Global AI Hub Law: Positioning Saudi Arabia as a Global Digital Hub

On April 14, 2025, the Public Consultation Platform published the draft version of the Global AI Hub Law. Below are the economic impacts of this project on the Kingdom of Saudi Arabia, summarized in bullet points:

1. Enhancing the Kingdom’s position as a Global Digital Hub: This initiative will position Saudi Arabia as a pioneer in advanced technology by fostering an attractive environment for foreign governments and private sector entities to develop and adopt cutting-edge technologies. It will lead to increased Foreign Direct Investment (FDI) from countries and tech companies seeking sovereign and secure data hosting. It will also create jobs in technology, regulation, and infrastructure sectors, while boosting non-oil revenues, aligning with Vision 2030 diversification goals.
2. Maximizing the benefits of the kingdom’s Strategic geographical location: By connecting three continents, Saudi Arabia will offer integrated technology solutions that benefit global businesses and consumers. The location provides optimal latency and connectivity for global AI and cloud services, promoting growth in the regional cloud and AI services market and strengthening trade routes in logistics and digital infrastructure.
3. Exporting Digital Sovereignty as a service: The Kingdom can monetize secure and compliant data hosting services, positioning itself as a jurisdiction-neutral global hub, similar to financial centers like DIFC in Dubai. This model offers a unique value proposition to global organizations seeking politically neutral and secure data environments.
4. Infrastructure and cloud economy development: The law will catalyze growth in hyperscale data center investments. For example, during LEAP25, KKR and Gulf Data Hub announced major investments in the Kingdom’s data center development. Salesforce committed $500 million to expand its Hyperforce platform, and Tencent Cloud pledged $150 million to establish its first regional cloud infrastructure in Saudi Arabia.
5. Strengthening Bilateral and Multilateral Relations: The law will help establish long-term, stable relationships that extend beyond trade into technology, R&D, education, and cybersecurity. It will introduce new tools for economic diplomacy, with AI legislation serving as a lever for broader global economic collaboration.
6. Support for Innovation and Research and Development: The establishment of AI and digital innovation zones will attract startups and researchers. This creates opportunities for Saudi Arabia to license, commercialize, and export homegrown AI solutions. It will also foster human capital development in AI, engineering, and cybersecurity through local employment and training programs.
7. Digital Security as a National asset: Saudi Arabia will build a competitive edge with “secure-by-design” data services, attracting clients from sensitive sectors such as finance and defense. This will accelerate the development of domestic cybersecurity capabilities and services, reinforcing national digital resilience.

In Conclusion, the Global AI Hub Law represents a strategic and essential choice for Saudi Arabia to lead in the AI and data economy. It is not only a regulatory milestone but a transformative economic enabler that will reinforce the Kingdom’s position at the forefront of global digital leadership.