Artificial intelligence is driving economic growth in Saudi Arabia

Saudi Arabia is betting big on AI to power its post-oil future, with the technology set to inject over $135 billion into the economy by 2030. Saudi Arabia has emerged as a leading force in upskilling its youth as the Kingdom transitions from an oil-dependent economy to a more diverse, knowledge-driven one, focusing on building a future-ready workforce.

This strategic shift is already showing positive outcomes. The value of the non-oil economy has grown to SR1.7 trillion ($453 billion), and a surge in new investments reflects a robust and thriving economic landscape.

Saudi Arabia has spent billions on AI investments

The rapid rise of emerging technologies like artificial intelligence and machine learning is transforming the workforce at an unprecedented pace. Automation is reshaping the way routine tasks are performed, while AI algorithms are breaking into domains once thought to be exclusively human. This shift requires a new approach to workforce development, ensuring individuals are equipped with the skills needed for the evolving digital economy.

Saudi Arabia’s recent announcement of a $40 billion fund dedicated to AI investments underscores its ambition to become a global leader in the technology. However, the true potential of this investment lies in the ability of the Kingdom’s workforce to harness AI's capabilities effectively.

By cultivating AI talent, Saudi Arabia is fostering the homegrown innovators who will power its digital transformation. To prepare its workforce for this digital future, the Kingdom has launched several initiatives, including the National Strategy for Data and Artificial Intelligence. This initiative focuses on offering training programs for women, youth, and entrepreneurs in areas such as data analysis, machine learning, and other relevant skills. Through collaborations with educational institutions to integrate data science and AI into curricula, and support for entrepreneurship via incubators and accelerators, Saudi Arabia is nurturing a new generation of experts who will lead advancements in critical STEM fields.

Saudi Arabia is unlocking the full potential of AI

By equipping its youth with expertise in artificial intelligence development, automation principles and data science methods, the Kingdom is nurturing a generation of entrepreneurs who can build AI-powered solutions tailored to public and private sector needs. Imagine startups driving AI-powered learning platforms that cater to schools or machine learning-driven platforms to drive tourism in the Kingdom. This unique understanding of emerging technologies will help address local challenges, materialize new ideas, and boost the Kingdom’s global competitiveness.

By investing in capacity building and AI skills, Saudi Arabia is unlocking the full potential of its burgeoning digital economy. These initiatives serve as a catalyst, transforming the nation's workforce into a dynamic force driving innovation and economic diversification. Equipping citizens with advanced digital literacy and technical expertise lays the foundation for the Kingdom's next wave of entrepreneurship, innovation, and technological progress.

According to a report from global consultancy firm PwC, AI is set to contribute $135 billion to the Saudi economy in 2030, making the Kingdom the biggest beneficiary of technology in the Middle East. Opportunities exist for cutting-edge AI companies specialized in manufacturing oil and gas to tailor their solutions to fit the local market.

These include truck hauling optimization, equipment lifetime analytics, supplier delivery date prediction and asset tracking, shipping optimization, satellite/aerial image analytics, and asset failure predictors.

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