Saudi Arabia is poised to become the primary beneficiary of artificial intelligence (AI) in the Middle East, with a projected contribution of $135 billion to its economy by 2030, according to a report by global consulting firm PwC. The report indicates that AI has the potential to add a substantial $320 billion to the entire region's economy, equivalent to around 11% of the gross domestic product (GDP).
Driven by a strong emphasis on digital transformation and future technology, Saudi Arabia's GDP is expected to see AI's influence rise to 12.4% by 2030, in alignment with the nation's Vision 2030 and National Transformation Program 2020 goals.
In terms of the growth rate of AI contribution across regions from 2018 to 2030, Saudi Arabia is predicted to claim a significant share of 31.3%, as highlighted by PwC's report. The transformative goals set forth by the Vision 2030 initiative aim to diversify the economy, reduce reliance on oil revenue, and promote public-private business models.
Saudi Arabia's government-supported investment in AI, primarily channeled through domestic sources such as the sovereign wealth fund, underscores the nation's commitment to technological advancement. However, the report suggests that to further accelerate technological progress, Saudi Arabia needs to attract more foreign investment, which is currently hampered by challenges in the business environment.
The World Bank's Ease of Doing Business index positioned Saudi Arabia at 92 out of 190 countries in 2017, signaling room for improvement. Addressing concerns expressed by the business community could enable the country to attract external investment, bringing valuable skills and expertise to enhance the local workforce.
Looking globally, PwC estimates that AI's overall contribution to the global economy could reach up to $15.7 trillion by 2030, surpassing the combined current output of China and India. Within this estimate, around $6.6 trillion is anticipated to stem from heightened productivity, while $9.1 trillion is expected to be derived from consumer benefits.
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