Saudi Tech Sector Growth Spikes in Q2

Saudi Arabia‘s tech industry has experienced robust growth in the second quarter of 2024, with significant increases in registrations for artificial intelligence (AI) and cloud computing services. This growth is part of the Kingdom’s broader strategy to enhance its global competitiveness in the tech sector.

The Saudi Ministry of Commerce’s quarterly business sector bulletin reports a substantial rise in tech sector registrations. Registrations for AI technologies surged by 53 percent, reaching 8,948 in Q2 2024, up from 5,820 in the same period last year. Similarly, cloud computing services saw a 43 percent increase, with 2,358 registrations compared to 1,648 in Q2 2023.

“Saudi Arabia’s tech sector is witnessing unprecedented growth, driven by our commitment to innovation and global competitiveness,” said a representative from the Ministry of Commerce. “Our efforts to streamline business registrations and support technological advancements are paying off, as evidenced by the significant increases in AI and cloud computing services.”

The Ministry of Commerce plays a crucial role in facilitating business growth and technological advancement in Saudi Arabia. Their initiatives are aimed at positioning the Kingdom as a leader in the global tech landscape.

Riyadh accounted for the largest share of AI technology permits with 5,492, followed by Makkah with 1,789, the Eastern Province with 939, Madinah with 254, and Asir with 115.

In addition to the tech sector, there has been notable growth in other areas:

– Arts, Entertainment, and Leisure: 20,465 commercial records issued in Q2 2024, up from 16,438 in Q2 2023.

– Electronic Games: 336 registrations in Q2 2024, a 29 percent increase from 260 in Q2 2023.

– Ground Passenger Transport Services: 8,213 issuances in Q2 2024, up from 6,227 in Q2 2023.

– Short-term Accommodation: 22,435 business records issued in Q2 2024, a 22 percent increase from 18,398 in Q2 2023.

– Mining and Quarrying: 7,871 registrations in Q2 2024, up from 6,671 in Q2 2023.

– Pharmaceuticals and Medical Products: 1,155 commercial records issued in Q2 2024, a 34 percent increase from 859 in Q2 2023.

Overall, the Ministry of Commerce issued over 120,000 commercial registrations in Q2 2024, marking a 78 percent year-on-year increase. A total of 121,521 official identification cards for businesses were issued during the period, up from 68,222 in the same quarter last year.

This surge in tech sector growth reflects Saudi Arabia’s strategic focus on technological innovation and economic diversification, positioning the Kingdom as a key player in the global tech industry.

Source: Arab News