WORLD ECONOMIC JOURNAL
VITAL TO INDUSTRY DEVELOPMENT
The Saudi government sees AI as a cornerstone of ‘ Vision 2030 ,’ the country ’ s grand strategy to reduce dependency on oil and diversify the economy . " Out of 96 , 66 of the direct and indirect goals of Vision 2030 are related to data and AI ,” says the SDAIA .
Many of the kingdom ’ s technology-related programmes feature a key AI component . One example is NEOM , the mega-city project that aims to build a beacon of technology and sustainability in the middle of the desert . In October 2023 , the NEOM Investment Fund ( NIF ) announced a $ 100 million investment in Pony . ai , a California-based autonomous driving company , and a joint venture to develop , manufacture and deliver autonomous vehicles in the region .
Saudi tech entrepreneur Ahmed Yusuf believes AI is “ poised to revolutionise NEOM ' s infrastructure management , from optimising energy distribution and waste management to enhancing transportation systems .” AI could also optimise construction designs , help manage logistics , and contribute to achieving NEOM ’ s sustainability goals through optimised renewable energy management and stronger environmental monitoring .
AI is also assigned a significant role in Alat , a brand-new firm which plans to invest $ 100 billion of PIF money in next-gen industrial ventures . Headquartered in Riyadh , the company is betting on AI Infrastructure to support " smart manufacturing , sustainable and energy-efficient computing ,” and aims to integrate AI with Industry 4.0 technologies .
LURING FOREIGNERS
In their rush to assert their power on the global tech map , the Saudis still need foreign talents and technologies .
Alat ’ s $ 200 million joint venture with Chinese Dahua Technology is also under US scrutiny
Microsoft , Google Cloud and Amazon are working hard to develop Saudi Arabia ’ s cloud computing infrastructure . In March 2024 , AWS announced a $ 5.3 billion investment in a region-wide project , two new innovation centres , and training programmes for local students and developers .
That same month , a myriad of tech executives , engineers and sales representatives from the world ’ s largest tech firms rushed to a giant tech conference called Leap , held in the desert , 80km away from Riyadh .
Presented by some as a ” digital Davos ,” the event drew some 200,000 people and generated $ 10 billion worth of deals , according to Saudi Arabia ’ s state press agency . IBM CEO Arvind Krishna mentioned a “ lifetime friendship ” with the kingdom , while TikTok CEO Shou Chew heralded his app ’ s growth in the kingdom and shared his intentions to “ invest even more ,” reported The New York Times .
US-CHINA CONFRONTATION
The growing foreign attention to Saudi Arabia ’ s technology sector goes beyond mere business considerations . The kingdom is also emerging as a site in the US-China technology confrontation .
KAUST has alarmed US officials when it attracted Chinese students and professors and launched partnerships with Chinese research institutions . “ More than a dozen students and staff members at Kaust are from military-linked Chinese universities known as the Seven Sons of National Defence ,” according to a review by The New York Times . The US believes these students and professors will “ use Kaust to sidestep US sanctions and boost China in the race for AI supremacy .”
The university ’ s supercomputer development program is also viewed with suspicion , as it may necessitate purchasing $ 100 million worth of valuable microchips from Nvidia , the US-based AI computing giant . Announced in February 2024 , Alat ’ s $ 200 million joint venture with Chinese Dahua Technology is also under US scrutiny . A global leader in video-centric AIoT solutions — including surveillance devices ,— Dahua intends to develop its first overseas manufacturing facility in Saudi Arabia .
The US is concerned that this or other projects in the region could be exploited by Beijing to gain access to technology that Chinese firms are restricted from purchasing from the US .
Bloomberg reported that US officials warned their Saudi counterparts that they would need to choose between Chinese and American technology as they advance Saudi Arabia ' s semiconductor industry .
Alat CEO Amit Midha said his company would divest from projects involving China if it were asked to do so by the United States .
“ So far , the requests have been to keep manufacturing and supply chains completely separate , but if the partnerships with China would become a problem for the US , we will divest ,” Bloomberg quoted him as saying .
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