Saudi Arabia has entered the world’s top 10 for private artificial intelligence investment, according to the World Bank’s latest assessment. The World Development Report 2026, titled “The Promise of Artificial Intelligence,” highlights the Kingdom’s growing role in the global AI setting.
Investment and Infrastructure Growth
The international recognition reflects support from the Kingdom’s leadership through an integrated national approach established by Saudi Vision 2030. The report points out that “The Kingdom has become an attractive destination for AI talent and a model for government data integration.”
Under the concentration dimension, which examines the concentration of advanced AI infrastructure and related investment, the report noted that Saudi Arabia combines tax incentives with special economic zones to attract investment in data centers and build compute capacity. This national approach links capital attraction with the development of a broader ecosystem encompassing talent, startups, energy, and the infrastructure required to support the growth of AI applications.
Data center capacity increased from 68 MW in 2021 to 440 MW in 2025, before rising further to 467 MW in the first quarter of 2026. That is a nearly sevenfold increase compared with 2021. Meanwhile, 4G and 5G network coverage reached 99 percent by the end of 2025, with average internet speed hitting 216 Mbps. These figures provide the physical groundwork for cloud services and AI applications to scale.
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The World Bank’s analysis suggests that creating a thriving digital economy requires more than just hardware. It demands a coordinated strategy that connects physical infrastructure with human capital and policy frameworks. This holistic view helps explain why the Kingdom has managed to accelerate its digital transformation so rapidly.
Building the Workforce
Saudi Arabia’s ability to attract specialized talent is a key factor in its rise. In 2025, the Kingdom was among the economies with the highest net inflows of AI professionals per 10,000 LinkedIn members, alongside Luxembourg, Australia, and Switzerland. The report also notes a net inflow of 3.08 among leading AI authors and innovators in the same year.
This momentum is accompanied by continued growth in the Kingdom’s national talent base. Saudi Arabia’s technology workforce has grown to approximately 426,000, representing cumulative growth of 186.6 percent compared with 2018, when it stood at 150,000.
Building a digital economy is not just about adding servers or hiring engineers; it requires changing how government data flows. Saudi Arabia’s experience presents a model for this transition. The report highlights a platform operated by the Saudi Data and Artificial Intelligence Authority (SDAIA) that enables data integration across more than 60 government entities while allowing the data to remain within their respective systems. This approach to structured data exchange strengthens governance, trust, and data protection.
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For the people working within these systems, this shift represents a practical change in how daily operations function. When government agencies can share data securely without siloing information, the resulting applications are more responsive and efficient. It moves the focus from isolated departments to a unified digital environment where services can be delivered faster and with fewer administrative hurdles.
Global Recognition
Progress is visible across the digital economy, which contributed 16 percent of GDP in 2025. The communications and information technology market reached SR199 billion that year. Saudi Arabia also ranked second globally in the World Bank Group’s 2025 GovTech Maturity Index.
The preparation of the report also reflects the Kingdom’s active presence in the international dialogue on artificial intelligence policy. The report’s High-Level Advisory Panel included Minister of Communications and Information Technology Abdullah Alswaha. The report team also benefited from consultation sessions involving the Saudi Competitiveness and Business Center and the WBG–Saudi Arabia Knowledge Hub.
The Cabinet’s approval, during its session chaired by Crown Prince and Prime Minister Mohammed bin Salman on March 10, 2026, to designate 2026 as the “Year of AI” in Saudi Arabia confirms the national focus on these technologies. The findings affirm that Saudi Arabia is advancing an integrated approach in the intelligent era, bringing together investment in infrastructure, compute and data, talent development, and the regulatory environment.
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