Saudi AI Push Gains Pace as 2027 Outlook Improves

This week's developments show the Kingdom advancing technology-led diversification as its growth outlook improves: continued growth in cloud computing registrations, new AI and robotics partnerships from LEAP East, a landmark Humain-Cohere infrastructure deal, and an upgraded IMF forecast for 2027. Together, they show policy, investment and macro outlook aligning around one theme for investors positioning ahead of the Kingdom's 2027 rebound.

Ministry of Commerce: Cloud Computing Service Registrations Grow 42% by End of Q2 2026

The Ministry of Commerce reported that active cloud computing registrations grew 42% by the end of Q2 2026, reaching 2,802 versus 4,763 a year earlier, per its Q2 2026 Business Sector Bulletin. Riyadh led the top five regions with 4,282 registrations, followed by Makkah (1,294), the Eastern Province (698), Madinah (169) and Qassim (91). For investors, the growth reinforces cloud computing's place among the Kingdom's promising sectors, with Riyadh remaining the clear hub for digital-infrastructure investment.

Saudi Arabia Explores Tech Partnerships with Global Firms at LEAP East in Hong Kong

Minister Abdullah Al-Swaha held meetings with major global tech firms on the sidelines of LEAP East in Hong Kong, exploring partnerships in AI, cloud computing, data centres and advanced technology, alongside CST Governor Haitham Al-Ohali, DGA Governor Ahmed Al-Suwaiyan and cybersecurity federation chairman Faisal Al-Khumaisi. He met Tencent Cloud's Dowson Tong on cloud and data-centre cooperation, Sony AI's Michael Spranger on AI research, Boyu Capital's Louis Cheung on AI investment, and Galbot's He Wang on robotics partnerships. The meetings form part of Saudi Arabia's push to deepen international tech partnerships and attract quality investment. For investors, the spread of counterparties, cloud, AI research, capital and robotics, signals Riyadh courting partners across the full technology stack.

Humain and Cohere Partner to Build Dedicated AI Computing Infrastructure in Saudi Arabia

Saudi-based Humain, backed by the PIF, and Canada's Cohere announced a strategic partnership to build dedicated AI computing infrastructure, announced during Canadian PM Mark Carney's visit, with the infrastructure expected online in Q4 2027. Humain will dedicate at least 50 megawatts of AI compute to Cohere, scalable over five years, combining Humain's Kingdom infrastructure with Cohere's model expertise; the deal also covers enterprise AI, Arabic sovereign models and sector-specific models. Humain CEO Tareq Amin said Cohere's choice of the Kingdom for its first major expansion outside North America reflects the infrastructure's maturity; Cohere co-founder and CEO Aidan Gomez said the deal gives Cohere high-performance compute for its next-generation enterprise models. For investors, the deal positions Humain as a credible international hosting partner for global AI labs, not just a domestic champion.

IMF Raises Saudi Arabia's 2027 Growth Forecast to 5.5% on Resilience Outlook

The IMF raised its 2027 growth forecast for Saudi Arabia to 5.5%, up from 4.5% in April, in its July 2026 World Economic Outlook Update, citing the Kingdom's diversified export routes, even as it cut its 2026 forecast to 1.7% from 3.1% on Middle East conflict and trade-route disruptions; the OECD had separately projected 4.3% growth for 2027. The Fund expects Middle East and Central Asia growth to slow to 0.7% in 2026 before rebounding to 6.5% in 2027, assuming the Strait of Hormuz reopens from mid-July with normalisation by March 2027. River Prime's Aseel Al-Aranki said the revision points to a two-speed outlook, a contained near-term slowdown followed by a strong rebound as diversified export routes cushion the shock. Globally, the IMF left its 3% (2026) and 3.4% (2027) forecasts broadly unchanged, flagging renewed conflict and a tech-valuation correction as downside risks. For investors, the gap between this year's downgrade and next year's upgrade strengthens the case for looking past 2026 volatility toward 2027, with the Hormuz timeline the key variable.

Taken together, this week's developments trace a Saudi economy building the digital infrastructure and growth case that reinforce each other: expanding cloud computing registrations, new AI and robotics partnerships from LEAP East, and the Humain-Cohere compute deal giving the Kingdom a flagship international AI-hosting role. The IMF's upgraded 2027 forecast, against a lower 2026 print, suggests investors should look past near-term softness toward a stronger, more diversified rebound. For investors, watch execution: whether Cohere's compute commitment grows beyond 50 megawatts, whether LEAP East meetings convert into signed deals, and whether the Hormuz reopening timeline holds through 2027.

Sources

• Ministry of Commerce Q2 2026 Business Sector Bulletin on cloud computing registrations — Maal.

• Saudi delegation's technology meetings at LEAP East in Hong Kong — Ministry of Communications and Information Technology.

• Humain-Cohere AI infrastructure partnership — Humain / Cohere.

• IMF July 2026 World Economic Outlook Update on Saudi Arabia's growth forecast — Arab News.