation for SIC’s private equity strategy to stimulate domestic investment and expand global partnerships.

“This agreement represents a new chapter for SIC,” said Fahad Al-Naeem, CEO of SIC. “By partnering with Investindustrial, we’re bridging global reach, operational depth, and industry specialization into our ecosystem, positioning Saudi Arabia as the platform for regional and international manufacturing growth.”

The targeted sectors include machinery and equipment, automation, medical devices, and sustainable consumer products, with an emphasis on local value creation and industrial innovation.

This move comes as the Kingdom ramps up efforts to strengthen its industrial base and draw international investment into strategic sectors. In April, Saudi Arabia’s Industrial Production Index rose 3.1 percent year on year, led by gains in manufacturing and mining. Manufacturing activity alone climbed 7.4 percent annually, with a 0.5 percent uptick month on month.

Adding to this momentum, the government launched the Standard Incentives for the Industrial Sector program in May, offering up to 35 percent financing on initial capital expenditure per project, capped at SR50 million. The initiative supports facility development and operations over a seven-year term.

“SIC will utilize its local market expertise to pave the way for global manufacturers to establish a footprint in Saudi Arabia and connect with international supply chains, benefiting from the Kingdom’s competitive position,” Al-Naeem added.

Investindustrial, which has raised €17 billion and operates across eight global offices, focuses on mid-market companies with a mission to drive sustainable value creation and support global expansion.

“The Kingdom of Saudi Arabia has emerged as a key strategic growth region for Investindustrial’s portfolio companies,” said Andrea Bonomi, chairman of Investindustrial.
“Many of our investments align closely with the goals of Saudi Arabia’s Vision 2030, fostering strong and natural synergies for long-term value creation,” Bonomi added.

The signing ceremony was attended by Prince Sultan bin Khaled, vice chairman of SIC, and Italy’s Ambassador to Saudi Arabia, Carlo Baldocci, reflecting the high-level support backing the agreement.

The deal further advances SIC’s role as a gateway for institutional-grade industrial investment into Saudi Arabia, reinforcing its mandate to help build a globally competitive and resilient manufacturing sector.