February Recap: Saudi Privatization Strategy Launches as AI & Industrial Localization Accelerate

February 2026 recap: Saudi Arabia launches National Privatization Strategy, Humain invests $3 billion in xAI, and Aramco's iktva program hits 70% local content target.

Saudi entered February with major policy shifts and strategic investments aimed at deepening private sector participation and advancing industrial self-sufficiency. The month saw landmark announcements in privatization, AI infrastructure, and supply chain localization.

Here's a roundup of the most important developments across the Kingdom's high-priority sectors.

General Economy & Business

• Saudi Launches National Privatization Strategy To Boost Private Sector Role

Big Picture: The National Privatization Strategy signals a fundamental shift in how the government approaches service delivery and infrastructure development. With over 220 PPP contracts and SR240 billion in private capital expected by 2030, companies establishing a business in Saudi Arabia should invest in building local partnerships and sector expertise now.

Saudization

• Saudi Arabia Raises Saudization Rate To 55% For Dental Professions In Private Sector

Big Picture: Healthcare professions are increasingly the focus of the localization (Saudization) mandates. The dental sector mandate sets a precedent for how specialized medical roles will be regulated moving forward. This makes strategic workforce planning and early engagement with local talent pipelines critical for long-term success in the sector.

Industry & Manufacturing

• Makkah Deputy Emir Launches SR2.5 Billion Industrial Projects In Jeddah
• Industry Minister Inaugurates Advanced Factories in Sudair
• Aramco's Iktva Program Reaches 70% Local Content Target
• Saudi Arabia Partners With Ceva To Localize Veterinary Vaccine Manufacturing

Big Picture: Saudi Arabia’s industrial strategy is evolving beyond mere capacity expansion, moving toward supply chain resilience and the localization of industrial inputs in high-value manufacturing sectors. This shift increases the demand for private investment, institutional integration, and deepening public-private partnerships.

Mega Projects & Development

• New Murabba Seeks Contractors For Mukaab Towers Fit-Outs
• Deputy Emir Of Makkah Launches SR1 Billion Health Projects In Jeddah

Big Picture: The Mukaab development is rapidly moving into the execution phase, with a $1 billion raft works contract on the horizon and specialized fit-out procurement already underway. Meanwhile, Jeddah’s SAR 1 billion ($270 million) health infrastructure pipeline highlights that the Kingdom’s project momentum is not confined to giga-developments but extends across essential public infrastructure.

Artificial Intelligence & Technology

• Humain Invests $3 Billion in xAI Ahead of SpaceX Acquisition
• Saudi Digital Economy Reaches $140 Billion, Accounts For 50% Of MENA Growth

Big Picture: Saudi Arabia is positioning itself as a global AI leader—not merely a regional player. The $3 billion investment in xAI and the commitment to deploy over 500 megawatts of AI data centers signal that AI is a central enabler of economic diversification and global digital corridors. With the nation's digital economy experiencing astronomical growth, Saudi continues to shore up its role as the region’s tech anchor.