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Establishment of AI Center Boosts Digital Economy in Saudi Arabia

Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)
Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)
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Establishment of AI Center Boosts Digital Economy in Saudi Arabia

Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)
Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)

In response to the surging demand for artificial intelligence, anticipated to play an ever more crucial role in propelling the future of the Saudi economy, the Saudi Cabinet made a decisive move to create an international center for research and ethics in this cutting-edge sector.

This strategic initiative aims to expedite the advancement of sophisticated technologies, bolstering the Saudi Kingdom’s position both regionally and globally.

The establishment of the new center followed the creation of the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2019, reaffirming the nation’s commitment to embracing this technology while effectively addressing all potential risks in the future.

According to a report from global consultancy firm PwC, AI is set to contribute $135 billion to the Saudi economy in 2030, making the Kingdom the biggest beneficiary of technology in the Middle East.

As Saudi Arabia pushes the embracement of digitization and future technologies, the Kingdom will see AI’s contribution to the gross domestic product rise to 12.4% in 2030, PwC added.

In terms of the average annual growth rate in the contribution of AI by region, Saudi Arabia is projected to hold a share of 31.3% in the technology expansion between 2018 and 2030.

Saudi Arabia is leapfrogging in the advanced technology sector, aligning with the goals outlined in Vision 2030. The government has initiated various measures to ensure that the Kingdom provides a safe online environment.

According to experts interviewed by Asharq Al-Awsat, the establishment of the new center enhances the Kingdom’s proactive and influential leadership role in the rapidly expanding global industry.

It strengthens the digital economy and contributes to the advancement of research efforts, all while promoting responsible utilization of artificial intelligence.

Faisal Al-Qadi, the CEO of Al-Qadi Trading and Industry and an AI expert, affirmed that the establishment of the new international center underscores the Kingdom’s genuine interest in adopting and implementing AI technology and its applications, along with addressing its challenges.

It serves as a confirmation of the Kingdom’s proactive and influential leadership role in this industry, added Al-Qadi.

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Local Content in Saudi Government Projects Rises to 47% by Q3

Al-Falih said that local content policies are integral to the state’s strategy. (SPA)
Al-Falih said that local content policies are integral to the state’s strategy. (SPA)
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Local Content in Saudi Government Projects Rises to 47% by Q3

Al-Falih said that local content policies are integral to the state’s strategy. (SPA)
Al-Falih said that local content policies are integral to the state’s strategy. (SPA)

The proportion of local content in Saudi government projects has grown significantly, rising from 33% in 2020 to approximately 47% by the end of the third quarter of this year. This progress was announced by Minister of Industry and Mineral Resources Bandar Al-Khorayef during a ministerial session titled, Future Trends in Light of Vision 2030, at the second edition of the Local Content Forum 2024.

Tourism Minister Ahmed Al-Khateeb emphasized that tourism is a cornerstone of Vision 2030, stating: “We aim to localize investment spending with the support of national institutions.”

He also outlined plans to increase the tourism sector’s contribution to the national economy from 3% in 2019 to 10%.

Al-Khateeb underscored the collaborative efforts underway with the private sector to develop the tourism industry.

For his part, Investment Minister Khalid Al-Falih highlighted that local content policies have been integral to the state’s strategy since its founding. He stressed that enhancing the competitiveness of local companies plays a vital role in advancing localization efforts.

Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail stated that increasing local content is part of a long-term plan, noting that 70% of home construction technologies are now manufactured locally.

In turn, Economy and Planning Minister Faisal Al-Ibrahim explained that boosting local content helps drive economic growth. He emphasized that import substitution presents a valuable opportunity to support domestic products and balance trade.