SAP to Asharq Al-Awsat: Saudi Arabia Is Now Home to One of Our Largest Global Investments
Saudi Arabia is accelerating AI adoption across various sectors, enabling businesses to harness data-driven insights, enhance efficiency, and scale operations with agility. At the LEAP 2025 conference, which concluded in Riyadh on Wednesday, SAP, the global leader in enterprise software, reaffirmed its long-term commitment to the Kingdom.
In an exclusive interview at the conference, Ahmed Jaber Al-Faifi, Senior Vice President for SAP in the North Middle East and Africa, highlighted the company's significant investments in cloud infrastructure, AI-powered business solutions, and workforce development in Saudi Arabia.
Speaking to Asharq Al-Awsat, he stated: 'AI is not just another tool for improving efficiency; it is a revolution that will redefine industries. Just as the internet transformed business operations, AI is set to become an essential component of every organization's strategy.' He further warned: 'Companies that fail to adopt and scale AI will become irrelevant within the next five years.'
SAP's commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. Over the years, this investment has focused on two key areas. The first is building a strong local partner network, with SAP working alongside more than 100 Saudi partners to expand its reach and provide tailored solutions for local businesses.
The second focus has been talent development. SAP has provided over 400,000 training days for students, partnered with 33 universities, and launched a free two-year diploma program to equip Saudi professionals with the skills needed to succeed in the digital economy.
Al-Faifi emphasized: 'Talent development is critical to digital transformation. We are not just bringing technology to Saudi Arabia; we are building the skills and expertise necessary to support and scale these innovations over the long term.'
One of the most defining aspects of Saudi Arabia's digital transformation is the rapid shift to cloud computing. As companies increasingly migrate their operations to the cloud, SAP has been at the forefront of facilitating this transition. In Saudi Arabia alone, 75% of SAP customers have already moved to the cloud, and this figure is projected to reach 95% by next year.
Al-Faifi explained: 'Saudi Arabia has embraced a cloud-first strategy at a pace faster than most markets. Through our data centers in Riyadh, SAP ensures that critical business data remains within the Kingdom while providing enterprise-grade security, scalability, and AI-driven automation.'
Despite the rapid adoption of AI and cloud technologies, Saudi businesses face three major challenges in scaling these innovations, according to Al-Faifi. The first challenge is legacy system migration, as many organizations still rely on outdated infrastructure that must be modernized before they can fully leverage AI and cloud solutions.
The second challenge is data quality and management, since AI-powered decision-making depends on clean, well-organized, and high-quality data, which many businesses struggle to maintain. The third and most pressing challenge is the talent shortage, with demand for AI and cloud computing experts far exceeding the available talent pool, leading to fierce competition for skilled professionals.
'Migrating to the cloud is not just about transferring data; it requires a fundamental shift in how organizations manage, analyze, and secure their information. AI can only deliver value if the underlying data is clean and structured,' Al-Faifi said.
Recognizing that talent is the key to unlocking AI's full potential, SAP has launched exclusive training programs in Saudi Arabia, including the SAP Engineering Academy—the only one of its kind outside the United States. The academy has already trained over 600 Saudi professionals, including talent from the Ministry of Interior and Aramco.
Beyond technical training, SAP is also focused on executive AI education, helping CEOs, CFOs, and other decision-makers understand how to integrate AI into their business strategies. The company has established partnerships with Saudi universities to provide hands-on experience with SAP's latest technologies. Additionally, SAP is launching AI literacy programs for organizations to ensure that businesses maximize AI-driven efficiencies and data-driven decision-making.
Al-Faifi noted: 'Forty percent of companies that have implemented AI solutions have reported a clear return on investment, while another 40% are in the process of refining their AI use cases. AI is rapidly transitioning from an experimental technology to a core business function.'
SAP's Business Network, one of the world's largest B2B trading platforms, was previously hosted in the United States. However, with the rapid digital expansion in Saudi Arabia, SAP recognized the need for a localized version of the platform to comply with Saudi data residency regulations.
Today, the SAP Business Network operates at full capacity from Riyadh, ensuring that all transactions, procurement activities, and supply chain data remain within the Kingdom's regulatory framework. Al-Faifi highlighted the network's economic impact, stating: 'In 2023 alone, SAP Business Network facilitated $550 billion in transactions—equivalent to 5% of Saudi Arabia's GDP. This demonstrates the scale at which Saudi businesses rely on SAP's solutions.'
The network now includes 156,000 local Saudi suppliers, enabling businesses to source from domestic partners, reduce dependency on international procurement, and strengthen national supply chains.
Discussing this transformation, Al-Faifi said: 'With Saudi Arabia's Vision 2030 mega-projects, the need for a localized business network became clear. The SAP Business Network in Riyadh enables Saudi companies to trade more efficiently while ensuring compliance with local regulations.'
With Saudi Arabia preparing to host Expo 2030 and the 2034 FIFA World Cup, the Kingdom is gearing up for massive technological advancements in infrastructure, smart city planning, and event management. SAP has previously deployed its enterprise solutions at Expo 2020 Dubai, where it helped manage logistics, ticketing, and crowd control. Al-Faifi revealed that SAP is currently in discussions with Saudi authorities to implement similar AI-driven solutions for upcoming mega-events.
From AI-powered crowd management to real-time logistics optimization, SAP's solutions will play a pivotal role in ensuring smooth operations for large-scale events. The company is particularly focused on intelligent ticketing platforms, smart transportation systems, and digital security solutions, ensuring seamless experiences for millions of expected visitors.
Beyond the events sector, SAP is actively collaborating with major Saudi entities such as Aramco, NEOM, and the Red Sea Project to integrate AI, cloud computing, and business intelligence into some of the Kingdom's most ambitious development projects.
Al-Fafi stressed: 'Saudi Arabia is now home to one of SAP's largest global investments. Our goal is to empower the Kingdom with AI-driven solutions, ensuring that businesses and government entities have the tools to innovate, scale, and thrive in the digital economy.'
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