Ghada Ismail

Saudi Arabia, a country historically famous for its oil reserves, is in the process of undergoing a revolutionary transition towards a knowledge economy. One of the most promising areas of this transformation is health technology or HealthTech. The Kingdom's Vision 2030 program has also placed a great emphasis on economic diversification and quality of life for its citizens, and healthcare forms the core of this vision. For this reason, the HealthTech sector of Saudi Arabia is transforming at a very rapid pace with government and private sector players alike at the helm, leveraging technology to seek solutions to the health challenges of the country.

The Healthcare Landscape in Saudi Arabia

The Saudi healthcare sector has long relied heavily on government spending, and the Ministry of Health (MOH) has been the controlling force for delivering healthcare. However, the Kingdom is being challenged by a high population growth rate, an increase in the occurrence of chronic conditions, and the pressing need to more efficiently deliver healthcare. All of these issues have created fertile ground for HealthTech innovation as the nation continues to modernize its healthcare facilities and improve patient outcomes.

The Saudi government has, nonetheless, recognized the potential of HealthTech in addressing these challenges and has been proactively promoting the use of digital health solutions. This has led to a growth in HealthTech startups and investment in HealthTech by both public and private sector entities.

Public Sector Initiatives and Key Players

The Saudi government has been the key driver of HealthTech innovation in the Kingdom, with several significant initiatives aimed at transforming the healthcare industry. All of these are linked to the overall goals of Vision 2030, which is geared towards making the economy more diversified and sustainable.

1. Ministry of Health (MOH): The MOH has been at the forefront of the adoption of HealthTech in Saudi Arabia. The Ministry has taken several digital health initiatives, including the formation of a national electronic health record (EHR) system, aimed at establishing a single platform for patient data across the country. The system will most probably increase the efficiency of healthcare delivery and reduce the burden on healthcare workers.

2. Saudi Health Council (SHC): The SHC is tasked with designing the healthcare policy of the Kingdom. It has been in the lead in promoting the adoption of HealthTech solutions, particularly telemedicine and remote patient monitoring. The SHC has also been involved in the creation of a national health information exchange (HIE) platform, which will facilitate the sharing of health information between different healthcare providers.

3. National Transformation Program (NTP): As part of Vision 2030, the NTP has lofty objectives for the health sector, including increasing the private sector's role in healthcare provision and improving the quality of health services. The NTP also identified HealthTech as a core enabler of these goals and has been busy promoting the adoption of digital health solutions.

4. Saudi Food and Drug Authority (SFDA): The SFDA has been working actively to create a regulatory environment for HealthTech products, including medical devices and digital health apps. This is expected to provide clarity to HealthTech firms already operating in the Kingdom and encourage further innovation in the sector.

Seha Virtual Hospital: A Pioneering Initiative

The largest milestone in Saudi Arabia's HealthTech history is the establishment of the Seha Virtual Hospital, which is recognized by the Guinness World Records as the world's largest online medical initiative. The Saudi Ministry of Health launched Seha Virtual Hospital in 2022 and it is a giant leap in the Kingdom's healthcare delivery system. It employs cutting-edge technologies such as telemedicine, artificial intelligence (AI), and big data analytics to provide high-quality healthcare services to patients across the nation, particularly in rural and underdeveloped areas.

Seha Virtual Hospital Key Achievements

1. Scale and Reach: Seha Virtual Hospital covers over 130 hospitals across Saudi Arabia and offers more than 30 specialized services, where the number of beneficiaries so far has reached 58550, and its capacity during the year reaches 400+ thousand beneficiaries. This has actually eradicated the need for patients to travel long distances for consultations, diagnostics, and treatment.

2. Telemedicine Services: The hospital has conducted over 2 million virtual consultations since its inception, and it is one of the busiest telemedicine platforms in the world. This has been especially useful for rural patients as they have limited access to specialist healthcare services.

3. AI-Assisted Diagnostics: Seha Virtual Hospital has integrated AI into its diagnostics, enabling faster and more accurate disease identification. For example, the hospital's AI-assisted radiology system has analyzed over 500,000 medical images, reducing diagnostic times by up to 30%. Artificial intelligence also contributes to giving priority to examinations that require urgent medical intervention through the use of medical imaging algorithms that are conducted on cases such as strokes in CT scans and chest x-rays; Which raises the quality of the doctor’s work for the case and makes the accuracy of diagnosing the target diseases up to 95%.

4. Chronic Disease Management: The hospital has set up special programs for chronic disease management such as diabetes and hypertension. They have touched 200,000 patients, with improved health outcomes and reduced hospital admissions.

5. Training and Capacity Building: Seha Virtual Hospital has so far trained over 10,000 healthcare professionals on the utilization of digital health technology in order to ensure that the Kingdom's healthcare workforce is capable of dealing with the challenges of a contemporary, technology-based healthcare system.

6. COVID-19 Response: Seha Virtual Hospital played a crucial role in addressing the COVID-19 pandemic. It provided virtual consultations to over 300,000 COVID-19 patients and helped the Ministry of Health monitor and track the virus spread.

7. Cost Efficiency: By reducing the need for physical infrastructure and optimizing resource allocation, Seha Virtual Hospital has saved the Saudi healthcare system approximately $200 million in operational costs.

Sehhaty Platform by the Sudi Ministry of Health

The Sehhaty platform, operated by Saudi Arabia's Ministry of Health, is a key digital healthcare solution that offers a wide range of services to citizens and residents. It is the unified platform of the Ministry of Health, which allows users to access health information and obtain several health services provided by various entities in the health sector in Saudi Arabia. 

The platform enables users to book appointments at MOH-affiliated facilities, access medical records, request prescription refills, and track fitness metrics. During the COVID-19 pandemic, Sehhaty played a crucial role in managing vaccination appointments, PCR test bookings, and displaying immunization status. The platform also supports telemedicine services, allowing virtual consultations with healthcare providers, while offering dedicated tools for children's healthcare management and mental well-being support. As part of Saudi Arabia’s Vision 2030 strategy, Sehhaty has become a vital tool in enhancing healthcare accessibility and efficiency, serving millions across the Kingdom.

Private Sector Innovations and Key Players

While the public sector has led the uptake of health tech in Saudi Arabia, the private sector has not lagged behind in spurring the evolution of the health tech ecosystem. Increasing numbers of health tech startups and incumbent players are inundating the market with creative solutions to address the Kingdom's healthcare requirements.

1. Vezeeta: Vezeeta is one of the top Middle Eastern health technology startups, with an online platform that allows patients to schedule appointments, consult doctors, and see their medical history online. Vezeeta expanded rapidly in Saudi Arabia, where it has allied with several healthcare providers to offer its services.

2. Altibbi: Altibbi is yet another regional HealthTech leader offering a range of digital health offerings, including telemedicine, online consultations, and medical knowledge. Altibbi has a strong presence in Saudi Arabia where it has partnered with both public and private sector healthcare providers to facilitate access to healthcare services.

3. Cura: Cura is a Saudi HealthTech company that offers a digital healthcare facility management platform. The company's platform offers electronic medical records (EMR), scheduling, and billing among others, which makes it easier for healthcare providers to manage their operations. Cura has been making strides in the Kingdom, particularly with private healthcare providers.

4. Nabta Health: Nabta Health is a HealthTech company with operations in the UAE that has been expanding its presence in Saudi Arabia. Nabta Health is an organization that offers an online platform focused on women's health and provides telemedicine, monitoring of health, and personalized health advice. Nabta Health has been working together with healthcare providers in Saudi Arabia to increase access to women's health services.

5. Labayh: Labayh is a Saudi-based HealthTech platform that specializes in mental health support, offering confidential and accessible psychological services through digital solutions. Founded in 2016, Labayh connects users with licensed therapists and mental health professionals via secure, private consultations through its mobile app. The platform provides services such as individual therapy sessions, family counseling, and emotional well-being programs, catering to a wide range of mental health needs. Labayh has gained recognition for breaking cultural stigmas around mental health in Saudi Arabia and the broader MENA region by offering discreet, user-friendly support.

Emerging Trends in Saudi Arabia's HealthTech Scene

The Saudi HealthTech landscape is marked by a number of emerging trends that are defining the future of healthcare in the Kingdom. These trends are part of the wider global trend toward digital health but are also shaped by the specific healthcare challenges and opportunities of Saudi Arabia.

1. Telemedicine: Telemedicine is now one of the leading areas of interest in Saudi HealthTech due to a need to improve access to healthcare services, particularly in rural areas. The COVID-19 pandemic has accelerated telemedicine adoption in the Kingdom, with both private and public sector healthcare providers offering online consultations and remote monitoring.

2. Artificial Intelligence (AI) and Machine Learning: AI and machine learning are increasingly being embraced in Saudi Arabia's healthcare system to improve diagnosis, treatment planning, and patient outcomes. Numerous HealthTech startups in the Kingdom are developing AI-based solutions, such as predictive analytics tools and treatment suggestions.

3. Wearable Technology: Wearable technology, such as smartwatches and fitness bands, is gaining popularity in Saudi Arabia, particularly among young consumers. The devices are being used to monitor health indicators, such as heart rate, sleep, and exercise, and are increasingly being paired with digital health platforms.

4. Healthcare Blockchain: Blockchain technology is considered a potential solution to making health information more secure and interoperable in Saudi Arabia. Various health technology startups in the country are building blockchain-based products to manage electronic health records and preserve the integrity of health data.

5. Digital Therapeutics: Digital therapeutics, where software-based interventions are used to treat conditions, are also gaining traction in Saudi Arabia. The solutions are being used to address chronic diseases, such as diabetes and high blood pressure, and are also being integrated with traditional healthcare services.

Challenges and Opportunities

While the Saudi HealthTech environment is promising, it also has some challenges. These include regulatory barriers, limited awareness among healthcare professionals and patients, and the need for greater investment in HealthTech infrastructure. However, these challenges also present opportunities for growth and innovation, particularly for startups and existing companies who are prepared to navigate the complexities of the Saudi healthcare market.

One of the key opportunities in Saudi Arabia's HealthTech ecosystem is the possibility of partnership between private and public sector stakeholders. The government's emphasis on health tech innovation, combined with the flexibility and capabilities of the private sector, presents a rich ground for partnerships that can drive the development and deployment of digital health solutions.

Conclusion

The Saudi HealthTech ecosystem is in a fascinating phase, with public and private sector players leading innovation and developing the healthcare landscape. The Vision 2030 initiative of the Kingdom has provided a major thrust towards health tech implementation, and the government's focus on digital health is creating growth-friendly conditions.

As the HealthTech ecosystem in Saudi Arabia expands, we can look forward to seeing more innovative solutions being created, addressing the unique health requirements of the Kingdom and improving the quality of life of the people. By achieving the right balance of public sector enablement, private sector innovation, and regulatory clarity, Saudi Arabia has the potential to become a health tech regional leader, an example for other countries in the Middle East and elsewhere.

Noha Gad

Successfully bidding on an IT project in Saudi Arabia requires more than just understanding the process; it demands strategic positioning to stand out in a competitive market. In our previous blog, we explored the key steps to prepare for a bid, including researching tenders, meeting regulatory requirements, and crafting a compelling proposal. However, winning a bid goes beyond compliance; it requires a well-planned approach to pricing, negotiation, and differentiation.

In this blog, we will dive into key strategies to maximize your chances of securing an IT project in Saudi Arabia. From offering competitive and sustainable pricing to navigating negotiations and avoiding common pitfalls, these insights will help you develop a winning edge in the Kingdom’s rapidly growing IT sector. 

How to craft a winning proposal?

A well-crafted proposal is essential for standing out in the competitive Saudi IT bidding landscape. It should not only meet technical and financial requirements but also align with the Kingdom’s Vision 2030 digital transformation goals. Below are the key components of a winning bid:

• Technical excellence: showcasing previous projects, case studies, and certifications.
• Financial competitiveness: structuring a cost-effective and profitable bid and understanding the weight of technical vs. financial scoring in evaluations.
• Local content and Saudization compliance.

Mastering Pricing Strategies

A well-balanced pricing strategy ensures that a bid is competitive, sustainable, and aligned with the project's financial expectations. Here are key considerations when developing a pricing strategy:

1. Balancing cost and value. You should analyze market benchmarks to ensure your pricing remains reasonable to avoid underpricing and overpricing. Underpricing can raise concerns about the project’s feasibility and quality, while overpriced bids are often eliminated early unless the company demonstrates significant added value.
2. Understanding government and private sector budgets. IT projects in Saudi Arabia vary based on the contracting entity, whether it is a government entity or a private one. Government projects usually follow strict budget allocations set by ministries or government agencies. Thus, your pricing must align with public sector regulations and transparency requirements. However, private sector projects have more flexible budgets but often focus on cost efficiency.
3. Structuring a profitable and competitive bid. Your bid must include a transparent cost breakdown, clearly outlining costs related to software development, licensing, hardware and infrastructure, maintenance, and training.

Navigating the negotiation process 

Winning an IT project bid is not just about submitting a strong proposal, it also requires strategic negotiation to finalize terms, secure the contract, and maximize profitability. 

Effective negotiation can differentiate a bidder from competitors by showcasing flexibility, value, and commitment to project success. To navigate this phase successfully, you have to:

• Effectively engage with key stakeholders by conducting thorough research, building relationships, and customizing value propositions.
• Adjust proposals post-bid submission. Even after submitting a bid, there is room for adjustments and refinements. Procurement teams may request modifications related to project scope, pricing, timelines, and compliance requirements.
• Leverage competitive advantages. Winning negotiations often depends on showcasing unique strengths such as a proven track record, innovation and technology leadership, customization and scalability, and after-sales support, and training.

Common mistakes to avoid

Even the strongest IT proposals can fail due to avoidable mistakes. Common pitfalls include a lack of compliance with Saudi regulations, unclear pricing structures, and overpromising deliverables without a clear execution plan.

Finally, you can be a strong contender in Saudi Arabia’s rapidly growing IT sector by crafting a compelling proposal, mastering pricing strategies, and avoiding common pitfalls. With the right preparation and a clear understanding of the bidding landscape, you can secure valuable contracts and contribute to the Kingdom’s digital transformation goals.

Kholoud Hussein

In the dynamic landscape of entrepreneurship, continuous learning and skill development are paramount for success. Educational platforms and skill-building initiatives play a crucial role in equipping entrepreneurs with the knowledge and competencies needed to navigate challenges and seize opportunities. In Saudi Arabia, the convergence of technology and education has led to the emergence of innovative platforms and programs that empower aspiring and established entrepreneurs alike.

The Significance of Educational Platforms for Entrepreneurs

Educational platforms offer accessible, flexible, and tailored learning experiences that cater to the unique needs of entrepreneurs. These platforms provide a wealth of resources, from foundational business knowledge to advanced strategic insights, enabling entrepreneurs to:

• Acquire Essential Skills: Develop competencies in areas such as financial management, marketing, leadership, and technology adoption.
• Stay Updated: Keep abreast of the latest industry trends, market dynamics, and regulatory changes.
• Network and Collaborate: Connect with peers, mentors, and industry experts to share experiences and foster collaborations.
• Access Mentorship: Receive guidance from seasoned professionals to navigate complex business challenges.

Saudi Arabia's Commitment to Entrepreneurial Education

Under the Vision 2030 initiative, Saudi Arabia has demonstrated a robust commitment to fostering entrepreneurship through educational reforms and the integration of technology in learning. This strategic focus aims to diversify the economy and cultivate a culture of innovation.

Leading Educational Platforms and Initiatives

Several platforms and programs have been instrumental in nurturing entrepreneurial talent in the Kingdom:

1. Doroob: An e-learning platform offering a wide range of courses designed to enhance the skills of Saudi professionals and entrepreneurs. Doroob provides self-paced online programs accessible 24/7, focusing on various aspects of entrepreneurship, including lessons and assessments. 
2. Rwaq: A platform providing free Arabic courses on diverse subjects, including business and entrepreneurship, catering to the educational needs of the Kingdom. 
3. Misk Launchpad: A virtual, fast-paced 10-week program delivered in English for aspiring entrepreneurs to transform their ideas into working Minimum Viable Products (MVPs). The program is a mix of theoretical masterclasses and practical workshops delivered by world-class experts, broken down into three main phases: Shape, Build, and Pitch. 
4. KAUST Entrepreneurship Center: Supports innovators from across the Kingdom by providing training, space, and leadership to make entrepreneurship happen. The center fosters a connected community of innovators by providing hands-on training and funding support for emerging ideas. 
5. Monsha'at Academy: Offers self-paced online programs available 24 hours a day through the academy's learning management system. These programs focus on various aspects of entrepreneurship and include lessons and assessments. 
6. FutureX Platform: Enables institutions to create and design high-quality e-learning programs by linking them with qualified providers, equipped with advanced e-learning technologies. 
7. SaudiPreneur: A program launched by EYouth Learning and Value Makers Studio to encourage and support entrepreneurship among the Kingdom's youth. The program aligns with the goals of Saudi Vision 2030 and provides youth-specific programs across various fields. 
8. Noon Education: A Saudi-based edtech platform on a mission to make quality education accessible everywhere. Noon crafts learning experiences that deeply connect with students, engage them, and inspire them in many ways. 
9. Empretec's FintechHub and LogiHub Projects: Offer comprehensive learning opportunities for start-up founders at all growth stages across Saudi Arabia, blending essential entrepreneurial skills with practical insights.  
10. Saudi Women Entrepreneurs Networking and Mentorship Initiative: A program designed to provide access to best practices and immersive learning opportunities while connecting Saudi women entrepreneurs. 

Impact on Entrepreneurial Success

The integration of these educational platforms and initiatives has yielded significant benefits for entrepreneurs in Saudi Arabia:

• Enhanced Skill Sets: Entrepreneurs have developed critical skills necessary for business success, from strategic planning to digital marketing.
• Increased Startup Success Rates: Access to quality education and mentorship has contributed to higher survival and success rates among startups.
• Economic Diversification: Empowered entrepreneurs have ventured into various sectors, contributing to the diversification of the Saudi economy.
• Job Creation: Successful startups have generated employment opportunities that align with national economic goals.

Local entrepreneurs have attested to the value of these educational platforms, including Nadia Alafaleq, Founder & CEO of Beaee Platform, saying: "Misk Entrepreneurship has been instrumental in developing youth knowledge and skills to create ventures, build networks, scale up ideas, and gain access to fundraising." 

on the other hand, Mohammed Aldhalaan, Co-founder and CEO of Noon Education, stated: "Noon is a student-first company obsessed with crafting learning experiences that deeply connect with students, engage them, and inspire them in many ways." 

Finally, educational platforms and skill-building initiatives are vital components in the entrepreneurial ecosystem, transforming raw ambition into actionable success. In Saudi Arabia, the synergy between technological advancement and educational innovation has created a fertile ground for entrepreneurs to thrive. As the Kingdom continues its journey toward economic diversification and sustainable growth, these platforms will play an increasingly pivotal role in shaping the future

Magdy Hassan, CEO of taly

The sounds of coins clinking and bills rustling are becoming increasingly rare as we shift toward a cashless future, where digital transactions take the lead. While some people still prefer the feel of physical money, the global transition to digital payments is already well underway, and there are compelling reasons for it. The advantages of going cashless are hard to ignore.

This change is not just a vision for the future—it’s already happening in many parts of the world, including Egypt. Over the past decade, initiatives by the government and the Central Bank of Egypt have spurred economic growth and expanded financial inclusion. As a result, more than 177+ fintech startups and payment service providers (PSPs) have emerged, offering innovative solutions across 14 different subsectors. Many of these companies are expanding their services beyond Egypt, reaching regional and even global markets. The recent launch of Tokenization in Egypt is another game changer that would enable consumer to make their payment directly from their mobiles without the need to use a plastic card, which will embrace the digital life style.

In line with Egypt’s Sustainable Development Strategy and the UN Sustainable Development Goals, Egyptian banks have significantly advanced financial inclusion and digital transformation. Today, around 52 million citizens actively use financial accounts across banks, post offices, mobile wallets, and prepaid cards. Financial inclusion rates soared to 74.8% by the end of 2024, up from 70.7% in 2023, representing a 204% growth since 2016. Digital transformation is further demonstrated by a 32% annual increase in mobile wallet accounts, reaching a total of 42.1 million accounts in March 2024.

With the increasing demand of non-face-to-face payment and transfer due to the significant increase of online ordering Egypt's e-commerce market projected to double from 2025 to 2030, with the increasing need of people convenience the digital payments are becoming even more crucial. Evidence of this shift is clear: 85% of mobile wallet usage is dedicated to peer-to-peer transfers, with over 18 million wallets and over 6 million Instapay users playing a vital role in the ongoing digital transformation.

While the potential benefits of digital payments are undeniable, at taly, we believe it’s important to ask: Are we truly ready to be Digital Enabler?

The clear answer that Taly born Digitally with the vision of providing comprehensive ecosystem offering unparalleled convenience. Imagine a world where you can pay for anything, anywhere, with just a few taps on your phone or a swipe of your card. No more fumbling for change or countless trips to the ATM. Whether in bustling city markets or remote rural shops, taly ecosystem connects consumers with their service providers, merchant with their suppliers, Corporates with their employees, making day-to-day transactions faster, easier, secured, trackable, and more efficient for all stakeholders. The first of its kind Corporate Portal just launched by taly is a great example of increased corporates efficiency, saves time, reduces overhead costs, ease reconciliation between the company and its employees, and promotes a smoother economic flow.

Digital transactions create traceable records, making it harder for criminals to operate, and helping to combat tax evasion and money laundering, leading to a fairer and more just economic system.

Moreover, digital payments offer easy tracking and management, giving individuals better control over their finances and supporting effective budgeting. Consumers are increasingly aware of solutions like digital cards, Buy Now Pay Later (BNPL) options, and open banking, and they are actively integrating these solutions into their daily lives. We are really proud to be on the heart of all those solutions as digital enabler not competitor.

Of course, the transition to a cashless society isn’t without challenges. Concerns around privacy, cybersecurity, and accessibility for underserved populations are critical subjects that must be addressed. Strong safeguards are necessary to protect personal data and prevent fraud. Ensuring universal access to digital tools is vital before fully embracing a cashless system. Education and support programs will be key to bridging the digital divide and promoting inclusivity.

At taly, we understand that the shift to a cashless future is not a matter of if, but when. While challenges remain, the benefits of a cashless world—convenience, security, transparency, and economic efficiency—are undeniable. By embracing innovation and inclusivity, we can unlock the full potential of this transformation, paving the way for a prosperous future in Egypt.

Building on the continuous efforts of the Central Bank of Egypt, our company plays a pivotal role in Egypt’s digital transformation by offering a full suite of services and tailored solutions. With a team of over 200 employees, comprehensive digital processing capability, local first Tokenization platform, and payment gateway those connected with all global and local payment schemes, taly ensures secure and seamless transactions having recently renewed its ISO and PCI certifications positioning it as one of the first to be certified PCI DSS V4.0, reaffirming our commitment to the highest security standards.

As a comprehensive digital payment ecosystem, taly facilitates digital transformation by providing a seamless payment experience for banks, enterprises, and merchants. We also empower startups with innovative infrastructure that enhances financial ecosystems and accelerates transactions, driven by our unwavering commitment to advancing Egypt’s fintech sector and supporting Egypt’s Vision 2030.

Our company boasts unparalleled technological infrastructure in Egypt, promoting integration with banks and collaboration with digital payment apps. taly’s mission is to support the Egyptian economy’s digital evolution by providing the necessary infrastructure. We offer a wide range of digital solutions for Egyptian banks and their customers, including tokenization, allowing customers to use their phones as alternatives to plastic cards.

The fintech sector in Egypt has a very promising future, having already witnessed rapid development thanks to the diligent efforts of the Central Bank of Egypt. As digital transformation becomes not a luxury, but a necessity, it's time to embrace this change and leave the clink of coins behind.

Kholoud Hussein 

Generative Artificial Intelligence (GenAI) is rapidly transforming industries worldwide, and Saudi Arabia is embracing this technological revolution with strategic vigor. Aligned with the Kingdom's Vision 2030 initiative to diversify its economy beyond oil dependence, GenAI is making significant inroads into various sectors, particularly within the private domain and the burgeoning startup ecosystem. This article explores the sectors most impacted by GenAI in Saudi Arabia, supported by recent data and insights from industry leaders, and discusses potential sectors poised for future transformation.

The Rise of GenAI in Saudi Arabia

Under the ambitious leadership of Crown Prince Mohammed bin Salman, Saudi Arabia is positioning itself as a global hub for artificial intelligence. The Kingdom's strategic initiatives, such as "Project Transcendence," aim to attract substantial investments from global tech companies to bolster domestic AI infrastructure, including data centers and startups. This aligns with the broader Vision 2030 plan to diversify the economy and reduce dependence on oil. 

The Public Investment Fund (PIF) has announced plans to launch a $40 billion fund to invest in AI, potentially partnering with venture capital firms like Andreessen Horowitz. This initiative underscores the Kingdom's commitment to establishing a robust AI ecosystem, fostering innovation, and attracting global tech leaders to its domestic market. 

Sectors Most Affected by GenAI

1. Technology Sector

The technology sector stands at the forefront of GenAI adoption in Saudi Arabia. According to research by Strategy& Middle East, the sector could see an increase in operating profit by up to SAR 15 billion by 2028 through the development and commercialization of new GenAI use cases and the growing demand for advanced hardware and infrastructure. Additionally, Saudi tech firms could streamline their research and development (R&D) capabilities, enhance solution design, and automate internal processes, potentially reducing costs by up to 30%. 

2. Media and Entertainment

The media and entertainment sector is poised to benefit significantly from GenAI. The same Strategy& report indicates that this sector could experience an increase in operating profit of up to SAR 6 billion by 2028. GenAI enables firms to develop more original Arabic content, personalize customer experiences, and improve operational capabilities. This advancement aligns with the Kingdom's national agenda to establish itself as a media and entertainment hub. 

3. Telecommunications

Telecommunications companies in Saudi Arabia are leveraging GenAI to enhance customer insights and infrastructure utilization. The adoption of GenAI could lead to an increase in operating profit of up to SAR 11 billion by 2028. By analyzing customer behavior, telecom operators can personalize campaigns and enhance cross-selling opportunities, particularly within the small and medium-sized enterprises (SME) market, projected to reach SAR 10 billion by 2028. 

4. Healthcare

The healthcare sector in Saudi Arabia is also experiencing the transformative effects of GenAI. Globally, AI is being utilized for predictive diagnostics, personalized treatment plans, and efficient patient management. In Saudi Arabia, integrating GenAI could enhance healthcare delivery, optimize resource allocation, and improve patient outcomes, aligning with the Kingdom's goals to modernize its healthcare infrastructure.

5. Finance and Banking

The finance and banking sector is transforming with the integration of GenAI. AI-driven algorithms are enhancing fraud detection, risk assessment, and customer service through chatbots and personalized financial advice. Saudi banks and financial institutions are investing in AI technologies to streamline operations, reduce costs, and offer innovative services to customers.

Impact on Startups and the Private Sector

The startup ecosystem in Saudi Arabia is rapidly evolving, with a significant focus on deep tech innovations. A report by the Ministry of Communications and Information Technology, in collaboration with King Abdullah University of Science and Technology, reveals that up to 50% of deep tech startups in the Kingdom are working on artificial intelligence and the Internet of Things (IoT). These startups have collectively secured more than $987 million in funding, reflecting a robust commitment to technological advancement.

The number of active startup investors in Saudi Arabia reached 104 in 2023, marking a 41% increase from 2018. Public funds heavily support this expansion, as the government is committed to nurturing tech startups and scale-ups. Furthermore, the number of researchers in the country has risen by 75% since 2015, with plans to expand the research infrastructure to accommodate 140,000 researchers by 2030, up from the current 20,000.

Insights from Saudi Officials and Business Leaders

Saudi officials and business leaders are vocal about the transformative potential of GenAI. Richard Attias, CEO of the Future Investment Initiative (FII) Institute, emphasizes the importance of AI in addressing global challenges and fostering inclusive investments. He highlights the role of AI in driving innovation and efficiency across various sectors, aligning with the Kingdom's vision for economic diversification. 

The Kingdom's strategic collaborations, such as the partnership between Aramco and Groq to build the world's largest AI inference data center, underscore the commitment to establishing a robust AI infrastructure. These initiatives are part of a broader strategy to position Saudi Arabia as a leader in AI investment, complementing the country's oil wealth and ensuring relevance in the post-oil era. 

Potential Sectors for Future GenAI Impact

Beyond the sectors currently experiencing significant GenAI integration, several other industries in Saudi Arabia are poised for transformation in the near future. As the Kingdom continues its AI-driven economic diversification, the following sectors are expected to see increasing disruption and opportunities for growth.

1. Automotive Industry

Saudi Arabia’s ambitious plans to establish a homegrown automotive industry, with initiatives such as Ceer Motors, will likely benefit from GenAI. Generative AI can revolutionize vehicle design, predictive maintenance, and supply chain optimization.

• Generative Design: AI can optimize vehicle components for strength, weight, and fuel efficiency, improving performance and reducing material waste.
• Smart Manufacturing: AI-powered automation in assembly lines can enhance precision and efficiency while lowering production costs.
• Autonomous Vehicles: As part of the Kingdom’s Vision 2030 Smart City initiatives (such as NEOM and The Line), GenAI will play a key role in self-driving technology, traffic management, and mobility solutions.

With the Saudi government investing billions into electric and autonomous vehicles, this sector is primed for AI-driven innovation.

2. Education and E-Learning

Saudi Arabia has been actively integrating AI into education, with a strong push toward personalized learning experiences and AI-powered content generation.

• Adaptive Learning Platforms: AI can tailor lessons to individual student needs, ensuring better retention and engagement.
• Automated Content Generation: GenAI tools can develop course materials, summarize lectures, and even generate interactive quizzes.
• AI-powered tutoring: Chatbots and AI tutors can provide 24/7 academic support to students across various disciplines.

With the Kingdom investing heavily in digital education platforms, GenAI could redefine the way students and professionals learn in Saudi Arabia.

3. Real Estate and Urban Development

The Saudi real estate sector is undergoing rapid expansion, driven by mega-projects like NEOM, Qiddiya, and the Red Sea Project. AI is expected to streamline construction planning, optimize resource allocation, and enhance property management.

• AI-Generated Architectural Designs: Generative AI can automate building designs, improving efficiency and reducing project timelines.
• Smart Cities: AI-driven traffic control, energy management, and security systems will play a crucial role in urban development.
• Property Valuation and Market Predictions: AI-powered analytics can provide accurate real estate forecasts, assisting investors and developers in making informed decisions.

As Saudi Arabia aims to create futuristic, AI-driven urban environments, GenAI will be integral to shaping the Kingdom’s real estate landscape.

4. Retail and E-Commerce

Saudi Arabia’s booming e-commerce market, projected to reach $20 billion by 2025, is already leveraging AI for customer experience enhancement and supply chain optimization.

• Hyper-Personalized Shopping: AI can analyze customer behavior and generate real-time personalized recommendations.
• AI-powered chatbots: Virtual assistants can handle customer inquiries, recommend products, and process transactions, improving efficiency.
• Inventory and Logistics Optimization: AI models can predict demand trends, automate restocking, and reduce waste, making supply chains more efficient.

With Saudi startups and enterprises investing heavily in AI-driven retail solutions, the sector is poised for even greater transformation in the near future.

5. Energy and Sustainability

As Saudi Arabia transitions toward renewable energy and sustainability goals, GenAI will play a pivotal role in optimizing energy management and reducing carbon footprints.

• AI-Optimized Power Grids: Machine learning algorithms can predict energy demand, allowing for efficient power distribution.
• Predictive Maintenance for Renewable Energy: AI can monitor and predict failures in solar farms, wind turbines, and smart grids, reducing downtime and maintenance costs.
• Sustainable Resource Allocation: AI-driven simulations can optimize water and energy usage across industrial and residential sectors.

Saudi Arabia’s commitment to green energy through projects like the $5 billion NEOM Green Hydrogen plant highlights GenAI's crucial role in the energy sector.

Finally, Generative AI is fundamentally reshaping industries across Saudi Arabia, accelerating economic diversification and boosting productivity. While sectors like technology, media, telecommunications, healthcare, and finance have already witnessed significant AI integration, emerging fields like automotive, education, real estate, retail, and energy are set to experience profound transformations.

With the Saudi government investing in AI research, local startups, and global partnerships, the Kingdom is on track to become a global AI hub. However, challenges remain in terms of regulation, talent development, and infrastructure, which must be addressed to fully capitalize on GenAI’s potential.

As Saudi Arabia continues its digital revolution, AI-powered industries will drive innovation, economic growth, and long-term sustainability, positioning the Kingdom as a leader in the global AI economy.