A Show of Investment and Technological Advancement in Saudi Arabia
Introduction to LEAP
LEAP 2025, currently being conducted at the Riyadh International Exhibition and Convention Centre in Malham, represents a significant technological conference that has attracted over 200,000 attendees and 1,500 exhibitors. The event features in excess of 1,000 expert speakers across 15 stages, addressing various technological sectors. A notable addition to this year’s program is the Sports Tech track, which facilitates discourse between industry leaders, athletes, and investors regarding technological innovation in athletics. The initial two days of the conference, which continues until February 12, have generated substantial investment commitments totaling $22.4 billion, which demonstrates Saudi Arabia’s emerging position in global technology development. The conference encompasses more than 20 technology tracks, addressing multiple fields including financial technology, smart cities, health technology, the Fourth Industrial Revolution, retail, and sports technology, with additional tracks specifically focused on Saudi Vision 2030.
Day One: Investment Analysis and Strategic Partnerships
The inaugural day of LEAP 2025 resulted in investment agreements valued at $14.9 billion. A significant development emerged through the partnership between Chinese computer manufacturer Lenovo and PIF-backed technology company Alat. This collaboration encompasses the establishment of a manufacturing facility in Riyadh for the production of Saudi-manufactured laptops and desktops, scheduled to commence operations in 2026. The facility is projected to generate 15,000 direct employment positions and 45,000 indirect jobs. This development follows Alat’s strategic investment of $2 billion in Lenovo through three-year, zero-coupon convertible bonds.
In the artificial intelligence sector, Aramco Digital established a $1.5 billion partnership with U.S.-based Groq for the expansion of AI-powered cloud computing capabilities. This agreement builds upon their previous collaboration aimed at developing the world’s largest AI inferencing data centre. The artificial intelligence sector witnessed additional significant developments through SambaNova Systems’ $140 million investment in Saudi infrastructure for AI and semiconductor advancement. Furthermore, Google announced its intention to establish a global AI hub, while both Qualcomm and Alibaba Cloud presented substantial AI-focused initiatives.
The digital infrastructure sector experienced considerable expansion through multiple strategic investments. Tencent Cloud committed $150 million to infrastructure development, with plans to establish operational facilities within Saudi Arabia during the current year. Databricks allocated $300 million toward payment infrastructure development following their December announcement of Saudi Arabian market entry. Data Volt, in collaboration with NEOM, presented a $5 billion investment plan for the creation of a sustainable AI data centre in OXAGON, featuring a 15-gigawatt capacity. Alfanar committed $1.4 billion to establish four data centres with a combined capacity of 88 megawatts, aimed at stimulating digital economic growth within Saudi Arabia.
Mobily announced a $905 million investment in crucial projects, including submarine cable networks and advanced data centres. The company has completed 13 megawatts of its planned 39-megawatt data centre capacity, with commercial operations scheduled to commence by the end of the first quarter. Their submarine cable investment focuses on connecting Africa and the Gulf to the Red Sea, strengthening regional digital infrastructure. Additionally, Zoom committed $75 million toward AI innovation and data centre establishment, providing support for technological enterprises and government entities in the region.
Day Two: Technological Infrastructure and Development
The second day of LEAP 2025 maintained significant momentum with $7.5 billion in additional investments. Saudi Arabia Railways invested $51 million in private fiber-optic network development to enhance digital connectivity and communication infrastructure. SkyFive Arabia announced a $100 million investment in non-terrestrial network services, focusing on Advanced Air Mobility solutions. The initiative aims to connect over 1,000 aircraft and provide high-speed 100 megabits per second connectivity, comparable to residential broadband speeds.
Hewlett Packard Enterprise revealed expansion plans for the “Made in KSA” initiative, including the localization of HPE Aruba solutions. The program anticipates annual production exceeding 20,000 units, projecting a 30% improvement in national supply chain efficiency. Redington, a global technology aggregator with 24 years of operational history in Saudi Arabia, announced a $553.3 million investment over the next decade for establishing new headquarters, a smart distribution centre, and talent development programs.
A significant telecommunications advancement emerged through the partnership between Zain KSA and Nokia, formalized through a Memorandum of Understanding for the development of 5G and 5G-Advanced solutions utilizing Cloud RAN and AI RAN technologies. This collaboration aligns with Zain KSA’s strategic objective of implementing cutting-edge technologies to enhance network efficiency. The Cloud RAN implementation will provide flexible and scalable infrastructure, while AI RAN enables advanced automation and real-time data analytics, ultimately improving user experience and operational efficiency. This infrastructure development serves as a foundational element for next-generation technologies including 6G, IoT, and AI applications.
In the automotive sector, ROX Motor, a Chinese luxury new energy vehicle brand, marked its entry into the Saudi market with the introduction of its luxury all-terrain SUV, ROX 01, and the inauguration of its first Saudi showroom in Riyadh. This market entry aligns with Vision 2030’s objectives for sustainable mobility advancement.
SEVEN, a PIF subsidiary, formed a strategic agreement with TAWAL to develop neutral digital infrastructure across 21 entertainment destinations. This partnership encompasses internal and external telecommunications infrastructure development, including indoor coverage systems and neutral communication towers, supporting 4G and 5G connectivity and IoT applications.
Qualcomm Technologies and Aramco Digital announced their collaboration to develop the world’s first AI-enabled industrial 5G smartphones supporting the 450-megahertz spectrum. This development targets industrial applications, particularly in energy, utilities, and remote operations sectors. IBM and Lenovo expanded their technological partnership to accelerate generative AI adoption, integrating IBM’s Watsonx AI portfolio with Lenovo’s infrastructure and incorporating the Saudi Data and Artificial Intelligence Authority’s Arabic Large Language Model.
EDGNEX, DAMAC Group’s digital infrastructure division, announced plans to develop 500 megawatts of data centre capacity across Saudi Arabia by 2030. The company’s expansion strategy includes operations in Riyadh and Dammam, with an emphasis on local vendor engagement and technology job creation. NEOM’s Deputy CEO Rayan Fayez emphasized the significance of the first net-zero 1.5-gigawatt data centre in OXAGON, noting how this development, supported by previous investments in green hydrogen, reinforces the Kingdom’s dedication to renewable energy and sustainable urban development.
Day Three: Technological Innovations Revolutionizing Industries
The final day of LEAP 2025 continued the trends towards major strides in boosting AI operations, data centre capabilities, and harnessing the technological talents in KSA. The third day generated an additional $1.78 billion in investments, with particular emphasis on start-ups, sector disruption, and sports technology advancement. Equinix announced a significant $1 billion investment to establish the region’s largest data centre in Saudi Arabia. The day witnessed substantial support for entrepreneurial initiatives, with investments exceeding $695 million allocated to start-ups, AI technologies, esports, and innovation solutions.
The gaming sector received substantial attention through the HGM Fund’s $300 million investment in game development in Saudi Arabia, targeting both local and international markets. The National Technology Development Program initiated accelerators and financing funds valued at $150 million to facilitate technology company growth. Additional funding initiatives included Joa Capital’s $80 million infrastructure fund in partnership with Buildnow Trading, Ula Capital’s $75 million fund focused on applied AI and deep tech ventures, Sharaka Financials’ $30 million start-up support fund for the MENA region, and Orbit Startups’ $60 million accelerator program in collaboration with Sanabil Investments.
Significant developments in technological education and workforce development emerged through initiatives by leading technology companies. Microsoft established the region’s first Datacentre Academy in partnership with NITA, contributing to a broader initiative aimed at training 60,000 national talents in AI and advanced technologies. The Communications, Space & Technology Commission advanced its sandbox initiative, facilitating technology testing and scaling for innovators and start-ups through the completion of Cohort 2 and the launch of Cohort 3.
The sports technology sector received particular attention, especially concerning the FIFA 2034 World Cup. Discussions centred on technological applications for enhancing live viewing experiences, athlete performance, and operational efficiency. The conference highlighted the growing integration of AI in sports, noting its implementation in 85% of sports events and its transformative impact on football operations, including clubs, coaches, and players. The discourse also addressed the challenge of infrastructure development keeping pace with the tripling demand for football in Saudi Arabia.
Conclusion
The initial two days of LEAP 2025 demonstrate substantial progress in Saudi Arabia’s technological development strategy. The conference has successfully facilitated significant international investments and strategic partnerships across various technological sectors. The cumulative investment of $22.4 billion represents a tangible commitment to Saudi Arabia’s digital transformation objectives and economic diversification goals aligned with Vision 2030. The participation of 680 start-ups and the conference’s comprehensive coverage of technology tracks, including financial technology, smart cities, health technology, and the Fourth Industrial Revolution, establishes LEAP 2025 as a crucial platform for technological advancement in the region.
Sources
https://www.informa.com/leap-2025/
https://www.arabnews.pk/node/2589798/business-economy
