Saudi Arabia is rapidly emerging as a leading nation in leveraging the immense potential of data and artificial intelligence (AI) to drive progress and innovation.
The Kingdom’s Vision 2030, launched in 2016, set the stage for a diversified and future-focused economy. To advance this goal, the Saudi Data and AI Authority (SDAIA) was established in 2019, tasked with developing a world-class AI ecosystem and championing responsible AI practices across public and private sectors.
Impressively, in just five years, SDAIA has built a strong framework, positioning Saudi Arabia as a globally competitive, AI-powered economy.
Becoming a key international actor in the field of data and AI, the Kingdom has made significant investments and implemented upskilling and regulatory measures to create and enable the development of a domestic AI ecosystem.
According to SDAIA’s National Strategy for Data & AI, Phase III will commence in 2025 as per its actionable roadmap; thus, this year, we can expect Saudi Arabia to accelerate its efforts in executing initiatives on a national level.
Among the key statistics showcasing Saudi Arabia’s leadership in AI innovation and adoption is its first-place ranking in government AI strategy, awarded in 2023. Moreover, 75% of Saudis already understand AI concepts, with 64% aware of its applications as per SDAIA’s survey in 2024. Education followed suit, with 86% of universities offering AI programs and 42% focusing on AI specifically. Meanwhile, 81% of government entities reported that AI is significantly improving their services.
Overview of Saudi’s AI Landscape
SDAIA spearheads Saudi Arabia's AI transformation by advancing adoption within government entities, increasing public awareness, and strategically utilizing AI technologies. This process drives economic growth, elevates public services, and enhances the overall quality of life for citizens. As the Kingdom moves toward a data-driven and technologically advanced future, generative AI (GenAI) is set to play a transformative role. Research by Strategy& Middle East predicts that GenAI could significantly boost operating profits across various sectors, with the technology sector alone to gain up to SAR 15 billion by 2028.
This is how AI is manifesting across different areas of Saudi’s society:
Startups and Investments
Saudi Arabia is advancing its AI sector through substantial investments and strategic partnerships. A recent report by the Ministry of Communications and Information Technology (MCIT) and King Abdullah University of Science and Technology (KAUST) highlighted the emergence of deep tech startups in the Kingdom, with 50% focusing on AI and IoT. Collectively, 43 high-growth startups have secured over USD 987 million in funding.
In November, 2024, the Public Investment Fund (PIF) announced ‘Project Transcendence,’ a collaboration with Alphabet Inc., aiming to invest up to USD 100 billion in developing a robust AI ecosystem.
At the 2025 World Economic Forum in Davos, Minister of Communications and Information Technology, Abdullah Alswaha, emphasized the importance of realistic optimism and fundamental focus in succeeding in the AI era. He noted that Saudi Arabia has established advanced digital infrastructure, attracting over USD 10.6 billion in cloud computing investments from global giants such as Amazon, Microsoft, and Google.
Additionally, the SDAIA has partnered with NVIDIA to enhance the ‘ALLaM’ Arabic language model, facilitating the development and deployment of AI applications.
Infrastructure
Saudi Arabia’s AI infrastructure is supported by strategic investments in data centers, cloud services, and global connectivity. center3 has expanded its Riyadh data center by 9.6 MW and plans to increase its total capacity to over 300 MW. Additionally, Microsoft’s new cloud data center regions are projected to generate USD 24 billion in new revenues over the next four years.
In 2024, Saudi Arabia’s commitment to AI was further demonstrated by the establishment of a 24 MW data center in Riyadh, which will host the Saudi Arabian Internet Exchange (SAIE) to strengthen AI application performance.
AI Ethics
In September, 2023, SDAIA introduced AI Ethics Principles, which focus on governing data and AI models to mitigate potential risks and ensure responsible AI usage. Supporting the responsible implementation of AI, SDAIA also launched the AI Ethics Assessment tool, which helps entities evaluate their adherence to ethical standards in AI development and application.
In early 2024, SDAIA also issued Generative AI Guidelines designed for both government entities and the general public.
AI Education and Skilled Workforce
Saudi Arabia is deeply committed to developing national talent in AI, aligning with its Vision 2030 goals. The Kingdom aims to cultivate a pool of 20,000 AI and data professionals, including 5,000 highly qualified AI scientists, by 2030. To achieve this, Saudi Arabia has launched various initiatives to raise awareness, provide specialized education, and build a skilled AI workforce.
Key roles like data scientists, AI engineers, and data engineers are in high demand, with major organizations such as Aramco leading the way in AI talent recruitment. These specialists possess diverse skills, including data analysis, machine learning (ML), structured query language (SQL), and data visualization, contributing to innovation in their respective sectors.
Saudi Arabia is also focused on integrating GenAI into education and training. Several educational programs are expanding, with collaborations between SDAIA, KAUST, and King Saud University shaping new curricula and erecting specialized academies to further strengthen AI expertise. Additionally, over 600,000 beginners and 6,000+ specialists have already received training, supporting the Kingdom’s AI ambitions.
Research
Saudi Arabia is making significant strides in AI research and development (R&D) with the establishment of over five dedicated research labs. These include the SDAIA-KAUST Center of Excellence in Data Science and AI, the Center of Excellence for AI in Health, and the National Center for AI (NCAI). These centers are driving innovation and providing advanced solutions for various sectors. Additionally, Saudi Arabia’s computing capabilities are boosted by eight highly ranked supercomputers—such as Shaheen II and Shaheen III at KAUST and those owned by Saudi Aramco—which enhance the nation’s AI research potential.
The Kingdom is also leading the way by supporting the first global Generative AI Center of Excellence, which aims to foster collaboration and innovation across DCO Member States. This initiative positions Saudi Arabia as a key player in the global GenAI landscape.
Environment
AI-driven solutions are playing a key role in advancing the Saudi Green Initiative, which aims to plant 10 billion trees and rehabilitate 40 million hectares of land by 2030. By analyzing regional climate data, soil conditions, and water availability, AI helps identify the best locations for planting.
KAUST’s Center of Excellence for Generative AI focuses on Earth observation technologies to tackle climate challenges like water scarcity. Additionally, drones and satellites provide real-time data that supports land management, ecosystem restoration, and environmental monitoring for the initiative. The NEOM project exemplifies AI's role in environmental restoration, with AI-powered systems optimizing energy use, managing water resources, and aiding biodiversity restoration while building a sustainable city.
Telecom’s Role in Saudi’s AI Market
Telecom is key to Saudi Arabia’s AI growth as it delivers the infrastructure and technologies required for innovation and digital transformation.
For the first time globally, stc Group has deployed an AI-powered operations system on its network using Nokia’s MantaRay Self-Organizing Network (SON). This groundbreaking solution automates network optimization and was successfully implemented during the Hajj season, ensuring seamless connectivity for over one million pilgrims. The system processed over 10,000 actions in real-time, boosting cell utilization by approximately 30% and improving user throughput by 10%. Despite a 40% increase in traffic, stc’s network maintained consistent performance, reducing manual interventions and showcasing the potential of AI-driven automation in enhancing telecom infrastructure.
In line with this trend, Mobily has updated its strategy to prioritize AI as part of its digital transformation. Mobily CTO, Alaa Malki, shared, “We put a lot of emphasis on data analysis and AI technologies, which can play a crucial role in our digital transformation.” Malki also highlighted the importance of fostering collaboration across departments, stating that “strong relationships between technology teams and other departments is crucial for the successful integration of AI solutions at Mobily.”
Similarly, AI is reshaping the operations of Red Hat in the region. “At Red Hat, we understand how critical it is to offer open, flexible platforms that help telecom infrastructure to seamlessly integrate AI-driven data,” said Feras Al Shaikh, KSA Region Manager. Through platforms like TensorFlow, OpenShift, and Kubernetes, Red Hat supports Saudi telecom operators in building scalable and secure AI-powered applications for 5G networks.
Huawei Cloud is also contributing to Saudi Arabia’s AI advancements. Launched in 2023, its low-latency services (25 ms) and cutting-edge solutions have enabled the development of an Arabic large language model powering over 20 AI applications. Leveraging its Pangu 3.0 model, Huawei Cloud enhances AI capabilities in finance, government, manufacturing, and other sectors, solidifying its role in the Kingdom’s digital evolution.
Outlook in 2025
SDAIA’s initiatives in 2025 mark a significant milestone in Saudi Arabia’s journey toward AI excellence. By introducing an accreditation certificate for AI service providers at an early stage, the Kingdom is ensuring the quality, reliability, and responsible use of AI across various sectors. This move underscores SDAIA’s commitment to building a robust and well-regulated AI ecosystem that drives innovation while maintaining high ethical standards. Building on the insights shared in the ‘State of AI in Saudi Arabia’ report, which highlighted five years of remarkable progress, the Kingdom is set to further solidify its leadership in AI.
With these strategic efforts, 2025 is shaping up to be a transformative year for AI, not just for Saudi Arabia but for the broader Middle East, which continues to serve as a global hub for cutting-edge technology and innovation.
Also Read:
Saudi Arabia's Digital Transformation: The Power of AI in Governance
The Technological Renaissance: Saudi Arabia's Journey to a Digital Future
Saudi Tech Oasis: Harnessing Tech for the Environment
