Saudi Arabia Ranked Among Top Emerging AI Economies, Eyes $20bn Investment by 2030
Saudi Arabia is making significant strides in artificial intelligence (AI), ranking as a leading emerging economy in AI readiness, according to Boston Consulting Group’s (BCG) latest GCC AI Pulse report.
Based on BCG’s inaugural AI Maturity Matrix, Saudi Arabia is classified as an “AI Contender”, a group shared with 31 other nations including the UAE. The matrix organizes countries into four levels:
| AI Readiness Level | Example Countries |
|---|---|
| AI Emergents | Emerging markets with initial AI adoption |
| AI Practitioners | Qatar, Kuwait, Oman, Bahrain |
| AI Contenders | Saudi Arabia, UAE, others |
| AI Pioneers | US, UK, China |
Key Highlights from Saudi Arabia’s AI Progress
- Strategic Vision: The kingdom aims to be among the top 15 AI nations globally by 2030.
- Investment Goals: Plans to attract $20bn in AI-related investments by 2030.
- Talent Development: Approximately 5,000 AI specialists currently, with efforts to build a self-sustaining domestic talent ecosystem.
- Policy and Ethics: Saudi Arabia introduced AI ethics principles in 2023 and strengthened regulatory frameworks to ensure responsible AI adoption.
- Innovation Initiatives: HUMAIN program launched to enhance AI capabilities across sectors like energy, finance, and healthcare.
- Intellectual Property: Nearly 200 AI-related patents registered in 2023, a significant increase from 2019.
Dr. Akram Awad, MD and partner at BCG, stated:
“Saudi Arabia’s strategic AI investments showcase how nations can transform economies through technology. By developing regulatory frameworks and fostering innovation, the kingdom is positioning itself at the forefront of global AI.”
Strengths and Areas for Improvement
Strengths:
- Ambitious national vision aligned with Vision 2030
- Strong digital infrastructure supporting AI adoption
- Effective AI governance and regulatory measures
Areas for Enhancement:
- Expanding the AI talent pool for long-term sustainability
- Boosting research and innovation to match global breakthroughs
- Scaling corporate and public adoption beyond infrastructure investments
Rami Mourtada, BCG partner, emphasized:
“Saudi Arabia has made remarkable progress in AI adoption and patents, but its global leadership depends on rapidly expanding talent and breakthrough innovations.”
BCG Recommendations for the GCC
- Implement dedicated upskilling programs and attract international AI talent.
- Strengthen governance and ethical frameworks in line with global standards.
- Expand academia-industry collaboration to drive R&D and innovation.
- Enhance investment in cutting-edge AI infrastructure to support sector-specific adoption.
With these measures, Saudi Arabia is well-positioned to compete with global AI leaders such as the US, China, Singapore, the UK, and Canada in targeted areas.
