Imagine a place where technology and innovation converge, setting the stage for groundbreaking opportunities—welcome to Saudi Arabia. The recent LEAP conference in Riyadh has proven to be a catalyst for substantial investment, drawing in a remarkable $11.9 billion across various sectors, with a particular spotlight on artificial intelligence and cloud services.
A Hub for Technological Advancement
Over four dynamic days, LEAP unfolded as a major international technology conference, attracting over 600 start-ups and more than 1,300 investors. The summit, often likened to “the digital Davos,” commenced with Saudi Arabia’s groundbreaking announcement of a $1 billion investment into GAIA, a regional AI start-up accelerator. This initiative, a collaboration between the Saudi Data and Artificial Intelligence Authority, New Native, and the National Technology Development Program, has already onboarded over 50 AI start-ups.
Minister of Communications and Information Technology Abdullah Alswaha proudly declared the $11.9 billion in investments, marking a significant increase from the previous year’s $9 billion. This surge aligns with Crown Prince Mohammed bin Salman’s Vision 2030, aiming to transform Saudi Arabia into a global technology hub, reducing its economic dependency on oil.
In a testament to the Kingdom’s resilience, Alswaha noted that while the global venture capital scene faced downturns, Saudi Arabia experienced a 33% growth under the strategic guidance of its leadership.
Strategic Partnerships and Future Prospects
The conference also witnessed the signing of a Memorandum of Understanding between the UK and Saudi Arabia, focusing on enhancing research and development in technology, science, and energy. The Saudi Data and Artificial Intelligence Authority (SDAIA) forged three additional MoUs, including one with Samsung Electronics to explore digital innovations.
Saudi Arabia is set to become a regional leader in cloud services with the introduction of Amazon Web Services (AWS), planning a substantial $5.3 billion investment in a new cloud zone. This makes the Kingdom the only regional country with hyperscalers. Other tech giants like IBM, DataVolt, and ServiceNow also committed to significant investments at the event.
Dell Technologies announced plans to establish a manufacturing and fulfillment hub in Saudi Arabia, marking its first venture of this kind in the region.
Empowering Start-ups and Esports
At LEAP, Bahrain-based InvestCorp expanded its $500 million fund, targeting Saudi businesses in their growth phases. The fund spearheaded a pre-IPO round with TruKKer Holding Limited, the region’s largest digital freight network, with an initial $51 million investment.
Saudi Arabia secured $888 million in investment deals, with notable emphasis on esports. The National Development Fund and the Social Development Bank unveiled a $40 million Gaming and Esports Investment Fund, managed by Impact46, while Merak Capital introduced an $80 million fund for game accelerators.
Furthermore, Takamol Holding launched a $50 million fund to support early-stage companies, complemented by new funds from Plug and Play and X by Unifonic, aimed at nurturing technology start-ups and business software services.
Saudi Arabia is swiftly becoming a beacon for technological innovation and investment. With robust government support and strategic international partnerships, the Kingdom is paving the way for a thriving future in the tech sector, offering lucrative opportunities for investors worldwide.
