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.