A newly released report highlights that half of Saudi Arabia’s deep tech startups are concentrated on artificial intelligence (AI) and Internet of Things (IoT) technologies, significantly contributing to the Kingdom’s ambitious Vision 2030 initiative. The report, a collaborative effort by the Ministry of Communications and Information Technology, King Abdullah University of Science and Technology, and Hello Tomorrow, a consultancy firm, underscores the rapid expansion of deep tech startups in the region.
Saudi Arabia has emerged as a leading hub for tech startups in the Middle East and North Africa, ranking among the top three in terms of funding and deal activity. This success is attributed to the increasing availability of venture capital, a vibrant entrepreneurial ecosystem, and governmental support for innovation-driven ventures. The deep tech sector, although still in its nascent stages, is garnering substantial attention from international companies and investors keen on tapping into the country’s technological potential.
Key Findings and Implications
The surge in AI and IoT-focused startups aligns directly with the objectives of Saudi Vision 2030, a strategic framework aimed at diversifying the Kingdom’s economy and reducing its dependence on oil revenues. Vision 2030 seeks to foster a knowledge-based economy and establish Saudi Arabia as a global leader in technology and innovation. The deep tech sector is pivotal in achieving this vision, positioning AI and IoT at the forefront of the Kingdom’s digital transformation.
According to Jason Roos, ex-CIO at KAUST, “All of Saudi Arabia wants to be leaders across tech or any other area that is relevant in the world of science and technology.” He emphasized that technology will be the driver behind this transformation, highlighting the significance of events like LEAP, the largest tech conference in Saudi Arabia.
The report noted that over 43 high-growth startups have collectively raised more than $987 million in funding. This investment in AI and IoT is expected to propel Saudi Arabia’s economic diversification and sustainable development goals. As the Kingdom continues to invest in infrastructure, education, and research, the deep tech startup ecosystem is anticipated to become even more robust in the coming years, supporting not only the economic diversification goals of Vision 2030 but also the development of a sustainable and innovative future for the Kingdom.
