Saudi Arabia’s Deep Tech Scene Soars, Driven by AI and IoT
A new report highlights the rapid growth of deep tech startups in Saudi Arabia, with a significant focus on Artificial Intelligence (AI) and the Internet of Things (IoT). The report, a collaborative effort by the Ministry of Communications and Information Technology, King Abdullah University of Science and Technology (KAUST), and consultancy firm Hello Tomorrow, underscores the Kingdom’s progress toward its Vision 2030 goals.
According to the report, 50% of Saudi Arabia’s deep tech startups are concentrating on AI and IoT. These sectors are rapidly becoming key drivers of investment and innovation within the nation. More than 43 high-growth startups have collectively secured over $987 million USD in funding. This achievement positions Saudi Arabia as a leading tech startup ecosystem within the Middle East and North Africa (MENA) region, ranking in the top three for funding and deal activity.
This success story is built on several key pillars: the increasing availability of venture capital, a dynamic entrepreneurial environment, and strong government support for innovation-driven ventures. The deep tech sector, though still developing, is attracting considerable interest from international investors and companies eager to tap into Saudi Arabia’s potential for technological advancement.
The growth of AI and IoT-focused startups is in direct alignment with the objectives of Saudi Vision 2030. This ambitious strategy aims to diversify the Kingdom’s economy and decrease its dependence on oil revenue. Vision 2030 seeks to create a knowledge-driven economy, establishing Saudi Arabia as a global leader in technology and innovation. The deep tech sector plays a critical role in realizing this vision, putting AI and IoT at the forefront of Saudi Arabia’s digital transformation.
Jason Roos, ex-CIO at KAUST, commented on the Kingdom’s proactive approach, stating, “All of Saudi Arabia wants to be leaders across tech or any other area that is relevant in the world of science and technology. I think that if any company has an interest to be at the forefront of innovation, Saudi Arabia is a leader in that, with NEOM project, or KAUST University and different projects across the Kingdom. In order to make this a reality we need to rely on technology and technology is going to be the driver behind all of that.” This sentiment reflects the Kingdom’s commitment to fostering a robust tech ecosystem and its dedication to achieving its Vision 2030 goals. As Saudi Arabia continues to invest in education, research, and infrastructure, the deep tech startup ecosystem is poised for further expansion in the coming years.
This development supports the goals of Vision 2030 and contributes to a sustainable and innovative future for Saudi Arabia.
