The new rules of influence — how digital economy and diplomacy are rewriting global power
In a world where cross-border data flows now exceed global trade in goods, and where digital services account for more than two-thirds of all trade in services, globally increasing travels by fiber optic.
This is not poetic exaggeration, it's economic reality. The OECD reports that data-driven activities account for over 30 percent of global productivity growth.
The IMF forecasts that over 70 percent of global GDP will be tied to digitally enabled activities by 2030.
Development strategies now revolve around undersea cables, cloud facilities, and regulatory tech stacks.
Fintech platforms are outperforming traditional banks in emerging markets, while e-commerce ecosystems are replacing supply chains faster than customs systems can adapt.
The digital economy is not just the 'future' economy, it's where countries are already gaining or losing influence.
It's about setting global standards on AI safety, defining data rules, regulating algorithmic bias, and arbitrating digital identities.
Diplomacy isn't becoming irrelevant, it's becoming radically technical.
Some countries saw this early. Singapore has positioned itself as a global digital arbitration hub.
Chile added digital clauses to trade agreements with the EU and China.
India is exporting Digital Public Infrastructure model to Africa and Southeast Asia.
Rwanda is pioneering cross-border fintech corridors.
And Saudi Arabia is positioning itself as a digital convening power.
The Kingdom's digital economy already contributes over 15 percent of GDP, aiming to exceed 19 percent by 2030.
Attracting hyperscale investments from Oracle, Google, and Alibaba are turning Riyadh into a regional data hub.
Initiatives including sovereign AI entities, such as Humain, advanced digital government services, and forums on cross-border data governance and AI ethics show a strategy to shape, not just consume, the digital economy.
Organizations such as the Digital Cooperation Organization, based in Riyadh and focused on inclusive digital transformation, are key platforms for aligning national and multilateral frameworks.
This is not just about infrastructure or platforms. It's about rule-setting.
Who defines ethical AI? Who governs cross-border payments? Who ensures that digital identities are portable and secure?
These questions are becoming the backbone of a new kind of diplomacy, what some call 'cloud realpolitik.'
In this environment, public-private diplomacy is no longer optional, it's foundational.
Governments alone can't regulate the digital economy.
They must co-create it alongside fintech firms, AI labs, logistics giants, and cloud providers.
Foreign and finance ministries must speak the language of engineers.
Economic policy must align with data governance.
Trade deals must include digital clauses. And yes, diplomacy now involves negotiating where your citizens' data is stored.
The Kingdom of Saudi Arabia has a real opportunity to play a significant role.
But digital soft power doesn't come from capital alone.
It comes from trust, interoperability, legal predictability, transparent regulation, and multilateral coordination.
Being a digital leader means building systems others connect to.
Digital transformation is easy to announce but hard to govern.
Real leadership will depend on enabling digital corridors, supporting DPI models, and pushing for regulatory convergence in AI and fintech.
These are the pillars of long-term digital diplomacy.
Those who understand this will define tomorrow's influence. Those who don't, will wake up one day with world-class infrastructure, and no one using it.
In a world where digital trust is the new currency of diplomacy, the race is not for who builds the tallest stack of servers, but for who writes the protocols the rest of the world chooses to follow.
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The new rules of influence — how digital economy and diplomacy are rewriting global power
In a world where cross-border data flows now exceed global trade in goods, and where digital services account for more than two-thirds of all trade in services, globally increasing travels by fiber optic. This is not poetic exaggeration, it's economic reality. The OECD reports that data-driven activities account for over 30 percent of global productivity growth. The IMF forecasts that over 70 percent of global GDP will be tied to digitally enabled activities by 2030. Development strategies now revolve around undersea cables, cloud facilities, and regulatory tech stacks. Fintech platforms are outperforming traditional banks in emerging markets, while e-commerce ecosystems are replacing supply chains faster than customs systems can adapt. The digital economy is not just the 'future' economy, it's where countries are already gaining or losing influence. It's about setting global standards on AI safety, defining data rules, regulating algorithmic bias, and arbitrating digital identities. Diplomacy isn't becoming irrelevant, it's becoming radically technical. Some countries saw this early. Singapore has positioned itself as a global digital arbitration hub. Chile added digital clauses to trade agreements with the EU and China. India is exporting Digital Public Infrastructure model to Africa and Southeast Asia. Rwanda is pioneering cross-border fintech corridors. And Saudi Arabia is positioning itself as a digital convening power. The Kingdom's digital economy already contributes over 15 percent of GDP, aiming to exceed 19 percent by 2030. Attracting hyperscale investments from Oracle, Google, and Alibaba are turning Riyadh into a regional data hub. Initiatives including sovereign AI entities, such as Humain, advanced digital government services, and forums on cross-border data governance and AI ethics show a strategy to shape, not just consume, the digital economy. Organizations such as the Digital Cooperation Organization, based in Riyadh and focused on inclusive digital transformation, are key platforms for aligning national and multilateral frameworks. This is not just about infrastructure or platforms. It's about rule-setting. Who defines ethical AI? Who governs cross-border payments? Who ensures that digital identities are portable and secure? These questions are becoming the backbone of a new kind of diplomacy, what some call 'cloud realpolitik.' In this environment, public-private diplomacy is no longer optional, it's foundational. Governments alone can't regulate the digital economy. They must co-create it alongside fintech firms, AI labs, logistics giants, and cloud providers. Foreign and finance ministries must speak the language of engineers. Economic policy must align with data governance. Trade deals must include digital clauses. And yes, diplomacy now involves negotiating where your citizens' data is stored. The Kingdom of Saudi Arabia has a real opportunity to play a significant role. But digital soft power doesn't come from capital alone. It comes from trust, interoperability, legal predictability, transparent regulation, and multilateral coordination. Being a digital leader means building systems others connect to. Digital transformation is easy to announce but hard to govern. Real leadership will depend on enabling digital corridors, supporting DPI models, and pushing for regulatory convergence in AI and fintech. These are the pillars of long-term digital diplomacy. Those who understand this will define tomorrow's influence. Those who don't, will wake up one day with world-class infrastructure, and no one using it. In a world where digital trust is the new currency of diplomacy, the race is not for who builds the tallest stack of servers, but for who writes the protocols the rest of the world chooses to follow.
