Saudi Technology Sector Could See $4bn Surge from GenAI by 2028, Report Says

Esraa Elsheikh September 5, 2024

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Saudi Technology Sector Could See $4bn Surge from GenAI by 2028, Report

An analysis by global consulting firm Strategy& Middle East has showed that Saudi technology sector could witness a surge in operating profit of SR15 billion ($4 billion) by 2028 with the adoption of generative artificial intelligence.

The reports states that the Kingdom could achieve a 15 percentage point margin growth if tech companies satisfy the needs of advanced hardware and infrastructure and develop and commercialize new GenAI use cases.

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Technology Sector

“Advancements in GenAI are expected to impact all sectors in Saudi Arabia. Our analysis indicates that the telecom, media and entertainment, and technology sectors could achieve the highest potential margin upside by adopting GenAI,” Hani Zein, partner with Strategy& Middle East, said.

The statistics suggest that GenAI will boost research and development capabilities, simplify solution design, and automate the lead-to-cash lifecycle for tech firms. These efforts can reduce costs by up to 30%, accelerate the development of local intellectual property, and strengthen Saudi Arabia’s position as a preferable destination for national tech champions.

“GenAI can be the essential catalyst in accelerating this transformation, creating major growth opportunities, and enhancing internal capabilities,” said Fawaz BouAlwan, partner with Strategy& Middle East.

Media and Entertainment Sectors

The analysis anticipates that the media and entertainment sector in Saudi Arabia could achieve a 14 percentage point margin growth by 2028, hiking its operating profit by up to SR6 billion.

“This would further accelerate the transformation of the Kingdom as a media and entertainment hub, aligned with its national agenda,” the reports stated.

Telecom Sector

The telecom sector is projected to achieve a 12 percentage point margin growth by 2028, increasing operating profit by up to SR11 billion.

GenAI can help telecom operators differentiate themselves and navigate challenges related to monetization and price wars.

GAIN Summit

Currently, Saudi Arabia is gearing up to host the 3^rd Global AI (GAIN) Summit showcasing the worldwide experiences in the field of artificial intelligence technologies.

The coming edition will particularly focus on the significance of the deep understanding of rapidly developing AI technologies for businessmen.

Organized by the Saudi Data and AI Authority (SDAIA) in Riyadh from September 10 to 12, 2024, the summit will feature over 300 speakers, including experts, specialists, and decision-makers from 100 countries worldwide.

AI’s Impact on Business

The event will provide the attendees with a valuable platform to discuss the best practices of utilizing artificial intelligence technologies to make strategic decisions and support responsible leadership.

The participants will also discuss how to analyze the impact of artificial intelligence on the growth of business activities and productivity and motivate employees within an attractive work environment that meets the aspirations of business leaders.