Saudi Arabia’s tech sector grows rapidly in Q2 of this year

Dubai: Saudi Arabia’s technology sector grew rapidly in the second quarter, with a significant increase in registrations of artificial intelligence (AI) technologies and cloud computing services.

The country issued 8,948 official ID cards for AI technology during the quarter, a significant increase from the 5,820 issued during the same period last year, according to the business sector’s quarterly bulletin. It issued 2,358 for cloud computing services, up from 1,648 year-on-year, according to the commerce ministry.

This growth underscores Saudi Arabia’s strong global competitiveness, as evidenced by its 16th place out of 67 countries in the International Institute for Management Development’s World Competitiveness Ranking. Riyadh leads in AI technology approvals with 5,492, followed by Makkah with 1,789, the Eastern Province with 939, Medina with 254 and Asir with 115.

The World Competitiveness Ranking is a comprehensive annual report and a global benchmark on the competitiveness of world economies.

There was a noticeable increase in the arts, entertainment and leisure sector, which saw 20,465 commercial records issued during the quarter, compared with 16,438 the previous year. The electronic gaming sector also grew significantly, registering 336 registrations compared with 260 in the same quarter the previous year, an increase of 29 percent.

Other sectors also showed positive growth: urban and suburban passenger ground transport services saw emissions rise to 8,213 from 6,227, short-term accommodation services rose 22 per cent to 22,435 business records, and the mining and quarrying sector recorded 7,871, up from 6,671. The pharmaceuticals and medical devices industry saw a 34 per cent increase in emissions, issuing 1,155 business records, up from 859 previously.