Saudi’s AI Play and the Global Business Implications
The word Arab means ‘nomad’ in the old Assyrian language, and Saudi Arabia’s journey from sand to screen has been truly exceptional. In today’s global power play, you are considered mighty when you have nuclear weapons, a strong military base, or you are a global domain of Artificial Intelligence (AI). There is no doubt about Saudi ambitions to be crowned as the experts and global base for all things AI. A nation that once relied heavily on manual, extensively human-based work is now digitizing itself in every aspect of everyday life.
Vision 2030 is the guide to the Kingdom’s economic interests outside of being the world’s oil pump. They are using their oil wealth in a calculated power play to reshape the tech landscape, to build the empire, and then rule over it. Their strategy? Using its $940 billion Public Investment Fund (PIF) to attract tech giants into its orbit and then moulding their contributions to suit a Saudi-centric framework. It’s about data sovereignty and building a strong presence for emerging markets to build locally grounded AI systems. Creating a clear value proposition and investment incentives, with Saudi Arabia at the heart of it all.
Humain AI was launched during US President Trump's recent visit to the Kingdom, a timely launch to further accelerate Saudi global aspiration of owning the AI and data space across the Middle East and North Africa. Out of the many deals that were secured during Trump’s visit, the aligned goals and investment incentives in AI and data between the global giants became clear. It is no coincidence that this announcement came during Trump’s time in the Kingdom; it escalated the impact, with all eyes already turned to Saudi Arabia because of the anticipated visit.
There have been significant deals made between the two countries. Notably, US companies Nvidia and AMD, both securing multi-billion-dollar deals to supply AI chips for Saudi data centres. These collaborations are part of a broader strategy to build an AI ecosystem, attracting foreign investment and allowing room for innovation. Which begs the question- is the Kingdom inviting everyone on a red carpet so that global businesses can be owned “The Saudi way “? I think the answer is yes. But in a mutually beneficial way.
For example, Saudi Arabia has used Nvidia, the poster child of AI chip innovation, to secure critical infrastructure for powering AI models and data centres. The Kingdom is investing heavily in its AI infrastructure, now with over two gigawatts of data center capacity, which accounts for nearly half the Middle East’s total. These AI chips will fuel Saudi-built systems.
Projects like the $100 billion Project Transcendence and the newly launched Humain AI create the blueprint for how foreign tech is harnessed to serve Saudi goals, from Arabic large language models (LLM) to cloud computing tailored to regional needs. This is tech adoption, the Saudi way. Take the best and then make it your own.
I think for Saudi, yes, it is about competition, it is about innovation, but it is also about localisation and cultural nuances. Saudi Arabia is saying, we want the tools to best serve our people and the businesses that establish their core presence in the Kingdom. Now, more than ever, is the ideal time for companies leading the way in AI innovation to set up.
Having supported several global AI companies with their set up in Saudi, my tips for companies looking at the investment opportunities?
- Align your business vision to Vision 2030. If you are looking for partnerships, accelerators and growth potential – this is where it sits.
- Focus on aspects of data protection and enhanced user privacy – due diligence, KYC, and consumer protection are becoming more important.
- Involve the local workforce in your business. Use their talent, knowledge, and connections to enhance your business potential and align with Saudization initiatives.
How can Sovereign PPG help?
Combining immense wealth, strong government commitment, and global demand for AI, Saudi Arabia is undeniably becoming a permanent home for AI innovation.
If you're looking to establish a tech firm in Saudi Arabia, we're here to help.
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