Saudi Arabia puts AI at the core of its digital transformation: deputy minister

Mohammed Al-Robayan, deputy minister for technology at the Saudi Ministry of Communications and Information Technology. AN Photo by Abdulrahman bin Shalhoub
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Updated 12 February 2025
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Saudi Arabia puts AI at the core of its digital transformation: deputy minister

RIYADH: Saudi Arabia continues to prioritize artificial intelligence as a cornerstone of its digital transformation, a top official said.

In an interview with Arab News during the third edition of LEAP 2025, Mohammed Al-Robayan, deputy minister for technology at the Saudi Ministry of Communications and Information Technology, stated that the Kingdom is dedicated to ensuring robust computing infrastructure to fuel AI-driven innovation and economic diversification.

He underscored that AI is at the heart of Saudi Arabia’s digital transformation strategy, with unwavering support from the nation’s leadership, government agencies, and the private sector.

“It’s all about AI. It’s top of mind of our leadership. It’s top of mind of our ministry, of the different government entities that we collaborate with to achieve this agenda,” Al-Robayan said.

He continued: “It’s also top of mind of the private sector, which is extremely important, so AI is really important. We have to make sure that this computing power is available to our ecosystem here in Saudi Arabia. I would say this is the No.1 agenda item that we’re tackling.”

Al-Robayan also emphasized that a flourishing startup ecosystem is a vital element of the nation’s long-term digital strategy. He highlighted that supporting startups is key to cultivating a pipeline of companies with the potential to become unicorns—startups valued at over $1 billion.

“But another important part is the startup ecosystem here in Saudi Arabia. This is extremely important. This feeds into the pipeline of companies that eventually graduate to become unicorns,” Al-Robayan said.

He added: “We have seven unicorns already in the market, and you need to build the pipeline… We have multiple initiatives that we are working on.

Al-Robayan went on to say: “We have the National Technology Development Program. We have the Garage. They have been extremely helpful. They’re pumping a lot of money into this tech sector here in Saudi, and this has resulted in jobs, which is a big priority for us.”

The Kingdom is also experiencing substantial private sector investments in AI and technology, which are crucial for bolstering computational capacity and supporting economic diversification under Vision 2030. According to Al-Robayan, these investments will play a pivotal role in reshaping Saudi Arabia's technology landscape.

“These will enable us to, first of all, have different computer power that is necessary for the Kingdom to advance in its agenda. This is one of the highest priorities, technology and the adoption of technology,” he said.

He said the these initiatives will have a profound impact on the Kingdom and its efforts to diversify away from oil.

Additionally, ensuring a balanced regulatory framework is a key focus for the Ministry, as it strives to foster investment while protecting innovation.

“With regulation, you don’t want to overdo it—just enough to avoid stifling innovation. Protecting investments and ensuring the democratization of AI and compute power is critical,” Al-Robayan said.

Cybersecurity is another top priority, with Saudi Arabia positioning itself as a global leader in cyber defense. Al-Robayan stressed that collaboration with the National Cyber Security Agency plays a critical role in ensuring regulatory requirements are met early, offering clear guidelines for investors.

“Cybersecurity is extremely important, and you can imagine why and Saudi Arabia is one of the top-ranking countries in cybersecurity. This is also part of the education of the investors throughout the journey prior to announcing different investments. We don’t want any surprises to happen for them or for the market,” he said.

The Kingdom has already secured nearly $15 billion in tech investments announced at LEAP 2025, with more to come. Al-Robayan hinted at upcoming initiatives to further accelerate the Kingdom’s digital transformation.


Global brands shut Middle East stores as conflict causes chaos

Updated 03 March 2026
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Global brands shut Middle East stores as conflict causes chaos

  • Luxury brands and retailers close stores in Middle East
  • Conflict threatens the region that has ‌been luxury’s fastest growing
  • Mass-market retailers monitor situation, adjust operations in region

PARIS: In Dubai and other major Middle Eastern shopping hubs, many stores are closed or operating with a skeleton staff as the escalating conflict in the ​region causes chaos for businesses and travel.

The US-Israeli air war against Iran expanded on Monday with no end in sight, with Tehran firing missiles and drones at Gulf states as it retaliates for a weekend of bombing that killed Iran’s supreme leader and reportedly killed scores of Iranian civilians, including a strike on a girls’ primary school.

Chalhoub Group, which runs 900 stores for brands from Versace and Jimmy Choo to Sephora across the region, said its stores in Bahrain were closed, while other markets, including the UAE, Saudi Arabia, and Jordan remained open though staff attendance was “voluntary.”

“We operate with a lean team formed of members who volunteered and feel comfortable to come to the store,” Chalhoub’s Vice President of Communications Lynn al ‌Khatib told Reuters, adding ‌that the company’s leadership team personally visited Dubai Mall and Mall of the Emirates ​on ‌Monday ⁠morning to check ​in ⁠with workers.

E-commerce giant Amazon closed its fulfillment center operations in Abu Dhabi, suspended deliveries across the region and instructed its employees in Saudi Arabia and Jordan to remain indoors, Business Insider reported on Monday, citing an internal memo.

Gucci-owner Kering said its stores were temporarily closed in the UAE, Kuwait, Bahrain and Qatar and it has suspended travel to the Middle East.

Luxury growth engine under threat

Shares in luxury groups LVMH, Hermes, and Cartier-owner Richemont were down 4 percent to 5.7 percent on Monday afternoon as investors digested the knock-on impacts of the conflict.

The Middle East still accounts for a small share of global spending on luxury — between 5 percent and 10 percent, according ⁠to RBC analyst Piral Dadhania. But the region was “luxury’s brightest performer” last year, according to consultancy ‌Bain, while sales of expensive handbags have stalled in the rest of the ‌world.

Now, shuttered airports have put an abrupt stop to tourism flows into ​the region and missile strikes — including one that damaged Dubai’s ‌five-star Fairmont Palm hotel — are likely to dissuade travelers, particularly if the conflict drags on.

“If you assume that it’s ‌a $5 billion to $6 billion (travel retail) market and let’s say it’s going to be shut down for a month, we are talking about hundreds of millions of dollars that are definitely at risk,” said Victor Dijon, senior partner at consultancy Kearney.

If Middle Eastern shoppers cannot travel to Paris or Milan, that could also hurt luxury sales in Europe, he added.

Luxury brands have been investing in lavish new stores and exclusive events ‌across the region. Cartier unveiled a “high-jewelry” exhibition in Dubai’s Keturah Park just days before the conflict started.

Cartier and Richemont did not reply to requests for comment.

Luxury conglomerate LVMH ⁠has also bet big on ⁠the region. Last month, its flagship brand Louis Vuitton staged an exhibition at the Jumeirah Marsa Al Arab hotel, and beauty retailer Sephora launched its first Saudi beauty brand.

LVMH does not report specific figures for the region, but in January Chief Financial Officer Cecile Cabanis said the Middle East has been “displaying significant growth.” LVMH did not reply to a request for comment on how its business may be impacted by the conflict.

The Middle East has also attracted new investment from mass-market players. Budget fashion retailer Primark said in January that it plans to open three stores in Dubai in March, April and May, followed by stores in Bahrain and Qatar by the end of the year.

“Primark is set to open its first store in Dubai at the end of March but clearly this is a fast-moving situation which we are monitoring closely,” a spokesperson for Primark-owner Associated British Foods said.

Apple stores in Dubai will remain closed until Thursday morning, the company’s website showed, while Swedish fast-fashion retailer ​H&M said its stores in Bahrain and Israel are ​closed.

Consumer goods group Reckitt has told all employees in the Middle East to work from home, temporarily closed its Bahrain manufacturing site and suspended all business travel to the region until further notice.