Generative AI In Saudi Arabia: The Future Outlook

  • 27th Apr, 2024
  • Riya S.
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Generative AI In Saudi Arabia: The Future Outlook

27th Apr, 2024 | Riya S.

  • Artificial Intelligence
Generative AI

The Generative AI market in Saudi Arabia is witnessing a surge in growth, driven by the government's dedication to technological progression and digital evolution.

Saudi Arabia's Vision 2030 aims at broadening the nation's economic landscape by promoting innovation and nurturing a knowledge-driven society.

This article explores the Kingdom's rapidly expanding generative artificial intelligence business, market, government initiatives to support it, competitive landscape, and future outlook.

Generative AI Market in Saudi Arabia

Saudi Arabia's Generative AI market is expanding quickly, mostly due to the government's firm dedication to digital transformation and technology innovation.

  • According to Statista, the market is expected to reach a projected value of US$249.90 million by 2024. This significant increase is a result of the growing use of generative AI solutions in several industries, including healthcare, finance, education, and entertainment.

  • Saudi Arabia's generative artificial intelligence (AI) market is expected to develop at an excellent annual compound growth rate (CAGR) of 46.47% between 2024 and 2030.

  • The market volume is expected to reach US$2,468.00 million by the end of this period, reflecting the country's dedication to using modern technology for societal advancement and economic success.

Businesses are using generative AI to increase efficiency and drive innovation, indicating an effort towards a more technologically sophisticated and effective economy.

Generative AI Market

Government Initiatives for Generative AI in Saudi Arabia

The Saudi Arabian government is actively promoting several initiatives to encourage the development of generative AI within the nation. Let's explore these efforts aimed at promoting generative AI development:

1. AI Center and Future Camp for Generative AI in Media:

Minister of Media Salman bin Yousef Al-Dosary and President of SDAIA Dr Abdullah bin Sharaf Al-Ghamdi have unveiled the AI Center for Media and the Future Camp for Generative AI in Media. These initiatives aim to:

  • Integrate AI technologies to enhance various aspects of media, including production, distribution, and consumption.

  • Strategically encourage artificial intelligence to bolster national media capabilities and contribute to economic objectives.

  • Foster collaboration between the Ministry of Media and SDAIA for uniform service integration.

2. "Generative Artificial Intelligence for All" Initiative:

Saudi Arabia's Minister of Communications and Information Technology (MCIT), Abdullah Al-Swaha, has introduced the "Generative Artificial Intelligence for All" initiative.

This initiative is overseen by the International Center for Artificial Intelligence Research and Ethics, with goals to:

  • Promote digital inclusivity and prosperity.

  • Drive GenAI research acceleration, facilitate policy development, raise awareness about ethics, and enhance capacity building.

  • Exhibit Saudi Arabia's proactive approach to promoting digital innovation.

  • Encourage member states to leverage AI for social and economic development and prosperity.

Competitive Landscape and Future Outlook for Generative AI in Saudi Arabia

Generative AI faces difficulties in Saudi Arabia due to a lack of talent and strict regulations.

However, it presents promising prospects for innovation and growth through collaboration and investment.

1. Competitive Landscape:

The generative AI industry in Saudi Arabia is witnessing increasing competition, with both established firms and startups competing for market dominance.

Leading players such as NVIDIA and OpenAI, already firmly rooted in the market, contribute to this competitive landscape.

In this highly challenged sector, newcomers may find success by focusing on locally customised solutions that meet the specific needs of the Saudi market.

To expand their presence, newcomers should consider developing collaborations with regional companies and academic institutions, as well as engaging in joint research and development projects with Saudi experts.

Navigating the nation's regulatory environment and participating in government programs that support AI innovation, such as the National Data and AI Strategy, are essential.

Furthermore, building trust with local stakeholders will depend critically on emphasising data security and privacy.

2. Future Outlook:

Generative artificial intelligence (AI) is expected to grow in the future as deep learning and machine learning continue to progress.

  • Transformative Shift: Continued investments in AI and emerging technologies are expected to lead to a transformative shift in the Saudi media industry.

  • Establishment of AI Centers: The launch of the AI Center for Media and the Future Camp of Generative Artificial Intelligence for Media marks a crucial step in Saudi Arabia's journey toward becoming a leader in AI-driven media innovation.

  • Collaborative Approach: Increasing collaborations between industry players and academic institutions will likely result in the development of cutting-edge solutions tailored to the Saudi market's specific needs.

  • Regulatory Environment: A conducive regulatory environment and participation in government-supported initiatives will foster opportunities for market growth and industry leadership.

  • Economic Growth: Leveraging AI's power aims not only to revolutionise the media landscape but also to stimulate broader economic growth and technological advancement.


In conclusion, generative AI is catalysing a remarkable transformation in Saudi Arabia, driven by proactive government initiatives and increasing consumer demands.

Despite challenges such as a shortage of skilled labour and complex regulations, the country is poised for substantial innovation and progress.

Saudi Arabia's strategic investments in research, collaboration with local companies, and emphasis on ethical standards position it as a leader in generative AI development.

With its innovation potential, AI is expected to fuel significant economic growth and societal advancement in the kingdom.

As AI continues to evolve, its applications across key sectors such as healthcare, banking, education, and entertainment are poised to revolutionise industries and enhance quality of life.

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