Saudi Arabia Leads MENA in AI Government Strategy

Saudi Arabia has become the leading country in the MENA region for artificial intelligence (AI) government strategy, according to the 2024 Global AI Index by the UK-based Tortoise Media.^[1]   The Kingdom retained its top position in this category and improved its overall ranking, moving up 17 places to 14th globally, ahead of the UAE, which ranked 20th.

The report attributes Saudi Arabia's advancement to substantial government investment in AI, including a $40 billion commitment to the sector.

Saudi Arabia’s AI development is guided by a strategy set by the Saudi Data & AI Authority (SDAIA), which has contributed to its leading position in government-led AI initiatives. However, the report also noted potential challenges, such as the need to expand focus beyond state-driven projects to encourage broader innovation in the AI ecosystem.

Despite its success in government strategy, Saudi Arabia faces challenges in attracting global AI talent and developing a favorable operating environment. The kingdom is working to address these issues through initiatives like boot camps in data science and AI, as well as partnerships to build local expertise.

As Saudi Arabia continues to develop its AI capabilities, its approach to balancing relationships with global powers like the US and China will be important. The potential lifting of the US ban on exporting advanced Nvidia chips to Saudi Arabia could further enhance the Kingdom’s AI capabilities, though the impact of this alignment remains to be seen.

In March, the New York Times reported that the Saudi Arabian government plans to launch an initiative to boost its artificial intelligence sector with a proposed $40 billion investment fund.

The fund, expected to kick off in the latter half of 2024, aims to support various AI-related ventures, including startups focusing on chip manufacturing and data centers.