Saudi Arabia emerges as MENA’s AI powerhouse
https://arab.news/njrjw
The MENA region is witnessing the fastest growth in AI adoption and spending worldwide. According to the International Data Corp., AI investments in the Middle East and Africa were projected to rise from $37.5 million in 2017 to over $100 million in 2021. However, these numbers have soared in recent years, with Saudi Arabia alone expected to spend more than $36 billion on Information and Communication Technologies in 2024.
These investments are already yielding tangible results. A study by Public First shows that over half of Saudi businesses now rely on at least one AI tool, while the number of adults using AI in the Kingdom more than doubles that of the US.
Beyond private sector adoption, Saudi Arabia is also excelling in government-led AI initiatives. Despite the US leading many technology rankings, the 2024 Global AI Index placed Saudi Arabia first globally for its government strategy to build AI capacity. Similarly, the Oxford Insights Government AI Readiness Index has consistently ranked Saudi Arabia among the top three Arab countries for four consecutive years — 3rd in 2020, 2021, and 2022, and rising to 2nd in 2024.
It is also worth examining technology through the lens of citizen experience. The Smart City Index, which ranks cities based on residents’ perceptions of infrastructure and technological services, placed three Saudi cities among the top 50 globally in 2025: Riyadh (27th), Makkah (39th), and Jeddah (47th).
With a population largely under the age of 30, Saudi Arabia has abundant local talent ready to lead this new era of digital innovation.
Odai Khasawneh
By comparison, the US had only two cities on the list—Boston (35th) and New York (49th). Interestingly, residents of Riyadh, Makkah, and Jeddah report higher trust in authorities and in technology used to reduce crime than those in the top three cities globally — Zurich, Oslo, and Geneva.
Saudi Arabia’s rapid AI adoption and its strong integration into both governance and daily life highlight the Kingdom’s emergence as a regional—and increasingly global—technology leader. The combination of robust investment, government strategy, and citizen engagement paints a clear picture: the future of AI in the MENA region is being shaped in Riyadh, Makkah, and Jeddah.
This suggests that Saudi citizens are highly receptive to technologies that deliver tangible societal benefits. Recognizing the transformative potential of artificial intelligence for a data-driven economy, the Kingdom has set its sights on becoming a global AI leader and is rapidly establishing itself as the region’s AI powerhouse. AI is viewed not only as a driver of sustainable growth but also as a critical tool for economic diversification.
With a population largely under the age of 30, Saudi Arabia has abundant local talent ready to lead this new era of digital innovation. This digital transformation is already in full swing and serves as a cornerstone of the Kingdom’s Vision 2030. Back in 2017, PwC projected that Saudi Arabia would capture the largest share of the $320 billion in AI-driven revenue expected across the Middle East by 2030—a forecast that aligns with the country’s substantial investments in AI and its widespread adoption.
Since its launch in 2019, the Saudi Data & AI Authority (SDAIA) has received multiple international awards and global recognition for its policies, research, and innovative initiatives. New investments and projects, including companies like Humain, underscore Saudi Arabia’s growing global footprint in AI and its efforts to foster an economic boom independent of oil.
• Odai Khasawneh is a teaching associate professor in information technology management at the University of Wisconsin-Milwaukee
