Saudi Arabia Artificial Intelligence Market
Saudi Arabia Artificial Intelligence (AI) Market by Infrastructure (Compute, Memory, Networking), Software (Conversational Assistants, No Code/Low Code, BI & Analytics, Developer Platforms), Technology (ML, NLP, Gen AI) - Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The size of the Saudi Arabia artificial intelligence market is estimated to be USD 2.14 billion in 2025 and reach USD 16.90 billion by 2032, growing at a CAGR of 34.3%. The growth in the AI industry in Saudi can be attributed to the government's Vision 2030 plan, where AI has been placed on one of the prominent fronts in economic diversification. The public spending on AI, ease in regulations, and government-implemented activities in digital units are paving the way for the adoption of AI in ministries and government corporations in the Kingdom.
KEY TAKEAWAYS
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By OfferingBy offering, the Infrastructure segment is estimated to lead the market in 2025.
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By TechnologyBy technology, the generative AI segment is projected to register the highest CAGR of 47.5%.
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By Business FunctionBy business function, the sales & marketing segment is estimated to dominate the market with USD 0.58 billion in 2025.
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By Enterprise End UserThe technology & software providers segment is projected to grow at the fastest rate at a CAGR of 38.4% during the forecast period.
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Competitive LandscapeGoogle, Microsoft, NVIDIA, Oracle, and AWS were identified as some of the star players in the Saudi Arabia Artificial Intelligence (AI) market, given their strong market share and product footprint.
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Competitive LandscapeLucidya, Lisan, Intella, EyeGo.ai, Krooz.ai, Humain, among others, have distinguished themselves among startups and SMEs by securing strong footholds in the Saudi Arabia Artificial Intelligence (AI), underscoring its potential as an emerging market leader
Commercial AI applications across oil & gas, manufacturing, travel & hospitality to strengthen the AI demand in Saudi Arabia. AI is utilized for medical diagnostics, population health management, supply chain optimization, fraud detection, and automating citizen services. The establishment of national data platforms under Saudi data governance authorities, combined with rising enterprise cloud migration and cybersecurity investments, is further enabling trusted, compliant, and scalable AI commercialization across the country.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
Technological advancements in a variety of sectors have resulted in increased efficiency in energy consumption, improved traffic flow, enhanced use of water resources, greater levels of construction automation, enhanced provision of public safety, enhanced personalization of tourism experiences, and more. As a result, there is increasing interest in AI implementations in high-value multi-sector supply chains for infrastructure, sustainability, and urban intelligence, therefore offering increased revenue opportunities in each of these markets. NEOM, The Red Sea Project, or large city transformation projects will serve as models of how advanced artificial intelligence can be used. These projects continue to generate ongoing demand for and use of advanced AI technologies, particularly but not limited to artificial vision (robotics), digital twins, predictive behavior models, and autonomous vehicles.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Saudi Arabia’s Vision 2030, National AI Strategy Led By Sovereign Digital Transformation Agendas
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Reducing Oil Dependence by Driving Economic Diversification Through AI
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High Capital Intensity of Compliant, Secure, and Explainable AI Systems
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Uneven AI Readiness across Traditional Saudi Enterprises and SMEs
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Smart City Intelligence Platforms for NEOM, Red Sea, and Urban Mega-projects
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AI-powered Healthcare Modernization Aligned With Saudi Public Health Priorities
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Enforcing Saudi Data Privacy, Algorithm Transparency and Responsible AI Governance
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Reducing Bias and Ensuring Fairness in Arabic and Legacy AI Systems
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Saudi Arabia’s Vision 2030, National AI Strategy Led By Sovereign Digital Transformation Agendas
The growth of the Saudi Arabia AI market is primarily driven by Saudi's Vision 2030 agenda, the National AI Strategy, and sovereign digital transformation programs that position artificial intelligence as a core enabler of economic diversification beyond hydrocarbons. Strong government funding, centralized policy execution, and national data and cloud infrastructure initiatives are driving the acceleration of AI adoption across various sectors, including public services, healthcare, energy, manufacturing, logistics, and financial services.
Restraint: High Capital Intensity of Compliant, Secure, and Explainable AI Systems
Despite strong momentum, the Saudi Arabia AI market faces structural restraints related to the high capital intensity required for deploying secure, compliant, and explainable AI systems, particularly at enterprise and government scale. The varying levels of AI readiness in traditional Saudi enterprises and SMEs, along with the limited availability of skilled local AI talent, continue to hinder consistent market penetration.
Opportunity: Smart City Intelligence Platforms for NEOM, Red Sea, and Urban Mega-projects
Advancements in smart city intelligence platforms, healthcare modernization, and industrial AI all align with national development priorities. AI-enabled healthcare diagnostics, population health analytics, predictive maintenance, industrial safety, smart energy management, and intelligent mobility solutions are gaining traction as part of national efforts to enhance productivity and sustainability.
Challenge: Enforcing Saudi Data Privacy, Algorithm Transparency and Responsible AI Governance
The strict enforcement of data privacy laws, algorithmic transparency, and responsible AI governance is increasing compliance requirements. As AI becomes embedded across critical infrastructures, energy grids, healthcare networks, and smart cities, it remains a national resilience challenge.
SAUDI ARABIA ARTIFICIAL INTELLIGENCE MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Omantel partnered with Elevatus to seamlessly integrate a leading AI Video Interview software to identify the best talent. Elevatus and Omantel revolutionized recruitment by implementing Elevatus’ AI Video Interview solution for its Generation Z program. | Omantel achieved outstanding results, tripling its ROI, accelerating the assessment process by 83%, and making recruitment 12x faster than traditional methods. The company evaluated 5,500 candidates in just days, built a centralized talent database, and identified top applicants. |
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Savvy Games Group integrates HUMAIN’s full-stack AI capabilities into its core business operations. They will also leverage HUMAIN’s data centers and cloud infrastructure to support computing needs and engage in joint R&D to explore new AI-driven applications across Savvy’s gaming and esports ecosystem. | The deployment significantly enhances Savvy’s operational efficiency by automating and optimizing back-office processes, thereby reducing overheads. AI-driven tools can enhance productivity, accelerate development cycles, and spur innovation, potentially elevating the quality and variety of games and esports offerings. |
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The Seha Virtual Hospital’s Digital Clinical Research Center conducted a clinical study to validate an AI-powered digital platform (iSelfie.ai) that analyzes a standard smartphone selfie to measure vital signs and uses these measurements to detect early signs of heart disease and related chronic conditions. | The approach can dramatically increase the accessibility of heart-disease screening, enabling people to receive early detection simply via a smartphone, thereby reducing the need for specialized equipment or clinical visits. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The Saudi AI ecosystem includes a broad range of global and regional players offering a wide array of AI technologies and platforms that include machine learning frameworks, deep learning tools, large language models, computer vision systems, speech recognition, conversational AI, and generative AI solutions to address enterprise and consumer use cases. These players offer end-to-end AI capabilities such as data engineering, MLOps, model training and deployment, AI-optimized cloud infrastructure, GPU computing, and edge AI, required for driving scalable, real-time intelligence. Some of the global players with office locations in Saudi Arabia include NVIDIA, Microsoft, Google, AWS, IBM, SAP, Oracle, Meta, HPE, and SAS Institute. Some regional players cover Mozn.ai, Lucidya, Intella, Knowtified, Lisan, and EyesGo.ai, among others.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Kingdom of Saudi Arabia Artificial Intelligence (AI) Market, by Offering
As of 2025, the Infrastructure segment is expected to dominate the market due to large-scale investments in sovereign cloud, hyperscale data centers, high-performance computing (HPC), national data platforms, and advanced connectivity frameworks under Vision 2030. The rapid development of giga-projects and smart cities, such as NEOM, is creating a massive demand for AI-ready digital infrastructure to support real-time analytics, digital twins, computer vision, and autonomous systems. Government-led initiatives to strengthen cybersecurity, data localization, and national cloud ecosystems are accelerating the adoption of enterprise AI workloads in Saudi Arabia.
Kingdom of Saudi Arabia Artificial Intelligence (AI) Market, by Technology
Generative AI to grow at a rapid pace due to rising government and enterprise demand for Arabic-first large language models, sovereign generative platforms, and AI-powered digital government services under Vision 2030. Large enterprises are increasingly deploying generative AI for citizen engagement, document automation, policy analysis, intelligent virtual assistants, and the generation of multilingual content. Furthermore, sectors such as banking, healthcare, media, education, and tourism are adopting generative AI for personalized customer engagement, clinical documentation, fraud intelligence, marketing automation, and localized content creation.
Kingdom of Saudi Arabia Artificial Intelligence (AI) Market, by Business Function
By 2025, marketing & sales business functions will dominate the market due to the rapid digitalization of customer engagement across retail, banking, telecom, tourism, and e-commerce sectors. Enterprises across Saudi Arabia are increasingly deploying AI solutions for personalized recommendations, dynamic pricing, and deriving conversational insights to improve customer acquisition across digital and omnichannel platforms. The strong growth of Saudi eCommerce, digital payments, smart tourism, and the developing entertainment sector is further accelerating demand for AI-driven marketing automation, real-time customer intelligence, and data-driven sales enablement.
Kingdom of Saudi Arabia Artificial Intelligence (AI) Market, by Enterprise End User
Software & technology providers are projected to grow at the fastest rate during the forecast period due to accelerating digital transformation across government entities and large enterprises under Vision 2030. Saudi organizations are rapidly modernizing core enterprise functions by integrating AI-enabled ERP, CRM, HRTech, cybersecurity, analytics, and decision intelligence platforms to improve operational efficiency, service delivery, and regulatory compliance. The growing adoption of cloud-native enterprise applications, national data platforms, and low-code/no-code AI development tools is further expanding the role of software vendors in delivering scalable and interoperable AI capabilities.
REGION
SAUDI ARABIA ARTIFICIAL INTELLIGENCE MARKET: COMPANY EVALUATION MATRIX
Microsoft is the leader in the Saudi artificial intelligence market matrix (Star) due to the massive artificial intelligence environment it has, with the likes of Azure AI, Copilot, and machine learning services. This helps in the evolution of intelligent solutions for companies as it enables them to innovate, automate, and scale. Oracle is enhancing its position as a market leader (Emerging Leader) as it has widened its OCI AI platform, growing rapidly in the last few months. Oracle is developing highly capable Generative AIs for businesses, as well as developing its cloud applications with the use of artificial intelligence. Oracle is recognized as an emerging rival for Microsoft in the market space of AI, as it enables businesses to have enterprise-class performance, security, and scalability with the development of verticalized AI workflows, self-driving databases, and cost-effective GPU computing.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- NVIDIA (US)
- Microsoft (US)
- IBM (US)
- Oracle (US)
- AWS (US)
- Intel (US)
- Google (US)
- SAS Institute (US)
- Meta (US)
- Lucidya (Saudi Arabia)
- Miozn.ai (Saudi Arabia)
- HUMAIN (Saudi Arabia)
- Lisan (Saudi Arabia)
- Elevatus (Saudi Arabia)
- Deep.SA (Saudi Arabia)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size, 2024 (Value) | USD 1.44 Billion |
| Market Forecast, 2032 (Value) | USD 16.90 Billion |
| CAGR | 34.30% |
| Years Considered | 2020–2032 |
| Base Year | 2024 |
| Forecast Period | 2025–2032 |
| Units Considered | Value (USD Million/Billion) |
| Fastest-growing Technology | Generative AI |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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WHAT IS IN IT FOR YOU: SAUDI ARABIA ARTIFICIAL INTELLIGENCE MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
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| IT Infrastructure Service Provider |
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| Leading Telecom Vendor – Kingdom of Saudi Arabia (KSA) |
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RECENT DEVELOPMENTS
- November 2025 : AWS partnered with HUMAIN, a Public Investment Fund (PIF) company delivering global full-stack AI solutions, and announced their plans to provide, deploy, and manage up to 150,000 AI accelerators in a data center facility known as an “AI Zone” in Riyadh. As part of the expanded partnership, AWS would become HUMAIN’s preferred AI partner globally, and the two companies would collaborate to bring AI compute and services from Saudi Arabia to customers worldwide.
- November 2025 : The Saudi Data and Artificial Intelligence Authority has signed seven strategic agreements with leading technology companies as part of efforts to accelerate the Kingdom’s digital transformation and expand its AI capabilities. The agreements covered a broad spectrum of collaboration aimed at boosting data infrastructure, developing the national workforce, and advancing AI adoption across key sectors.
- May 2025 : HUMAIN partnered with NVIDIA to drive the next wave of artificial intelligence development, leveraging NVIDIA's platforms and expertise to establish Saudi Arabia as a global leader in AI, GPU cloud computing, and digital transformation, thereby driving innovation and growth worldwide. The partnership underscored HUMAIN’s mission to position Saudi Arabia as a global AI powerhouse, combining cutting-edge infrastructure, frontier AI models, immersive digital platforms, and human capital development.
- February 2025 : Salesforce planned to invest USD 500 million in Saudi Arabia related to artificial intelligence, as countries compete to secure investments in the nascent but critical technology. As part of the investment, Salesforce would introduce Hyperforce, its platform architecture delivered through a strategic partnership with AWS, in the country.
- February 2025 : Groq secured a USD 1.5 billion commitment from Saudi Arabia to expand the delivery of its advanced AI chips to the country. The company's chips, which specialize in fast responses from chatbots and other large language models, were subject to US export controls, but Groq said it has obtained the licenses it needs to ship them to Dammam.
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Growth opportunities and latent adjacency in Saudi Arabia Artificial Intelligence (AI) Market