Saudi Arabia: The Next Silicon Valley of the Middle East
Saudi Arabia is rapidly positioning itself as the Middle East's Silicon Valley, with a $40 billion AI investment push, aiming to transform the country into a competitive innovation hub. Consequently, it is attracting a large-scale influx of global talent as the Saudi government is partnering directly with global leaders in new-age tech to form the bedrock for local innovation. Institutional alignment, sovereign capital, and regulatory clarity make the country an execution-first environment for AI and Web3 startups.
The Kingdom is making strategic moves to build its own AI infrastructure through sovereign initiatives like HUMAIN which ensure data sovereignty, strategic control, and scalable impact. Moreover, they align with national values and priorities, serving as a template for emerging economies. Experts believe this approach will help countries model their digital futures instead of outsourcing them. Johanna Cabildo, CEO of D-GN, noted, 'Saudi Arabia is building infrastructure, not just regulation.'
When a government funds and deploys AI across ministries, oil giants, and smart cities, it creates demand signals, attracting private innovators, fostering a vibrant tech ecosystem. Cabildo cited Saudi Aramco's engagement with US-based droppGroup as a smart measure to power local innovation. Vision 2030: A Magnet for Global AI Builders
Saudi Arabia's big AI push aligns with its 'Vision 2030,' turning the country into a magnet for global AI builders. Experts say Saudi Arabia is one of the few markets with both political will and economic scale to support the next wave of AI and Web3. The Saudi market is seeing a healthy combination of technological convergence and active support from local regulators. Jaspreet Bindra, Co-founder of AI&Beyond, praised the kingdom's future-facing approach.
Cabildo emphasized that clear regulations and fast onboarding frameworks will attract founders and become a launchpad for global ventures. These ventures will focus on data sovereignty, digital identity, and decentralized intelligence. The Saudi Capital Market Authority has already issued over 80 tokenization licenses, signaling a push to innovate locally. Blockchain adds the transparency and ownership that AI needs, further enhancing the tech ecosystem. From Consumers to Producers of Innovation
Saudi Arabia, along with countries like the UAE, is stepping out from being a consumer of innovation to becoming a global producer. This shift could turn the kingdom into the new center of gravity for AI, where capital, talent, and emerging technologies collide. Cabildo described Saudi Arabia's $40 billion AI push as more than an investment; it's a declaration of intent to build a unique ecosystem.
Collaborations such as Saudi Aramco's mega AI and blockchain deal with droppGroup are expected to significantly impact traditional sectors. In the energy sector, AI can revolutionize operations with predictive maintenance, saving billions by preventing outages. Moreover, in logistics, AI-driven systems will streamline supply chains, cutting delays at ports like Jeddah. In education, AI will personalize learning, equipping students for a digital economy.
The real transformation will be in the workforce, with Vision 2030's Human Capability Development Programme shifting workers from routine tasks to knowledge-driven roles. Deals like the Aramco-droppGroup collaboration fuel this shift, creating demand for data scientists, AI engineers, and innovation managers. These roles are critical to a diversified economy. With such moves, Saudi Arabia aims to generate thousands of tech jobs by 2030, reducing oil dependency.
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Arab News
6 hours ago
- Arab News
Can the green tea wave topple the Middle East's coffee culture?
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In 2022, the food and agriculture sector contributed approximately SR100 billion ($26.6 billion) to the Kingdom's gross domestic product, the highest on record. The government aims to attract $20 billion in investments into the food industry by 2035, focusing on enhancing food security and broader economic sustainability. Supporting this momentum is the 'Made in Saudi' initiative, launched in 2021 to boost domestic production and services. One of its core goals is to raise the non-oil sector's contribution to gross domestic product from 16 percent to 50 percent by 2030, making room for innovative products and emerging markets, including health-focused offerings like matcha. A growing opportunity: the regional matcha market This strategic shift aligns well with the rising demand for functional foods and beverages across the region. 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With its earthy and slightly bitter taste, Matcha may initially clash with regional preferences for sweet, aromatic beverages. However, Harb believed matcha could complement traditional diets if introduced thoughtfully. 'Matcha lattes can be a healthier alternative to sugary drinks, especially when prepared without added syrups. Alternating between Arabic coffee and matcha could diversify beverage choices while preserving cultural experiences,' she suggested. From Kyoto to the MENA: Matcha's Global Surge While matcha's health benefits make it appealing, its journey from Japanese tea fields to Middle Eastern cafes hasn't been without challenges. Japan's matcha industry has seen production nearly triple since 2010, with exports soaring as global demand skyrockets. This surge in demand, however, has sparked concerns about shortages, prompting renowned Kyoto tea houses like Ippodo and Marukyu Koyamaen to impose purchase limits last year. 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Arab News
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Leaders
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Official Visit: Saudi FM Arrives in Damascus
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