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IBM And AWS Plan Riyadh Hub To Drive Regional Cloud Growth
The partnership will target Middle East digital agendas with AI and advanced hybrid cloud solutions.
IBM and Amazon Web Services (AWS) are deepening their partnership to accelerate cloud adoption and digital transformation across the Middle East, with plans for a joint Innovation Hub in Riyadh.
The expansion builds on an existing Strategic Collaboration Agreement, combining IBM Consulting’s expertise in AI, hybrid cloud and cybersecurity with AWS’s global infrastructure. The goal is to help regional clients modernize operations, adopt generative AI and meet government transformation targets.
Cloud demand in the Middle East is surging. Sectors such as healthcare and banking are leading adoption, followed by retail and manufacturing. National strategies like Saudi Vision 2030 and the UAE’s Digital Economy Strategy are pushing enterprises to invest in AI, IoT and cloud platforms to boost productivity and diversify economies.
The proposed Riyadh hub will give clients access to proofs of concept and hands-on trials of joint solutions, building on similar models in India and Romania. It will showcase offerings such as IBM’s watsonx platform, oil and gas analytics, and AI-powered citizen services.
IBM plans to expand its AWS Practice in the region, certifying local practitioners and training talent in Saudi Arabia and the UAE. AWS will support by localizing offerings — ranging from contact center intelligence to autonomous security compliance — tailored to priorities around diversification and sustainability.
Security is a central focus. IBM and AWS will offer assessments and managed services, including IBM’s Autonomous Security for Cloud. The service uses AI-driven automation to enforce uniform policies under the AWS shared responsibility model. The partners aim to help clients meet standards such as Saudi Arabia’s Essential Cybersecurity Controls and Abu Dhabi’s healthcare security rules.
Also Read: Abu Dhabi And NVIDIA Launch First Joint AI And Robotics Lab
The collaboration also emphasizes sustainability, aligning with the Saudi Green Initiative and the UAE’s climate goals. IBM Consulting will bring global tools such as its Sustainability Disclosure Assist to support ESG reporting and net-zero targets.
“This partnership underscores IBM’s commitment to helping organizations in Saudi Arabia and the UAE realize their digital transformation ambitions,” said Lula Mohanty, managing partner for the Middle East and Africa at IBM Consulting.
AWS’s Tanuja Randery added that the tie-up will enable governments and businesses “to adopt breakthrough technologies at scale, while reinventing core processes with AI”.
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Saudi Digital Payments Reach 80% As Cash Use Shrinks
Visa data shows cards and mobile wallets dominate spending, with smartphones now driving a growing share of daily transactions.
Digital payments now account for 80% of all transactions in Saudi Arabia, according to Visa’s latest Where Cash Hides report, another marker of how quickly the Kingdom is moving away from cash.
The share is up four percentage points from a year ago. Around 67% of consumers are now largely non-cash users, paying mainly with cards or mobile wallets. Smartphones are taking a bigger role, with mobile payments making up 16% of transactions.

Cash is retreating in routine spending. Eating out dropped 9%. Bill payments fell 8%, as shoppers opt for faster checkouts and app-based payments.
“The data shows a steady move toward digital payments in Saudi Arabia. Such progress is possible only because banks, fintechs, merchants, and technology partners are moving together in the same direction, in line with the Kingdom’s Vision 2030,” said Ali Bailoun, Visa’s Senior Vice President and Group Country Manager for Saudi Arabia, Bahrain, and Oman.
Also Read: UAE Users Sleep Less, But More Efficiently, ŌURA Data Reveals
Despite the recent findings, it’s important to note that cash hasn’t yet disappeared. It still shows up for tips (39%), peer-to-peer transfers (28%) and rent (14%).
Visa points to security features such as tokenization, along with rewards and cashback, as factors nudging more spending onto cards and phones — a shift that tracks with Saudi Arabia’s wider Vision 2030 push to digitize commerce.
