Noha Gad

Saudi Arabia is witnessing a historic transformation in its labor market, driven by Vision 2030 and a commitment to building a dynamic, inclusive, and globally competitive workforce. Recent figures from the General Authority for Statistics (GASTAT) revealed that the overall unemployment rate in the Kingdom, for Saudis and non-Saudis, reached 3.4% in the third quarter (Q3) of 2025, showing a yearly decrease of 0.3 percentage points compared to the same quarter in 2024. 

The ‘State of Hiring in Saudi Arabia’ report by Jisr, which surveyed over 360,000 hiring cases across more than 4,700 Saudi companies and establishments, stated that new hires in the Kingdom saw a dramatic %154.5 surge between January 2024 and January 2025. In the first half (H1) of 2025, the average number of new hires per month increased by 51.5% to 24,155 from 15,942 in 2024. Additionally, the Saudi market saw a remarkable surge in manpower from January 2024 to July 2025, as the total number of employees increased by 124% in 19 months from 140,562 to 315,250 employees.

The food and beverages (F&B) sector led the hiring activity in the Saudi labor market with 71,120 new hires, followed by retail, wholesale, and distribution (over 41,500 new hires), general services (nearly 37,247 new hires), construction and building (nearly 28,777 new hires), and healthcare and medical services ( 20,141 new hires).

The human resources (HR) sector plays a pivotal role in driving the Kingdom’s economic growth, with Vision 2030 driving major changes such as Saudization, which aims to increase jobs for Saudi nationals. To support this shift, HR teams now focus on skills training, talent hiring, and employee well-being.

According to Jisr’s report, Saudis accounted for 49% of the hiring landscape, making up nearly one-third of all new appointments. 51% of companies now rely more heavily on national talent, while 45% of surveyed HR practitioners reported a decline in the number of foreign employees compared to local hires over the past two years.

As rapid workforce expansion creates needs for better recruitment, performance tracking, and staff retention, traditional HR methods often struggle with high volumes of data and changing job demands. This paved the way for new tools, such as artificial intelligence (AI), to improve efficiency. The integration of AI into HR can speed up hiring by screening resumes and matching candidates to roles, predict employee turnover, and personalize training programs. 

In Saudi Arabia, the AI HR market, valued at $330 million, saw a profound growth driven by the increasing adoption of AI technologies in human resources, aimed at enhancing efficiency and decision-making processes, as stated in a recent report by Ken Research. The demand for AI-driven solutions is fueled by the need for improved recruitment, employee engagement, and performance management systems, with over half of Saudi companies expected to adopt AI-powered HR systems for these functions. AI-powered recruitment platforms are transforming hiring processes through automated resume screening, intelligent candidate matching, and predictive analytics, supporting Saudization goals and reducing time-to-hire by up to 60%. Jisr is one of the key players in the Saudi market, serving more than 700,000 users across the Kingdom. As a leading AI-powered recruitment platform in the Kingdom and the MENA region, Jisr integrates all HR operations into one platform, enabling organizations to grow and innovate by providing the necessary tools to make the most of HR technology.

Applications of AI in the HR sector in Saudi Arabia

• Talent acquisition and recruitment. AI screens large applicant pools, matches skills, drafts job descriptions, reduces bias, and streamlines hiring. It scans resumes using natural language processing (NLP) to match skills and cultural fit, handling Arabic dialects for accurate sourcing and screening. Predictive analytics forecasts candidate success and market trends, minimizing bad hires, while chatbots provide personalized job recommendations and instant feedback, enhancing candidate engagement. 
• Employee management. AI automates onboarding, payroll, attendance, benefits, and policy queries. This automation ensures greater efficiency, accuracy, and 24/7 service for employees. The true strategic value, however, lies in the transformational shift this enables. By removing the administrative burden, freeing HR for strategic tasks. 
• Employee Experience. AI chatbots provide instant answers on policies, benefits, and career support. By offering personalized guidance for career development and internal mobility, AI tools empower employees, reduce friction, and create a more supportive and responsive work environment, which directly strengthens engagement and retention.

Key players in the Saudi market

• Resquad AI is a pioneering provider of AI-driven technical recruitment solutions in Saudi Arabia. It automates key stages of the recruitment process, including screening, matching, pricing, compliance, and payments, allowing companies to reduce hiring timelines by up to 99%. Its AI-powered SaaS solution and global B2B marketplace for developers enable companies to access technical talent beyond geographical boundaries. 
• SBR is an AI-powered platform, specializing in evaluation technologies and data analytics using AI. It leverages AI algorithms to analyze candidates beyond resumes, measure real competencies, and reveal hidden indicators, providing a comprehensive and objective report that supports confident hiring decisions. Its system relies on analyzing past hiring and performance data to predict candidate efficiency and retention likelihood, enabling HR departments to make decisions based on realistic, data-driven performance indicators.
• Talowiz is an AI-powered Source-to-Hire solution that automates recruitment with intelligent sourcing, personalized outreach, and seamless applicant tracking systems (ATS) integration. Talowiz’s AI Recruiting agents are trained to instantly build talent pipelines using the Largest Talent Database, engage them across channels, and manage the entire hiring process. Its AI Reachout Agent can reach 10x more candidates and connect across channels, providing personalized outreach and instant responses.
• Hurr is a Saudi-based digital platform that established itself as a leader in the freelance market, thanks to its secure, user-friendly platform that supports both entrepreneurs and freelancers. It connects owners with the best professional freelancers in over 100 fields across the Arab world, helping them complete tasks easily and securely. In a recent interview with Sharikat Mubasher, Founder and CEO, Muna Balhamar, noted that Hurr focuses on advancing its AI-powered tools, such as AI-generated job descriptions, smarter AI matching to connect owners with the best candidates instantly, and automated filtering to reduce time spent on reviewing profiles.

Concerns about integrating AI in HR

While AI promises transformative efficiency in the HR sector, its integration raises critical concerns that demand careful navigation:

• Data privacy and compliance with the Personal Data Protection Law (PDPL).
• Algorithmic bias and fairness in hiring processes.
• AI hallucinations and accuracy in candidate matching.
• Talent and skill shortages for AI implementation.
• Job displacement fears among HR professionals.
• System integration challenges with legacy tools.

In conclusion, the labor market in Saudi Arabia is undergoing a foundational transformation, powered by ambitious national projects and the strategic imperatives of Vision 2030. This growth places the HR function at the very center of national progress, entrusted with the dual mandate of scaling the workforce efficiently and ensuring its long-term competitiveness and satisfaction. 

As evidenced by platforms like Jisr, Resquad AI, and SBR, AI-powered tools are accelerating hiring by intelligently matching Saudi talent to new opportunities, automating administrative burdens to free HR for strategic roles, and personalizing the employee journey to foster engagement and retention. This technological integration directly supports core national goals such as Saudization by making talent processes more objective, data-driven, and scalable. 

To succeed, companies must address key challenges like data privacy, biased algorithms, and employee training. This requires a careful balance: using AI as a powerful tool that is always guided by human judgment, strong ethics, and ongoing investment in people's skills.

Ghada Ismail

Smart money refers to an investment that delivers more than capital. It comes from investors who actively contribute to a startup’s success by offering expertise, strategic guidance, and access to valuable networks. These investors are often experienced founders, sector-focused venture capital firms, or angels who have scaled businesses before. Their involvement is hands-on, with a focus on long-term value creation rather than short-term financial returns.

Understanding Why Capital Source Matters

Fundraising is often approached as a race to secure the largest cheque, but the identity of the investor can shape a company’s direction just as much as the funding itself. Smart money turns fundraising into a partnership, where investors are aligned with the startup’s mission and growth trajectory, not just its valuation.

Learning from Proven Experience

One of the strongest advantages of smart money is access to real-world experience. Founders benefit from lessons learned across multiple ventures, helping them avoid common pitfalls. This support often includes:

• Advice on when to scale and when to pause
• Guidance on building leadership teams
• Early identification of financial or operational risks

These insights help founders make smarter decisions under pressure.

Unlocking High-Value Networks

Smart investors bring credibility and connections that can accelerate market entry and expansion. Through their networks, startups can:

• Reach strategic customers and enterprise clients
• Form partnerships faster
• Secure follow-on funding more efficiently

For early-stage companies, these introductions can be transformational.

Strengthening Strategy and Decision-Making

Beyond introductions, smart money improves how founders think. Value-adding investors challenge assumptions and sharpen strategic focus. This typically involves:

• Refining the business model and pricing strategy
• Stress-testing growth plans
• Encouraging sustainable, long-term growth

This guidance reduces the risk of premature or misaligned expansion.

Building Operational Discipline

As startups scale, operational structure becomes critical. Smart money often supports this transition by helping founders professionalize the business. Investor involvement may include:

• Improving governance and reporting standards
• Preparing for future funding rounds
• Supporting leadership development and internal processes

This foundation strengthens resilience and scalability.

Ensuring Alignment and Partnership

Smart money is only effective when there is strong alignment. Entrepreneurs must ensure investors share their vision, time horizon, and growth philosophy. A misaligned investor, even with experience, can slow progress and create unnecessary friction.

To Wrap Things Up…

Fundraising should be viewed as the start of a partnership, not just a financial transaction. Entrepreneurs who choose smart money gain more than funding. They gain insight, access, and long-term support that can shape the trajectory of their company. In today’s competitive startup environment, smart money often makes the difference between surviving and scaling successfully.

Noha Gad

Investment funds provide a straightforward path for people to grow their savings without needing to pick individual assets. Options range from individual stocks and bonds to simpler pooled investments that spread out risk. Common types include mutual funds, exchange-traded funds (ETFs), and hedge funds; each of them has its unique features for different risk levels and timelines. 

Mutual funds stand out as one of the most popular choices for everyday investors as they gather money from many people to buy a mix of stocks, bonds, or other assets. A professional manager handles the decisions, making it easier for those without time or expertise to invest wisely. These funds suit beginners and experts alike, offering liquidity and professional oversight to navigate markets.

What are mutual funds?

A mutual fund is a financial vehicle in which shareholders put their money together to invest in securities, such as stocks, bonds, and money market instruments. A fund manager chooses the best investments, and every investor shares in the profits if the investments do well. For most individuals, mutual funds are the cornerstone of their retirement savings, offering professional management and built-in diversification that would be difficult to achieve on their own.

Investors pool their money to buy assets together, benefiting from shared costs and professional expertise. Rather than buying individual stocks or bonds, they can buy shares in the fund itself, becoming partial owners of all its holdings.

The fund’s managers are responsible for researching opportunities, selecting securities, and monitoring performance according to the fund’s stated objectives, whether that is aggressive growth, steady income, or matching a market index.

How do they work?

When investors buy shares in a mutual fund, they gain part-ownership of all of the fund’s underlying assets. The fund’s performance depends on its assets; if it is full of stocks going up, it will go up. If they’re going down, so will the fund. A mutual fund decides how to divide money across sectors, industries, and companies based on its strategy.

Additionally, mutual funds give everyday investors access to a diverse investment menu they likely could not build on their own. Investing in a single stock or bond can be risky, but a mutual fund reduces the risk by spreading investments across many securities.

Types of mutual funds 

There are four main categories of mutual funds:

• Target-date funds. This type offers a straightforward retirement investing approach by automatically adjusting their mix of stocks, bonds, and other assets based on when you plan to retire. These funds start with aggressive growth strategies and gradually become more conservative as you approach retirement.
• Stock funds. These funds invest primarily in equity or stocks with assorted subcategories. Some equity funds are named for the company size they invest in, like small, mid-sized, or large capitalization funds. Others are named by their investment approach: aggressive growth, income-oriented, and value. 
• Bond funds. This type generates a consistent and minimum return as part of the fixed-income category. They focus on investments that pay a set rate of return, such as government bonds, corporate bonds, and other debt instruments. 
• Money market funds: Money market mutual funds are often used as a temporary holding place for cash that will be used for future investments or an emergency fund.

Reasons to invest in mutual funds

Mutual funds offer key advantages that make them appealing for investors seeking growth without deep expertise. This includes:

• Providing instant diversification by pooling money to invest across a wide range of securities, thereby reducing the risk from any single investment.
• Offering high accessibility and liquidity by trading on major exchanges, often providing the only practical way for individuals to invest in complex or foreign assets.
• Providing professional management, where experienced managers handle research, asset selection, and portfolio adjustments.
• Ensuring transparency as they follow strict regulatory standards.

Finally, mutual funds serve as a powerful and democratizing tool in the investment world, expertly blending key advantages into a single, accessible package. By pooling resources, they deliver instant diversification, professional management, and robust transparency. They turn the complex symphony of stocks, bonds, and other assets into a harmonious investment suited for a wide range of goals, timelines, and risk tolerances, making them a cornerstone of modern financial planning.

Ghada Ismail

For decades, waste in Saudi Arabia followed a familiar and largely unquestioned trajectory: collect, discard, and move on. Landfills expanded quietly beyond city edges, recycling efforts remained limited and fragmented, and waste was viewed almost exclusively as an operational burden rather than a recoverable resource. This approach, however, is no longer viable, either environmentally, economically, or socially.

As the Kingdom accelerates its Vision 2030 agenda, waste is being reframed as part of a broader economic opportunity. From food scraps and plastics to construction debris and industrial byproducts, materials once destined for landfill are now being reconsidered as inputs for new value chains. This shift sits at the core of the circular economy, a model that emphasizes reuse, recycling, and resource efficiency over extraction and disposal.

Driving this transition is a growing wave of Saudi startups applying technology to modernize waste management and recycling. Working alongside national entities and government-backed initiatives, these companies are reshaping how waste is collected, sorted, processed, and reintegrated into the economy. What is emerging is not simply a cleaner system, but a sustainability-driven sector aligned with Saudi Arabia’s long-term development goals.

Why Recycling Matters in Saudi Arabia: Cultural and Ethical Context

Saudi Arabia’s increasing focus on recycling is shaped by more than policy frameworks and economic targets. It is also influenced by long-standing cultural and ethical principles that emphasize responsibility, balance, and responsible resource management.

Within the Kingdom’s social fabric, moderation in consumption and avoidance of excess have traditionally been valued. These ideas, which are reflected in both cultural norms and religious teachings, reinforce the notion that resources should be used thoughtfully rather than wasted. In this context, recycling and circular economy practices resonate as practical extensions of deeply embedded values rather than imported sustainability concepts.

By extending the lifecycle of materials, reducing unnecessary consumption, and minimizing environmental harm, circular practices align naturally with a broader sense of accountability toward future generations. This perspective helps explain why sustainability initiatives increasingly gain public acceptance in Saudi Arabia. Recycling is not framed solely as an environmental obligation, but as a logical, responsible approach to managing growth and development in a resource-constrained world.

Saudi Arabia’s Circular Economy Ambition

Saudi Arabia generates millions of tons of waste each year, much of which has historically been sent to landfills. Recognizing the environmental impact and missed economic potential of this model, the government has placed waste diversion and recycling at the center of its Vision 2030 and Saudi Green Initiative objectives.

The ambition is clear: reduce landfill dependency, build advanced recycling infrastructure, and convert waste streams into sources of economic value. This includes municipal solid waste, construction and demolition materials, food waste, plastics, metals, and electronic waste.

At the forefront of Saudi Arabia’s effort to modernize and professionalize waste management is the National Center for Waste Management — commonly known by its acronym MWAN. Established by a Council of Ministers’ decree, MWAN serves as the Kingdom’s central regulatory authority for waste management, charged with setting strategy, regulating activities, and advancing the principles of a circular economy across the sector.

MWAN is responsible for organizing and supervising all stages of the waste lifecycle — including import, export, collection, transport, sorting, processing, storage, and the safe disposal of waste — with environmental protection and public health as guiding priorities. To drive long‑term transformation, the center issues licenses and permits to service providers and facilities, ensuring that companies operate in compliance with national standards and best practices.

A key focus for MWAN is creating an enabling environment for private investment and innovation. The center actively encourages investment in waste management systems — from recycling plants to advanced processing technologies — as a route to financial sustainability and value creation within the circular economy. Through strategic planning, research support, and training programs, it also works to build technical capability and foster partnerships with universities, research institutions, and international stakeholders.

Central to MWAN’s work is the National Waste Management Strategy, a comprehensive roadmap aimed at dramatically reducing landfill dependency, maximizing material recovery, and integrating circular economy principles into national practice. Under this strategy, the center seeks to divert the vast majority of waste from landfills through recycling, composting, and other value‑retentive pathways.

In doing so, MWAN plays a pivotal role not only in regulating the sector but in setting the conditions for innovative startups, investors, and service providers to thrive within a structured, forward‑looking framework that aligns with Saudi Arabia’s environmental and economic objectives.

National Champions Driving Scale:

Saudi Investment Recycling Company (SIRC)

One of the most influential players in Saudi Arabia’s circular economy is the Saudi Investment Recycling Company (SIRC), a subsidiary of the Public Investment Fund. Established to lead the development of the Kingdom’s waste and recycling sector, SIRC operates across multiple waste streams through specialized subsidiaries.

Its activities span municipal waste, construction and demolition debris, industrial waste, metals, and hazardous materials. Beyond collection, SIRC’s mandate is to build an integrated recycling ecosystem capable of converting waste into reusable materials, energy, and industrial inputs.

Through investments in large-scale recycling plants, advanced sorting technologies, and waste-to-value infrastructure, SIRC provides the national backbone required for a functional circular economy. Just as importantly, it creates structured pathways for startups to integrate into larger value chains rather than operating in isolation.

Startups Turning Waste into Opportunity

While national entities deliver scale and infrastructure, Saudi startups bring innovation, speed, and technical specialization to specific waste challenges.

Lesser for Sustainability Solutions

Lesser for Sustainability Solutions represents a new generation of Saudi startups embedding circular economy principles into operational reality. The company develops sustainability-driven solutions that help organizations reduce waste, improve resource efficiency, and adopt smarter environmental practices.

By leveraging data and system-based approaches, Lesser focuses on transforming waste streams into measurable environmental and economic outcomes. Its work reflects a broader shift within the startup ecosystem, where sustainability is increasingly treated as a core business function supported by technology, rather than a peripheral branding exercise.

Tadweer Saudi: Tackling Food Waste

Food waste remains one of the most under-addressed challenges in Saudi Arabia’s waste landscape, despite its high environmental and economic cost. Tadweer Saudi is tackling this issue by focusing specifically on organic waste recycling.

The startup collects food waste from retailers, hospitality venues, and commercial outlets, converting it into organic compost and fertilizers. By closing the loop between consumption and agriculture, Tadweer demonstrates how biological waste can be reintegrated into productive cycles instead of decomposing in landfills.

Recyclee: Tech-Driven Waste Management

Recyclee represents one of Saudi Arabia’s emerging tech‑driven waste management startups. The company leverages digital tools — including data analytics, IoT, and platform‑based waste tracking — to help businesses simplify waste collection, enhance sorting processes, and gain real‑time visibility into waste streams. 

By applying technology to traditional waste workflows, Recyclee aims to modernize operations, reduce logistical complexity, and support greater efficiency across collection and recycling processes. As Saudi cities expand and waste volumes grow, data‑enabled platforms like Recyclee are part of a broader trend toward integrating technology into waste management to help scale circular economy initiatives.

Technology as the Enabler

Across Saudi Arabia’s recycling ecosystem, technology is emerging as the central enabler of scale and efficiency. Digital platforms, analytics, smart collection systems, and automation are helping shift waste management away from manual, fragmented operations toward integrated, data-informed systems.

Technology enables more accurate tracking of waste flows and recycling rates, improved sorting and material recovery, optimized collection routes, and greater transparency across the value chain. For startups, this lowers barriers to entry and accelerates scaling. For national entities, it provides the data needed to measure impact and guide policy.

Challenges Still Ahead

Despite meaningful progress, challenges remain. Recycling infrastructure is uneven across regions, public participation in waste sorting is still developing, and scaling capital-intensive facilities requires long-term investment and confidence.

Addressing these gaps will require sustained collaboration between government entities, private investors, startups, and the public. Education, incentives, and regulatory clarity will be just as critical as technology in shaping the sector’s next phase.

From Waste to Value

As Saudi Arabia accelerates its journey toward a waste economy, the convergence of policy, technology, and entrepreneurial innovation is redefining what waste means. No longer merely a byproduct to be discarded, waste is being transformed into a resource; a source of economic value, industrial input, and environmental benefit.

What begins with recycling bins and digital platforms has the potential to reshape supply chains, industrial production, and consumer behavior across the Kingdom. If technology, regulation, and societal values continue to align, Saudi Arabia has an opportunity not merely to manage waste more efficiently but to redefine waste itself, transforming it into a long-term engine of economic value, environmental responsibility, and sustainable growth.

Noha Gad

The global hospitality industry is experiencing a profound transformation, driven by the robust advancement of artificial intelligence (AI). Globally, AI is transitioning from a novel innovation to an operational imperative, reshaping every step of the tourist’s journey, from initial booking and personalized marketing to in-stay experiences, predictive service, and backend logistics. This technological shift is not merely about automation or novelty; it is fundamentally about achieving unprecedented levels of efficiency, hyper-personalization, and scalable, consistent service quality in an increasingly competitive landscape.

A recent survey conducted by the professional services firm PwC revealed that the use of AI in the Middle East’s hospitality sector is accelerating, with 91% of industry leaders already using or piloting AI-related tools, yet only 3% of respondents have achieved full enterprise-wide implementation. Also, 85% of regional tourism and hospitality leaders reported moderate to significant cost savings and efficiency gains from AI implementation. The report stated that 68% of CEOs in GCC acknowledged improved efficiencies in their own time at work, compared to 53% globally, while 63% reported efficiencies in employees’ time, compared to 56% globally.

Amid this transformation, national strategies for tourism and economic diversification are increasingly intertwined with digital and technological infrastructure, most notably in Saudi Arabia. The Kingdom embarked on a historic and ambitious journey under Vision 2030, aiming to actively diversify its economy and establish itself as a leading global tourism destination, which is targeting 100 million visitors annually by 2030.

To achieve these monumental goals, Saudi Arabia recognizes that building world-class infrastructure alone is not sufficient. The scale, complexity, and global expectations of modern tourism demand intelligent, agile, and data-driven operational frameworks. Thereby, the Kingdom is strategically positioning AI as a critical enabler of its hospitality ambitions, aiming to streamline massive operations, optimize resource use, and craft uniquely personalized and seamless experiences for a diverse international clientele.

Why Saudi Arabia integrates AI into the hospitality industry

The Kingdom is strategically adopting AI in its hospitality sector to support its ambitious national goals and address specific challenges. Key reasons include:

• Managing growth and mega projects. As Saudi Arabia builds new tourist destinations from scratch, such as NEOM, Diriyah, and the Red Sea Project, AI plays a pivotal role in managing complex operations, such as logistics, energy use, and thousands of guest requests, efficiently and without overwhelming human teams.
• Delivering top-notch and personalized services. To offer exceptional and tailored experiences, the Kingdom leverages AI to analyze guest data to provide personalized recommendations, anticipate needs, and deliver consistent, high-quality service to visitors from around the world.
• Optimizing resources and promoting sustainability. AI allows properties to meet ambitious Environmental, Social, and Governance (ESG) objectives without compromising guest comfort or profitability.

“Digital tourism will improve travel experiences in the Kingdom by seamlessly implementing tools such as AI and data analytics to better predict travel trends and adjust prices,” said Abdulrahman Al Bassam, Board Director of Baheej Tourism Development Company. In an exclusive interview with Sharikat Mubasher, Al Bassam emphasized that AI helps the company analyze social media platforms to spot new travel preferences and help optimize offerings accordingly. “For Baheej, this means we can utilize AI to offer more personalized services. By tailoring travel itineraries and providing customized recommendations, we can provide our guests with unique and enjoyable experiences.”

The next generation of hotel portfolio management systems leverages AI in hospitality to balance resource efficiency with world-class guest experiences. AI models absorb real-time data from building systems, IoT sensors, PMS, and BMS/BAS platforms, providing key advantages:

• AI-powered hospitality management systems optimize heating, ventilation, and air conditioning (HVAC), lighting, and hot water, cutting unnecessary use while preserving comfort.
• AI asset management software predicts and prevents equipment breakdowns for higher uptime.
• Smart hotel management tools anticipate occupancy patterns and adapt services accordingly, improving productivity and reducing waste.
• AI hotel automation platforms provide deep analytics for accurate sustainability reporting and forecasting.
• AI-driven performance dashboards allow stakeholders to see emissions, costs, and operational trends across entire portfolios in real-time.

AI applications in the Saudi hospitality sector

AI is being integrated across the entire guest journey and behind-the-scenes operations in Saudi Arabia. For intelligent guest interaction and service, AI systems can handle routine communication and service tasks through chatbots, voice assistants, and service robots. A voice-controlled assistant can help guests request services, while a delivery robot brings amenities to the room, freeing staff for more complex guest needs. AI algorithms also analyze vast amounts of data, including local events, airline traffic, and competitor pricing, to enhance revenue management, optimize room rates, and target marketing campaigns. Additionally, AI-powered video analytics and monitoring systems can enhance safety, security, and crowd management. 

The most notable example of leveraging AI to enhance travelers' experience and manage crowds is Hajj 2025, when the Kingdom welcomed over 1.6 million male and female pilgrims, as stated by official figures from the General Authority for Statistics (GASTAT). In the Hajj 2025 season, authorities in Saudi Arabia utilized cutting-edge AI tools to streamline everything from spiritual guidance to crowd movement. Among these tools were the Smart Enrichment Assistant and the Digital Mutawwif.

Developed by the Agency for Religious Affairs at the Prophet’s Mosque, the Smart Enrichment Assistant provides real-time updates on prayer times, imam schedules, and locations of religious activities in numerous languages. It aims to reduce logistical stress while deepening spiritual engagement for pilgrims. Meanwhile, the Digital Mutawwif is designed to serve as a digital companion for Umrah pilgrims, which includes navigation tools for tawaf and sa’i, a library of audio-visual supplications, and built-in ritual counters to help pilgrims stay focused and on track.

Baseer is one of the sophisticated AI platforms developed to address the enormous logistical demands of Hajj. Using computer vision and machine learning (ML), Baseer tracks and analyzes the movements of over one million worshippers a day inside the Grand Mosque, helping authorities predict crowd surges and prevent dangerous bottlenecks. 

The Kingdom also introduced Manarah 2, a multilingual robot equipped with a smart touchscreen. It provides real-time information and guidance to pilgrims in several languages, along with a dedicated application to help non-Arabic speakers recite Qur’an verses correctly. Saudi Arabia’s strategic investment in AI set global standards for how digital transformation can serve humans better amid the extreme heat, massive crowds, and time-sensitive rituals.

The future ahead

The integration of AI in the hospitality industry paves the way for emerging trends that are expected to redefine the sector. This includes the use of generative AI to craft unique and on-demand experiences, and the use of the Metaverse to enable visitors to take immersive virtual tours of hotels and destinations via the metaverse. Saudi hotel operators can also leverage digital twins, virtual AI-powered replicas of their physical properties, to simulate everything from crowd flow during an event to the impact of any planned changes. 

Saudi Arabia steadily moves toward utilizing AI to deepen cultural connections. AI-powered augmented reality (AR) guides at historical sites like Diriyah or AlUla can overlay historical visuals and narratives in the guest's native language. 

Finally, the strategic adoption of AI is more than a technological upgrade for Saudi Arabia’s hospitality sector; it is a fundamental pillar for realizing Vision 2030’s ambitious tourism goals. By leveraging AI, the Kingdom is intelligently addressing the dual challenge of scaling unprecedented development while delivering the world-class, personalized service that modern travelers demand.

From optimizing massive operations and ensuring sustainability to crafting unique guest journeys, AI provides the necessary tools to build a sector that is both efficient and exceptionally welcoming. Saudi Arabia’s success will hinge on its ability to harmonize this cutting-edge technology with its rich, human-centric hospitality.