diplomacy, reforms and rights (denied). Silicon Valley in Arabia sauce

The kingdom wants to become the main digital and technological center of the region. Bin Salman’s nationalism has supplanted religious Wahhabism. Entertainment and modernity, but only with the concession of the State. The infrastructure and fiber optic node. Social changes are reflected in the real estate market.

Milan () – Diversification in the economic field, activism in the diplomatic field starting with resuming relations with Tehran (Shiite rival in the region) and dialogue with the pro-Iranian Houthi rebels in Yemen, social reforms and nationalism to supplant Wahhabi Islam. Saudi Arabia has made radical changes in recent years that go hand in hand with a profound mutation in the policies promoted by Crown Prince Mohammed bin Salman (MBS), which has gone from military confrontation to dialogue, at least externally. In fact, if on the internal front Riyadh continues to use the heavy hand -and the death penalty- to repress any form of dissent, on the other side of the border it has implemented détente policies -from the Islamic Republic to Yemen- with with an eye on security and economic growth.

Wahhabism and nationalism

The reference continues to be the ambitious “Vision 2030”, strongly promoted by bin Salman himself, a radical economic and financial transformation plan that aims to free the nation from oil and hydrocarbons by strengthening the tourism and entertainment industries. However, the real objective is to convert the ancient Wahhabi kingdom, a reference point for the Sunna and the Islamic religious pilgrimage to Mecca and Medina, into a modern financial, technological and innovation center.

When the “Vision 2030” was unveiled in 2016, MBS was not yet a crown prince. Today he is also prime minister and is the true strongman who determines Saudi policies, inside and outside the country, pursuing a diversification of international alliances that have led the country to reconnect with Iran and dialogue with Israel, although without ending in the embrace of the “Abraham Accords”. And also to keep alive the axis with Washington in which the Democrat Biden has taken the place of the Republican Trump, without disdaining the diplomatic initiatives -and the money- of Beijing, which looks at the Middle East with growing interest.

A reformism that finds in the Neom megaproject, the futuristic city on the shores of the Red Sea and which is already 20% complete, the most significant showcase with young people as a point of reference, in a nation where two thirds of the population have less than 35 years. Accompanying this is the growing “dewahaabization” plan, in which the strictest interpretation of Islam is set aside and fundamentalist leaders are pushed aside, in favor of a nationalism that leaves a marginal space for freedoms and rights. Concessions, in effect, always come “from above” and religious minorities, ethnic groups and civil society remain under the yoke of strong restrictions or are persecuted, just as recourse to the death penalty continues to be widespread.

Silicon Valley in Saudi sauce

Analysts and experts highlight the ambitious project promoted by the Saudis in the field of technology, with the attempt to become the “Silicon Valley” of the Arabian peninsula, although more centers and infrastructures are needed to establish itself as a web giant. And beat the competition from the United Arab Emirates (UAE), which in terms of reforms and changes has been a model that, in many respects, remains unmatched today despite Riyadh’s efforts – and money. On the table, however, are the multimillion-dollar investments made by the Saudis in data centers, metaverses and fiber optic cables. World wide web players such as Microsoft, Google, Oracle, Meta and Apple are eyeing the kingdom with interest, drawn by its huge capital, high internet usage and future development plans. Fahad Alhajeri, CEO of Center3, a subsidiary of the Saudi Telecom Company (STC), confirms that the goal is to become “the main digital center” connecting the three continents of “Asia, Europe and Africa, in addition to directing most of the Internet exchange and data traffic in the region”.

Already today, Saudi Arabia can be considered a digital giant, home to more than 55% of the region’s telecommunications market share and 51% of the information technology industries, according to data from Goldstein Research. The level of Internet penetration in daily life and in society is 98%, despite the fact that consumer spending on information technology only represents 0.7% of GDP, compared to 1.3% for developed countries, reflecting the wide margin of growth available. And that growth is yet to come. Cloud services in Saudi Arabia are expected to reach $10 billion by 2030. Google has formed a joint venture with state oil giant Aramco. Microsoft will invest $2.5 billion in a new cloud data center. Chinese tech giant Huawei will invest $400 million in the cloud. In May, Meta, Facebook’s parent company, will open the region’s first metaverse academy in Riyadh to train people in building new digital environments. Finally, Apple is about to locate its first distribution center in the Middle East, near the capital. The fiber optic network, through which 95% of the world’s Internet traffic circulates, will be essential to achieve these objectives. Hence the decision of the Saudis to create a local infrastructure.

Society and rights

The economic and financial changes that are taking place also have a profound impact on the cultural sphere, with a transformation that affects society and the family. Saudis are marrying later and having fewer children, disrupting family units and affecting the housing market. Among the new female role models are powerful women, and the number of those who establish themselves in the professional or diplomatic field is increasing, such as the various ambassadors in Western countries. Riyadh is increasingly a focus of transformation, waiting for the completion of the futuristic Neom, and the prices of houses and flats are rising at an unprecedented rate. Young people tend to leave their families of origin earlier and earlier, causing a decline in demand for mega-apartments in favor of smaller but functional apartments, confirms the Knight Frank real estate consultancy.

Of the approximately 555,000 residential units under construction by the end of the decade, most will be priced at least $1 million. The company surveyed by al-Monitor states that “we are witnessing the decline of the multigenerational family”, while more and more people, especially young people, “are internal migrants in search of better professional prospects”. Added to this is increased education abroad, increased awareness of life and goals, and the pursuit of a communal lifestyle. The changing and affirming world of youth is followed by a state-run entertainment industry that looks with increasing interest to theme parks, festivals, cinema and sports (from football to motor sports). Finally, there are changes in schools and textbooks, where the pre-Islamic past finds a place and the most intolerant passages towards Jews and Christians are eliminated, as well as the introduction of Chinese as a third language and the practice of yoga in schools and universities. However, the reforms stop at the threshold of human rights and religious freedom. In fact, Islam remains the only recognized religion in the land of Mecca and Medina, while churches, synagogues, and temples remain off limits. Finally, another cause for concern for companies and investors refers to digital privacy and surveillance, given the introduction of the Personal Data Protection Law (PDPL) in March 2023. A regulation that ended up in the crosshairs of activist groups like Smex, according to which it could enable privacy breaches and holes in data protection.

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