KSA Boasts Biggest AI Investment in the Middle East

Saudi Arabia, with the largest investment in AI in the Middle East, is set to bolster its economy and make its mark on the global stage.

• The recent Leap tech conference showcased Saudi Arabia’s commitment to AI, drawing over 200,000 attendees, including top executives from major tech firms.
• These investments align with Saudi Arabia’s “Vision 2030” agenda aiming to diversify the economy away from oil dependence towards a tech-driven future.

Saudi Arabia is investing heavily in technological advancements, specifically artificial intelligence (AI), to diversify its economy and become a key player in the sector.

The Kingdom’s efforts to embark on its own AI journey were the spotlight of its recent Leap tech conference. Over 200,000 people attended the conference, including top executives from major tech giants like Amazon and Google.

Earlier this year, the Middle Eastern country drew plans to dedicate an impressive fund of $100 billion to AI and other technologies. There are also plans to inject an additional $40 billion into AI initiatives. But it’s not the only substantial financial commitment that Saudi Arabia made, as it also engaged with influential investors such as Andreessen Horowitz, a major private American venture capital firm that is also currently backing OpenAI.

During the conference, Shou Chew, TikTok’s chief executive, expressed his satisfaction with how the app has been growing in the country, further affirming that they “expect to invest more.”

While it may seem like an absurd amount of money being thrown at AI, the investments fit perfectly with the Kingdom’s “Vision 2030” agenda. Through it, Crown Prince Mohammed bin Salman seeks to shift the country’s economy from its oil reliance to a more technologically driven and diverse future. So, on a national scale, pushing AI could significantly boost the country’s gross domestic product (GDP). In fact, AI is estimated to contribute over $135.2 billion in 2030 to the Saudi economy, according to a PWC article.

Beyond the domestic benefits, this investment is a strategic move for Saudi Arabia to assert itself on the global stage. For one, the diversification of the economy would strengthen Saudi Arabia’s global position and influence. For two, the large investments almost guarantee domestic research and development, attracting international talent and partnerships.

The Kingdom’s investment is the largest one in AI in the Middle East. However, it will find itself between two powerhouses of technology: the United States and China. Saudi Arabia will need to access the most advanced technologies and expertise, so it may feel pressure to align with one of them. We’ll have to wait and see how it all unfolds.

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