The Saudi Central Bank (SAMA) and Google have signed an agreement to introduce Google Pay in Saudi Arabia during 2025 through the national payment system mada, according to a press release from SAMA. This agreement aligns with SAMA’s ongoing efforts to enhance the Kingdom’s digital payments ecosystem as part of Saudi Vision 2030. It underscores SAMA’s commitment to developing a robust digital payments infrastructure, facilitating the transition to a less cash-dependent society by offering advanced digital payment solutions that meet international standards.
Google Pay will provide users with an advanced and secure method for making purchases in stores, apps, and on the web. Users will also be able to conveniently add and manage their cards within Google Wallet. This initiative is part of a broader series of solutions aimed at meeting market demands and strengthening Saudi Arabia’s position as a global leader in FinTech.
Google’s advanced AI hub plans in Saudi Arabia
In October 2024, Google revealed plans to establish an advanced AI hub in Saudi Arabia, as part of its ongoing commitment to promoting innovation and economic growth in the region. This strategic move aligns with the Kingdom’s Vision 2030, which prioritizes technological advancement as a key driver of economic diversification. The hub will focus on developing localized artificial intelligence solutions tailored to meet the unique needs of the region and the training of local talent.
The establishment of the hub is anticipated to contribute as much as $71 billion to Saudi Arabia’s economy. This projection underscores the significant economic potential tied to embracing advanced AI applications. The agreement is anticipated to speed up the integration of AI—specifically in Arabic—within major sectors such as healthcare, retail, and financial services across Saudi Arabia, the Middle East, Africa, and “around the world,” Ruth Porat, president and chief investment officer of Google and Alphabet, stated. “As part of Saudi Arabia’s rich technology ecosystem, we aim to create highly skilled jobs for Saudis and opportunities for global businesses to fuel growth through cloud adoption,” she added.
Collaboration for local industry development
The AI hub is a product of a collaboration between Google and the Kingdom’s technology and investment stakeholders. It will support the development of AI-driven applications tailored to local industries, such as oil and gas, finance, healthcare, and logistics. The goal is to integrate cutting-edge technology to optimize processes and create a more resilient and diversified economy.
Yasir Al Rumayyan, governor of Saudi Arabia’s Public Investment Fund, emphasized, “This partnership demonstrates PIF’s dedication to fostering an AI-friendly environment through investments in human capital and technology, upskilling thousands with cutting-edge tools to support our sustainable and innovative infrastructure goals,” Mr. Al Rumayyan further said. “Saudi Arabia is a prime location for global tech partners as PIF brings both sector expertise and a long-term approach to investment.”
Promoting homegrown talent through the AI hub
At the core of this initiative is a drive to cultivate homegrown talent. Google’s AI hub will provide training, research opportunities, and collaboration platforms for local developers, researchers, and startups, potentially training “millions” of people. Moreover, this approach is designed to build a strong ecosystem that fosters innovation and encourages entrepreneurship, ensuring that the economic benefits are felt at all levels of society.
As global tech leaders increasingly shift their focus to localized solutions, Google’s move exemplifies a forward-thinking approach that taps into regional strengths. Additionally, with the AI hub’s potential to contribute billions to the economy and advance digital capabilities, Saudi Arabia is positioned to become a notable center for AI innovation in the Middle East.
