Saudi Arabia ranks 5th worldwide in AI sector growth, leads Arab nations 

The Kingdom aims to position itself as a technological hub by the end of this decade as it continues its economic diversification efforts. Shutterstock
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Updated 08 December 2025
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Saudi Arabia ranks 5th worldwide in AI sector growth, leads Arab nations 

RIYADH: Saudi Arabia has secured the fifth rank globally and first in the Arab region for growth in the artificial intelligence sector, the Saudi Press Agency reported, citing data from Global AI Index. 

According to the report, this development underscores the Kingdom’s progress in AI, reflecting the success of Saudi Arabia’s development plans and its ability to achieve high international competitiveness under its economic diversification strategy Vision 2030. 

The Kingdom aims to position itself as a technological hub by the end of this decade as it continues its economic diversification efforts, reducing its reliance on crude oil revenues. 

In November, a survey report released by KPMG also highlighted Saudi Arabia’s progress in the technological sector. 

It noted that 84 percent of CEOs in the Kingdom are ready to deploy AI responsibly, well above the global benchmark of 76 percent, supported by the country’s data governance ecosystem, including national initiatives led by the Saudi Data and Artificial Intelligence Authority. 

“During the period measured by the Global AI Index, Saudi Arabia launched a wide range of national initiatives led by SDAIA. These initiatives strengthened Saudi Arabia’s position on the index,” said SPA. 

SDAIA’s initiatives during the period included multiple projects, particularly the Rowad Package initiative, which empowers entrepreneurs and startups to authenticate customer data through electronic linkage to the National Information Center’s databases. 

The authority also launched the AI Ethics Incentive Badges initiative to raise awareness of ethical practices and promote the responsible use of technologies.

This initiative offers a comprehensive framework to help organizations and developers align with global best practices.

SPA added that over 50 accreditation certificates have been granted to national AI companies for developing AI-based products serving priority sectors in the Kingdom. 

The Gaia generative AI accelerator, backed by SDAIA and the National Technology Development Program with New Native as a partner, is also accelerating startup development, enabling new companies to launch and scale more effectively.

“These efforts also extended to the SDAIA Academy, which has focused on building national capabilities and empowering young talent through advanced training programs in data and AI, offered in partnership with international organizations,” reported SPA. 

It added that SDAIA Academy has trained over 1 million Saudis in data and AI skills through the SAMAI initiative, carried out in partnership with various government entities.

This training program is considered one of the world’s largest, targeting the general population.

“These achievements highlight SDAIA’s success in the field of data and AI, both nationally and internationally. They reinforce its role as the Kingdom’s central authority for regulation, development, and application, and advance the nation toward leadership in data- and AI-driven economies,” concluded SPA. 

In October, Humain, an AI company owned by Saudi Arabia’s Public Investment Fund, partnered with AirTrunk, which is backed by BlackRock and the Canada Pension Plan Investment Board, to develop hyperscale data centers in the Kingdom.

The first phase of the collaboration includes an estimated $3 billion investment to build a major data-center campus in Saudi Arabia, according to a press statement.


Lucid’s move into Alkhobar marks a new phase in Saudi Arabia’s electric transition

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Lucid’s move into Alkhobar marks a new phase in Saudi Arabia’s electric transition

ALKHOBAR: Lucid opened its first showroom in Alkhobar on Dec. 5, completing its presence across Saudi Arabia’s three largest regions and underscoring the rapid progress of the Kingdom’s electric-mobility push under Vision 2030.

The new Eastern Province location targets one of the nation’s highest-spending markets and reflects the deepening US-Saudi partnership behind Lucid in manufacturing, research and development, and talent.

For the EV maker, the move reflects pure market demand, according to interim CEO Marc Winterhoff.

“We didn’t have any coverage of the eastern region. It’s the 3rd largest market in KSA, and therefore it’s important for us to be here as well, closer to our customers,” he said.

Saudi Arabia has become one of Lucid’s most critical markets globally, not only as a buyer, but as a manufacturing base and a long-term strategic partner.

Winterhoff said the company is “super important in all of those categories,” highlighting how the Public Investment Fund’s backing enabled Lucid to grow jobs in the US while establishing its first international facility in the Kingdom.

“It’s widely known that we are majority funded by PIF, meaning the Kingdom of Saudi Arabia, which enabled us to build actually a lot of jobs in the US. Over 90 percent of our jobs … are in the US,” he said.

Lucid interim CEO Marc Winterhoff. Khalil Alazwari

At the same time, Lucid is expanding its assembly plant in King Abdullah Economic City and preparing to hire “thousands of people” as it ramps up production by the end of next year.

Alignment with Vision 2030, particularly the shift toward sustainability and the creation of entirely new industries, is becoming a defining pillar of Lucid’s strategy in the Kingdom. “Our vision is very much aligned with Vision 2030,” Winterhoff said.

He pointed to the emergence of a Saudi automotive cluster for the first time, with Lucid among the first manufacturers and others now entering the market. “There was no automotive industry before … and yeah, that wouldn’t be possible without the support.”

Regionally, Lucid Middle East President Faisal Sultan said the Gulf is entering a new phase of EV adoption driven by consumer readiness and government action.

“The whole country is going through a transformation right now. There is a renewed focus on sustainability and diversification to non-oil GDP,” he said.

While global supply chain issues briefly slowed EV momentum, demand in Saudi Arabia is now growing faster than in several other GCC countries.

Sultan said the Alkhobar showroom will play a direct role in accelerating adoption by exposing more customers to the vehicles.

“Once the customer is inside the car and sees a beautiful car that has amazing performance attributes, then the conversion is a sure deal,” he said.

Market behavior also shaped the decision to expand east. Many Eastern Province customers had been traveling to Riyadh to buy vehicles, a barrier Lucid sought to address. “It is a little bit of an inconvenience … so we really needed to be here,” Sultan explained.

The location’s economic weight also played a role. “There’s a lot of buying power here, and Lucid vehicles are a highly technological luxury vehicle. So it is the right place for Lucid to be.”

On charging, Lucid is working on a two-track approach: building infrastructure and educating customers. The company is pushing back against common assumptions around range anxiety by highlighting its vehicles’ capabilities.

“We are the longest-range vehicle in the world — 835 (km) to 838 km on a single charge,” Sultan said. He added that many drivers can travel from Alkhobar to Riyadh and might even go back on one charge.

The Lucid Air showcased inside the new Alkhobar studio. Khalil Alazwari

Lucid now provides a free home charger and free installation with every purchase, ensuring most customers rarely run low on battery in daily use.

The company is also expanding public charging through partnerships with hotels and offices. “We have about 50 of them across the country, and anybody can use it,” he said.

The localization push, a major pillar of Vision 2030, is another area where Lucid is scaling quickly. “We are 70-plus percent Saudized. That is an amazing feat because we are a technological company,” Sultan said.

The firm is also investing in a new R&D center in Riyadh, training Saudi engineers in the US through Human Resources Development Fund’s programs, and building a talent pipeline with institutions including KAUST, King Abdullah Economic City’s training academy NAVA, and technical universities.

Sultan said this effort is essential as the plant transitions next year from assembly to a complete build-unit factory with a planned annual capacity of 150,000 vehicles.

“You’re gonna need a large workforce,” he said. “This is all in preparation to localize the workforce and having the right skills available.”

With the Eastern Province now covered, Lucid’s footprint matches the Kingdom’s three economic engines: Riyadh, Jeddah, and Alkhobar, positioning the company at the center of Saudi Arabia’s EV transition.

And as both executives made clear, the Kingdom is not just a sales market for Lucid, but a core part of its global future.