Google Courts Saudi Arabia and UAE as it ramps up its presence across MENA, promising significant domestic job growth creation, regional dominance in AI and alignment on wealth diversification according to KSA’s and UAEs 2030 Agendas.
Announced at the Future Investment Initiative (FII) 8th Edition in Riyadh late October 2024, this collaboration between PIF and Google Cloud marks a strategic move to position Saudi Arabia as a prominent player in the global AI and technology sectors.
According to PIF Governor Yasir Al Rumayyan, the hub will feature advanced infrastructure, including Google’s tensor processing units and graphics processing units which will enable the delivery of high-performance AI applications and solutions across a range of industries. It aims to address a rising demand for cloud and AI services, providing regional and international enterprises with critical infrastructure to meet their technological needs.
The AI hub is expected to create thousands of jobs in Saudi Arabia too; there is an opportunity to foster a digital ecosystem to attract tech talent and investment to the region, reinforcing Saudi Arabia’s broader Vision 2030 goals to reduce dependence on oil and build a diversified, knowledge-based economy.
KSA’s renewable energy reserves are anticipated to play a vital role in sustaining the power demands of the AI hub, underscoring a significant convergence between the region’s low cost energy resources and its digital ambition.
Commenting on the partnership, PIF Governor Yasir Al-Rumayyan says that KSA is in a prime position to ride the AI boom.
“This partnership demonstrates PIF’s dedication to fostering an AI-friendly environment through investments in human capital and technology, upskilling thousands with cutting-edge tools to support our sustainable and innovative infrastructure goals. Saudi Arabia is a prime location for global tech partners as PIF brings both sector expertise and a long-term approach to investment,” says Al-Rumayyan.
Al-Rumayyan also claims that the partnership underscores a commitment to developing AI solutions that are tailored to the Saudi market, including Arabic language models, which will be a primary area of focus.
To this end, Google’s expertise in ML and natural language processing will be directed toward creating applications that are culturally relevant and accessible to Arabic-speaking users.
Commenting on behalf of Google and Alphabet President and CIO Ruth Porat claims that this partnership will accelerate AI adoption across multiple industries in MENA.
“This strategic partnership will accelerate adoption of AI in the local language and across industries — including healthcare, retail, financial services, and more — for enterprises and startups in Saudi Arabia, across the Middle East, Africa, and around the world. As part of Saudi Arabia’s rich technology ecosystem, we aim to create highly skilled jobs for Saudis and opportunities for global businesses to fuel growth through cloud adoption,” says Porat.
The PIF-Google Cloud partnership’s scope includes not only infrastructure development but also workforce upskilling. With a focus on creating a sustainable talent pipeline in AI and cloud technologies, Google and PIF plan to provide educational programs and training initiatives.
Google claims that these efforts are designed to equip students and professionals in Saudi Arabia with the skills needed to participate in a rapidly evolving digital economy, as well as to boost the inclusion of women in the workforce. By building expertise in emerging fields, the initiative aims to generate both immediate job opportunities and long-term career prospects for the Saudi workforce.
Research commissioned by Google Cloud and conducted by Access Partnership, a global tech policy advisory firm, estimates that the AI hub could add an approximate USD 71 billion to Saudi Arabia’s GDP over the next eight years.
Geopolitically, this partnership is significant. The PIF-Google Cloud initiative illustrates a new chapter in US – KSA relations, with a shift from traditional energy-based cooperation toward technology and digital economy partnerships.
This shows an evolving model of collaboration between the Gulf and US Tech firms which are underscored by support from the US Government and its national security interests within the tech sector.
The PIF-Google Cloud partnership appears to be more than a commercial endeavour; it is a strategic alignment of technological innovation, workforce development, and economic diversification that has the potential to shape Saudi Arabia’s role in the global digital economy.
KSA is not the only nation courting Google. Early November, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, meet with Porat in Dubai and discussed ways to strengthen the UAE’s partnership with Alphabet and Google too.
Commenting on the meeting, Sheikh Hamdan underscored the UAE’s commitment to shaping a new future driven by the integration of advanced digital technologies across sectors.
“The UAE is committed to be at the forefront of global digital transformation and become an international centre of excellence for future industries. Powered by a robust infrastructure and dynamic growth-friendly environment, Dubai has emerged as a major hub for the world’s top technology players to collaborate, unlocking new opportunities for growth, innovation and value creation in the digital sector,” says HH Al Maktoum.
According to HH Al Maktoum, future-oriented technologies like AI are key to reaching Dubai’s Economic Agenda D33’s goal of generating AED100 billion in annual economic value through digital transformation over the next decade.
The meeting also covered Google’s AI Opportunity Initiative in the MENA region, which pledges USD 15 million to promote wider accessibility to AI opportunities, specifically, the initiative aims to empower half a million individuals with AI skills within the next two years.
Notes from the Editor: Google opened its regional headquarters in Dubai in 2008, whereby it manages all its operations across MENA. Alphabet, Google’s parent company, reported global revenues of over USD 307 billion in 2023. The company’s revenues increased 15% to USD 88.27 billion in the July-September quarter of 2024.
