In the last five years, the tech scene in Saudi Arabia has become a cynosure, partly because of the enormous capital investment in the industry by the government and the foreign investors in the Middle Eastern country.
Aside from that, Crown Prince Muhammed bin Salman's strategic shift of the country's economy to become tech-driven is another critical factor for Saudi's rising tech space. This is obvious, looking at Saudi’s investment in Uber in 2016, Muhammed bin Salman’s 2018 visit to the Silicon Valley, and the plan to spend over $7 trillion within the next ten years on economic diversification from oil.
Within three years, Google has also signed a $10 billion agreement with oil giant Aramco, Amazon has committed to hiring 1,500 new Saudi employees and 11 new buildings in the country, and Huawei will open its flagship outside of China in Riyadh. While the number of start-up deals dropped across the Middle East and North Africa during COVID-19, funding for Saudi ventures grew by 102%. Not to forget Neom, the $500 billion futuristic eco-city in the Saudi desert.
Moreover, Saudi Vision 2030 is hinged on digital transformation and economic diversification. Recently, there has been the introduction of far-reaching economic and labor reform that aim to stimulate the flow of tech talent into the country, which will reduce economic dependence on oil. Two-thirds of Saudi Arabia’s population are under 35 years of age. These young Arabians are dreaming and creating tech solutions. This will develop solutions for Saudi’s unemployment rate, which is currently at 11.0%.
Fintech, Edutech, cybersecurity, AI, e-commerce, supply, and food and beverage (F&B) startups are the biggest gainers in Saudi’s tech space with massive venture capital funding. Here are some new technologies that will create new opportunities for Saudi Arabians:
5G Network, AI, and ML
For Saudi Arabians, 5G technology will transform internet and tech services, including logistics in the country, as it will guarantee faster browsing and service delivery.
Sary, Nana, Talabat, and other F&B services in the country are steadily warming up to AI and ML in service delivery. AI and ML in food production and delivery processes will minimize waste, increase profit for F&B companies, and keep consumers abreast of the availability of preferred products.
Online Learning and Digital Payments
The pandemic has also accelerated trends in online learning and payments in Saudi Arabia, with Noon Academy, Moyasar, Payfort, and Paytabs leading the change. Digital payment and education have become necessities that, if improved, will open up new doors for Saudis and Middle Easterners.
Online Scheduling for Healthcare Practices
The pandemic has made the government-run app, Tawakkalna, a prominent live location-tracking app that serves as a health passport for Saudis in public spaces. Furthermore, the Ministry of Health is helping pilgrims in the Holy Sites during Hajj Season to connect online with doctors of Riyadh and Jeddah during health emergencies.
These new and existing technologies, when rightly utilized, will create new opportunities in multiple industries and help achieve the larger economic diversification plan.
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