Saudi Tech Industry Expands with rise in AI and Cloud Registrations

The Saudi tech industry witnessed significant rise in the second quarter, with registrations for AI technologies and cloud computing services increasing by 53 percent and 43 percent, respectively.

In the second quarter, Saudi Arabia issued 8,948 official ID cards for AI technologies, up from 5,820 in the same period last year, according to the Ministry of Commerce's quarterly business sector bulletin. In addition, 2,358 of these documents were issued for cloud computing services, up from 1,648 in the preceding quarter.

Saudi Arabia ranks 16th out of 67 nations in the International Institute for Management Development's World Competitiveness Ranking, demonstrating the country's strong market competitiveness.

With 5,492 permits, Riyadh led the AI technology market, followed by Makkah with 1,789 permits, the Eastern Province with 939 permits, Madinah with 254, and Asir with 115 permits. The data also showed a rise in the arts, entertainment, and leisure industry, with 20,465 commercial records issued in the second quarter of this year, up from 16,438 in the previous year's same time frame.

The ministry recorded 336 registrations in the second quarter of this year, a 29 percent increase from 260 in the previous quarter and a significant expansion for the electronic games industry. In the mean time, there were 8,213 issuances for ground traveler transport services in urban areas and rural areas in the second quarter, up from 6,227 in the same period last year.