Saudi Arabia has been heavily investing in the global tech sector, but now it seeks to attract foreign tech companies to invest within its borders. The kingdom aims to leverage this to develop AI data centers, startups, and more, according to recent reports.
Crown Prince Mohammed bin Salman, often referred to as MBS, has shifted focus from international investments to fostering local growth in AI and tech. This strategic pivot aims to make Saudi Arabia a significant player in the AI industry by inviting foreign companies to contribute resources and expertise.
The ambitious “Project Transcendence” seeks to establish Saudi Arabia as a comprehensive hub for AI, with necessary infrastructure like data centers and a vibrant startup ecosystem. This project also aspires to create a “national champion” in AI, reflecting the kingdom’s commitment to strengthening its tech industry.
This strategy emerges amid a global AI investment surge, especially post-ChatGPT’s launch. Regional rivalry, notably with the UAE, intensifies as both nations vie for tech leadership. Saudi Arabia plans to establish its version of Abu Dhabi’s G42, a notable AI firm.
Declining oil revenues add urgency to these diversification efforts. Saudi Arabia’s Vision 2030, launched by MBS, emphasizes reducing dependence on oil, with initiatives like Neom and strategic investments through the Public Investment Fund (PIF).
While the PIF has historically invested heavily in international tech, its focus is shifting. The fund plans to allocate a smaller percentage of capital to overseas ventures, though significant investments, like potential collaboration with Andreessen Horowitz for a $40 billion AI fund, remain on the horizon.
Partnerships with foreign tech companies are already underway. California-based Groq is partnering with Saudi Aramco to develop an AI data center, and a collaboration between Google Cloud and the PIF aims to create an AI hub in Saudi Arabia, focusing on Arabic language models and training initiatives.
Saudi Arabia’s strategic moves indicate its determination to become the Middle East’s leading AI hub, fostering innovation and attracting global tech leaders to its shores.