In a strategic move toward diversification, Saudi Arabia is attracting major global tech players to invest over $9 billion in building cloud computing centers within its borders. This significant pivot from big oil to big tech is aligned with Saudi Arabia’s ambitious Vision 2030 initiative, aiming to position the country as the largest digital market in the Middle East and North Africa. Microsoft leads the pack with a substantial $2.1 billion investment, followed by Oracle contributing $1.5 billion, and Huawei, the Chinese tech giant, investing $400 million.
The investments were unveiled by Saudi Minister of Communication and Information Technology Abdullah Alswaha at the LEAP technology conference in Riyadh. Alswaha emphasized that these investments would play a pivotal role in transforming Saudi Arabia into a prominent digital hub. While specific timelines for the investments are yet to be disclosed, Oracle indicated that its funds would be allocated over several years.
These partnerships are not merely financial transactions; they signify a broader collaboration between the Saudi government and tech giants. Alswaha is enticing companies with lucrative government contracts, and it’s speculated that the Saudi government might be offering prime real estate at a favorable cost to establish cloud computing centers in the capital city, Riyadh.
Saudi Arabia’s tech-centric vision is not confined to cloud computing investments. NEOM, a subsidiary of Saudi Arabia’s architecture, engineering, and sustainability conglomerate, has made a notable $1 billion investment in artificial intelligence and the metaverse. NEOM gained global attention with its ambitious project, “The Line,” a futuristic mega-city spanning 105 miles in the Saudi Arabian desert. Despite facing skepticism, The Line broke ground in October, highlighting Saudi Arabia’s commitment to embracing technological innovation.
As the country strategically navigates away from its reliance on oil, these substantial tech investments underscore Saudi Arabia’s determination to embrace a digital future. The convergence of global tech leaders in the kingdom signals a transformative journey toward technological prominence, shaping the landscape of the Middle East and North Africa.