DUBAI, United Arab Emirates -
Tuesday, 15. September 2026
(GLOBE NEWSWIRE) -- Saudi
Arabia’s innovation agenda is entering a new phase, with the focus
shifting beyond technology manufacturing and adoption towards greater
investment in R&D, the development of homegrown innovations and
technologies, stronger control over intellectual property creation and
ownership, and the commercialisation and transformation of these assets
into strategic national economic drivers, according to Ahmad Saleh, Partner and Head of Innovation, Patents & Industrial Property at Al Tamimi & Company.
In a new analysis, Ahmad examines how Saudi Arabia’s developing
framework for research and development, intellectual property,
artificial intelligence and industrial localisation is increasingly
converging, and considers whether the Kingdom can translate these policy
ambitions into commercially valuable technologies and sustainable
domestic capabilities.
“Saudi Arabia’s innovation journey is increasingly moving beyond the
question of where products are manufactured towards a more fundamental
question: where the underlying technology, intellectual property and
know-how are developed and owned,” said Ahmad Saleh.
“The distinction between manufacturing localisation and technology
localisation will become increasingly important. A product may be
manufactured locally while its underlying technology, software, know-how
and intellectual property remain controlled elsewhere. The longer-term
objective is therefore not necessarily self-sufficiency, but the
development of capabilities that allow local businesses and institutions
to create, improve, own and commercialise technology.”
From institutional development to economic output
Over the past decade, Saudi Arabia has developed an increasingly
structured institutional and regulatory framework intended to support a
more innovation- and knowledge-based economy.
Vision 2030 established economic diversification and private-sector
development as long-term priorities, while the establishment of the
Saudi Authority for Intellectual Property (SAIP) in 2018 and the
Research, Development and Innovation Authority (RDIA) in 2021
strengthened the institutional infrastructure supporting intellectual
property and R&D.
The National Aspirations and Priorities for RDI subsequently
identified four principal areas of focus: Health and Wellness;
Sustainable Environment and Supply of Essential Needs; Energy and
Industrial Leadership; and Economies of the Future. The framework
includes a target for annual RDI investment equivalent to 2.5% of GDP by
2040.
Saudi Arabia’s intellectual-property policy has developed in
parallel, with increasing emphasis on the generation, protection,
commercialisation and respect of intellectual-property rights. The
National Intellectual Property Strategy, together with the National
Intellectual Property Policy approved in 2026, reflects a broader focus
on commercialisation, intangible assets, technology transfer and support
for R&D and innovation.
According to Ahmad, the next test will be whether this institutional development produces measurable economic value.
“Research publications, patent filings and investment are important
indicators of activity, but they do not by themselves demonstrate
successful commercialisation,” he said. “The real economic impact of
innovation depends on what happens afterwards—whether technologies are
assessed, protected, financed, licensed, transferred, developed into
businesses and ultimately brought to market.”
From counting patents to commercialising technology
For universities and publicly funded research institutions in
particular, Ahmad argues that the success of an innovation ecosystem
should increasingly be assessed through outcomes rather than simply the
volume of intellectual property generated.
This includes licensing revenues, university spin-outs,
industry-funded R&D, successful technology transfers, private
investment attracted by IP-rich businesses and the international
commercialisation of locally developed technologies.
Intellectual property can play a central role in this process.
Patents, trade secrets, copyright, software, data, designs, know-how and
contractual rights can transform knowledge into assets capable of being
owned, licensed, financed, transferred and commercialised.
“The transition that matters is from IP creation to IP utilisation,” Ahmad said.
“A commercially focused innovation system needs to ask which
technologies have genuine market potential, which inventions justify
international protection, which are better protected through trade
secrets, and which can be licensed, spun out or developed into
businesses capable of competing internationally.”
AI is reshaping the IP conversation
Artificial intelligence is also creating a new intersection between innovation policy and intellectual-property regulation.
One of the most significant global copyright questions concerns the
use of protected works in the development and training of AI systems.
Jurisdictions including the United States, European Union, Japan, China
and the United Kingdom have taken or are considering different
approaches to the issue.
Saudi Arabia’s recent copyright reforms are notable in this context
for addressing certain uses connected with the development of AI
products and algorithms through legislation, subject to specified
conditions and safeguards.
Ahmad notes that the reforms do not resolve every question concerning
AI training and should not be interpreted as an unrestricted right to
use copyrighted material. Their significance lies in demonstrating how
intellectual-property legislation is increasingly being required to
mediate between existing rights and emerging technologies.
Whether regulatory developments ultimately make Saudi Arabia more
attractive to AI developers will also depend on factors including access
to data, computing infrastructure, talent, investment and the
interaction with wider regulatory requirements.
Localisation and the changing geopolitical environment
The rationale for localisation is also evolving.
Global supply-chain disruptions, geopolitical tensions, trade
restrictions and strategic competition have encouraged governments
worldwide to reassess dependencies in strategically important sectors.
For Saudi Arabia and other Middle Eastern economies, this has added
resilience to the traditional objectives of diversification, employment,
foreign investment and domestic industrial development.
Critical areas can include pharmaceuticals and vaccines, medical
equipment, food and water technologies, energy infrastructure,
cybersecurity, telecommunications, defence technologies, semiconductors,
cloud infrastructure and certain AI capabilities.
However, Ahmad cautions that complete self-sufficiency is neither realistic nor necessarily economically desirable.
“The more relevant policy question is where international
interdependence provides economic efficiency, and where excessive
dependency could create strategic vulnerability,” he said. “The
appropriate level of localisation will differ by sector, but resilience
increasingly forms part of the calculation.”
From manufacturing localisation to technology ownership
For Ahmad, the distinction between manufacturing and technological
capability is central to the next phase of Saudi Arabia’s localisation
strategy.
A technology may be manufactured within the Kingdom while its core
IP, software, know-how and critical components remain controlled
internationally. Meaningful technology localisation therefore requires
consideration of what knowledge and capabilities are actually
transferred.
This raises questions around ownership of locally developed
improvements, future R&D, access to know-how, the development of
local engineering and scientific capabilities and the ability to
commercialise locally developed technologies internationally.
Ahmad describes the potential progression as:
Made locally → Developed locally → Owned locally → Exported internationally
“Not every industry will, or should, move through every stage of this
continuum,” Ahmad said. “But where the economics and strategic
importance justify it, the objective can move beyond manufacturing
towards developing and owning the capabilities that underpin the
technology.”
IP and technology transfer become increasingly important
As international technology providers, local businesses,
universities, investors and governments collaborate more closely,
intellectual-property arrangements will become increasingly important.
Technology-transfer structures require careful consideration of
background IP, newly developed IP, know-how, improvements, licensing
rights, territorial restrictions and future technologies.
The objective will not necessarily be outright transfer of ownership.
Depending on the circumstances, licensing rights, access to know-how,
local R&D capability or ownership of locally generated improvements
may provide a more commercially workable outcome.
Greater collaboration may also increase the potential for disputes
concerning jointly developed technologies, improvements, employee
inventions, trade secrets, data, patent prosecution, publication rights
and the consequences of terminating collaborations.
“Many technology disputes do not begin with deliberate infringement.
They originate in ambiguity at the beginning of the relationship,” Ahmad
said. “Clear allocation of background and foreground IP, improvements,
confidentiality, data rights, commercialization rights, licensing
arrangements and dispute-resolution mechanisms should therefore form
part of effective innovation governance.”
The next phase of Saudi Arabia’s innovation ecosystem
Saudi Arabia’s experience provides a significant regional case study
in the interaction between R&D, intellectual property, AI
regulation, localisation and economic diversification.
The next phase will ultimately be measured by whether research
generates commercially successful technologies, whether technology
transfer becomes more effective, whether localisation creates
sustainable domestic technological capabilities, whether private capital
increasingly supports IP-based businesses and whether locally developed
technologies can compete in international markets.
Ahmad summarises the potential pathway as:
Investment → Increased National R&D Expenditure →
Homegrown Innovation → IP Creation & Protection → National Strategic
Assets → Commercialisation → Localisation & Scale-Up → Global
Markets → Economic Diversification & Growth
“The institutional architecture is increasingly in place. The next
challenge is execution—consistently converting research, intellectual
property and investment into technologies and businesses that create
economic value,” Ahmad concluded.
“Saudi Arabia’s experience will be important not only for the Kingdom
itself, but for economies across the Middle East that are considering
how intellectual assets and technological capabilities can support
diversification, resilience and long-term economic development.”
About Al Tamimi and Company
Al Tamimi and Company is the leading full-service law firm in the UAE
and MENA region, with 17 offices across 10 countries. Since 1989, we
have delivered innovative, cost-effective legal solutions to address
complex business challenges.
Our team of 580+ legal professionals combines deep expertise with
practical insights, offering commercially focused advice that drives
client success. With a commitment to diversity and inclusion, we foster a
dynamic environment that attracts top talent and empowers us to deliver
outstanding results across industries.
Media Contact
Hadi Ayedh
Public Relations and Communications Manager
+971505490461
h.ayedh@tamimi.com
