Technology investments in Saudi Arabia worth more than $7.4 billion were pledged at the Leap summit in Riyadh on Monday, as local and global companies seek to cater to the kingdom's growing artificial intelligence and data centre markets.
DataVolt, a Riyadh-based data infrastructure and analytics company, said it will be developing a 1.5 gigawatt net-zero AI factory campus worth $5 billion in Oxagon − which is set to be the largest floating industrial complex in the world − located at the Neom mega-city.
The campus, which is scheduled to be operational in 2028, is being touted as being the first of its kind globally, Mohammed Abunayyan, board member of DataVolt, said at Leap.
Neom was designed to “tackle future challenges and there's nothing that exemplifies this more than the deal we're announcing today”, added Rayan Fayez, deputy chief executive of Neom.
Alfanar Projects, a Riyadh-based engineering and technology solutions firm, announced an 88 megawatt data centre project worth $1.4 billion spread across “four locations in two cities”, a top executive said.
“The world knows Saudi Arabia is exporting energy. But soon in the future, Saudi Arabia will export the data,” Amer Al Ajmi, an executive vice president at Alfanar Projects, said at Leap.
Telecoms company Mobily also committed to investing more than $905 million to develop data centres and submarine fibre infrastructure, its chief executive Salman Al Badran said.
The investment is part of Riyadh-based Mobily's “vision to elevate the kingdom to [becoming a] global digital hub”, and to cater to the growing demand for artificial intelligence, graphics processing units, hyperscalers, the Internet of Things and 5G, said Mr Al Badran.
Mobily is developing 39 megawatts of data centre capacity: 13MW has already been completed and will be commercially available by the end of the first quarter of 2025, with the rest to be deployed in 2026, he added.
Meanwhile, Zoom Communications, whose videoconferencing service propelled it to fame during the pandemic, announced an additional $75 million investment in Saudi Arabia to support Vision 2030, the kingdom's economic diversification programme.
The commitment includes the launch of a dedicated data centre in the kingdom “along with new AI-driven innovations designed to meet the needs of businesses, government entities and individuals”, the company said.
Saudi Arabian Railways announced a $51 million investment in a private fibre-optic network, in addition to receiving a licence from the kingdom's Communications, Space and Technology Commission to use and lease its telecom infrastructure for commercial use.
In other announcements, Hewlett-Packard Enterprise said it will be manufacturing networking gear of its subsidiary Aruba in Saudi Arabia, with more than 20,000 units of the Wi-Fi 7 compliant devices to be produced annually.
Also, SkyFive Arabia said they it will spend $100 million to expand its network and services in Saudi Arabia, elsewhere in the Middle East and Turkey, in addition to working on providing aircraft with internet speeds of up to 100 megabits per second.
Monday's announcements came after Leap on Sunday unveiled investment pledges worth $14.9 billion, mostly centred on AI.
Those deals included a $2 billion commitment from Alat, the sustainable technology manufacturing company backed by the kingdom's Public Investment Fund, and the world's biggest computer maker Lenovo to establish an advanced manufacturing and technology centre integrating AI and robotics.
Aramco Digital and US AI firm Groq also signed a $1.5 billion agreement to expand infrastructure and cloud computing in the kingdom.
Google also introduced new AI-driven digital infrastructure, while chipmaker Qualcomm confirmed the availability of its ALLaM language model on its Qualcomm AI Cloud at Leap.
China's Alibaba Cloud also launched its AI Enablement Programme, in co-operation with the Tuwaiq Academy and STC Academy, both based in Riyadh, to train national talent.
More than 1,800 technology brands and 680 start-ups are exhibiting at the Leap technology summit in Riyadh this week.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The specs
The specs: 2019 Audi Q8
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Engine: 3.0-litre turbocharged V6
Gearbox: Eight-speed automatic
Power: 340hp @ 3,500rpm
Torque: 500Nm @ 2,250rpm
Fuel economy, combined: 6.7L / 100km
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