The Saudi Public Investment Fund (PIF) is on a trajectory to amass an astounding $1 trillion by 2025, further cementing its status as a pivotal force in worldwide investments, with a keen focus on groundbreaking technological sectors. Under the stewardship of Crown Prince Mohammed Bin Salman, the PIF ranks as the world’s fifth-largest Sovereign Wealth Fund, boasting $926 billion in assets. It stands as the principal conduit for realizing the Crown Prince’s Vision 2030, an ambitious scheme aimed at transforming Saudi Arabia’s economic landscape, spurring job creation, and fostering prosperity among its predominantly young population, 80 percent of whom are under 35. The PIF’s investment portfolio spans various sectors, including sports, artificial intelligence, tourism, clean energy, smart cities, and avant-garde floating industrial locales.
Artificial intelligence has been singled out by Saudi Arabia as the key accelerator for national innovation, job creation, and enhanced competitive edge. The Saudis are spearheading innovation from the grassroots level, embedding AI into the nation’s developmental strategies and societal framework, thereby nurturing an environment conducive to AI’s growth and success. This includes the establishment of the Saudi Data and Artificial Intelligence Authority (SDAIA) and the inception of NEOM and Quiddya, two smart cities envisioned to be at the forefront of Saudi Arabia’s AI and computing advancements.
NEOM, a Vision 2030 flagship project, is an ambitious $500 billion carbon-neutral smart city, slated to be fully operational by 2027. NEOM is poised to position Saudi Arabia as a global nexus of tech and ecological innovation, drawing in international talent and significant investment influx. To realize NEOM’s potential, substantial investments in generative AI and specialist training are crucial, with government plans to prepare over 20,000 data and AI experts by the decade’s end.
When it comes to technology investments, the PIF has been actively funneling capital into AI initiatives, targeting both the venture space and more established companies. For perspective, global AI expenditure is projected to hit $110 billion by 2024. The PIF is set to dedicate $15 billion to AI endeavors within the next five years. Moreover, a newly established $100 billion investment entity, Alat, wholly overseen by the PIF, has unveiled several ventures to elevate the Kingdom as an AI, industrial, design, and manufacturing powerhouse. By 2030, Alat aims to channel $100 billion into investments, in line with Vision 2030’s objective to diminish oil dependency by diversifying revenue streams through technology.
PIF’s strategy also encompasses forging alliances with global tech giants, venture capitalists, and local innovators, thereby fostering a vibrant exchange of knowledge and creativity. Saudi Arabia’s lofty ambition is not merely to fund AI advancement but also to actively sculpt its future, solidifying its role as a central hub for AI innovation. Regionally, as per PWC, AI could generate an economic impact of $320 billion in the Middle East by 2030, with Saudi Arabia potentially contributing an impressive $135.2 billion.
In essence, Saudi Arabia is wholeheartedly committed to embedding AI into the core of its economic endeavors. With a substantial financial foundation built on the oil and gas sector, coupled with the young population’s entrepreneurial spirit, a shift in technological influence towards the Saudi realm is a likely scenario we may witness.