The Saudi Arabian AI market was valued at $6.76 billion in 2024, with projections indicating a rise to $60.57 billion by 2030. This expansion represents a substantial Compound Annual Growth Rate (CAGR) of 43.1% between 2025 and 2030. The market's growth is driven by significant investments in AI solutions and the widespread adoption of this technology across key sectors such as finance, healthcare, manufacturing, and automotive. This push is also supported by the government and businesses through robust policies and an emphasis on the 4th Industrial Revolution, attracting more capital to the GCC nation.
The market outlook is further enhanced by the increasing deployment of 5G networks throughout various industries, and the country's strategic focus on integrating data-based AI solutions. The Saudi Arabian government is actively channeling funds into the fusion of AI and data across major domains, anticipating pronounced technological investments as the country continues its rapid urbanization.
Key Market Insights:
- By Solution: The software segment dominated the Saudi Arabia AI market in 2024, capturing a 35.1% share of revenue. This segment is expected to maintain its prominence by offering real-time insights, enabling smart applications, and fostering advancements in deep learning and machine learning.
- By Technology: Deep learning is poised for strong growth, largely fueled by increasing demand from the automotive sector.
- By End-use: The BFSI (Banking, Financial Services, and Insurance) sector is anticipated to experience heightened AI integration. This is primarily due to the adoption of AI and machine learning models for more precise lending decisions, accurate creditworthiness assessments, and effective default risk mitigation.
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Market Size & Forecast
- 2024 Market Size: USD 6.76 Billion
- 2030 Projected Market Size: USD 60.57 Billion
- CAGR (2025-2030): 43.1%
Key Companies & Market Share Insights
Several major players, including IBM, Google LLC, Amazon, Advanced Micro Devices, and Baidu, Inc., are active in the Saudi Arabian AI market, employing both organic and inorganic strategies to strengthen their regional presence.
Significant investments highlight this trend:
- Oracle expanded its cloud infrastructure in August 2024 with a new public cloud region in Riyadh. This move addresses the increasing demand for AI and cloud services and aligns with Saudi Arabia's Vision 2030 by empowering organizations to modernize their applications and innovate through Oracle Cloud Infrastructure (OCI). This expansion is part of Oracle's planned $1.5 billion investment to boost cloud capacity in the Kingdom.
- In March 2024, Amazon's AWS, along with Microsoft and Google-parent Alphabet, announced intentions to invest $5.3 billion in data centers in Saudi Arabia by 2026.
- Google Cloud established a center of excellence in Saudi Arabia in November 2022 to develop in-demand skills. The center provides training courses on AI and machine learning through various cohorts throughout the year.
The market also sees the emergence of new companies and collaborations aimed at strengthening the AI ecosystem:
- In March 2024, the Ministry of Investment of Saudi Arabia (MISA) partnered with Rezolve AI Limited to create an AI center of excellence. Rezolve AI plans to launch at least five AI ventures using its AI Large Language Model.
- Nybl and Basserah announced a merger in February 2024 to create a vertically integrated data-AI pipeline.
Key Players
- Advanced Micro Devices
- Omdena Inc.
- Google LLC
- IBM
- Intel Corporation
- Intelmatix
- Digital Energy
- Gleac
- Nybl
- Amazon
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Conclusion
The Saudi Arabian AI market is undergoing rapid transformation, driven by strong government backing, significant private investments, and the integration of advanced technologies across major industries. Key sectors like BFSI, healthcare, and automotive are witnessing accelerated AI adoption, enhancing efficiency and decision-making. Strategic collaborations and infrastructure expansion by global tech giants are strengthening the nation's AI capabilities. The rise of deep learning, cloud services, and 5G networks further supports this momentum. As urbanization progresses and data-centric policies evolve, Saudi Arabia is positioned to emerge as a regional leader in AI innovation and deployment.
