Last Updated on 2 weeks by Ameer Hamza
With recent technological advancements, the Middle East is experiencing an increase in economic growth. Massive investments have been made in cutting-edge technologies like blockchain, 5G, IoT, cloud technology, AI, and cybersecurity. In 2022, it is anticipated that IT investment in the MENA will reach $1.7 billion. Saudi Arabia is also establishing itself as a technology center to broaden its economy. The Kingdom has started making investments in emerging technology totaling $6.4 billion.
KSA is experiencing rapid change in the digital tech sector. Recent intelligent solutions are viewed as a transitional weapon for a prosperous and secure post-oil economy. The state now holds the perspective that effective technological implementation is essential to attaining the goals outlined in the Vision 2030 plan. Rich Gulf nations have stepped up efforts to boost non-oil growth. As pressure from those addressing environmental issues and the unpredictability of oil prices has increased on state finances, they are lowering their reliance on petroleum products.
What Role Will AI Play In Saudi Arabia’s Economic Diversification?
Saudi Arabia is predicted to benefit the most from AI, with an estimated US$135.2 billion in economic output by 2030. A very substantial business potential exists with artificial intelligence. On the other hand, a brand-new modern city called Neom is also being constructed by the Kingdom. The Public Investment Fund has officially pledged $500 billion to the construction of Neom. However, the Saudi government’s funds will be combined with the capital of both domestic and foreign investors. The future of technology in Saudi Arabia clearly includes the use of AI and robots as major drivers.
Next-Generation Digital Transformation
Saudi Arabia has undertaken many digital transformation projects recently, a reflection of Vision 2030’s emphasis on innovation. Several technology programs costing more than $1.2 billion were launched last year in Saudi Arabia. With an emphasis on cybersecurity, coding, artificial intelligence, and gaming, these tech initiatives sought to improve the digital abilities of 100,000 Saudi young individuals by 2030. Saudi Arabia is enhancing economic opportunities as it continues to recover from the outbreak of COVID-19 by encouraging tech businesses. Additionally, the state anticipates investing $1.4 billion in entrepreneurs and allocating resources to foster online media.
E-Commerce And E-Gov Process Streamlining
KSA is making efforts to improve its e-commerce industry with the help of high-end technological initiatives. By 2030, the state wants contemporary trade and e-commerce to account for 80% of all retail activity. Achieving this goal may be done through engaging domestic and foreign retail investors, expanding funding for small retailers to foster their expansion, and reducing ownership and overseas investment barriers. Saudi Arabia is also deliberately integrating innovative approaches to be successful in e-government. The range of internet services has increased during the past ten years, which has resulted in significant advancements in digital government.