Saudi Arabia has broken ground on what it describes as the world’s largest government data center, launching a facility in Riyadh intended to anchor the kingdom’s digital infrastructure and support artificial intelligence services.

Construction of the the 30 million square-foot (2.8 million square-meter) Hexagon project comes as Saudi Arabia and the UAE race to position the Gulf as a global hub for AI development, Arabian Gulf Business Insight reports. 

Hexagon’s size reflects Saudi Arabia’s growing use of internet-connected sensors and cameras across its cities, driving the need to process vast amounts of data.

The government already uses AI-powered systems to manage traffic – including 14,000 cameras within Riyadh’s public transportation network – generating continuous data flows that require large-scale computing capacity.

Both Saudi Arabia and the UAE have signed agreements to use advanced Nvidia chips, expand cloud capacity and collaborate with leading model developers such as OpenAI, Anthropic and Elon Musk’s xAI.

Saudi Arabia has tied its push to new government-backed platforms and data centers, while the UAE has rolled out large AI campuses and investment vehicles to anchor partnerships with U.S. tech firms.

Environmental leaders, heads of state and corporate executives are heading to the UAE for Abu Dhabi Sustainability Week, which kicks off on Sunday with the annual assembly of the U.N.’s International Renewable Energy Agency.

Hosted by UAE President Sheikh Mohammed bin Zayed, the IRENA meeting will review progress in reaching the goal of tripling global renewable energy capacity by 2030. The target was set two years ago when the UAE hosted the U.N.’s COP28 climate summit in Dubai.

Masdar, the renewables company owned by Abu Dhabi’s Mubadala sovereign wealth fund, the national energy company TAQA, and national oil company ADNOC, is leading the week’s activities, which include the World Future Energy Summit and the China-sponsored Blue Forum on global water management.

Masdar CEO Mohamed Al Ramahi offered a preview of ADSW on Wednesday at a press conference where he said the company made commitments last year to spend $15 billion on renewable energy projects. He said Masdar plans to expand in markets including MENA, the U.S., Europe and Asia. 

Among the corporate chiefs headlining the conference will be Catherine MacGregor, CEO of Paris-based Engie; Patrick Pouyanne, CEO of TotalEnergies; Ignacio Galan, Executive Chairman of Spain’s Iberdrola and Talal Al Dhiyebi, CEO of the UAE-based Aldar Properties. 

Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of Masdar, who served as President of COP28, will deliver a keynote address at the ADSW’s opening ceremony on Jan. 13. Speakers will also include IRENA Director-General Francesco La Camera, UAE Minister of Foreign Trade Dr. Thani Al Zeyoudi and TAQA CEO Jasim Thabet.

A new Saudi-backed partnership is putting artificial intelligence to work at the kingdom’s new luxury seaside resorts.

Red Sea Global and Bunat Ventures are launching an AI venture fund targeting startups, with plans to back about 25 budding firms a year, Arab News reports.

Beyond funding, the program will give founders access to RSG’s resorts, airport operations and other assets as testing grounds.

The partners say the effort is designed to strengthen Saudi Arabia’s innovation ecosystem, attract talent and support the kingdom’s broader push into advanced technologies.

Saudi Arabia will unleash its financial markets next month, scrapping regulatory barriers that have barred most foreigners from investing in the kingdom’s stock exchange.

The Capital Markets Authority said on Monday that it will eliminate its “Qualified Foreign Investor” regulations starting Feb. 1, allowing non-Saudis direct access to the $2.3 trillion stock exchange in Riyadh as part of efforts to boost global capital inflows and market liquidity.

Officials described the move as a key piece of broader economic reforms designed to diversify Saudi Arabia’s economy away from its historic reliance on the kingdom’s vast oil revenue. Until now, foreign investors had to show they had at least $500 million in assets under management to trade in Riyadh.

The change comes after the Saudi exchange’s Tadawul All Shares Index delivered its worst performance in 10 years, dropping 13% in 2025. Already, the kingdom has courted international money through partnerships, including exchange-traded funds with Japan and Hong Kong.

The Saudi government, meanwhile, is expected to announce new reforms in the real estate market this month that would make it easier for non-Saudis to buy homes, commercial properties and agricultural land, particularly in Riyadh, Jeddah, Mecca and Medina.

Institutional investors such as JP Morgan said the new rules on equities would have limited impactsince they already have access to the stock market, and holdings by smaller investors will be slow to reach a significant share, Reuters reports. More significant, they say, would be reforms that include raising foreign ownership limits for publicly traded companies that are expected later in the year.

Dubai’s Design District is set to be transformed from blocks of warehouse-like buildings into a sprawling, canal-lined neighborhood with a “pedestrian-first spine” to encourage year-round walking.

The masterplan, led by developer Meraas, will cover more than 1.6 million square meters and include cultural quarters, green spaces and five distinct zones combining residences, retail, hospitality, and creative spaces.

A central feature, the Design Line, will be a shaded, walkable route lined with art installations and community areas connecting the district.

While the project’s value and start date have not been disclosed, Dubai Holding Real Estate said it aims to strengthen the city’s status as a global hub for design, talent and long-term investment.

Saudi Arabia’s Public Investment Fund emerged in 2025 as the biggest spender among the world’s sovereign wealth funds, propelled by the blockbuster acquisition of U.S. video-game maker Electronic Arts.

The $55 billion deal by a PIF-led consortium – in which the Saudis will foot about $29 billion of the total – accounted for the bulk of the fund’s investment activity during the year and pushed it ahead of the world’s top state investors in Norway and China, according to data compiled by Global SWF. Silver Lake and Affinity Partners joined the PIF in the EA acquisition.

Abu Dhabi-based Mubadala ranked second in spending among the sovereign funds, investing roughly $32.7 billion across dozens of transactions, including its $9 billion acquisition of Canadian wealth manager CI Financial.

As a regional bloc, the Gulf sovereign wealth funds, including the Abu Dhabi Investment Authority, ADQ, Investment Corp. of Dubai, Kuwait Investment Authority, and Qatar Investment Authority, invested $126 billion in 2025, accounting for 43% of global sovereign investment spending, according to the report.

Separately, Global SWF said that the UAE’s top three sovereign wealth funds – ADIA, ICD and Mubadala – will see their assets increase by over 40% over the next five years, jumping from just under $2 trillion to almost $2.8 trillion in 2030.

Alpha Dhabi Holding plans to invest $8 billion over the next five years, with recent divestments providing additional funding for growth.

The Abu Dhabi-based investment company, which is 45% owned by International Holding Co., the vast conglomerate run by UAE National Security Advisor Sheikh Tahnoon bin Zayed, most recently generated $1.4 billion when it exited UAE-based real estate investor Modon in October.

Derek Nicholson, Alpha Dhabi’s Chief Strategy Officer, told Zawya that the company seeks acquisitions with “the right risk profile, returns, and synergies.”

Alpha Dhabi also sees potential to monetize its assets through IPOs, accelerated bookbuilds or strategic sales, he said.

Saudi Arabia is starting 2026 with a new bond issue even as it has indicated a preference to slow borrowing over the coming year.

The kingdom plans to sell notes with maturities ranging from three to 30 years, with the size of the issue and final terms likely to be announced soon, Bloomberg reports.

Earlier, the National Debt Management Center said it plans to slow international bond sales in 2026, targeting about $14 billion to $20 billion, a level that would be the lowest since 2022. 

The agency’s borrowing plan points to a more cautious approach after several years of heavy borrowing in global markets, Bloomberg said. 

The move comes as the kingdom manages budget pressures from lower oil income while continuing to fund its economic diversification drive.  Riyadh’s benchmark Tadawul All Share Index dropped 1.8% on Sunday to its lowest point in more than two years.