The GAIN AI summit in Riyadh, held in September, was attended by a diverse group of individuals. Among them were representatives from Aramco and Kaust, who announced their joint investment of $100 million in AI research. This move is part of the country’s efforts to promote the growth of the AI sector, which has seen a significant increase in research and development spending.
According to the General Authority for Statistics, R&D spending in Saudi Arabia rose by 17.4 percent in 2023, reaching SAR22.6 billion ($6 billion). This is a significant increase from the previous years, with SAR19.25 billion in 2022 and SAR14.5 billion in 2021. The number of people employed in R&D also saw a steady rise, from just over 55,000 in 2021 to more than 86,000 in 2023.
However, despite efforts to promote the involvement of the private sector, three-quarters of those involved in R&D in Saudi Arabia are still working in government entities. Private sector funding, however, remains high, accounting for 41 percent of the total spending at SAR9.3 billion in 2023.
The country’s economy saw a contraction of 0.8 percent in 2023 due to Opec+ oil output cuts. However, it is expected to grow by 1.5 percent this year and 4.6 percent in 2025. The government has also announced that the non-oil sector’s contribution to GDP has surpassed 50 percent for the first time in 2023.
In August, Saudi Aramco and Kaust announced their joint investment of $100 million in R&D projects. These projects will focus on energy transition, sustainability, materials innovation, upstream technologies, and digital solutions, with the aim of achieving both environmental and commercial benefits.
In line with the country’s efforts to become a hub for AI and green industries, Google has also granted $100,000 to Kaust for AI research in multilingual and multimodal machine learning. This will also aid in the development of large language models.
Saudi Arabia’s Vision 2030 reform plan aims to transform the economy, and the country is actively working towards achieving this goal. With its focus on AI and green industries, the country is positioning itself as a leader in these fields. The increase in R&D spending and investments in these sectors are a testament to the country’s commitment to achieving its goals.