Saudi Arabia is reportedly setting its sights on a USD 100 billion artificial intelligence (AI) initiative named “Project Transcendence,” seeking to establish a world-class tech hub in the Kingdom.
The Saudi Public Investment Fund (PIF) is anticipated to partner with Alphabet Inc., Google's parent company, investing between USD 5 billion and USD 10 billion in this new government-backed AI project. This collaboration will emphasize developing Arabic-language AI models, laying a strong groundwork for Saudi Arabia's future AI initiatives. Officials note that this partnership could also pave the way for additional alliances with global tech leaders, significantly advancing the nation's AI expertise.
Generative AI (GenAI), one of the most transformative technologies in this space, is poised to drive substantial profit growth across multiple sectors in Saudi Arabia as the nation moves toward 2028. Recent research by Strategy& Middle East indicates that the technology sector stands to benefit the most, with GenAI potentially boosting operating profits by as much as SAR 15 billion.
In September 2024, Saudi Arabia expressed its support of the Digital Cooperation Organization’s (DCO) establishment of the world’s first Generative AI Center of Excellence (CoE). This center aims to help member states become key GenAI innovators globally, fostering collaboration, and promoting sustainable, inclusive growth.
State of AI in Saudi Arabia
Over the past five years, the GCC country has made huge efforts and advancements in artificial intelligence.
A recent report by the Saudi Data and Artificial Intelligence Authority (SDAIA) highlighted the dramatic rise in government investment in emerging technologies, especially AI. Between 2019 and 2023, Saudi government spending in this field grew at a compound annual growth rate (CAGR) of 59%, underscoring the country's commitment to positioning AI as a cornerstone of economic diversification under Vision 2030.
To build a robust talent pool, Saudi Arabia aims to train one million AI-skilled professionals by 2030. This ambitious goal is supported by SDAIA’s "One Million Saudi Initiative," which was launched in 2024 to significantly expand the Kingdom’s technological workforce.
Looking forward, AI is expected to contribute 12% to Saudi Arabia's GDP by 2030, with the national AI market projected to grow at a CAGR of 29%. These developments position Saudi Arabia as a rising leader in the global AI landscape.
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