TL;DR:
- AI to contribute $135 billion to the Saudi economy by 2030, making it the top AI beneficiary in the Middle East.
- The region’s economy is expected to grow by $320 billion due to AI, 11% of GDP.
- Saudi Arabia’s Vision 2030 aims for 12.4% of GDP from AI in 2030.
- The Kingdom is set to capture a 31.3% share of AI expansion in the region from 2018 to 2030.
- Need for foreign investment to sustain technological momentum.
- PwC estimates AI could contribute $15.7 trillion globally by 2030.
- The majority of AI impact comes from increased productivity and benefits to consumers.
Main AI News:
Artificial intelligence (AI) is not just the buzzword of the tech world; it’s a transformative force that is reshaping economies and propelling nations toward progress. According to a recent report by global consultancy firm PwC, the Kingdom of Saudi Arabia is positioned to be the most significant beneficiary of AI technology in the Middle East, with a projected contribution of a staggering $135 billion to the Saudi economy by the year 2030.
The ambitious integration of AI is expected to elevate the region’s economy by an impressive $320 billion, equivalent to a remarkable 11 percent of the gross domestic product. Saudi Arabia’s unyielding commitment to digitization and its keen focus on future technologies are key factors driving this exponential growth, and it is estimated that AI’s contribution to the Kingdom’s GDP will soar to an impressive 12.4 percent by 2030.
Looking at the numbers from a different angle, the average annual growth of AI’s contribution is set to reach an awe-inspiring 31.3 percent between 2018 and 2030 in the region. Such figures underscore Saudi Arabia’s clear vision and commitment to embracing cutting-edge technologies, aiming to reduce its reliance on traditional oil revenues by diversifying its economy through digital transformation.
Recognizing the paramount significance of AI for national development, Saudi Vision 2030 and National Transformation Program 2020 have identified digital transformation as a pivotal goal. This entails not only empowering economic sectors but also fostering a conducive environment for industries and private sector entities to thrive. To achieve this, the development of public-private business models has been emphasized, with the ultimate aim of upending the Kingdom’s dependence on oil revenue.
While the Saudi government has been actively supporting investment in AI through domestic sources, particularly its sovereign wealth fund, the report highlights a pressing need to attract foreign investment. To sustain the momentum of technological advancement, the Kingdom must entice more international investors. However, it’s not without its challenges, as Saudi Arabia currently ranks 92 out of 190 countries in the World Bank’s Ease of Doing Business index in 2017.
Addressing concerns raised by the business community becomes instrumental in attracting external investment that brings in expertise and skills to upskill the local population. PwC stresses that improving the business environment is crucial to fostering a thriving AI ecosystem.
Globally, the impact of AI is set to be nothing short of revolutionary. PwC estimates that by 2030, AI could contribute an astounding $15.7 trillion to the global economy, surpassing the combined outputs of economic powerhouses like China and India. The bulk of this mammoth figure, approximately $6.6 trillion, is anticipated to stem from increased productivity, while a substantial $9.1 trillion will result from consumer benefits.
Conclusion:
Saudi Arabia’s significant advancements in artificial intelligence position it as the leading player in the Middle East’s AI market. With a well-defined strategy and government support, the Kingdom is poised to experience substantial economic growth and diversification, reducing its reliance on oil revenues. However, attracting foreign investments and addressing business environment concerns will be vital to maintaining and accelerating this technological progress. As AI continues to shape the global economy, Saudi Arabia’s commitment to embracing AI technologies positions it for a prosperous and innovative future.
