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The Saudi Data and Artificial Intelligence Authority (SDAIA) established the National Center for Artificial Intelligence in 2019 to advance AI research and innovation. In 2020, the authority released the National Data and AI Strategy, outlining the following priorities:
Key Priorities:
Establishing a Robust Data and AI Ecosystem: Promoting collaboration among government, private sector, and academic institutions.
Enhancing Saudi Arabia's Contribution to Global and Local AI Initiatives and Activities.
Investing in Research and Development (R&D): Driving AI innovation.
Promoting a Culture of AI Literacy and Skills Development: Achieved through training and education programs.
Ensuring a Supportive Legal and Regulatory Environment for AI Development.
Encouraging Local and Foreign Investment in AI.
Saudi Arabia has envisioned a phased approach to achieving these goals:
Phase One: National Data Enabler
Utilizing data as a catalyst to achieve national socio-economic goals.
Phase Two: Specialization
Building a competitive advantage in key niche areas.
Phase Three: Industry Leader
Competing internationally as a leading economy that utilizes and exports AI.
Saudi Arabia aims to focus on Phase One and Phase Two by 2030, identifying education, government, healthcare, energy, and mobility as key priority areas. The document also outlines specific targets, such as:
Training 40% of the workforce to acquire basic data and AI literacy skills.
Hiring 15,000 local data and AI experts.
Developing a mature legislative framework to support growth.
In April 2023, Saudi Arabia released a draft intellectual property law addressing AI-generated content, making it one of the first laws in the Middle East to protect intellectual property for AI-created works. The country has also established public-private partnerships (PPPs) with several leading international tech companies to accelerate project progress and attract investment. However, attracting foreign companies has increased the demand for local talent and R&D.
Advantages for Saudi Arabia:
Willingness to Focus on Tech Investment: Emphasis on the importance and demand for technology investments.
Testing Platforms for Emerging Technologies: New smart cities like NEOM provide testing environments for emerging technologies.
Centralized Data Ecosystem: A unified data management system.
Unified Management Authority: Supported by the Saudi Data and Artificial Intelligence Authority (SDAIA) to promote the AI agenda.
Overall, Saudi Arabia has taken proactive steps in legislation, infrastructure development, and partnerships for AI development. However, commercial and talent development still require further improvement to achieve its goals.
Key Participants
Fluctuations in oil prices in the Middle East have impacted the economic outlook of the region, prompting governments to seek alternative sources of revenue and growth.
Investing in AI technologies to develop the non-oil sector could determine the strategic position of the region in the coming years. Saudi Arabia's investments in AI primarily come from national funds and the Public Investment Fund (PIF), a state-owned sovereign wealth fund. According to its Vision 2030 document, Saudi Arabia announced plans to invest $20 billion in AI projects by 2030 and launched its national AI strategy in 2020.
The Saudi Data and Artificial Intelligence Authority (SDAIA), established in 2019, consists of three core entities: the National Data Management Office, the National Information Center, and the National Center for Artificial Intelligence, which support and drive the kingdom's AI agenda. The Saudi Artificial Intelligence Company (SCAI) facilitates ecosystem development through top-tier partnerships, targeted investments, and strategic capabilities to address gaps in the global market.
Vision 2030 highlights Saudi Arabia's goal of accelerating its AI development through collaborations with leading companies. Recently signed cooperation agreements include partnerships with Huawei, the International Telecommunication Union (ITU), and Alibaba Cloud, announced at the 2022 Riyadh Global AI Summit.
Moreover, the Saudi government is investing in the development of smart cities, such as NEOM. This $500 billion city is being developed in the northwest of the country and aims to become the world’s most advanced smart city, housing 9 million people and creating a car-free, carbon-neutral environment, all supported by AI technologies.
Saudi Arabia is also influenced by non-state actors adopting AI technologies, particularly after Iran used drones to attack heavily guarded oil facilities in Jeddah and Riyadh in 2019.
These targeted facilities, especially those belonging to Aramco, are crucial to the country's economy and energy infrastructure. The attacks affected Saudi Arabia's oil production and exports, impacting regional and global energy markets. Subsequently, the Houthi forces in Yemen claimed responsibility for these attacks.
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