Saudi Arabia aims to have artificial intelligence (AI) contribute 12% of its GDP by 2030, with the sector projected to grow at a compound annual growth rate (CAGR) of 29%. According to the Saudi Data and AI Authority (SDAIA) State of AI report, the Public Investment Fund (PIF) will spearhead the development of a robust AI ecosystem in the kingdom.

The report highlighted seven key pillars for advancing AI in Saudi Arabia: policies and regulations, investment, infrastructure, data, talent and human capabilities, research and innovation, and adoption. It also noted that the country is “rapidly positioning itself as a global leader in artificial intelligence,” though specifics on how it plans to achieve the 12% GDP contribution target were not disclosed.

According to the General Authority for Statistics, the kingdom’s GDP reached $267 billion in Q2 2024. The State of AI report also noted a significant increase in government spending on information and communications technology.

Central to the AI strategy, the Public Investment Fund (PIF) is investing through its associates, Riyad Bank and Acwa Power, and its subsidiaries, including the Saudi Company for Artificial Intelligence and tech manufacturer Alat.

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