Saudi Arabia Turns to AI as Megaprojects Slow

Date: 26 November 2025 - 22:47

News ID: ۱۴۶۱۹۶

RIYADH (Dispatches) -- Saudi Arabia is accelerating its shift toward artificial intelligence (AI) as part of a broader recalibration of Vision 2030, with state-backed tech partnerships and foreign investment initiatives increasingly taking precedence over the kingdom’s flagship real estate megaprojects, Al-Monitor reported.
In recent months, Riyadh has openly positioned AI at the center of its development strategy, as was underscored by Crown Prince Muhammad bin Salman’s (MbS) visit to Washington, where AI partnerships and semiconductor agreements were central to the discussions alongside other geopolitical topics such as the conditions for normalization with Israel.
The renewed emphasis reflects pressure from tightening foreign direct investment, which has slowed progress on projects such as Neom and Diriyah, prompting Saudi policymakers to adopt AI as a faster, more cost-efficient vehicle for economic transformation.
This pivot was visible at last month’s Future Investment Initiative (FII) gathering in Riyadh, where Humain, a Public Investment Fund–owned AI company, drew more attention than the gigaprojects themselves.
Saudi officials and developers used the event to outline new ventures that merge AI with real estate development – two foundational pillars of Vision 2030 – with the aim of building infrastructure that is more sustainable, data-driven, and aligned with long-term demographic and investment goals.
Among the major announcements at FII was a $100-million partnership between Saudi developer Arabian Dyar and Google, focused on integrating AI and big-data analytics into property development and market intelligence.
Parallel to this was the rise of NeoCity, a consortium-backed initiative launched in September by investor Aya Zaghnin alongside Saudi firms Aqar and Retal, and funded by the National Technology Development Program (NTDP) – a state agency.
Experts believe that the Saudis’ prioritization of AI projects is a sign of stagnation and practical failure in the kingdom’s ambitious projects such as Neom, which has led to the country’s realistic decision-making in these fields.