January Recap: Saudization Targets New Roles as Tourism & AI Investment Surge

Saudi Arabia started 2026 with major developments across workforce localization, tourism, infrastructure, and artificial intelligence.

Saudi Arabia kicked off the year with sweeping workforce localization mandates across new professions, record-breaking tourism figures, and landmark investments in AI infrastructure and transport.

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

Saudization

• Saudi Raises Localization Rate To 60% In 18 Marketing And Sales Professions
• Saudi Mandates 70% Localization of Procurement Jobs
• Saudi Mandates 30% Localization of Engineering Jobs in Private Sector

Big Picture: Saudization requirements continue to expand, reshaping core business operations. Companies setting up a business in Saudi Arabia should embed localization into their hiring strategy from day one and work closely with local setup partners to avoid unnecessary delays and compliance risks.

Tourism & Hospitality

• Diriyah To Launch $1 Billion Hotel Project With Italian Developer
• 122 Million Tourists Spend SR300 Billion In Saudi Arabia In 2025
• Saudi Tourism Sector Booms With 40.6% Surge In Hospitality Establishments, 1 Million Employees
• TDF Unlocks $1 Billion in Partnerships to Boost Tourism MSMEs

Big Picture: With spending at record highs, the ecosystem continues to benefit, but rising investment is also raising expectations around service quality. The market increasingly favors companies that deliver infrastructure, including hotels, venues, networks, and destination-level experiences.

Infrastructure & Transportation

• Saudi Revives Jeddah Metro with Blue Line Tender
• Saudi Arabia Railways Tenders 10 New Passenger Trains for Northern Network
• Riyadh Announces $2 Billion Ring Road Development Program
• Saudi Railways to Launch Hospitality-Inspired Residential Community in Riyadh

Big Picture: The Kingdom’s infrastructure push is accelerating across multiple fronts—urban mobility, intercity rail, and mixed-use development. The focus is shifting from flagship projects toward everyday infrastructure, with a strong pipeline of public tenders signaling sustained demand well into the decade.

Artificial Intelligence

• PIF-Backed HUMAIN Secures Up To $1.2 Billion To Expand AI Infrastructure
• Saudi To Launch SUSTAIN Platform For AI-Enabled Cross-Sector Collaboration

Big Picture: AI is increasingly being positioned as connective tissue across sectors. With HUMAIN scaling data center capacity and the SUSTAIN platform set to go live in 2026, Saudi is building both the infrastructure and institutional frameworks to support AI adoption.