Riyadh, Saudi Arabia – [Date of Publication] – In a strategic move designed to accelerate the Kingdom’s transformation into a global digital powerhouse, Nokia has officially inaugurated a cutting-edge research and development (R&D) center in Riyadh. This new facility is poised to become a nexus for innovation in AI-powered network automation, directly supporting Saudi Arabia’s ambitious investments in 5G, artificial intelligence, and the nascent technologies of 6G. The establishment of this center signifies a deepening of Nokia’s commitment to the Saudi market and a significant step towards localizing advanced technological development within the Kingdom.
The Riyadh R&D center will be instrumental in developing sophisticated software solutions that empower communications networks to operate with unprecedented autonomy. These solutions are engineered to enable networks to self-configure, proactively identify and rectify issues (self-heal), optimize performance in real-time, and significantly reduce energy consumption. Key areas of focus for the center will include Service Management and Orchestration (SMO), Self-Organizing Networks (SON), Autopilot functionalities, and the development of rApps, all crucial components for achieving advanced automation and enhanced energy efficiency within telecommunications infrastructure.
This substantial investment by Nokia arrives at a pivotal moment for Saudi Arabia, as the nation vigorously cultivates its position as one of the world’s most progressive and dynamic telecom markets. The Saudi Communications, Space and Technology Commission (CST) reported that the Kingdom’s telecommunications market generated a remarkable SAR 84 billion in 2025, underscoring the immense scale and potential of this sector. Nokia intends to leverage its Riyadh operation not only to serve the evolving needs of communications service providers and enterprises within Saudi Arabia but also to spearhead the exploration of AI-native 6G technologies. Critically, the software innovations originating from this center are envisioned to be exported globally, carrying the "Made in Saudi" designation and showcasing the Kingdom’s growing prowess in technological innovation.
Saudi Arabia: A Fertile Ground for 5G and Network Innovation
The Kingdom of Saudi Arabia has rapidly emerged as a leading global player in 5G deployment and mobile network performance, presenting Nokia with an ideal environment for pioneering autonomous network software. A comprehensive study by GSMA Intelligence, released in July 2026, highlighted Saudi Arabia’s exceptional progress in 5G development, ranking it among the top large economies worldwide.
The GSMA Intelligence assessment, which analyzed mobile network performance and quality of service across 187 countries, revealed that Saudi Arabia achieved impressive average 5G download speeds of 314 Mbps during 2025. This advanced performance is attributed to a confluence of strategic factors, including substantial network investment, proactive spectrum allocation, rapid technology upgrades, widespread fiber optic deployment, and robust smartphone adoption.
Saudi Arabia has distinguished itself through an aggressive and forward-thinking spectrum strategy. The Kingdom has successfully assigned spectrum across nearly all major mid-bands, and crucially, has made more 3.5 GHz spectrum available than any country except Japan. Furthermore, Saudi Arabia made history by becoming the first country in the EMEA/ITU Region 1 to allocate 600 MHz spectrum specifically for mobile services. This extensive spectrum availability, coupled with a rapidly expanding 5G infrastructure and escalating data consumption, creates a pressing demand for sophisticated and intelligent network management solutions – precisely the domain that Nokia’s Riyadh R&D center is designed to address.
The Era of Hyper-Connected Consumers: Driving Demand for Network Automation
The strategic importance of network automation is further amplified by the extraordinary mobile data consumption habits of Saudi consumers. According to the Saudi Internet Report 2025, published by the CST, internet penetration in the Kingdom reached an astounding 99.6 percent in 2025. More remarkably, the average monthly mobile internet consumption per person soared to 53 GB, a figure three times the global average. This insatiable appetite for data underscores the critical need for networks that can not only cope with immense traffic but also optimize resources efficiently and dynamically.
The Saudi Internet Report 2025 also detailed significant improvements in mobile internet speeds. The median mobile internet download speed increased by 6 percent, rising from 203 Mbps in 2024 to 216 Mbps in 2025, positioning Saudi Arabia among the top five G20 countries for this metric. The median 5G download speed reached an impressive 320 Mbps, with a median mobile latency of just 24 milliseconds.
The sheer volume of internet traffic generated in Saudi Arabia – a colossal 69 million terabytes in 2025, with mobile and fixed networks each contributing 50 percent – necessitates advanced automation. This immense traffic volume, combined with the rapid adoption of AI tools by 45.2 percent of Saudi internet users in 2025 (more than double the previous year’s figure), and the significant time spent online by 61.3 percent of users (at least seven hours daily), places a considerable strain on network resources. Moreover, the burgeoning Internet of Things (IoT) landscape, with 13.85 million IoT subscriptions, over 30,000 NB-IoT towers, and 99 percent urban NB-IoT population coverage, adds another layer of complexity that demands intelligent network management. Consequently, major telecom operators such as stc, Mobily, and Zain face an imperative to automate network optimization, capacity management, and energy consumption to ensure seamless service delivery and operational efficiency.
A Foundation Built on Existing Collaboration: Nokia’s Success with stc
Nokia’s strategic decision to establish its R&D center in Riyadh is further bolstered by its successful track record and ongoing collaborations with leading Saudi telecom operators. The company has already demonstrated the tangible benefits of AI-powered network automation through its partnership with stc, Saudi Arabia’s largest telecommunications company.
Previously, Nokia deployed its AI-driven MantaRay Cognitive SON solution within stc’s commercial network. During periods of peak traffic, this intelligent system processed over 10,000 automated actions, leading to an approximate 30 percent increase in utilization on heavily loaded network cells and a 10 percent improvement in average user throughput. Crucially, the network maintained robust connectivity even as traffic surged by 40 percent during these demanding times. Furthermore, Nokia reported that the AI-supported radio network energy efficiency measures implemented for stc resulted in a significant 13 percent reduction in energy consumption across stc’s 4G and 5G networks in 2023.
These successful deployments serve as compelling proof-of-concept for the technologies that will be developed at Nokia’s new Riyadh center. As Saudi networks continue to grow in complexity and scale, the ability for operators to leverage AI for real-time identification of network conditions, automated resource allocation, and proactive resolution of operational issues will become indispensable, significantly reducing the need for manual intervention and enhancing overall network resilience and efficiency.
Driving Saudi Vision 2030: Localizing Expertise and Fostering Talent
The establishment of the Riyadh R&D center is a direct outcome of a significant agreement reached earlier in 2026 between Saudi Arabia’s Minister of Communications and Information Technology and Nokia President and CEO, Mr. Justin Hotard. This collaboration underscores a shared vision for technological advancement and economic diversification.
Nokia is committed to creating high-value engineering and research positions within the Kingdom, while also instituting comprehensive training programs, boot camps, and certification courses focused on AI and network automation. This initiative is meticulously designed to cultivate a new generation of Saudi talent skilled in software development and advanced telecommunications technologies, thereby directly contributing to the Kingdom’s ambitious Vision 2030 objectives for digital transformation and economic diversification.
Eng. Abdulrahman AlMufadda, Deputy Minister for Telecom and Digital Infrastructure at Saudi Arabia’s Ministry of Communications and Information Technology, expressed strong support for the initiative, stating, "This center will play a pivotal role in localizing advanced R&D capabilities and developing Saudi talent in the critical fields of AI and software development. It aligns perfectly with our national strategy to build a thriving digital economy."
Mikko Lavanti, President of Nokia Middle East and Africa, echoed this sentiment, highlighting the synergistic approach: "The Riyadh R&D center will be a melting pot where Nokia’s extensive global expertise converges with the burgeoning talent and innovative spirit of Saudi Arabia. Together, we will engineer more autonomous, efficient, and responsive communications networks for the future."
At the LEAP 2026 technology conference, Nokia is also actively showcasing its cutting-edge solutions in autonomous networks, AI-native RAN (Radio Access Network), next-generation optical transport, data center automation, mission-critical IP and optical networking, and enterprise edge technologies, further demonstrating its commitment to the region’s digital advancement.
For Nokia, the Riyadh R&D center offers unparalleled access to a thriving SAR 84 billion telecom market characterized by leading 5G speeds, exceptionally high mobile data consumption, and a rapidly expanding adoption of AI. For Saudi Arabia, this strategic investment represents a monumental leap from being a significant consumer of telecommunications technology to becoming a global innovator and exporter of advanced AI network software and future connectivity solutions. This partnership is poised to redefine the Kingdom’s role in the global technology landscape, driving economic growth and solidifying its position as a leader in the digital age.
