Saudi Arabia's $135bln AI boom fuels retail transformation with FancyTech among global innovators powering the shift

Zawya

21-05-2025

As Vision 2030 fuels AI integration across commerce and marketing, international players like FancyTech are aligning with Saudi ambitions to deliver scalable, personalized, and data-driven brand experiences
KSA - Saudi Arabia is emerging as the Middle East's most ambitious AI powerhouse, investing more than US$20 billion in artificial intelligence as part of its Vision 2030 strategy. The goal is not only to diversify the Kingdom's economy but to become a global leader in emerging technologies, with retail, marketing, and customer engagement among the fastest evolving sectors.
According to PwC Middle East, AI is expected to contribute up to US$135 billion to Saudi Arabia's GDP by 2030, accounting for nearly 12.4 percent of the national economy. The Saudi Data and Artificial Intelligence Authority (SDAIA) and the National Strategy for Data & AI (NSDAI) are leading the charge in advancing government and enterprise adoption of AI tools from predictive analytics to automated content creation.
'Saudi Arabia is not just embracing innovation; we are shaping a future where technology enhances every aspect of daily life,' said Prince Saud bin Salman Al Saud, speaking at the Global AI Summit 2024 in Riyadh. 'AI is our tool for empowerment across retail, education, and governance — and we are actively inviting innovators to help us lead this transformation.'
Across sectors, Saudi businesses are accelerating their investment in AI-powered solutions that drive efficiency, reduce costs, and personalise customer interactions. The retail industry, in particular, is undergoing a major shift with localised content, dynamic creative automation, and real-time campaign adaptation becoming the norm. Statista projects that Saudi Arabia's AI-powered marketing and advertising industry will reach US$2.4 billion by 2028.
'AI is not about replacing creativity, it's about scaling it intelligently,' said Mr William Li, CEO of FancyTech. 'We see Saudi Arabia as a growth engine where brands are eager to combine data, culture, and creativity to deliver impactful experiences.'
FancyTech, a global AI-powered content technology company, is redefining how brands create, personalise, and scale visual campaigns across the retail and digital landscape. Known for its end-to-end AI solutions, FancyTech enables businesses to generate hyper-targeted content from social media visuals to digital storefront assets up to three times faster and at significantly lower production costs. Its dynamic creative capabilities allow marketers to test multiple variations in real time, enhancing both efficiency and engagement.
After a successful global rollout across Asia and Europe, FancyTech officially entered the GCC market in 2024, with Dubai serving as its MENA headquarters. The company has since partnered with leading retailers and e-commerce players in the region and was recently honored at the FancyTech A&M Awards 2025 in Dubai, a regional platform recognizing excellence in AI-powered retail marketing. With accolades including the LVMH Innovation Award and a place on Forbes Asia's '100 to Watch' list, FancyTech is now actively expanding its footprint in Saudi Arabia aligning with the Kingdom's push for AI-led transformation in commerce, marketing, and consumer experience.
Retailers and marketers in KSA are increasingly shifting from static creative budgets to dynamic AI-enabled ecosystems. This allows real-time testing, multiple campaign variants, and adaptive storytelling tailored to audience behavior all critical in a nation where over 70% of the population is under the age of 35 and deeply connected to digital platforms.
Innovative Saudi brands, including emerging retailers and financial service firms, are already integrating AI into their operations to gain a competitive edge. The market is also seeing rising interest from regional agencies, cloud providers, and tech startups offering AI solutions tailored for the Arabic-speaking population and local consumer preferences.
As the Kingdom continues to expand its AI footprint, global and local collaboration will be key. Platforms like FancyTech are well-positioned to serve as AI accelerators, enabling Saudi companies to fast-track innovation while retaining cultural relevance and brand authenticity.