The Strategic Shifts Driving Tomorrow’s Economy

After a dramatic year, business diversification, operational sovereignty, advanced digital transformation and AI technology are the focal points for Saudi companies looking to ensure their future in tomorrow’s economy.

With the regional political situation hopefully calming down, now is a good time for business leaders to take stock of their strategic goals and plan how to operate in a still divisive and politically charged atmosphere.

Ensure Operational and Strategic Sovereignty

Recent events demonstrate the fragmentation of decades-old alliances, the use of business as political leverage and how critical technology access, from satellite comms to AI, can be turned off at the touch of a button.

With these issues in mind, business leaders must ensure their current technology footprint is secure, replaceable, and that critical data does not end up overseas, in a country that could deny access or where it could be used by AI as learning material for rival companies.

That’s as the Kingdom of Saudi Arabia continues to accelerate up the technology curve with global recognition for infrastructure, cities and business. A strategic review of assets and plans for technology adoption will see managers scouring productivity and AI tools for their rights and limitations.

Business leaders should plan for supply chain, workforce and cyber shocks based on recent events, with redundancy and access to human and technology skills to mitigate the next crisis.

Be Prepared For AI Reliance, While Preparing A Backup Plan

Saudi Arabia is a keen adopter of AI and related technology. AI will soon feature across every aspect of business, from smart supply chains to operational efficiency, creativity and practical features like AI security camera systems. They can monitor processes, protect businesses and improve visibility across the premises, while protecting privacy and following fast-changing rules.

Your teams and their customers or consumers will also expect to be able to access key information or disable AI analysis when it comes to their corporate or personal data. Compliance, privacy and other laws will also change in response to a shifting landscape, so legal teams need to be proactive in protecting data and customers.

Whatever the application, businesses need fallback positions to cope with a lack of access or changing legislation either within the kingdom or from abroad. Similarly, business marketing and promotion must clearly highlight the benefits and values of AI to customers, while demonstrating responsibility and flexibility.

Promoting Sustainability and Welcoming Ecosystems

Saudi Arabia has long been a promoter of green renewable power, water recycling and other sustainability efforts. Businesses must go beyond the legal minimums to demonstrate to consumers, tourists and B2B partners that they, and the nation as a whole, are welcoming and secure as climate extremes impact the country and visitor perception.

Take the popular Nusuk App, becoming a key feature for Hajj visitors and tourists, booming into a popular travel app as just one example. Its 50-plus million users demonstrate that the economy is also reliant on culture, tourism and lifestyle.

New opportunities around the run-up to the 2034 World Cup can address any concerns through strategic business change. These will allow hospitality, retail and local brands to reinvent themselves, prepare for a new audience, and raise global awareness of products and services.

As part of business and social improvements, modernisation, anti-discrimination and equality efforts and social engagement will be key, helping avoid some of the issues that blighted the Dubai 2022 tournament, including modern slavery.

Driving Internal and Foreign Investment, and Business Integration

Saudi Arabia has been a huge investor through sovereign wealth and investment funds. With the collapse of the NEOM project, now is the perfect time to look at small-level, startup and roots-focused investment to empower the next generation of Saudi businesses.

Providing them with funds, knowledge and resources that can help them compete with US startups, and partner with European and Asian talent, helping Saudi become a better place to do business in the coming decades, broadening access to Saudi-created business services and applications.

While joint ventures with AI giants is one thing, partnering in specific areas like cybersecurity, physical security, cloud services and digital business skills will grow local talent. Investigating and investing in all these areas will help Saudi businesses become more locally sovereign, resilient and able to respond to future changing business pressures and opportunities.