Saudi Arabia AI Market

Saudi Arabia Artificial Intelligence (AI) Market Size & Insights

Saudi Arabia Artificial Intelligence (AI) Market Size is forecast to grow at robust CAGR of 17.5% between 2025 and 2032 primarily driven by growing digital transformation across sectors driven by Vision 2030 and government initiatives.

Saudi Arabia Artificial Intelligence (AI) Market Drivers

Growing Digital Transformation across Sectors Driven by Vision 2030

Major factors driving Saudi Arabia Artificial Intelligence market are increasing adoption of advanced technologies by various end-use industries like healthcare, BSFI and manufacturing to improve research and development activities and growing focus of government on developing AI friendly eco-system which will include the deployment of 5G networks. Government is taking initiative to diversify Saudi Arabia’s economy, to reduce dependency on oil and gas sector. Under vision 2030, government of Saudi Arabia will invest USD 20 billion in Artificial Intelligence (AI) by 2030 to develop AI sector in the country. These investments will be primarily focussed on training 20,000 Artificial Intelligence experts and data specialists and developing 300 active start-ups in AI and data sector. Such initiatives will positively impact the Saudi Arabia AI Market.

AI makes historical data accessibility more reasonable to several sectors, while allowing government agencies & healthcare institutions to build unstructured data accessible to the research domain. With AI, researchers can access datasets more easily, from the historic rain trend to clinical imaging. AI helps researchers and scientists to innovate at a faster rate by providing access to rich datasets and advanced computing infrastructure.

Additionally, there is a growing demand for AI in various industries such as healthcare, automotive, and manufacturing due to the progress in Artificial Neural Networks (ANN). ANN extracts accurate and precise data by substitution of conventional machine learning systems. Single Shot Multibox Detector (SSD) and Generative Adversarial Networks (GAN) have provided techniques for digital image processing. This has increased the adoption of digital image processing in areas such as healthcare, security & surveillance, and transportation. All these factors surge the growth of the AI market in Saudi Arabia. Moreover, Saudi Arabia formed Saudi Data and Artificial Intelligence Authority (SDAIA) in 2019 to supervise AI strategies and initiatives to generate more revenue and surge Saudi Arabia’s economy. These initiatives are expected to accelerate the growth of the Saudi Arabia AI market.

Government Initiatives

KSA has established data and AI authority to lead KSA data and AI strategy, regulation, policymaking and enablement. KSA’s AI & Data Authority will empower public sector to adopt AI use cases. This type of environment helps in AI technologies testing and refinement within the regulatory supervision and helps in providing valuable insights coupled with effective governance mechanisms to suits specific industries. Though Saudi Arabia is taking steps towards education reform for AI and data science skills, more focused efforts will be necessary to attract and retain a pipeline of top-tier, globally-competitive talent. Furthermore, it is essential to up-skill the public sector through proper training.

Challenges Faced by Saudi Arabia Artificial Intelligence (AI) Market Players

Saudi Arabia Artificial Intelligence (AI) Market Segment Analysis

Saudi Arabia Artificial Intelligence (AI) Market by Offerings Insights: Software segment is expected to grow at a higher CAGR

Based on the offering, the market is segmented into hardware, software, and services. Software segment is expected to grow at a higher CAGR. A high-end AI software includes superior processing power, parallel accessing capabilities, and advanced information capacity, which provides potential to end-use industries to generate lucrative benefits. The growing adoption of AI by several industries is attributed to the ability of AI to provide meaningful insights out of the data present. AI software solutions contain libraries for the deployment and designing of AI applications, including linear algebra, sparse matrices, inference, among others. These factors are propelling the segment’s growth.

Saudi Arabia Artificial Intelligence (AI) Market by Technology Insights: Deep learning segment is anticipated to witness a faster CAGR

Based on the technology, Deep learning segment is anticipated to witness a faster CAGR. Deep learning helps in managing big data volumes with its data-driven applications such as content or speech recognition. Many enterprises are investing in research & development activities for the implementation of cloud-based platforms and on-premises hardware equipment to secure restoration of large data volumes. Machine learning involves cognitive applications such as clustering, hypothesis generation, filtering, alerting, visualization, and navigation. These factors improve the decision-making ability of several industries and upsurge the growth of the machine learning segment.

Saudi Arabia Artificial Intelligence (AI) Market by End-User Insights: Retail industry is projected to grow at a higher CAGR

Based on end-user industry, retail industry is projected to grow at a higher CAGR attributed to growing adoption of Artificial Intelligence in this sector. Nowadays, customers demand more ease in shopping, facilitated by the increase in the use of the cloud-based platform and other AI technologies. This is propelling the growth of the retail segment in Saudi Arabia AI market.

Saudi Arabia Artificial Intelligence (AI) Market Major Players & Competitive Landscape

Several leading companies are Microsoft, AWS, Nvidia, SAP, Intel, Humain etc

Recent Development & Market News

• • In 2025, the government of Saudi Arabia launched Humain which will operate under PIF to advance AI technologies in the kingdom.
  • In 2021, SAP SE, a major software company based out of Germany announced that it has launched new software offerings which help businesses to improve different processes and leverage AI and cloud. Apart from SAP, Delete and Amazon Web Service (AWS), introduced e-commerce program in Saudi Arabia, which includes topics like AI and data analytics.
  • In 2020, Saudi Data and Artificial Intelligence Authority (SDAIA) in collaboration with International Telecommunication Union (ITU) entered into an agreement to support global Artificial Intelligence cooperation. As a part of the agreement, (SDAIA) will help ITU in various developmental projects, which includes the development of AI standards and frameworks and promotion of best

Scope of the Report

Research Report Segmentation

The Saudi Arabia AI market has been segmented on the basis of offering, technology, and end-user industry. Based on offering, the market is segmented into hardware, software, and services. Based on technology, the market is segmented into Machine Learning, Natural Language Processing (NLP), Deep Learning, Machine Vision and Others. Based on end-user industry, the market is segmented into Healthcare, BFSI, Retail, Manufacturing, Automotive & Transportation, Agriculture, Media & Entertainment and Others.

Saudi Arabia AI Market by Offering

• • Hardware
  • Software
  • Services

Saudi Arabia AI Market by Technology

• • Machine Learning
  • Natural Language Processing (NLP)
  • Deep Learning
  • Machine Vision
  • Others

Saudi Arabia AI Market by End-User Industry

• • Healthcare
  • BFSI
  • Retail
  • Manufacturing
  • Automotive & Transportation
  • Agriculture
  • Media & Entertainment
  • Others

Saudi Arabia AI Market Leading players

• • Microsoft
  • AWS
  • Nvidia
  • SAP
  • Intel
  • Humain