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 Saudi Arabia.
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
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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 |
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| Market Size, 2024 (Value) | USD 1.44 Billion |
| Market Forecast, 2032 (Value) | USD 16.90 Billion |
| CAGR | 34.3% |
| 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.
Table of Contents
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Methodology
In the primary research process, a diverse range of stakeholders from both the supply and demand sides of the artificial intelligence ecosystem were interviewed to gather qualitative and quantitative insights specific to this market. From the supply side, key industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology & innovation directors, and technical leads from vendor companies offering artificial intelligence infrastructure, software & services were consulted. Additionally, system integrators, service providers, and IT service firms that implement and support artificial intelligence were included in the study. On the demand side, input from IT decision-makers, infrastructure managers, and business heads of prominent enterprise end users was collected to understand the user perspectives and adoption challenges within targeted industries.
The primary research ensured that all crucial parameters affecting the Saudi Arabia Artificial Intelligence Market—from technological advancements and evolving use cases (predictive maintenance, fraud detection, customer service automation, content generation, personalized recommendations, etc.) to regulatory and compliance needs (GDPR, CCPA, Europe AI Act, AIDA, etc.) were considered. Each factor was thoroughly analyzed, verified through primary research, and evaluated to obtain precise quantitative and qualitative data for this market.
Secondary Research
Once the initial phase of market engineering was completed, including detailed calculations for market statistics, segment-specific growth forecasts, and data triangulation, an additional round of primary research was undertaken. This step was crucial for refining and validating critical data points, such as AI offerings (artificial intelligence infrastructure, software & services), industry adoption trends, the competitive landscape, and key market dynamics like demand drivers (growth in adoption of autonomous artificial intelligence, rise of deep learning and machine learning technologies, advancements in computing power and availability of large databases), challenges (lack of transparency and explainability in decision-making process of AI, concerns related to bias and inaccurately generated output, integration challenges and lack of understanding of state-of-the-art systems), and opportunities (advancements in AI-native infrastructure enhancing scalability and performance, expansion of edge AI capabilities for real-time data processing and decision-making, advancements in generative AI to open new avenues for AI-powered content creation).
Primary Research
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecast for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to record the critical information/insights throughout the report.
Market Size Estimation
To estimate and forecast the Saudi Arabia Artificial Intelligence Market and its dependent submarkets, both top-down and bottom-up approaches were employed. This multi-layered analysis was further reinforced through data triangulation, incorporating primary and secondary research inputs. The market figures were also validated against the existing MarketsandMarkets repository for accuracy. The following research methodology has been used to estimate the market size:
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
Many theoretical definitions of artificial intelligence center on a machine's capacity to mimic human behavior or carry out tasks that call for intelligence, but given the majority of current applications, artificial intelligence can be described as “systems that employ methods that can gather data and use it to predict, suggest, or make decisions with varying degrees of autonomy and select the best course of action to accomplish particular objectives”. AI systems leverage advanced techniques such as deep learning, reinforcement learning, and probabilistic reasoning to process data, recognize patterns, and make autonomous decisions or provide predictive analytics. These systems are designed to improve over time through iterative training and adaptation, often utilizing large-scale data and high-performance computing infrastructure to optimize performance and accuracy.
Stakeholders
- AI software developers
- AI infrastructure providers
- AI-integrated service providers
- AI training dataset providers
- Core data service providers
- Business analysts
- Cloud service providers
- Consulting service providers
- Enterprise end users
- Distributors and Value-added Resellers (VARs)
- Government agencies
- Independent Software Vendors (ISVs)
- Managed service providers
- Market research and consulting firms
- Support & maintenance service providers
- System Integrators (SIs)/Migration service providers
- Language service providers
- Technology providers
- Academia & research institutions
- Investors & venture capital firms
Report Objectives
- To define, describe, and forecast the Saudi Arabia Artificial Intelligence Market, by offering, business function, technology, enterprise application, and end user
- To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
- To analyze the micro markets with respect to individual growth trends, prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the Saudi Arabia Artificial Intelligence Market
- To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders
- To forecast the market size of segments for five main regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To profile the key players and comprehensively analyze their market ranking and core competencies
- To analyze competitive developments, such as partnerships, product launches, and mergers and acquisitions, in the Saudi Arabia Artificial Intelligence Market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product matrix provides a detailed comparison of the product portfolio of each company
Geographic Analysis as per Feasibility
- Further breakup of the North American market for artificial intelligence
- Further breakup of the European market for artificial intelligence
- Further breakup of the Asia Pacific market for artificial intelligence
- Further breakup of the Middle Eastern & African market for artificial intelligence
- Further breakup of the Latin American market for artificial intelligence
Company Information
- Detailed analysis and profiling of additional market players (up to five)
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Growth opportunities and latent adjacency in Saudi Arabia Artificial Intelligence (AI) Market