Big Vision, Bold Moves

Saudi Arabia’s AI ambitions are impossible to ignore

With staggering investments, bold initiatives and a long-term vision rooted in economic diversification, Saudi Arabia’s artificial intelligence (AI) ambitions are not just aspirational – they have also been rapidly materializing into projects and policies that demand global attention. 

As Nasser AlNasser, the Assistant Deputy Minister for Technology and Investment at Saudi Arabia’s Ministry of Communications and Information Technology (MCIT), put it: “We envision Saudi Arabia as a global leader in artificial intelligence, fully harnessing AI’s potential to drive economic growth and societal development. The AI industry will be a cornerstone of the Kingdom’s diversified economy, contributing significantly to the gross domestic product (GDP) and creating new job opportunities.” 

Other experts in the field agree. Anthony Nakache, Managing Director for the MENA at Google, said, “It is great to see Saudi Arabia’s ambitious plans to become one of the global leaders in AI, which will bring US$200 billion in value to the country’s economy by 2030, according to The Economist. The country is well-positioned with a strong commitment to innovation, and a supportive government. As well as a tech-savvy, young, educated population, and according to the Saudi Data and AI Authority’s (SDAIA) 2024 public awareness survey, 75% of Saudis have a strong knowledge about AI and its use cases and applications.” 

This potential value necessitates investing in new tech, and while Saudi Arabia’s spending reflects a global trend on the AI front, it stands out for its scale and ambition. A report by PwC estimates AI could contribute $135 billion to the Middle East’s GDP by 2030, with Saudi Arabia accounting for nearly half of that figure. According to SDAIA, AI is set to contribute 12% to Saudi Arabian GDP by 2030. 

KSA’s AI Ascent 

There are several AI projects that highlight the Kingdom’s commitment to advancing technology. SDAIA’s Estishraf Platform, for example, provides AI-powered data analytics and decisionmaking services to over 100 government entities, while the Sawaher National Platform utilizes AI to analyze streams from over 15,000 cameras, offering real-time insights and alerts. Meanwhile, Saudi Arabia’s Ministry of Justice uses optical character recognition (OCR) technology to streamline real estate document processing with 98% accuracy, while the country’s Communications, Space, and Technology Commission (CST) employs AI to detect illegal signal boosters, improving communication by 49%. 

Saudi Arabia is also advancing its supercomputing capabilities, with 10 supercomputers established, eight of which rank among the top 500 globally. Shaheen III at the King Abdullah University of Science and Technology (KAUST), for example, is the highestranked in the GCC, with performance six times faster than its predecessor, Shaheen II. The Kingdom is also investing heavily in graphics processing units (GPU), with KAUST acquiring over 3,000 Nvidia GPUs and SDAIA acquiring 500+ H100 Nvidia GPUs. 

NEOM, the $500 billion futuristic city that’s a centerpiece of Saudi Arabia’s Vision 2030, is also a testing ground for AI applications. From autonomous public transit systems to predictive energy management, NEOM has shown how AI can integrate seamlessly into urban living. As an example, in late 2023, the NEOM Investment Fund (NIF) put $100 million into Pony.ai, a global autonomous driving company. Additionally, a joint venture will be established for autonomous technology solutions for the region. 

Commenting on the investments the Kingdom is making in this cuttingedge technology, Saran B. Paramasivam, Regional Director for Middle Eastand Africa (MEA) at Zoho, said, “Saudi Arabia is making impressive strides in AI across several key sectors, with notable progress in healthcare, energy, and finance. However, the most significant advancements are happening in government services and smart city projects. The Kingdom is heavily investing in AI to modernize public services, streamline government operations, and improve citizen experiences. This focus on AI-driven government efficiency is backed by the government’s ambition to become a fully digital nation. Additionally, Saudi Arabia’s smart city initiatives, such as NEOM or Riyadh Smart City, are setting the stage for groundbreaking AI applications in urban planning, infrastructure, and sustainability.” 

According to Mubarak Alwadaani, Chief Commercial Officer at the Saudi Company for Artificial Intelligence (SCAI), Saudi Arabia has been making significant changes in enhancing its AI infrastructure, focusing on key areas such as data centers, supercomputing capabilities, and connectivity. “The expansion and modernization of data centers across the Kingdom are pivotal to its AI strategy,” he said. “By increasing the number and capacity of these centers, Saudi Arabia is better equipped to handle complex data workloads, and ensure high levels of data security, both of which are essential for advanced AI operations. This includes adopting cuttingedge technologies to improve the efficiency and scalability of data processing facilities.” 

“In addition to data centers, Saudi Arabia has invested in upgrading its supercomputing facilities,” Alwadaani added. “These supercomputers play a critical role in processing large volumes of data and executing complex AI models more efficiently, thereby supporting a wide range of scientific research and AI applications. On the connectivity front, the rollout of enhanced telecommunications infrastructure, including the expansion of 5G networks, marks a significant improvement. This upgrade is crucial for enabling high-speed, real-time data processing that modern AI systems require, and it supports the integration of AI technologies in various sectors like automotive and industrial IoT. Together, these developments not only strengthen the domestic AI ecosystem, but also position Saudi Arabia as a competitive player in the global AI industry.” 

Related to these developments is the Kingdom’s cloud computing strategy, which includes an $18 billion plan as well as the Cloud Computing Regulatory Framework (CCRF) to attract investment and safeguard consumers. The number of registered cloud service providers (CSPs) has increased to 29, with global giants like Oracle, Google Cloud, and Alibaba Cloud establishing cloud regions in the country. While pointing out that Google’s cloud region was launched in Dammam in 2023, Nakache said that it is estimated to contribute a cumulative $109 billion in higher gross economic output between 2024 and 2030, and support the creation of 148,600 jobs in 2030 alone. 

“Looking from the outside, we can see that the investments are part of the Saudi Vision 2030 strategy, and they are looking to establish KSA as a key AI hub for the region and globally,” noted Mahesh Jaishankar, Senior Advisor at the consultancy, Arthur D. Little. But Jaishankar also pointed out that Saudi Arabia understands that financial investment alone won’t secure its place as an AI leader – the country is also investing heavily in AI research and innovation. 

Till date, the Kingdom has established 11 Centers of Excellence (CoEs) in AI and generative AI, including partnerships with tech leaders in the field like Nvidia as well as local institutions. While these centers focus on various sectors such as media, data science, and AI, Saudi Arabia’s Research Development and Innovation Authority (RDIA) has also created the Open Access Portal Platform which connects researchers with resources across 12 AI-specialized research labs from 11 universities and two research centers. 

Meanwhile, innovations like Saudi oil giant Aramco’s new large language AI model, Aramco METABRAIN, and the formation of an innovative research and development (R&D) network—the Saudi Accelerated Innovation Lab (SAIL), which aims to advance the digital economy—signal ambitions grounded in tangible projects. At LEAP 2024, Aramco Digital also announced that it was working with Groq, a leader in AI inference and creator of the language processing unit (LPU), to establish the world’s largest inferencing data center in the Kingdom. 

Partnering For Progress 

What the world is witnessing in Saudi Arabia is thus a strong push towards partnerships between the public and private sector as well as educational institutions to work towards the Kingdom’s overarching ambitions in AI. Not only are such collaborations seen internally within Saudi Arabia, there are also plenty of instances where the country is working with global partners to bring the best to the Kingdom. 

There are several prominent examples of this. In May 2024, SDAIA and IBM launched SDAIA’s open-source Arabic large language model (LLM), ALLaM, on IBM’s enterprise AI and data platform, watsonx. In September 2024, Huawei Cloud introduced AI-ready infrastructure in Saudi Arabia to accelerate digital transformation in line with Vision 2030. Then, in October 2024, the Public Investment Fund (PIF) revealed a partnership with Google Cloud to establish an advanced AI hub near Dammam. 

Commenting on the new AI hub, Google’s Nakache said, “This investment will have a far-reaching impact on Saudi Arabia’s technology landscape. It is projected to contribute a cumulative $71 billion to Saudi Arabia’s GDP over the next eight years, and create thousands of highly-skilled jobs. It will also accelerate the development of Arabic-language AI capabilities, benefiting local businesses and researchers. The partnership will also support AI and digital upskilling programs for millions of students and professionals, contributing to the growth of the ICT sector in Saudi Arabia.” 

Such moves indicate that Saudi Arabia’s approach to AI isn’t just about adoption – it’s about positioning itself as a global leader in the field, leveraging strategic partnerships and large-scale investments to build an AI-powered future. “It’s a very astute strategy of aligning with global tech leaders that differentiates the Saudi strategy on AI,” Arthur D. Little’s Jaishankar pointed out. “The strategy would be to perhaps transform the Kingdom into an ‘AI factory’ on a global scale. The AI capabilities being used domestically can also be made available to be rolled out on a regional and global basis as ‘AI as a service’. While Saudi Arabia may not be a traditional ‘AI factory’ in the sense of a single facility, its national-scale efforts and investments are transforming the entire country into a hub for AI development and innovation.” 

Talent Behind The Tech 

Now, none of these AI ambitions can become a reality without having people behind the tech, creating it and wielding the tools. Jaishankar noted, “Now that the investment and partners are signed up, the focus should be on execution and bringing the projects to fruition. Speed is of essence to attain a leadership position. One of the focus areas would be talent development and education.” 

However, this can take time, Zoho’s Paramasivam pointed out. “Saudi Arabia’s journey to AI leadership comes with its challenges, especially around talent development and regulatory frameworks,” he said. “While the Kingdom is heavily investing in education and upskilling, building a skilled AI workforce takes time. The government is backing initiatives like the National Strategy for Data and AI to foster local talent and close the talent gap.” 

Bernard Ghanem, Chair of the Center of Excellence for Generative AI at KAUST, agreed with Paramasivam, saying, “Talent development, upskilling, and awareness in AI are core challenges that impede the expected massive value creation possible through AI transformation in the Kingdom. To address the significant shortage in various levels of AI expertise (from junior developer and user to senior designer and researcher), and in an attempt to satisfy the growing demand for these skills in the private and public sector of the Kingdom, various efforts and programs have been initiated to upskill and train the masses in AI.” 

Ghanem pointed out that Saudi Arabia is leaving no stone unturned to expand AI education in the Kingdom through initiatives led by SDAIA and universities. Many institutions now offer undergraduate degrees in AI, machine learning, and data science. KAUST, in particular, provides advanced graduate programs, AI-focused degrees for organizations, and multi-tiered training through KAUST Academy. Supported by KAUST’s AI faculty and the Center of Excellence for Generative AI, this initiative was developed in collaboration with SDAIA.

SCAI’s Alwadaani also pointed out that significant investments have been made in AI-focused academic programs and vocational training to cultivate in the KSA a skilled workforce adept in emerging technologies. “For example, SDAIA’s Tuwaiq Academy program is designed to empower individuals with advanced skills in AI, data science, and emerging technologies, offering specialized training programs and certifications in global tech companies and academic institutions,” he said. “Additionally, by hosting pivotal international AI events and forging global partnerships, Saudi Arabia is not only facilitating knowledge exchange but also cementing its position as a central hub in the global AI landscape. These concerted efforts reflect a comprehensive strategy to harness AI for economic diversification, and position Saudi Arabia at the forefront of global technological leadership, aligning with the broader objectives of Vision 2030.” 

MCIT’s AlNasser noted that his Ministry is also actively supporting this mission of AI education in the Kingdom. “MCIT has launched programs to nurture local talent, such as the establishment of the Saudi Digital Academy, offering training and certification in AI and emerging technologies,” AlNasser said. “MCIT also supports the creation of technology development initiatives like the National Technology Development Program (NTDP) and Center of Digital Entrepreneurship (CODE), fostering startups and encouraging research and development in AI.” 

Google’s Nakache also highlighted the support his enterprise offers in terms of education for individuals and organizations in the Kingdom. “One of our key initiatives is Maharat min Google, a free digital skills program offered in Arabic, which has trained over three million people since 2018, including in Saudi Arabia,” he pointed out. “We also partnered with the SDAIA on initiatives like the Elevate Program, which aims to train 25,000 women to join the data and AI fields within the next five years. Also, our Cloud Center of Excellence provides resources and training to support businesses and organizations in their AI adoption journey and has trained 27,000 individuals since 2022.” 

But it isn’t stopping there – through its new AI Opportunity Initiative for the MENA, Google’s largest AI initiative in the region, it is now planning to contribute $15 million, between 2025 and the end of 2027 through Google.org to ensure the opportunities created by AI reach everyone. Nakache said, “The funding will provide essential AI skills, research funding, and access to helpful AI products to individuals and organizations across the MENA, including specific programs designed for Saudi Arabia contributing to the digital transformation ambitions of the Kingdom to build a strong AI workforce.” 

According to a report by SDAIA, the Kingdom currently employs more than 1,000 AI specialists, a number set to grow as new programs and scholarships take shape. Commenting on Saudi Arabia’s efforts in this regard, Fadle Saad, Managing Director for the KSA at HP Inc., said, “It’s inspiring to see the Kingdom focusing on innovation and preparing its workforce to lead the way into the future. Saudi Arabia’s young, dynamic workforce is one of its greatest assets, and preparing them for the future is key to achieving Vision 2030. With more than half the population under the age of 25, there’s a huge opportunity to equip the next generation with the skills they need to thrive in a rapidly evolving digital economy.” 

Suffice to say, the AI workforce in Saudi Arabia is expanding rapidly. The number of AI specialists has grown nearly 54% annually from 2018 to 2022. Saudi universities are also enhancing their AI programs: 86% offer undergraduate degrees related to AI, 56% offer master’s degrees, and 9% offer AI-related PhD degrees. The Kingdom is also aiming to train one million of its citizens in AI skills by 2030 through SDAIA’s One Million Saudi initiative. As for the impact all of these initiatives stand to make, HP’s Saad is of the opinion that it will be absolutely transformative. “By equipping people with the skills needed for these emerging fields, AI is enabling businesses to scale and innovate in ways we’ve never seen before,” he said. “It has the potential to reshape the economy and drive long-term, sustainable growth.” 

Fueling The Future 

Looking toward the entrepreneurial arena, Saudi Arabia is also fostering startups in the AI domain through initiatives like KAUST’s Taqadam accelerator, SDAIA’s ROWAD Package, and GAIA, a generative AI accelerator developed by SDAIA and NTDP. GAIA, the first initiative of its kind globally, has pledged over $200 million to turn AI innovations into successful ventures. 

According to Philip Bahoshy, CEO at venture data platform MAGNiTT, “entrepreneurs and startups are pivotal to Saudi Arabia’s AI ambitions, driving innovation and delivering market-ready solutions. They thrive within a robust support ecosystem that includes accelerator programs, government grants, and major funding initiatives. The Kingdom further bolsters their success by offering access to cutting-edge infrastructure, such as advanced cloud services and AI labs, along with mentorship and networking opportunities designed to nurture entrepreneurial growth and innovation.” 

Saudi Arabian venture capital firms are also actively investing in emerging technologies like AI, with key players like Wa’ed Ventures and Raed Ventures completing 42 AI-related deals globally and locally by August 2024. Commenting on trends in the investing landscape, Bahoshy said, “AI funding, while currently limited relative to other sectors, remains robust, and it is likely to grow, which signals growing confidence in the sector’s potential. Additionally, the ecosystem is maturing, with a notable shift toward scaling startups and attracting later-stage investments, showcasing the evolution of AI from early-stage experimentation, to a key driver of economic and technological advancement to meet global and regional demand.” 

In this context, Saudi Arabia’s ecosystem of AI companies has shown notable growth, with the number of AI companies increasing from 177 in 2019 to 242+ in 2023. Bahoshy also pointed out that Saudi Arabia’s AI ecosystem is highly attractive to global investors, thanks to its robust funding landscape, government-backed initiatives, and rapidly expanding market potential. “The Kingdom’s strategic focus on AI through Vision 2030, combined with increasing deal activity and significant investments in infrastructure and education, positions it as a competitive hub for AI innovation in the MENA region and a key destination for global AI investment,” Bahoshy added. 

The Opportunity To Lead 

Saudi Arabia’s ambitions in AI are immense, and while they’re not without challenges, the country is well aware of what these are, and it has taken concerted steps to tackle them head-on – from training and upskilling to international partnerships, and more. 

Zoho’s Paramasivam noted, “One of the key advantages Saudi Arabia has is its ability to rapidly scale AI infrastructure, supported by substantial investments in data centers, supercomputers, and emerging technologies such as IoT and cloud computing. The Kingdom also benefits from a large, young, tech-savvy population eager to embrace innovation, creating a fertile environment for AI adoption and development. Additionally, Saudi Arabia’s government is focused on developing strategic partnerships with global tech companies and establishing their regional hubs locally ensuring access to cutting-edge AI expertise to the local business community. The combination of strategic location, wealth of resources, and commitment to diversifying its economy are certainly opening up the opportunity for Saudi Arabia to become a leading AI powerhouse in the region and beyond.” 

According to SCAI’s Alwadaani, Saudi Arabia is strategically positioning itself as a global leader in AI, with the aim to export its AI expertise and technologies as part of a broader economic diversification strategy. “Moreover, Saudi Arabia is leveraging its strategic geographic position and robust economic resources to become a hub for AI research and development,” Alwadaani added. “By setting up state-of-the-art research facilities and attracting global talent, the Kingdom aims to spearhead the development of advanced AI technologies suitable for global markets. These efforts are complemented by active participation in international AI forums and adherence to global standards, helping to solidify Saudi Arabia’s standing as a pivotal player in the global AI landscape, and influencing worldwide AI policies and practices.” 

Saudi Arabia is also setting a “powerful example” for the broader Middle East, according to Paramsivam. “As the Kingdom invests heavily in AI infrastructure and talent, it raises the bar for what’s possible in the region, pushing neighboring countries to step up their own AI initiatives,” he said. And as Saudi Arabia executes its plans to become a AI powerhouse, the region – and the world at large – would do well to watch closely. As HP’s Saad pointed out: “AI is going to be a gamechanger for Saudi Arabia’s economy, transforming industries, and creating entirely new opportunities.”