Saudi tech players surpass global peers in resilience and maturity

Saudi Arabia’s digital transformation is taking hold, with a KPMG report (pdf) surveying technology leaders across 70 local firms finding that nearly half (46%) are already deploying artificial intelligence at scale, while the vast majority (99%) are actively investing in agentic AI.

Tech investments are paying off: Saudi firms report the highest average financial value realization from technology investments, sitting at around USD 200 mn. Appetite and confidence are strong, with 39% of firms investing between USD 100-249.9 mn annually in technology, and 76% expecting AI to generate meaningful ROI within the next 12 months.

Where is this value coming from? The largest share of realized value (41%) flows from foundational technologies such as cloud, ERP, and CRM systems, followed by AI (34%) and emerging technologies (25%).

What makes it work

Most local players favor a fast-follower approach — scaling existing, proven technologies over experimenting with new ones — with 71% identifying as fast followers and only 23% as innovators or early-stage adopters. This shows up in spending priorities, with budgets skewed toward growth (38%) and transformation (33%) initiatives over maintenance (28%).

Centralized governance + robust security: Saudi firms report far more centralized decision-making compared to global peers, especially when it comes to selecting new technologies and suppliers (93%), executing talent strategies (87%), and prioritizing investments (84%). This model “limits fragmentation across business units, enabling faster rollout of standardized platforms and large-scale transformation initiatives,” the report notes. Security is equally strong, with 69% reporting optimized cybersecurity maturity and 83% classifying their firm as highly resilient.

The challenges

Geopolitical tensions emerged as the top collaboration barrier for Saudi organizations, cited by 39% of respondents versus 27% globally. Internal governance gaps were also flagged by 37% of firms, pointing to ongoing efforts to strengthen accountability structures, decision rights, and operating models.

Short-term, resource scarcity is the most pressing AI risk in the Kingdom, with 33% of respondents citing concerns around talent, infrastructure, energy requirements, and data readiness compared to 21% globally. Looking out over the next two years, data bias (26%) and broader governance vulnerabilities are expected to become the dominant areas of risk management.

While Saudi organizations lead global peers on core tech maturity — cybersecurity (69% vs. 51%), network and cloud infrastructure (64% vs. 47%), and enterprise data management (54% vs. 42%) — those strong foundations haven’t yet fully translated into deployment readiness. Saudi firms trail peers in AI and automation (37% vs. 53%), data and analytics (50% vs. 57%), and cybersecurity readiness (46% vs. 56%). KPMG notes that this heightened risk awareness is not slowing down ambition — it’s instead pushing organizations toward more disciplined oversight and growth.

What’s next?

Technology alignment is a near-universal top priority for Saudi firms, with 96% maintaining a long-term, technology-focused strategy. Over half of Saudi firms (54%) will step up data infrastructure investments over the coming year, while 47% will recruit more tech talent and 57% will tighten data sovereignty audits. Local players remain highly focused on innovation and efficiency, with 41% prioritizing accelerated innovation (vs. 28% globally) and 44% focusing on productivity improvements (vs. 37%).

Workforces will lean more heavily into automation over the next couple of years, depending more on AI agents and automation tools and less on external contractors. The majority of firms (94%) believe that managing AI agents will become a critical skill within five years. Case in point: only 7% of surveyed firms said management discourages employees from using AI in daily tasks. However, top players are expected to retain a strong human core — “about half of their tech teams” — to manage AI systems, former go-to-market head at OpenAI Zack Kass notes.