Kholoud Hussein

As Saudi Arabia accelerates its vision for economic diversification and technological advancement under Vision 2030, the role of artificial intelligence (AI) in optimizing supply chain management is becoming increasingly critical. With e-commerce rapidly expanding, the integration of AI in logistics is not just a trend; it's a necessity for enhancing efficiency, reducing costs, and meeting consumer expectations. This article explores how AI is transforming supply chain management in Saudi Arabia's e-commerce sector, backed by recent statistics and insights from key officials.

The E-commerce Landscape in Saudi Arabia

In recent years, Saudi Arabia has witnessed explosive growth in its e-commerce sector. According to a 2024 report by the Saudi Arabian General Investment Authority (SAGIA), the e-commerce market is expected to reach $30 billion by 2026, driven by increased internet penetration, changing consumer habits, and the proliferation of smartphones. This rapid growth has placed immense pressure on logistics and supply chain systems, necessitating innovative solutions to enhance efficiency and responsiveness.

The Role of AI in Supply Chain Management

AI technologies, including machine learning, predictive analytics, and automation, are revolutionizing supply chain operations. They enable businesses to make data-driven decisions, optimize routes, manage inventory levels, and predict demand more accurately. Adopting AI is essential for maintaining competitiveness in Saudi Arabia, where the logistics sector is valued at approximately $33 billion.

Demand Forecasting

One of the most significant applications of AI in supply chain management is demand forecasting. AI algorithms can accurately predict future demand by analyzing historical sales data, seasonal trends, and market conditions. This capability allows e-commerce companies to align their inventory levels accordingly, reducing excess stock and minimizing the risk of stockouts.

According to Ahmed Al-Faifi, CEO of SAP Saudi Arabia, “AI-driven demand forecasting can significantly improve supply chain efficiency by ensuring that products are available when customers need them, without the burden of overstocking. This is especially crucial in our fast-growing e-commerce environment.”

Route Optimization

Another critical area where AI shines is in route optimization. By leveraging real-time traffic data, weather conditions, and historical delivery patterns, AI algorithms can identify the most efficient delivery routes. This not only reduces transportation costs but also enhances customer satisfaction by ensuring timely deliveries.

Mohammed Al-Jadaan, Saudi Arabia’s Minister of Finance, emphasized the importance of logistics efficiency in e-commerce: “Streamlining logistics through advanced technologies is vital for the Kingdom's economic development. It allows businesses to serve customers better and contributes to overall economic growth.”

Inventory Management

Effective inventory management is a cornerstone of successful supply chain operations. AI technologies can monitor inventory levels in real time, automate replenishment processes, and identify slow-moving items. This ensures that e-commerce businesses can respond swiftly to changes in consumer demand while minimizing holding costs.

According to a recent 2024 study by PwC, companies that have integrated AI into their inventory management systems have reported a 20% reduction in holding costs and a 15% improvement in order fulfillment rates. These efficiencies are vital for maintaining competitiveness in the bustling e-commerce landscape.

Case Studies: AI in Action

Several Saudi companies are leading the charge in leveraging AI for supply chain optimization.

Noon.com: As one of the largest e-commerce platforms in the region, Noon.com has invested heavily in AI technologies. The company employs machine learning algorithms to analyze customer behavior and preferences, enabling more personalized shopping experiences. Additionally, Noon utilizes AI for inventory management and demand forecasting, significantly enhancing its logistics capabilities.

Faraz Khalid, CEO of Noon.com, remarked, “AI has been a game-changer for us. It allows us to understand our customers better and respond to their needs more efficiently. Our logistics operations have become more agile, and that is reflected in our customer satisfaction ratings.”

Jarir Bookstore, a major retailer in Saudi Arabia, is also adopting AI technologies to streamline its supply chain operations. The company uses AI-driven analytics to optimize inventory levels across its various retail outlets. By predicting demand based on customer data, Jarir ensures that popular products are always in stock, thereby enhancing the customer experience.

Supply Chain Startups

Moreover, several startups in Saudi Arabia are focused on integrating AI into logistics and supply chain management. Companies like Sary, which specializes in B2B e-commerce, are using AI to facilitate smoother transactions and improve supply chain transparency for small and medium-sized enterprises (SMEs).

Challenges and Considerations

While the benefits of AI in supply chain management are clear, several challenges remain. One of the primary hurdles is the need for robust data infrastructure. Effective AI systems require large amounts of high-quality data to function optimally. Many companies in Saudi Arabia still rely on legacy systems that may not be equipped to handle the data demands of AI technologies.

Regulatory Environment

Additionally, the regulatory landscape for AI and data usage is still evolving. Ensuring data privacy and security is paramount, and companies must navigate compliance with local regulations while implementing AI solutions.

Dr. Khalid Al-Falih, Minister of Investment, noted, “The government is committed to fostering a regulatory environment that supports innovation. However, companies must also prioritize ethical considerations and data privacy as they adopt new technologies.”

The Future of AI in E-commerce Logistics

Looking ahead, the future of AI in supply chain management and e-commerce logistics in Saudi Arabia appears bright. With continued investments in technology and infrastructure, the Kingdom is poised to become a regional leader in e-commerce efficiency.

Government Initiatives

The Saudi government is actively promoting the adoption of advanced technologies through various initiatives. The National Industrial Development and Logistics Program aims to enhance the logistics sector and improve its contribution to GDP, focusing on integrating AI and automation into supply chain operations.

In conclusion, as Saudi Arabia’s e-commerce market continues to expand, the integration of AI in supply chain management is essential for driving efficiency, reducing costs, and enhancing customer satisfaction. With forward-thinking companies embracing AI technologies and a supportive regulatory environment, the Kingdom is well-positioned to leverage these innovations for sustainable growth.

The journey toward a smarter, more efficient supply chain is just beginning, and as AI continues to evolve, its impact on Saudi Arabia's e-commerce landscape will undoubtedly deepen, paving the way for a more competitive and sustainable economy.

Kholoud Hussein 

As Saudi Arabia seeks to diversify its economy and align with Vision 2030, the intersection of artificial intelligence (AI) and sustainability in the e-commerce sector is gaining significant attention. With e-commerce rapidly expanding, there’s an urgent need for businesses to adopt greener practices that minimize environmental impact. AI offers innovative solutions to help Saudi e-commerce companies achieve sustainability goals while enhancing operational efficiency.

One of the primary ways AI contributes to sustainability is through supply chain optimization. By analyzing vast amounts of data, AI can predict demand more accurately, reducing overproduction and waste. This lowers costs and minimizes excess inventory, which can lead to unsold products ending up in landfills. Companies can leverage AI-driven analytics to streamline logistics, ensuring that products are delivered efficiently and with a smaller carbon footprint.

Another significant aspect is energy management. AI technologies can monitor energy consumption in real time, identifying areas for improvement in warehouses and fulfillment centers. By optimizing energy usage, e-commerce businesses can significantly reduce their operational costs and environmental impact, aligning with the Kingdom’s commitment to sustainability.

Furthermore, AI can enhance customer engagement by promoting eco-friendly products and practices. Through personalized recommendations, e-commerce platforms can encourage consumers to choose sustainable options, such as products made from recycled materials or items with minimal packaging. This shift in consumer behavior not only fosters a culture of sustainability but also helps businesses cater to the growing demand for green products.

In conclusion, integrating AI into Saudi e-commerce operations offers a pathway to sustainability. By optimizing supply chains, managing energy consumption, and promoting eco-friendly products, e-commerce companies can contribute to a greener future while thriving in a competitive market. As Saudi Arabia continues its journey toward sustainability, AI will play a pivotal role in shaping a more responsible e-commerce landscape.

Ghada Ismail

In recent years, Saudi Arabia has emerged as a significant player in the global gaming and e-sports industry, a development driven by a blend of economic diversification strategies, youthful demographics, and robust governmental support. As part of its Vision 2030 initiative, the Kingdom aims to reduce its dependency on oil revenues by fostering sectors like entertainment and technology. The gaming industry, in particular, has become a focal point in this transformative agenda.

Demographics and Market Potential

Saudi Arabia boasts a youthful population, with over 60% of its citizens under the age of 30. This demographic is increasingly tech-savvy and engaged in digital entertainment, providing a fertile ground for the gaming industry to flourish. According to a report by Newzoo, the Middle East and North Africa (MENA) gaming market was valued at approximately $1 billion in 2022, with Saudi Arabia contributing significantly to this growth. The Kingdom is home to about 25 million gamers, which represents one of the highest per capita gaming rates globally.

Government Support and Investment

The Saudi government has recognized the economic potential of the gaming sector and has actively sought to promote its growth. The establishment of the Saudi E-sports Federation (SEF) in 2019 exemplifies this commitment. The SEF aims to cultivate a robust e-sports ecosystem, organizing competitions, and promoting local talent. Furthermore, the Kingdom has invested heavily in various gaming initiatives, including partnerships with leading global game developers and e-sports organizations.

In 2021, the Public Investment Fund (PIF) announced its plan to invest $3.3 billion in gaming companies over the following years. This investment aims to foster local talent and establish Saudi Arabia as a global hub for gaming development and e-sports events. Such strategic investments are set to bolster the industry’s infrastructure, including gaming studios, event venues, and training facilities.

Infrastructure Development

To facilitate the growth of the gaming sector, Saudi Arabia is also focusing on infrastructure development. The NEOM project, a futuristic city being built in the northwestern part of the Kingdom, is envisioned as a tech-driven urban environment that will include dedicated spaces for gaming and digital entertainment. This initiative reflects a broader trend of integrating gaming into lifestyle and culture, making it accessible and appealing to a wide audience.

Additionally, the Kingdom is hosting several gaming expos and conventions, such as the annual Gamers8 festival. This event has rapidly gained prominence, attracting international gamers, developers, and enthusiasts, creating a vibrant community and fostering knowledge exchange before being replaced by the E-sports World Cup.

In October 2023, Saudi Arabia announced the inaugural E-sports World Cup as the successor of Gamers8, the Saudi E-sports Federation's previously existing e-sports festival, set to take place in Riyadh. 

The 2024 E-sports World Cup (EWC) was the first edition of the E-sports World Cup, an annual international e-sports tournament series run by the E-sports World Cup Foundation (funded by Saudi Arabia's Public Investment Fund). The event took place in Riyadh, Saudi Arabia, from July 3 to August 25, 2024, and featured 23 events in 22 different video game titles. It had the largest combined prize pool in e-sports history at over US$60 million, encompassing individual tournament prize pools, rewards for teams that qualify for EWC events, most valuable player awards, and the Club Championship, a cross-game competition that aggregates the individual game results of all participating organizations (known as "clubs" to the EWC) to crown a Club Champion. 

Cultural Acceptance and Community Engagement

Historically, gaming in Saudi Arabia faced cultural scrutiny. However, a significant shift has occurred in recent years, with gaming increasingly being accepted as a legitimate form of entertainment and social engagement. The younger generation is leveraging online gaming platforms to connect with peers, fostering community and collaboration.

The government's focus on digital entertainment is also evident in its efforts to promote a balanced approach to gaming, emphasizing responsible play while encouraging competitive engagement. Initiatives aimed at educating parents and young players about healthy gaming habits are becoming more common, reflecting a broader societal acceptance of gaming as a mainstream activity.

Local Game Development

Beyond consumption, Saudi Arabia is positioning itself as a center for game development. Local companies are emerging, and many are gaining recognition for their innovative titles. For example, studios like Saeed Games and Mikado Games are developing games that resonate with local culture and values while appealing to a global audience. The government is providing support through funding and resources, allowing these companies to flourish and contribute to the Kingdom's economic diversification objectives.

Moreover, in 2023, Saudi Arabia launched its first game development accelerator program, aimed at nurturing budding developers and fostering creativity. This initiative reflects a growing awareness of the importance of local content creation in the gaming ecosystem, enhancing cultural representation and storytelling in games.

E-Sports: Competitive and Commercial Growth

The e-sports sector became a vital component of the gaming industry in Saudi Arabia, characterized by rapid growth in both participation and viewership. Major tournaments are attracting large audiences, both in-person and online, with platforms like Twitch and YouTube gaining traction among local gamers. 

The SEF has been instrumental in organizing high-profile events that draw international attention, such as the Gamers Without Borders charity tournament, which not only showcases local talent but also reinforces Saudi Arabia's commitment to global community engagement.

Moreover, the commercial potential of e-sports is increasingly recognized by brands and sponsors. Companies are leveraging the popularity of e-sports to connect with younger consumers, investing in sponsorship deals, advertising campaigns, and product placements. This trend reflects a broader shift in marketing strategies, as brands seek to engage with the digitally native youth demographic.

Challenges Ahead

Despite the promising landscape, the gaming and e-sports industry in Saudi Arabia faces several challenges. Regulatory hurdles, particularly around online gaming and content creation, remain a concern for developers and players alike. Navigating these regulations while fostering innovation will be crucial for the sector's sustained growth.

Furthermore, competition from established gaming markets, such as North America and Asia, presents a challenge for Saudi Arabia as it strives to carve out its niche. To compete effectively, local developers must prioritize quality, innovation, and user experience, while also building a supportive community for gamers and developers.

Wrapping it up, the gaming and e-sports industry in Saudi Arabia is on an upward trajectory, bolstered by demographic advantages, government support, and a rapidly evolving cultural landscape. As the Kingdom continues to invest in this sector, it is well-positioned to become a regional powerhouse in gaming and a key player on the global stage. The success of this endeavor will not only contribute to economic diversification but will also reshape the entertainment landscape, creating new opportunities for creativity and community engagement. As the gaming industry matures, it will be fascinating to observe how Saudi Arabia balances tradition with innovation in this digital age.

John Keppler

Just how hot will this summer get in the UAE? With record temperatures, like the 50.8°C recorded on 9 July in the small town of Sweihan, Al Ain, the heatwave appears unrelenting as other parts of the country also experience temperatures above 50°C. Temperatures in the UAE are normally higher in August and September than in July. 

As the population seeks shade and air-conditioned safety, spare a moment for farmers across the region, facing inhospitable temperatures with growing regularity.

It is a growing challenge - 2023 was the hottest year ever recorded globally. There were reports of climate-related disasters across the globe, leading to widespread crop failures and reduced yields due to water shortages and heat stress. 

Agriculture accounts for over a quarter of global greenhouse gas emissions and 70% of the drain on freshwater resources. In the context of agriculture, the climate crisis is a ticking time bomb.

The Middle East’s harsh arid climate only exacerbates the situation, increasing the region’s drain on freshwater resources in agricultural operations to 85%-90%. Current forecasts suggest the world will need to produce 50% more food by 2050 to feed a soaring population, much of it in arid countries. 

The challenge of regional food security is mounting. Around 85% of MENA’s fresh produce is imported - dependence on other regions to feed nations is clearly of concern in this region. The UAE alone imports $24 billion worth of food and agricultural products annually - nearly half the GCC’s total. With additional ‘food miles’ and environmental harm from transport and distribution - the incremental climate impact is significant.

Strengthening food security in the region is already a priority, driven by concerns over international conflicts, crop supply chain reliability, and climate change.  Extremely high temperatures in the UAE and the wider GCC continue to crystallize the region’s focus on the problem and identifying solutions to support farmers for whom the water and energy needed to produce the food their consumers need is an increasing financial burden..

Breaking the food-water-energy nexus is crucial. The region needs to make changes - for which innovative, sustainable technologies can be key.  Changing agricultural processes - some of which have been in place for decades, or even centuries - is also not a practical solution. 70% of farmers globally operate in low and middle-level technology sites. A typically low-margin business, this critical farming bloc rarely has the financial resources to invest in industrial-scale solutions and processes. Indoor and vertical farming, touted as options, are capital-intensive and require farmers to learn new techniques.

Farmers need workable options to mitigate risk and improve their economic and ecological sustainability without investing significant time and money. Farming is a sufficiently challenging profession. Access to drop-in, affordable, and cost-effective technology is a potential panacea the region desperately needs - when facing the climate and food security challenge.

The good news is that the region’s harsh desert climates are a perfect testing ground for innovative technologies. Withstanding the heat of the Arabian Desert is the perfect challenge for solutions with the potential to improve food security in the Gulf. As temperatures increase, this could extend to other global hot spots - a club growing larger every year.

In the AgTech industry, new solutions offering holistic approaches to climate adaptation, from greenhouse roof materials to newly cultivated rootstocks thriving in hot and salty environments, are on the increase.

One such solution, SecondSky by iyris, is showcased in its R&D Facility in Al Ain. SecondSky, offers a range of transparent, near-infra-red heat radiation-blocking agricultural covers. Winner of the 2023 Davidson Prize, SecondSky covers incorporate a nanoparticle additive that blocks the harmful effects of heat radiation. This innovative technology reduces energy usage by over 40% and water consumption by 30%, significantly minimizing environmental impact, improving crop yields, and extending the growing season for farmers.

A long road ahead remains for the agricultural industry. The rapidly warming planet has turned a MENA region challenge into an opportunity to solve a problem at the world’s front door. 

For the AgTech industry, smart combinations of scientific knowledge and innovation that begin with improving the Gulf’s food security - can be a driver to feed the world sustainably. 

John Keppler is the Executive Chair of iyris – a world-leading, sustainable AgriTech company

Kholoud Hussein 

As Saudi Arabia pivots toward a more sustainable future under Vision 2030, green tech startups are emerging as key players in the country’s economic and environmental transformation. These startups are addressing critical issues such as renewable energy, sustainable agriculture, and waste management, all while positioning Saudi Arabia as a hub for green innovation.

Here are some of the most promising green tech startups to watch:

1. Desert Technologies: Desert Technologies is pioneering solar energy solutions tailored to the region’s harsh desert climate. Specializing in the manufacturing and deployment of solar panels, they’re helping Saudi Arabia achieve its goal of generating 50% of its energy from renewable sources by 2030. Their projects extend across the Middle East and Africa, making them a key player in the region’s green energy shift.

2. Naqaa Solutions: Naqaa Solutions is revolutionizing waste management in Saudi Arabia by offering sustainable recycling and waste disposal services. Their innovative solutions focus on turning waste into energy and other byproducts, helping to reduce the Kingdom’s carbon footprint while promoting eco-friendly business practices.

3. SecondSky: Developed by iyris, SecondSky uses nanotechnology to create agricultural covers that block heat radiation, reducing farm energy and water consumption. This technology improves crop yields while extending growing seasons, making it essential for tackling food security challenges in the region’s extreme climate.

4. Greenzie: As electric vehicles (EVs) become more popular, Greenzie is developing the infrastructure needed to support EV adoption in Saudi Arabia. Their focus on EV charging stations and green mobility solutions aligns with the Kingdom’s efforts to reduce transportation emissions.

These startups are crucial to the success of Vision 2030, Saudi Arabia's long-term strategic plan to diversify the economy and reduce reliance on oil by investing in sustainable technologies. By developing renewable energy solutions, promoting waste management, and enhancing agricultural sustainability, these companies directly contribute to the Kingdom's ambitious goals of reducing carbon emissions and increasing environmental resilience. Their innovations not only address local challenges but also create scalable solutions that can be applied across the region, aligning with Saudi Arabia’s goal of becoming a leader in green technology.

The potential for other companies to enter the green tech space is significant. Saudi Arabia’s commitment to sustainability and the growing demand for eco-friendly solutions provide fertile ground for new entrants. Sectors like water conservation, energy efficiency, and sustainable construction are still emerging, offering opportunities for both local entrepreneurs and international companies to collaborate. As government support continues through initiatives like the Saudi Green Initiative and the expansion of venture capital for sustainability-focused startups, the stage is set for more innovative companies to join the scene and further accelerate the Kingdom’s green transformation.