A new report released by the Ministry of Communications and Information Technology, in partnership with King Abdullah University of Science and Technology and Hello Tomorrow consultancy, reveals that 50% of deep tech startups in Saudi Arabia are focused on artificial intelligence (AI) and the Internet of Things (IoT). These startups are driving innovation in the Kingdom, collectively securing over $987 million in funding.
The report highlights that more than 43 high-growth startups are operating in Saudi Arabia, positioning the country as a leader in deep tech innovation. This aligns with the National Strategy for Data and AI, which aims to make Saudi Arabia one of the top 10 countries in the open data index and among the top 20 in peer-reviewed data and AI publications by 2030.
Furthermore, the strategy aims to attract SR30 billion ($7.9 billion) in foreign direct investment and SR45 billion in local investment for data and AI by 2030. The rapid expansion of the funding ecosystem has contributed to this growth, with Saudi Arabia ranking among the top three countries in the Middle East and North Africa for funding and deals in 2022.
The number of active startup investors in the Kingdom has also increased, with 104 registered in 2023, reflecting a 41% growth from 2018. This growth is largely attributed to public funding, with the government committed to supporting tech startups and scale-ups. Additionally, the number of researchers in Saudi Arabia has risen by 75% since 2015, further demonstrating the country’s dedication to advancing research and development.
The report also noted that Saudi Arabia is expanding its research infrastructure to accommodate 140,000 researchers by 2030, a significant increase from the current 20,000. It concludes by emphasizing the importance of the deep tech sector in advancing the Kingdom’s digital economy and contributing to sustainable development, in line with the objectives of Saudi Vision 2030.
