A new report highlights the growing prominence of Saudi Arabia’s deeptech ecosystem, with nearly half of the country’s deeptech startups concentrating on emerging technologies like Artificial Intelligence (AI) and the Internet of Things (IoT). This marks a significant shift as the Kingdom continues to diversify its economy, moving away from oil dependency and towards more knowledge-driven, technology-based industries.
According to the report, Saudi Arabia’s commitment to innovation and digital transformation is accelerating, as evidenced by the rapid growth of AI and IoT-focused ventures. These sectors are expected to play a critical role in shaping the future of industries such as healthcare, manufacturing, energy, and logistics, which are integral to Saudi Arabia’s Vision 2030 goals. The country has invested heavily in developing its tech infrastructure, and AI and IoT are seen as foundational to the realization of its ambitious plans for economic diversification.
The focus on AI and IoT within Saudi’s deeptech sector is aligned with global trends, as these technologies are increasingly seen as key drivers of innovation in the digital age. AI, with its ability to process vast amounts of data, is being used to create intelligent systems capable of learning, decision-making, and automating complex tasks. In parallel, IoT technologies enable seamless connectivity between physical devices, contributing to the creation of smarter cities, factories, and homes.
Saudi Arabia’s deeptech startups are capitalizing on these advancements by leveraging AI and IoT to address local and global challenges. For example, in healthcare, AI algorithms are being applied to diagnostic tools, improving the speed and accuracy of medical imaging, while IoT sensors are helping monitor patients remotely, providing real-time health data. In the energy sector, IoT-enabled devices are optimizing the management of resources, ensuring efficiency and reducing costs, while AI is being used for predictive maintenance of critical infrastructure.
The report also highlights Saudi Arabia’s thriving funding ecosystem, which has become one of the top three in the MENA (Middle East and North Africa) region for funding and deals. This robust investment environment is helping fuel the growth of deeptech startups, with both local and international investors keen on backing high-potential ventures. Over the past few years, Saudi Arabia has attracted significant venture capital, and the government’s initiatives to support entrepreneurship, such as the establishment of funding programs and accelerators, are fostering a fertile ground for innovation.
The Kingdom’s funding ecosystem benefits from several initiatives, including the Saudi Arabian Venture Capital Company (SVC) and the Public Investment Fund (PIF), which have been instrumental in providing capital for emerging technologies. These entities have helped nurture a culture of innovation and have attracted global investors seeking to tap into the region’s fast-growing tech scene.
Moreover, Saudi Arabia’s deeptech sector is benefiting from the country’s strategic location as a bridge between the East and the West. This geographic advantage allows Saudi startups to access global markets, collaborate with international players, and attract talent from around the world. The country’s ongoing efforts to create a supportive regulatory environment for startups, along with the introduction of various incentives and tax benefits, have positioned it as a favorable destination for deeptech investments.
In conclusion, Saudi Arabia’s focus on AI and IoT in its deeptech ecosystem is paving the way for transformative advancements across various sectors. With a strong funding ecosystem and government support, the Kingdom is well on its way to becoming a leader in the Middle East’s deeptech space, as it continues to foster innovation and entrepreneurship in line with its Vision 2030 objectives.
