Saudi Arabia’s deep tech startup scene is booming, with nearly half focusing on artificial intelligence and the Internet of Things. A recent report highlights that over 43 high-growth startups in the region have collectively raised more than $987 million in funding.
This growth aligns with the country’s National Strategy for Data and AI, aiming to propel Saudi Arabia into the top 10 of the open data index and top 20 in peer-reviewed Data and AI publications by 2030. The strategy also targets significant investments in data and AI, amounting to $7.9 billion in foreign and $12 billion in local investments by 2030.
The report notes that while these startups are in their infancy, Saudi Arabia’s ecosystem is attracting established international firms. The funding success in 2022 was largely due to a burgeoning funding ecosystem, ranking among the top three in the Middle East and North Africa for funding and deals.
In 2023, the number of active startup investors in Saudi Arabia reached 104, up 41% since 2018. This growth is driven by public funds, as the government heavily supports tech startups and scaleups.
Research and development are also on the rise, with a 75% increase in researchers since 2015. The nation’s goal is to expand its research infrastructure to accommodate 140,000 researchers by 2030, a significant jump from the current 20,000.
The report examines the current state and future prospects of Saudi Arabia’s deep tech ecosystem, emphasizing its role in advancing the digital economy and sustainable development as per Saudi Vision 2030.