28 Jul 2024
CAIRO: Technological infusion across all sectors has boosted Saudi Arabia’s position as a catalyst of change, attracting players from all over the globe.
Datacom, under the leadership of CEO Dawood Moya, aims to be a significant contributor to this by establishing itself as a trusted partner for digital transformation, artificial intelligence, automation, and process intelligence within the public services, financial services industry, and oil and gas sectors.
In an interview with Arab News, Moya shared that Datacom plans to become a critical player in Saudi Arabia, aspiring to be one of the core partners for governmental bodies and industry leaders.
Moya said: “Our aim is to stay for a long term in Saudi Arabia and become one of the core partners for governmental bodies and FSI and oil and gas companies. Datacom will become the key driver in elevating the AI capabilities and make the Kingdom as one of the leading countries in AI.”
Becoming a partner
Datacom’s strategy for the Saudi market includes developing innovative AI solutions tailored to local requirements, collaborating with local universities and research institutions to foster AI talent.
The company aims to leverage its AI expertise to generate significant impacts for organizations and citizens in the Kingdom.
A significant aspect of Datacom’s expansion strategy involves education and training.
“Datacom aims to invest in training AI professionals and experts locally,” Moya said.
By creating AI curriculums, training programs, workshops, and certifications, Datacom hopes to raise AI awareness and promote acceptance.
Additionally, the company plans to collaborate with the Saudi government to develop AI-friendly policies and regulations, focusing on AI governance and ethics.
Partnerships play a crucial role in Datacom’s approach, with the company already working with over five ministries across Saudi Arabia “developing highly sophisticated AI solutions, which are unique, innovative and effective to enhance the ministries services performance,” Moya said.
Datacom is also committed to understanding local needs and culture, developing AI solutions that respect data sovereignty requirements, and establishing sector-specific Centers of Excellence to drive AI adoption.
Looking forward, Datacom has set ambitious growth objectives for the next year, prioritizing Saudi Arabia within its expansion strategy.
“Saudi Arabia is the main priority for Datacom. Even when our headquarters is right now based in Ajman, UAE, for different reasons, our focus is Saudi Arabia and UAE, in this order of priorities,” Moya stated.
The company is offering a portfolio of customized AI solutions, including digital humans with generative AI capabilities, innovative data analysis solutions, and tailored AI ethics and governance models based on Saudi regulations.
Datacom plans to adapt to and comply with evolving regulations in Saudi Arabia by partnering with the Saudi Authority for Data and Artificial Intelligence, the National Cybersecurity Authority, and other governmental bodies.
The company’s commitment to AI governance, risk management, and ethical practices underscores its dedication to responsible AI development.
The strategic importance of the Saudi market for Datacom is underscored by the Kingdom’s substantial investment in AI, its economic transformation, government support, and technological adoption, Moya highlighted.
This investment, along with robust policies and a tech-savvy population, creates a conducive environment for AI growth and innovation.
“We established our office 6 months ago, thanks to the support of our local partnership network, who identify us as a technology disruptor in the market,” Moya shared.
The company plans to register its local entity before the end of 2024, further solidifying its presence in the Kingdom.
Business fundamentals
The company’s business model is centered on reselling disruptive technologies rather than developing software.
Moya explained, “Our business model is based in our operations. We are not software developers, but resellers of the most disruptive technologies we are able to identify, thanks to our experience, know-how, and international presence in the technology segment.”
This approach leverages Datacom’s expertise and extensive network to introduce cutting-edge solutions to the Saudi market.
The motivation behind founding Datacom was to bridge a significant gap in the implementation of AI technologies.
“We clearly identified a gap in the know-how of the implementation of AI technologies. Our team is composed by senior experts in the technology field,” Moya highlighted.
The company has not yet reached profitability but has set a target to achieve this milestone in 2024.
To gauge success, Datacom utilizes several key performance indicators.
“We are using performance indicators like: Cost of lead, percentage of conversion rate, percentage of closure rate, Churn Rate,” Moya said.
Regarding funding, Datacom is privately funded and does not have immediate plans to secure additional finance. However, when asked if the company remains open to potential investment opportunities, he said: “We are open to have conversations with investors that would align with our mission and vision. I’m sure that we can give answers to many questions that are still unanswered, and the Arab world is a window of opportunities, due to the exciting moment that is living, and the support that the regional governments are providing to accelerate that momentum.”
A booming market
Moya assessed the current market landscape in Saudi Arabia, noting the significant opportunities presented by the government’s dedicated AI strategy and industry push.
Forecasting the industry’s evolution, Moya emphasized the rapid growth expected in the Saudi AI market. “We believe that the Saudi Arabia artificial intelligence market is poised for significant growth, and several trends are shaping its evolution,” he explained.
“The Saudi Arabia AI market was valued at $3.11 billion in 2023 and is projected to grow at a CAGR (compound annual growth rate) of 42.6 percent between 2024 and 2030. This growth is driven by investments in developing AI solutions across different sectors,” Moya said.
He added that sectors such as health care, public services, and retail are seeking AI solutions to enhance productivity and efficiency. “Retail companies, for example, use AI to gain consumer insights and optimize promotions and pricing.”
“Arabic focused NLP (natural language processing) and IDP (intelligent document processing) solutions are the initial solutions deployed in Saudi Arabia,” Moya said.
“As Saudi Arabia continues its privatization initiatives, AI investments will play a crucial role. The country’s rapidly expanding economy and surging foreign investments contribute to this trend,” he added.