Saudi Arabia’s deep tech startup ecosystem thrives with focus on AI and IoT, fueling Vision 2030

A recent report from the Ministry of Communications and Information Technology, King Abdullah University of Science and Technology, and consultancy firm Hello Tomorrow highlights the rapid growth of deep tech startups in Saudi Arabia, with 50% of these startups focusing on AI and IoT. These sectors are emerging as key drivers of innovation and investment in the Kingdom, with over 43 high-growth startups collectively raising more than 987 USD in funding.

Saudi Arabia has become one of the leading ecosystems for tech startups in the Middle East and North Africa , ranking among the top three for funding and deal activity. This success is a testament to the growing availability of venture capital, a dynamic entrepreneurial ecosystem, and government support for innovation-driven ventures. The deep tech sector, while still in its early stages, is drawing significant attention from international companies and investors, eager to tap into the country’s potential for technological advancement.

The surge in AI and IoT-focused startups is directly aligned with the objectives of Saudi Vision 2030, a strategic framework designed to diversify the Kingdom’s economy and reduce its reliance on oil revenues. Vision 2030 aims to foster a knowledge-based economy and establish Saudi Arabia as a global leader in technology and innovation. The deep tech sector plays a crucial role in achieving this vision, positioning AI and IoT at the forefront of the Kingdom’s digital transformation.

“Last year it was announced that KSA has the most productive economy in the world. the GDP is increasing more than any other country in the world, they have an ambitious plan to change. All of Saudi Arabia wants to be leaders across tech or any other area that is relevant in the world of science and technology. I think that if any company has an interest to be at the forefront of innovation, Saudi Arabia is a leader in that, with NEOM project, or KAUST University and different projects across the Kingdom. In order to make this a reality we need to rely on technology and technology is going to be the driver behind all of that so LEAP is the biggest tech event in Saudi and everybody needs to be here,” said to CIO Middle East Jason Roos, ex-CIO at KAUST.

As Saudi Arabia continues to invest in infrastructure, education, and research, the deep tech startup ecosystem is expected to grow even more robust in the coming years. This progress supports not only the economic diversification goals of Vision 2030 but also the development of a sustainable and innovative future for the Kingdom.