Scope of work offered to Microsoft, Amazon and Google in Saudi Arabia
there isn’t specific information about the scope of AI contracts given to Amazon and Microsoft by Saudi Arabia. However, we can piece together some relevant information about their involvement in Saudi Arabia’s tech and AI initiatives:
Establishment of Regional Headquarters
1. Amazon, Microsoft, and Google have received licenses to establish regional headquarters (HQs) in Riyadh, Saudi Arabia.
2. This move comes in response to Saudi Arabia’s new rules for state contracts, which require companies to have a substantial presence in the country to be eligible for government contracts.
AI and Cloud Infrastructure Investments
1. Amazon Web Services (AWS) has announced plans to invest $5.3 billion by 2026 to build data centers and establish a significant cloud presence in Saudi Arabia.
2. Microsoft has also announced plans to build data centers in the kingdom.
3. These investments aim to provide infrastructure for running cloud-based technology solutions, including AI technologies.
AI Initiatives and Partnerships
1. The Saudi Data and Artificial Intelligence Authority (SDAIA) has partnered with Microsoft to make “ALLaM” - an Arabic Large Language Model - generally available on the Microsoft Azure cloud platform.
2. This initiative is designed to enhance Arabic-language AI services and drive innovation within the field across Saudi Arabia and globally.
3. SDAIA and Microsoft are also collaborating on:
• Establishing a Center of Excellence to accelerate the development of Generative AI solutions
• Launching the Microsoft AI Academy to build national talent and expand expertise in the AI sector
Broader Context
1. Saudi Arabia is investing heavily in its technology sector to diversify its economy beyond oil, aligning with the country’s Vision 2030 initiative.
2. The government is offering incentives such as tax breaks and exemptions from rules to hire Saudis for companies establishing regional headquarters in the country.
While the specific scope of AI contracts for Amazon and Microsoft is not detailed, it’s clear that both companies are significantly increasing their presence in Saudi Arabia and are likely to be involved in various AI and cloud computing initiatives as part of the kingdom’s broader technology and economic diversification efforts.




