Saudi Arabia has unveiled plans for the Hexagon Data Centre, a $2.7 billion (AED 9.9 billion) project set to become the world’s largest government-owned data facility and a central pillar of the Kingdom’s Vision 2030 digital transformation agenda.

Certified at the Tier IV level—the highest global standard for data centre reliability—the Hexagon facility is designed to underpin the rapid expansion of digital government services and reinforce Saudi Arabia’s position as a data-driven economy.

The initiative reflects Riyadh’s broader commitment to achieving technical sovereignty, securing national data assets, and driving economic diversification beyond oil.

Strategically located in Riyadh, the Hexagon Data Centre spans more than 30 million square feet and will operate with a capacity of 480 megawatts. Equipped with advanced technologies, the facility will serve as the backbone of Saudi Arabia’s digital infrastructure, supporting vital development sectors and positioning the Kingdom as a leading global hub for high-performance data services.

The project aligns with the objectives of the Saudi Data and Artificial Intelligence Authority (SDAIA) and the nation’s Vision 2030 reform program, championed by Crown Prince and Prime Minister Mohammed bin Salman.

Saudi Arabia has already earned the top global ranking for government AI strategy, according to the Global AI Index, underscoring the Kingdom’s growing prominence in global technology leadership.

Since its establishment in 2019, SDAIA has spearheaded the Kingdom’s national data and AI agenda, overseeing policies on data governance, big data analytics, and AI regulation. The authority has built the region’s most advanced integrated data ecosystem, supported by a robust legislative framework that includes the Personal Data Protection Law, AI adoption standards, and global best practices for responsible technology use.

The Hexagon Data Centre will anchor a nationwide network of interconnected facilities designed to ensure maximum uptime and operational resilience. SDAIA estimates that the project will generate an economic impact exceeding SAR 10 billion ($2.67 billion) and achieve annual cost savings of SAR 1.8 billion ($480 million), supporting non-oil growth and accelerating digital maturity across government services.

Sustainability and efficiency lie at the heart of the project’s design. The facility integrates advanced cooling and energy management systems—including direct liquid and hybrid cooling—to minimize environmental impact.

Powered in part by renewable energy, Hexagon has earned the U.S. Green Building Council’s LEED Gold certification and international accreditation under the TIA‑942 and ISO/IEC 22237 standards. Its Tier IV certification guarantees an exceptional 99.995% operational availability.

The centre is expected to reduce carbon emissions by roughly 30,000 tonnes annually, host more than 290 government systems, and serve as a critical platform for deploying AI solutions and digital technologies across both the public and private sectors.

Complementing the project, Saudi Arabia continues to expand its artificial intelligence ecosystem through initiatives such as Humain, a newly established company backed by the Public Investment Fund (PIF) and Aramco. Created to advance the Kingdom’s AI ambitions, Humain aims to position Saudi Arabia among the world’s top three nations in AI infrastructure, alongside the United States and China.

The launch of the Hexagon Data Centre marks a significant milestone in Saudi Arabia’s evolution into a global technology powerhouse, reinforcing its long-term vision of sustainable, data-driven economic growth under Vision 2030.

U.S. Urges Saudi Arabia to Prioritize American Defense Systems Amid Regional Partnerships
Washington is encouraging Saudi Arabia to focus its advanced fighter jet acquisitions on U.S.-made platforms, amid reports of Riyadh's ongoing discussions with Turkey and Pakistan on alternative programs.

American officials express reservations about Saudi Arabia's diversification efforts, fearing they could diminish demand for U.S. arms exports, including the recently confirmed F-35 sales endorsed by President Donald Trump during high-level engagements. Diplomats seek greater clarity on Riyadh's technical collaborations across the region to safeguard longstanding defense ties.

Following U.S. advocacy, Saudi Arabia has committed to forgoing purchases of Pakistan's JF-17 Thunder aircraft, effectively pausing prior talks that linked jet supplies to debt relief for Islamabad.

Current deliberations center on Saudi Arabia's potential role in Turkey's KAAN fifth-generation fighter development, where no similar assurances have been extended to Washington. With the Kingdom's robust inventory of F-15s and Eurofighter Typhoons already in service, Pentagon assessments question the strategic value of such diversification.

These developments occur as Saudi Arabia strengthens trilateral defense frameworks with Pakistan and Turkey, underscoring evolving regional security dynamics while the Trump administration reaffirms its commitment to exclusive U.S. supply primacy.

Saudi Arabia’s hospitality industry is entering a dynamic new phase of expansion, with around 94,500 hotel rooms currently under construction or in the final stages of planning. This growth builds on an existing base of 171,650 rooms, reflecting the rapid transformation underway across the Kingdom’s travel and tourism landscape.

The latest Saudi Report by global property consultancy Knight Frank highlights how the sector’s evolution mirrors the country’s wider economic diversification, with 2024 marking a particularly strong year as travel and tourism grew by 32 percent.

Robust performance and record spending

According to Oussama El Kadiri, Partner and Head of Hospitality, Tourism & Leisure Advisory for MENA at Knight Frank, the market’s momentum is being fueled by a mix of government-led reforms, private sector investment, and changing consumer behaviors.

In 2024, the tourism sector contributed SAR444.3 billion to the Saudi economy, accounting for 11.5 percent of GDP, the highest proportion in the region. Early 2025 figures continue that trend, with international visitor spending rising 9.7 percent year-on-year to SAR49.4 billion, and total tourism expenditure reaching SAR284 billion, up 11 percent.

Saudi Arabia welcomed 29.7 million international visitors in 2024—an 8 percent increase—alongside 86.2 million domestic trips, up 5 percent from the year before. International travelers accounted for SAR169 billion of total spending, a 19 percent jump compared to 2023.

“Saudi Arabia’s tourism scene is evolving fast, powered by higher-value travelers and world-class hospitality projects being delivered under Vision 2030,” said Faisal Durrani, Partner and Head of Research, MENA at Knight Frank. “The government has now raised its 2030 target from 100 million to 150 million annual visitors, with religious tourism expected to make up about one-third of that figure.”

Religious and leisure travel on the rise

Religious tourism remains the backbone of the market. In 2024, the Kingdom hosted 1.8 million Hajj pilgrims and 35.7 million Umrah pilgrims, including 16.9 million international visitors—a 25 percent increase and the highest number ever recorded.

At the same time, leisure travel is expanding rapidly. Non-religious international travelers now account for 59 percent of arrivals, up from 44 percent in 2019. Spending on holiday and leisure trips alone reached SAR36.4 billion in 2024.

Asia continues to lead as the top source region with 9.7 million visitors, followed by Egypt (3.2 million), Pakistan (2.8 million), and Bahrain (2.6 million).

Expanding hotel supply

Between January and August 2025, the average daily hotel rate nudged up to SAR746 ($199), while occupancy levels rose to 61 percent, pushing revenue per available room up by 1.3 percent. By September 2025, Saudi Arabia’s total quality hotel inventory reached 171,650 rooms, with an additional 18 percent increase expected by 2027.

Nationwide, about 358,000 new hotel rooms are in the pipeline. Four major “mega-projects” are leading this expansion, particularly in the holy cities and key urban centers:

• Rua Al Haram – over 70,000 keys

• Rua Al Madinah – around 47,000 keys

• Knowledge Economic City – about 42,000 keys

• Masar Makkah – roughly 41,000 keys

Domestic travel trends

Domestic tourism remains the largest segment, with Saudi citizens making up 74.3 percent of visitors in 2024. Roughly one in three Saudis travels within the Kingdom every two to three months, a number that rises to half among those earning more than SAR80,000 monthly.

Staycations are now a major trend:

• 36 percent favor long weekend trips (4–6 days)

• 20 percent take full-week stays

• 67 percent of high earners prefer 7–10-day getaways

Since 2019, around 250,000 Saudis have relocated to Riyadh, largely due to the city’s strong job market—it has accounted for two-thirds of new employment opportunities since then.

Favorite domestic destinations include:

• Makkah – the most visited city (42%)

• Riyadh – most popular among high earners (61%), tied with Jeddah (40%) as key business and cultural centers

• Dammam Metropolitan Area – 16 percent

• Abha (24%), Taif (22%), and Al-Ula (20%) – appreciated for their cooler climate and heritage attractions

Rising demand for high-end hospitality

Currently, around 60 percent of Saudi Arabia’s hotel rooms fall under luxury, upper-upscale, or upscale categories—a share expected to rise to 76 percent by 2030. This shift reflects growing consumer preferences, with 83 percent of travelers favoring four- or five-star stays.

Serviced apartments have also gained popularity, representing 22 percent of total stays, while resorts have grown to 11 percent, helped by ongoing Red Sea projects that will add about 8,000 rooms by 2030.

El Kadiri summed up the trend, saying:
“Saudi Arabia’s tourism and leisure industry is on the verge of historic change. By merging pilgrimage, heritage, and modern leisure experiences, the Kingdom is building a tourism identity where luxury meets authenticity—and ambition meets results.”

Saudi Arabia continues to solidify its role as a major global aviation center, with several of its air routes earning places among the busiest in the world for 2025, based on updated rankings by OAG, the leading international aviation data firm.

The achievement highlights the Kingdom’s accelerating progress in civil aviation, fueled by expanding airport capacities, a surge in passenger traffic, and greater operational efficiency. These developments stem from the Aviation Program — a key initiative within the National Transport and Logistics Strategy — and reflect the broader goals of Saudi Vision 2030 to enhance connectivity and economic diversification.

According to OAG’s 2025 report, the Jeddah–Riyadh domestic route secured the fifth spot globally among the busiest air routes, with a total of 9.8 million seats available. It saw a 13% increase compared to the previous year and a 22% rise compared to 2019, underscoring the route’s pivotal role in domestic travel.

On the international front, the Cairo–Jeddah route ranked second worldwide, offering 5.8 million seats in 2025. This route recorded a 5% annual increase from 2024 and an impressive 71% jump relative to 2019 levels, reaffirming the strong and growing passenger demand between Saudi Arabia and Egypt.

Meanwhile, the Dubai–Riyadh connection claimed the seventh position among the world’s busiest routes, with a total capacity of 4.5 million seats. The route posted a 4% year-on-year growth and a 42% expansion compared to 2019, reflecting strengthened ties with one of the region’s most active travel markets.

These strong showings underscore the success of initiatives led by the General Authority of Civil Aviation (GACA) in partnership with stakeholders across the aviation sector. The ongoing efforts to boost connectivity, streamline operations, and extend global reach have positioned Saudi airports as competitive hubs that serve both tourism and business travel needs.

The recognition of Saudi air routes among the world’s top performers highlights the profound transformation underway in the Kingdom’s aviation sector — strengthening its contribution to national development and consolidating its standing as a key gateway for international air transport.

The Kingdom of Saudi Arabia, through the General Authority of Civil Aviation (GACA), took part in the Changi Aviation Summit 2026 and the Singapore Airshow, held in Singapore from 1 to 3 February 2026.

The Saudi delegation was headed by His Excellency the Minister of Transport and Logistics Services and Chairman of GACA’s Board of Directors, Eng. Saleh bin Nasser Al-Jasser, and included the President of GACA, Abdulaziz bin Abdullah Al-Duailej, alongside senior executives and experts from the aviation, airport management, aviation services, and Air Connectivity Program (ACP) sectors.

The Kingdom’s participation reflects its continued commitment to maintaining a strong presence in prominent international aviation gatherings and contributing to global dialogue on the future of the aviation industry.

Saudi Arabia’s engagement in the Changi Aviation Summit demonstrates its dedication to expanding international collaboration and assuming an influential role in the development of civil aviation. The summit provides a high-level forum for policymakers and industry leaders to address evolving challenges and opportunities facing the aviation sector amid accelerating global change.

This participation also highlights the Kingdom’s growing stature and strategic importance within the global aviation landscape. Through GACA’s involvement, Saudi Arabia seeks to remain aligned with the latest regulatory frameworks and technological advancements, while promoting the highest standards of safety, security, and operational performance in accordance with international benchmarks.

As part of the visit, the President of GACA and the Authority’s vice presidents toured the Singapore Airshow 2026, widely recognized as a leading global platform for advanced aviation and aerospace technologies. The delegation reviewed a range of innovations across aerospace engineering, manufacturing, operational systems, and support services, in addition to future-oriented solutions aimed at improving efficiency and competitiveness across the industry.

The visit further underscores the Saudi civil aviation ecosystem’s focus on strengthening direct engagement with major international organizations and companies, and on identifying opportunities for strategic partnerships that facilitate knowledge exchange and the localization of advanced technologies within the Kingdom.

These efforts align with Saudi Arabia’s broader ambition to adopt innovative practices that reinforce its role as a global center for aviation and logistics services, consistent with the National Transport and Logistics Strategy, the Aviation Program, and the objectives of Saudi Vision 2030.

On the margins of the summit, His Excellency Eng. Saleh bin Nasser Al-Jasser and Singapore’s Acting Minister for Transport, Mr. Jeffrey Siow, attended the signing of a cooperation agreement between the Air Connectivity Program and Singapore Airlines.

The ceremony was held in the presence of the President of GACA and Chairman of the ACP Executive Committee, Abdulaziz bin Abdullah Al-Duailej, as well as the Director-General of the Civil Aviation Authority of Singapore (CAAS), Mr. Han Kok Juan.

The agreement is intended to strengthen air links between Saudi Arabia and Singapore through the introduction of the first direct flight connecting Riyadh and Singapore, supporting tourism growth, enhancing trade exchange, and reinforcing the Kingdom’s position as a regional aviation hub.

Additionally, in the presence of the President of GACA, the Minister of Transport and Logistics Services conducted several bilateral meetings with senior international counterparts, including Singapore’s Acting Minister for Transport Jeffrey Siow, France’s Minister for Transport Philippe Tabarot, the President of the ICAO Council Toshiyuki Onuma, and Egypt’s Minister of Civil Aviation Dr. Sameh El-Hefny.

These discussions focused on expanding cooperation, sharing expertise, and advancing joint initiatives in air transport and aviation innovation.

The President of GACA also held meetings with senior representatives from Boeing, Brazil’s National Civil Aviation Agency, and the European Civil Aviation Conference (ECAC) to explore strategic cooperation and opportunities for localizing aviation industries in support of the National Transport and Logistics Strategy.

Meanwhile, GACA’s Deputy President for Air Transport and International Cooperation met with Japan’s Deputy Assistant Minister for International Civil Aviation to discuss avenues for further collaboration in the civil aviation field.

Saudi Arabia’s Asir region has launched what officials describe as the Kingdom’s first pilot program using drones for municipal operations, in a move aimed at accelerating services and strengthening oversight through digital transformation.

Asir Mayor Abdullah Al Jali said the initiative is being implemented by the Asir Emirate in coordination with the Ministry of Municipalities and Housing and other relevant authorities. Trial operations began in February in Abha and Khamis Mushait as an initial phase.

Al Jali said the drones operate using artificial intelligence with no direct human intervention, enabling them to monitor municipal projects and detect violations such as unauthorized construction or excavation. The system can also identify illegal waste dumping and encroachments, flag emergency situations, and carry out rapid, high-accuracy topographic surveys.

Officials expect the technology to improve municipal performance by speeding up services and administrative processes, including the issuance of licenses and plan approvals, while supporting stronger regulatory control.

According to Al Jali, the program is also designed to reduce errors, improve transparency, enhance project quality, and address “visual distortions” across urban areas. He added that the scope of the pilot will be expanded, with additional applications under review—such as responding to residents’ reports and tracking maintenance and cleanliness work—as part of wider efforts to modernize municipal services in the region.