The AI Revolution in Saudi Arabia: How Generative AI is Reshaping Key Industries

Sep 15, 2025

Kholoud Hussein 

 

Generative Artificial Intelligence (GenAI) is rapidly transforming industries worldwide, and Saudi Arabia is embracing this technological revolution with strategic vigor. Aligned with the Kingdom's Vision 2030 initiative to diversify its economy beyond oil dependence, GenAI is making significant inroads into various sectors, particularly within the private domain and the burgeoning startup ecosystem. This article explores the sectors most impacted by GenAI in Saudi Arabia, supported by recent data and insights from industry leaders, and discusses potential sectors poised for future transformation.

 

The Rise of GenAI in Saudi Arabia

Under the ambitious leadership of Crown Prince Mohammed bin Salman, Saudi Arabia is positioning itself as a global hub for artificial intelligence. The Kingdom's strategic initiatives, such as "Project Transcendence," aim to attract substantial investments from global tech companies to bolster domestic AI infrastructure, including data centers and startups. This aligns with the broader Vision 2030 plan to diversify the economy and reduce dependence on oil. 

 

The Public Investment Fund (PIF) has announced plans to launch a $40 billion fund to invest in AI, potentially partnering with venture capital firms like Andreessen Horowitz. This initiative underscores the Kingdom's commitment to establishing a robust AI ecosystem, fostering innovation, and attracting global tech leaders to its domestic market. 

 

Sectors Most Affected by GenAI

1. Technology Sector

The technology sector stands at the forefront of GenAI adoption in Saudi Arabia. According to research by Strategy& Middle East, the sector could see an increase in operating profit by up to SAR 15 billion by 2028 through the development and commercialization of new GenAI use cases and the growing demand for advanced hardware and infrastructure. Additionally, Saudi tech firms could streamline their research and development (R&D) capabilities, enhance solution design, and automate internal processes, potentially reducing costs by up to 30%. 

 

2. Media and Entertainment

The media and entertainment sector is poised to benefit significantly from GenAI. The same Strategy& report indicates that this sector could experience an increase in operating profit of up to SAR 6 billion by 2028. GenAI enables firms to develop more original Arabic content, personalize customer experiences, and improve operational capabilities. This advancement aligns with the Kingdom's national agenda to establish itself as a media and entertainment hub. 

 

3. Telecommunications

Telecommunications companies in Saudi Arabia are leveraging GenAI to enhance customer insights and infrastructure utilization. The adoption of GenAI could lead to an increase in operating profit of up to SAR 11 billion by 2028. By analyzing customer behavior, telecom operators can personalize campaigns and enhance cross-selling opportunities, particularly within the small and medium-sized enterprises (SME) market, projected to reach SAR 10 billion by 2028. 

 

4. Healthcare

The healthcare sector in Saudi Arabia is also experiencing the transformative effects of GenAI. Globally, AI is being utilized for predictive diagnostics, personalized treatment plans, and efficient patient management. In Saudi Arabia, integrating GenAI could enhance healthcare delivery, optimize resource allocation, and improve patient outcomes, aligning with the Kingdom's goals to modernize its healthcare infrastructure.

 

5. Finance and Banking

The finance and banking sector is transforming with the integration of GenAI. AI-driven algorithms are enhancing fraud detection, risk assessment, and customer service through chatbots and personalized financial advice. Saudi banks and financial institutions are investing in AI technologies to streamline operations, reduce costs, and offer innovative services to customers.

 

Impact on Startups and the Private Sector

The startup ecosystem in Saudi Arabia is rapidly evolving, with a significant focus on deep tech innovations. A report by the Ministry of Communications and Information Technology, in collaboration with King Abdullah University of Science and Technology, reveals that up to 50% of deep tech startups in the Kingdom are working on artificial intelligence and the Internet of Things (IoT). These startups have collectively secured more than $987 million in funding, reflecting a robust commitment to technological advancement.

 

The number of active startup investors in Saudi Arabia reached 104 in 2023, marking a 41% increase from 2018. Public funds heavily support this expansion, as the government is committed to nurturing tech startups and scale-ups. Furthermore, the number of researchers in the country has risen by 75% since 2015, with plans to expand the research infrastructure to accommodate 140,000 researchers by 2030, up from the current 20,000.

 

Insights from Saudi Officials and Business Leaders

Saudi officials and business leaders are vocal about the transformative potential of GenAI. Richard Attias, CEO of the Future Investment Initiative (FII) Institute, emphasizes the importance of AI in addressing global challenges and fostering inclusive investments. He highlights the role of AI in driving innovation and efficiency across various sectors, aligning with the Kingdom's vision for economic diversification. 

 

The Kingdom's strategic collaborations, such as the partnership between Aramco and Groq to build the world's largest AI inference data center, underscore the commitment to establishing a robust AI infrastructure. These initiatives are part of a broader strategy to position Saudi Arabia as a leader in AI investment, complementing the country's oil wealth and ensuring relevance in the post-oil era. 

 

Potential Sectors for Future GenAI Impact

Beyond the sectors currently experiencing significant GenAI integration, several other industries in Saudi Arabia are poised for transformation in the near future. As the Kingdom continues its AI-driven economic diversification, the following sectors are expected to see increasing disruption and opportunities for growth.

 

1. Automotive Industry

Saudi Arabia’s ambitious plans to establish a homegrown automotive industry, with initiatives such as Ceer Motors, will likely benefit from GenAI. Generative AI can revolutionize vehicle design, predictive maintenance, and supply chain optimization.

  • Generative Design: AI can optimize vehicle components for strength, weight, and fuel efficiency, improving performance and reducing material waste.
  • Smart Manufacturing: AI-powered automation in assembly lines can enhance precision and efficiency while lowering production costs.
  • Autonomous Vehicles: As part of the Kingdom’s Vision 2030 Smart City initiatives (such as NEOM and The Line), GenAI will play a key role in self-driving technology, traffic management, and mobility solutions.

With the Saudi government investing billions into electric and autonomous vehicles, this sector is primed for AI-driven innovation.

 

2. Education and E-Learning

Saudi Arabia has been actively integrating AI into education, with a strong push toward personalized learning experiences and AI-powered content generation.

  • Adaptive Learning Platforms: AI can tailor lessons to individual student needs, ensuring better retention and engagement.
  • Automated Content Generation: GenAI tools can develop course materials, summarize lectures, and even generate interactive quizzes.
  • AI-powered tutoring: Chatbots and AI tutors can provide 24/7 academic support to students across various disciplines.

With the Kingdom investing heavily in digital education platforms, GenAI could redefine the way students and professionals learn in Saudi Arabia.

 

3. Real Estate and Urban Development

The Saudi real estate sector is undergoing rapid expansion, driven by mega-projects like NEOM, Qiddiya, and the Red Sea Project. AI is expected to streamline construction planning, optimize resource allocation, and enhance property management.

  • AI-Generated Architectural Designs: Generative AI can automate building designs, improving efficiency and reducing project timelines.
  • Smart Cities: AI-driven traffic control, energy management, and security systems will play a crucial role in urban development.
  • Property Valuation and Market Predictions: AI-powered analytics can provide accurate real estate forecasts, assisting investors and developers in making informed decisions.

As Saudi Arabia aims to create futuristic, AI-driven urban environments, GenAI will be integral to shaping the Kingdom’s real estate landscape.

 

4. Retail and E-Commerce

Saudi Arabia’s booming e-commerce market, projected to reach $20 billion by 2025, is already leveraging AI for customer experience enhancement and supply chain optimization.

  • Hyper-Personalized Shopping: AI can analyze customer behavior and generate real-time personalized recommendations.
  • AI-powered chatbots: Virtual assistants can handle customer inquiries, recommend products, and process transactions, improving efficiency.
  • Inventory and Logistics Optimization: AI models can predict demand trends, automate restocking, and reduce waste, making supply chains more efficient.

With Saudi startups and enterprises investing heavily in AI-driven retail solutions, the sector is poised for even greater transformation in the near future.

 

5. Energy and Sustainability

As Saudi Arabia transitions toward renewable energy and sustainability goals, GenAI will play a pivotal role in optimizing energy management and reducing carbon footprints.

  • AI-Optimized Power Grids: Machine learning algorithms can predict energy demand, allowing for efficient power distribution.
  • Predictive Maintenance for Renewable Energy: AI can monitor and predict failures in solar farms, wind turbines, and smart grids, reducing downtime and maintenance costs.
  • Sustainable Resource Allocation: AI-driven simulations can optimize water and energy usage across industrial and residential sectors.

Saudi Arabia’s commitment to green energy through projects like the $5 billion NEOM Green Hydrogen plant highlights GenAI's crucial role in the energy sector.

 

Finally, Generative AI is fundamentally reshaping industries across Saudi Arabia, accelerating economic diversification and boosting productivity. While sectors like technology, media, telecommunications, healthcare, and finance have already witnessed significant AI integration, emerging fields like automotive, education, real estate, retail, and energy are set to experience profound transformations.

 

With the Saudi government investing in AI research, local startups, and global partnerships, the Kingdom is on track to become a global AI hub. However, challenges remain in terms of regulation, talent development, and infrastructure, which must be addressed to fully capitalize on GenAI’s potential.

 

As Saudi Arabia continues its digital revolution, AI-powered industries will drive innovation, economic growth, and long-term sustainability, positioning the Kingdom as a leader in the global AI economy.

 

 

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Latest Experts Thoughts

AI for Senior Citizens in Saudi Arabia

Ghada Ismail

 

Saudi Arabia is quietly entering a new demographic chapter. While the Kingdom remains widely known for its youthful majority—with more than 70 % of citizens under the age of 35—another segment of the population is steadily expanding: older adults. According to the General Authority for Statistics (GASTAT), about 1.7 million people aged 60 and above now live in the Kingdom, representing roughly 4.8 % of the total population in 2025. 

This shift is subtle compared with global aging trends but significant enough to influence how healthcare, social services, and digital technologies are designed and delivered. The World Health Organization and Saudi health authorities define the elderly as individuals aged 60 years or above, a demographic that is expected to grow in the decades ahead amid rising life expectancy and improvements in healthcare access. 

Across homes, clinics, and digital platforms, artificial intelligence (AI) is beginning to play a meaningful role in enhancing seniors’ quality of life, helping them remain independent, connected, safe, and engaged in ways that align with Saudi cultural values and Vision 2030 priorities.

 

Aging and Its Challenges

Aging often brings layered challenges. Chronic disease management, reduced mobility, memory changes, and social isolation can gradually erode independence. Traditional care systems, heavily reliant on family or institutional support, are increasingly stretched amid smaller household sizes and urban lifestyle shifts. In Saudi Arabia, these concerns are compounded by a healthcare environment preparing for the future dynamics of a longevity economy.

Yet many older Saudis are actively engaged both socially and digitally. GASTAT’s 2025 Elderly Statistics Bulletin shows that over 60 % of elderly Saudis participate actively in social events, with 63.4 % of men and 57.3 % of women reporting regular activity. Additionally, high rates of digital engagement—where about 87 % of elderly men and 78 % of elderly women use smartphones or computers—reflect a population already comfortable with basic technology. 

 

Wearables: Personalized, Continuous Support

One of the most visible intersections of AI and elder care is through wearables, smart devices capable of continuous monitoring and predictive analysis. These devices use machine learning to track vital signs such as heart rate, movement, sleep patterns, and irregular activity. The real value lies in algorithms that can detect deviations from personal norms and alert caregivers or family members before small issues become emergencies.

A notable Saudi startup leading innovation in this space is Me’kaaz, which has developed AI-enabled wearable solutions tailored to senior care. Rather than serving merely as emergency alerts, Me’kaaz’s technology focuses on early detection and prevention. It captures subtle changes in activity or routines that may signal emerging health problems—whether related to mobility, cardiovascular health, or daily function—helping families and clinicians intervene proactively.

Importantly, these technologies are linguistically and culturally localized for Saudi users. AI interfaces support the Arabic language and sensory cues that feel natural and respectful, ensuring seniors can interact comfortably with devices. This cultural resonance is crucial in a society that emphasizes family involvement and dignity in elder care.

 

AI Companions and Social Connectivity

Physical health is part of the picture, but emotional well-being is equally important. Loneliness and social isolation have been linked globally to depression and cognitive decline, particularly among seniors living alone or with limited mobility.

AI-powered digital companions are entering this space as well. These systems combine conversational capability with reminders, mental exercises, and engagement tools designed to keep elderly users mentally stimulated and socially connected. Me’kaaz and other innovators are exploring how these companions can deliver culturally relevant content, including religious and community-oriented interactions, enriching everyday life for seniors who may spend long hours alone.

Such AI companions are not a replacement for human interaction, but a supplemental presence, especially valuable for those whose families live at a distance or have demanding work schedules.

 

Training for an AI-Enabled Life

Technology adoption does not begin with advanced gadgets; it begins with confidence. Recognizing this, national and private initiatives in Saudi Arabia are increasingly focusing on digital literacy for older adults.

A notable example is the collaboration between Huawei Technologies and stc Group, which launched a senior-focused training program under Huawei’s global “Education for All” initiative. The program’s SmartTruck serves as a mobile digital classroom, traveling across regions of the Kingdom to deliver free, hands-on training for people aged 50 and above.

These workshops cover practical digital skills: using smartphones, accessing online services, understanding digital safety and fraud protection, and navigating AI-enabled tools. In its early phase, the initiative trained more than 2,000 seniors through over 150 workshops, underscoring strong enthusiasm among older adults for digital skill-building when instruction is accessible and age-appropriate.

While these sessions don’t teach deep AI theory, they build foundational confidence. For seniors, learning to interact safely with digital systems reduces anxiety, increases participation, and lays the groundwork for more sophisticated AI engagement, whether through telemedicine, smart wearables, or digital communities.

 

AI in Healthcare Systems

AI’s role is expanding beyond the home into broader healthcare delivery. Hospitals and clinics across the Kingdom are using AI tools for diagnostics, predictive analytics, and remote monitoring—beneficial for senior patients managing chronic conditions.

AI can help clinicians identify high-risk patients sooner, personalize treatment plans, and reduce unnecessary hospital visits. For seniors, this means more tailored care with less physical strain, particularly for those managing conditions like diabetes, hypertension, or cardiovascular issues.

Government entities such as the Saudi Data and Artificial Intelligence Authority are central in shaping ethical AI deployment across sectors, including healthcare. Professional bodies like the Saudi Association for AI and Healthcare are also contributing research and education frameworks to align AI adoption with clinical standards and ethical guidelines.

 

Cultural and Ethical Dimensions

Despite the promise, challenges persist. Not all seniors have equal access to smartphones, high-speed internet, or ongoing support, particularly in rural areas. Digital inequality remains a real barrier to the full potential of AI adoption.

Privacy concerns also loom large. AI elder-care systems rely on sensitive personal data—from biometric readings to behavior patterns—making data protection and transparency essential. Ensuring that seniors understand how their data is used and protected is particularly important in a society where privacy and family reputation are highly valued.

Cultural compatibility remains key as well. AI systems must respect Saudi social norms, language nuances, and religious practices. Solutions that feel foreign or disconnected from daily life are unlikely to gain traction, regardless of their technical sophistication.

 

Looking Ahead

Saudi Arabia’s broader AI ecosystem—strengthened by national strategic investments, research institutes, and innovation incentives—provides fertile ground for senior-focused technologies. Future developments are likely to include more advanced predictive care models, AI-assisted cognitive health tools, and deeper integration between home-based systems and national healthcare platforms.

Demographic data indicate that the proportion of older adults in Saudi Arabia is modest but growing. According to GASTAT’s 2025 Elderly Statistics Bulletin, people aged 60 and above currently represent about 4.8 % of the population, with men slightly outnumbering women in this age group. While still a small share, demographic trends suggest this segment will expand in the coming decades as life expectancy rises and fertility rates decline, reflecting broader global aging patterns. This gradual increase highlights the need for proactive planning, innovative care models, and policies that embrace technology while maintaining human dignity and social inclusion.

 

Embracing Aging with Intelligence

AI for senior citizens in Saudi Arabia is no longer a theoretical concept; it is taking shape now through wearable devices, digital engagement programs, and healthcare innovations that respect cultural values. These technologies complement family care, empower seniors to stay connected, and enhance their ability to live independent, fulfilled lives longer.

By investing in localized tech solutions, digital literacy training, and ethical AI frameworks, Saudi Arabia is fostering an environment where aging with intelligence and intention is possible. For the Kingdom’s older adults, this means accessing tools that enrich daily life—while retaining the autonomy, dignity, and social bonds that define Saudi culture.

How SPACs revolutionize paths to public markets

Noha Gad

 

The process of taking a company public traditionally involved significant challenges, including regulatory requirements, market volatility, and high costs. Initial public offerings (IPOs) have long served as the primary method, enabling companies to achieve substantial growth. However, the rapid rise of startups in sectors such as fintech, artificial intelligence (AI), and sustainable technology increased demand for more efficient routes to capital markets. Special Purpose Acquisition Companies (SPACs) address this need.

With no commercial operations, a SPAC is essentially a shell company established to acquire companies by purchasing their shares. They are formed specifically to raise capital through an IPO, which can be used to acquire or merge with another private operating company. This approach enables private companies to become publicly traded in a matter of months rather than years, without the full burdens of a conventional IPO.

How do SPACs work?

A SPAC is created by experienced investors, known as sponsors, with the sole purpose of acquiring or merging with an unidentified private business. Unlike traditional IPOs, where a company directly lists its shares, a SPAC raises capital first and identifies a target later. This structure provides a streamlined path to public markets. 

The SPAC transaction process encompasses several key stages:

  • Formation and IPO. Sponsors form a team of industry experts and file for an IPO, then investors purchase units, typically comprising one share of common stock and a fraction of a warrant. Proceeds from the IPO are placed in a trust account to earn interest.
  • Finding a target. The SPAC has 18 to 24 months to find and negotiate a merger with a private company. During this period, the SPAC remains listed on an exchange, offering its shares for trading.
  • Merger announcement. After identifying the target, the SPAC announces the proposed deal and takes shareholders’ votes on the transaction.
  • De-SPAC and public listing: If approved, the merger will be completed, and the target emerges as a public company under a new ticker symbol.

 

Advantages of SPACs 

SPACs offer several benefits over traditional IPOs, providing efficiency and access for private companies seeking capital and investors pursuing opportunities. Key advantages are:

  • Fast access to public markets. The process usually takes 3 to 6 months from merger announcement to completion, compared to more than 12 months for a standard IPO.
  • Price stability: The SPAC sets a fixed share price during its IPO, reducing exposure to pricing volatility common in direct listings.
  • Expert guidance: Sponsors, often executives or investors with proven track records, offer strategic advice, networks, and credibility. 
  • Attractiveness in emerging markets: This model can support fintech and tech startups in emerging markets, providing liquidity without full IPO infrastructure.

While SPACs offer distinct advantages, most notably speed and efficiency, they also carry specific risks for investors and target companies. These include share dilution, inconsistent post-merger performance, potential conflicts among sponsors, and high redemption rates.

In essence, SPACs present a compelling alternative to traditional IPOs as they provide faster access to public markets and engage experienced sponsors. However, their success ultimately depends on careful evaluation at every stage. Ongoing regulatory developments continue to strengthen transparency and investor protections, contributing to a more stable environment. For investors, the key is to study sponsor track records, merger terms, and the realism of financial projections. Target companies, in turn, must ensure alignment with long-term strategic goals to mitigate potential drawbacks. As the SPAC model evolves alongside moderating deal volumes, it remains a relevant pathway for growth-oriented companies seeking to enter public markets. 

Dawud: Cybersecurity, AI drive digital transformation in Saudi Arabia, Egypt

Mohamed Ramzy

 

The technology landscape in the Middle East is witnessing an unprecedented boom, driven by massive investments in digital infrastructure and a strategic shift towards the adoption of artificial intelligence (AI). With this momentum, cybersecurity is becoming increasingly important as the primary defense line protecting data and ensuring sustainable economic growth.

Spire Solutions emerged as a key player in this rapidly growing landscape and one of the leading distributors of cybersecurity, data, and AI solutions in the region, with a robust presence across the Gulf and Egyptian markets over nearly two decades. As Saudi Vision 2030 targets accelerate and Egypt advances digital transformation pathways, the company aims to deepen its operations and expand investments in both markets.

Sharikat Mubasher held an interview with Anas Dawud, General Manager for Saudi Arabia, Egypt, and Lavent at Spire Solutions, to discover the company’s expansion plans, its role in supporting Saudi Vision 2030 and driving digital transformation in Egypt, the role of the regulatory ecosystem in bolstering growth, and the company’s plans across the cybersecurity and AI sectors.

 

Spire Solutions has a long-standing record in the region. Could you highlight the company's key milestones and current solutions it focuses on?

Spire Solutions was founded nearly 19 years ago, with an initial focus centered on cybersecurity as a value-added service across the GCC, Egypt, and North Africa. To meet the needs of these rapidly evolving markets, we expanded our portfolio to include data and AI solutions, establishing a strategic integration between information security, data analytics, and intelligent technologies. This comprehensive package now defines our IT services offered to clients.

 

Speaking about the Saudi market, how do you assess the company’s operations amid the Kingdom’s significant momentum?

Saudi Arabia is our largest market. We have been operating in the Kingdom for over 15 years, and now serve a huge client base of more than 1,000 customers, including diverse government entities and large companies. Our main goal is to ensure robust protection of the IT environments of these organizations.

Geographically, we currently cover 18 cities across the Kingdom through a specialized team of engineers and consultants. We also aim to expandi our team in the Western Region, in line with our plan to open a regional headquarters in Riyadh soon.

 

How has Saudi Arabia’s regulatory environment contributed to driving Spire Solutions’ growth in this sector?

Governance and regulations put in place by Saudi regulators have been the cornerstone for our business growth, setting clear frameworks for cybersecurity and data protection standards. This boosted demand for our solutions across pivotal sectors, whether financial, banking, or governmental, while ensuring companies operate within a protected, regulated market.

The sector is witnessing a great momentum, backed by several supporting entities, notably the Saudi Data and Artificial Intelligence Authority (SDAIA), the Saudi Ministry of Communications and Information Technology, and many other entities.

 

Spire Solutions recently participated in the inaugural AI Everything MEA 2026 summit. How do you see the growth opportunities in the Egyptian market compared to other markets in the region? 

The Egyptian market is very promising, driven by a genuine, tangible shift from the government and the private sector towards comprehensive digital transformation.

Companies and banks have shown significant awareness of the need to integrate AI into their work cycles. Spire Solutions has been operating in the Egyptian market for more than 10 years, and we believe that the current movement in digital transformation and AI paves the way for us to boost investment and expand the reach of our technical services and consultancies in the coming period.

 

Does Spire Solutions plan to launch new projects in Egypt soon?

Spire Solutions is in ongoing talks with local partners to form successful partnerships. We recently held high-level meetings with leading Egyptian entities and have several strategic projects in the pipeline that we will announce soon.

I would like to emphasize a key point regarding our business approach in Egypt. We do not engage directly with the end-user; rather, we work through strategic partnerships with system integrators. However, we provide support to end-users through consultancy services and technical training.

 

The entrepreneurship sector in the region is experiencing significant momentum. What role does Spire Solutions play in supporting startups?

Supporting startups is at the heart of our strategy. We are committed to providing them with specialized technical training, enabling access to markets, and helping them build effective customer relationships.

We believe in the importance of working alongside entrepreneurs who are developing innovative solutions. Through this approach, we have supported a number of startups that have successfully established a strong presence across the region.

 

How do you see the future of AI and data sectors in key markets in the region by 2030?

Data volume is growing continuously and rapidly, making data science and analytics an essential pillar of organizational resilience, serving as the engine that guides companies' investments and helps navigate emerging challenges.

Today, AI plays a crucial role in promoting this process by providing faster and more accurate data protection. We aim to expand beyond Egypt and the GCC to enter specific markets in North Africa within the coming period.

With the accelerated pace of digital transformation in Saudi Arabia and Egypt, opportunities are abundant for cybersecurity and AI companies. Spire Solutions, guided by a clear regional expansion strategy, focuses on building local partnerships, knowledge exchange, and upskilling talent, ultimately enhancing organizations’ readiness to address evolving challenges in the digital landscape.

 

Translation: Noha Gad

Smart Kingdom: How AI Is Powering the Next Generation of Saudi Mega Projects

Kholoud Hussein 

 

Saudi Arabia’s mega projects were conceived as symbols of economic diversification. Today, they are becoming test beds for something even more transformative: artificial intelligence embedded at scale.

From predictive construction systems to AI-managed urban mobility, the Kingdom’s flagship developments are not merely large in size or investment value. They are increasingly designed as intelligent ecosystems. Backed by the policy framework of Saudi Vision 2030 and coordinated through institutions such as the Saudi Data and Artificial Intelligence Authority (SDAIA), AI is moving from experimental pilot to core infrastructure layer.

With mega projects collectively valued in the trillions of dollars, Saudi Arabia is positioning artificial intelligence not as a supporting tool, but as an operating system for next-generation cities, tourism hubs, logistics corridors, and industrial zones.

 

AI as a National Priority

Saudi Arabia’s AI ambitions are not confined to individual developments. In 2020, the Kingdom launched the National Strategy for Data and AI, aiming to position the country among the top 15 global AI leaders by 2030. Officials have repeatedly emphasized that artificial intelligence is central to economic competitiveness.

Crown Prince Mohammed bin Salman has described technology and innovation as pillars of the Kingdom’s diversification strategy. Meanwhile, SDAIA President Abdullah Alghamdi has stated that data and AI are “key enablers of economic growth and digital transformation.”

According to official projections, AI could contribute an estimated $135 billion to Saudi Arabia’s GDP by 2030, representing roughly 12 percent of the national economy. These figures underscore why mega projects are being built with AI integration from inception rather than retrofitted later.

 

NEOM: Building an AI-Native City

Perhaps the most visible example is NEOM, the $500 billion smart city development in northwestern Saudi Arabia. Designed as a fully connected urban environment, NEOM integrates AI across energy management, transportation, water systems, and security infrastructure.

Within NEOM, THE LINE represents an ambitious experiment in AI-driven urban planning. The linear city will rely on predictive analytics to manage traffic flows, optimize energy consumption, and coordinate autonomous transport systems. Digital twins—virtual models of physical infrastructure—allow planners to simulate real-world conditions before construction is completed.

AI algorithms will monitor energy demand in real time, automatically adjusting renewable energy generation and storage systems. In practice, this reduces waste and improves grid resilience. In urban mobility, AI-enabled platforms are expected to manage autonomous vehicles and high-speed transit networks with minimal human intervention.

The result is an environment where infrastructure decisions are driven by continuous data analysis rather than static planning assumptions.

 

The Red Sea Project: AI in Sustainable Tourism

Sustainability is another arena where AI is reshaping Saudi mega developments. Red Sea Global, developer of the Red Sea Project, has embedded AI into environmental management systems.

The destination aims to operate on 100 percent renewable energy. AI-powered monitoring systems analyze weather patterns, guest flows, and energy consumption to optimize operations while minimizing ecological impact. Smart desalination plants use machine learning to improve efficiency and reduce carbon intensity.

By using predictive analytics, operators can anticipate peak visitor demand and adjust services accordingly, limiting overuse of sensitive natural environments. This model reflects a broader shift: AI is not only about efficiency but also about environmental stewardship.

 

Qiddiya and Predictive Operations

Entertainment and sports infrastructure are also being transformed. Qiddiya Investment Company is developing one of the Kingdom’s largest entertainment cities, integrating AI for crowd management, safety monitoring, and real-time operational analytics.

Advanced camera systems and computer vision technologies help detect congestion patterns and enhance security oversight. Predictive maintenance tools monitor ride systems and facilities to reduce downtime and prevent mechanical failures.

For mega venues hosting international events, AI-driven analytics enable dynamic pricing strategies, optimized staffing, and personalized visitor experiences.

 

AI in Construction and Project Management

Beyond the final user experience, AI is reshaping how mega projects are built.

Saudi Arabia’s construction sector faces the challenge of delivering projects at an unprecedented scale. AI-enabled project management platforms analyze supply chains, labor allocation, and procurement timelines to mitigate delays. Predictive analytics help identify bottlenecks before they escalate into costly overruns.

Drone-based imaging combined with machine learning allows real-time monitoring of construction progress. This data feeds into centralized dashboards, enabling developers to compare projected timelines with actual performance.

Given that Saudi giga-projects represent investments exceeding $1 trillion collectively, even marginal efficiency gains through AI can translate into billions of dollars in savings.

 

The Startup Ecosystem: Local Innovation at Scale

While global technology providers are active in the Kingdom, Saudi startups are increasingly contributing to the AI ecosystem, supporting mega projects.

Companies such as Mozn specialize in AI-driven analytics and risk management platforms. Originally focused on financial crime detection, firms like Mozn are expanding into broader data analytics solutions relevant to infrastructure and enterprise clients.

Another emerging player is Quant Data & Analytics, which develops AI tools for predictive analytics and data intelligence. Such companies are well-positioned to serve government agencies and mega-project operators requiring localized AI solutions.

Saudi Arabia’s venture capital ecosystem has grown significantly, with AI startups attracting increasing funding rounds. Government-backed funds and accelerators are prioritizing artificial intelligence as a strategic vertical.

As mega projects mature, demand for specialized AI applications—ranging from logistics optimization to energy modeling—creates a substantial addressable market for domestic startups.

 

Human Capital and Workforce Transformation

AI integration also has labor market implications. Mega projects are serving as training grounds for Saudi engineers, data scientists, and AI specialists.

Under Vision 2030, workforce localization initiatives aim to equip Saudi nationals with advanced digital skills. Universities and research centers are partnering with mega-project developers to create AI-focused training programs.

Officials have emphasized that AI adoption is not about workforce replacement but productivity enhancement. SDAIA leadership has noted that building local AI talent is essential for long-term sustainability.

 

Economic Impact and Investment Outlook

The economic implications are profound. With AI projected to contribute $135 billion to GDP by 2030, mega projects act as catalysts, accelerating this contribution.

Investment in digital infrastructure, cloud computing, and data centers is expanding alongside physical construction. Saudi Arabia has announced multi-billion-dollar investments in cloud services partnerships to support AI workloads.

Moreover, foreign direct investment linked to technology partnerships continues to grow as global firms view Saudi mega projects as large-scale test environments for advanced AI applications.

Industry analysts estimate that AI-related spending in Saudi Arabia could grow at compound annual rates exceeding 25 percent through the end of the decade, driven largely by giga-project deployment.

 

Challenges and Governance Considerations

Despite momentum, challenges remain. Integrating AI across complex, multi-stakeholder projects requires strong governance frameworks. Data privacy, cybersecurity, and algorithmic accountability are critical concerns.

Saudi authorities have introduced regulatory standards governing data protection and AI ethics to ensure responsible deployment. This regulatory clarity may enhance investor confidence.

 

Finally, Saudi Arabia’s mega projects were initially defined by scale—record-breaking budgets, ambitious architecture, and expansive geography. Increasingly, however, they are defined by intelligence.

Artificial intelligence is embedded in planning models, operational systems, sustainability metrics, and security frameworks. It is shaping not only how projects are built but how they function long after completion.

If current trajectories continue, Saudi Arabia’s giga-projects may become global reference models for AI-integrated urban development. In doing so, they reinforce the Kingdom’s broader ambition: to transition from an economy built primarily on natural resources to one powered by data, technology, and intelligent systems.

 

What Is ‘Asset Turnover Ratio’ and Why It Matters for Startups

Ghada Ismail

 

Most startups don’t fail because they lack ideas. They fail because they misjudge how efficiently they turn what they own into revenue.

In the rush to grow, founders often focus on how fast money is coming in, while paying far less attention to how hard their assets are actually working. Office space sits half-used. Software tools pile up. Teams expand faster than output. On paper, the startup looks like it’s growing. In reality, its engine may be inefficient.

This is where the Asset Turnover Ratio quietly steps in. It doesn’t care about hype, valuation, or future promises. It asks one simple, uncomfortable question: How much revenue are you actually generating from the assets you already have? For startups operating on limited capital and tight runways, the answer can be revealing, and sometimes alarming.

 

What Is Asset Turnover Ratio?

The Asset Turnover Ratio measures how efficiently a business uses its assets to generate revenue. It shows how much revenue is produced for every unit of assets owned by the company.

The formula is simple:

Asset Turnover Ratio = Revenue ÷ Average Total Assets

If a startup generates SAR 2 million in revenue and holds SAR 1 million in total assets, its asset turnover ratio is 2. This means the company generates SAR 2 in revenue for every riyal invested in assets.

In general, a higher ratio indicates stronger operational efficiency, while a lower ratio suggests that assets may not be used to their full potential.

 

Why Asset Turnover Ratio Matters for Startups

Startups rarely have excess resources. Capital is limited, margins are thin, and every investment—whether in people, technology, or infrastructure—needs to prove its value quickly.

The asset turnover ratio helps founders understand whether their business model is genuinely efficient or simply growing heavier over time. It highlights whether assets are actively contributing to revenue or quietly becoming cost centers.

For investors, this metric offers insight into execution quality. A startup that generates strong revenue relative to its asset base signals discipline, thoughtful scaling, and smarter capital allocation, qualities that matter far more than growth alone.

 

Interpreting High and Low Asset Turnover Ratios

A high asset turnover ratio often reflects a lean, well-optimized business. Digital startups, SaaS platforms, and marketplace models typically perform well because they generate revenue without heavy physical infrastructure. High turnover suggests that the startup is maximizing output from minimal resources.

A low asset turnover ratio is not necessarily a red flag on its own. Asset-heavy startups in sectors such as manufacturing, logistics, or hardware development often show lower ratios, especially in early stages. The real concern arises when assets continue to grow while revenue lags behind, signaling inefficiencies or premature expansion.

What matters most is what happens next. Improving turnover over time indicates that the startup is learning how to scale more efficiently.

 

How Startups Can Improve Asset Turnover

Improving asset turnover is not about cutting costs aggressively. It is about making smarter decisions with existing resources.

Startups can focus on increasing revenue before acquiring new assets, delaying major capital expenditures until demand is validated, and outsourcing non-core functions instead of owning everything in-house. Regularly reviewing underperforming assets—whether tools, systems, or physical resources—also helps prevent unnecessary drag on performance.

Ultimately, the goal is not to own fewer assets, but to ensure that every asset actively supports growth.

 

Putting Asset Turnover in Context

No single metric tells the full story. Asset turnover should be viewed alongside profitability, cash flow, and growth indicators. A startup can be efficient but unprofitable, or profitable but inefficient. The real insight comes from understanding how these metrics work together.

For founders, asset turnover serves as a reality check. It keeps ambition grounded in execution and encourages smarter scaling rather than reckless expansion.

 

Wrapping Things Up…

At its core, the asset turnover ratio is not just a financial metric, but rather a discipline check.

It forces founders to ask whether growth is being built on smart execution or on accumulating more resources than the business can justify. High turnover reflects a startup that knows how to extract value before spending more. Low turnover, if ignored, quietly erodes runway long before cash flow problems become obvious.

In a startup landscape where capital is no longer unlimited, the businesses that survive will not be the ones that own the most assets, but the ones that use what they own best.