Saudi tech sector surges with spike in AI and Cloud service registrations in Q2

RIYADH: The Saudi tech industry saw strong growth in the second quarter, with registrations for artificial intelligence technologies and cloud computing services rising by 53 percent and 43 percent, respectively.

According to the Ministry of Commerce’s quarterly business sector bulletin, Saudi the Kingdom issued 8,948 official identification cards for AI technologies during the second quarter, compared to 5,820 issued in the same quarter last year. Additionally, 2,358 such documents were issued for cloud computing services, up from 1,648 in the same quarter of the previous year. 

This surge aligns with Saudi Arabia’s strong global market competitiveness, as the nation ranks 16th out of 67 countries in the World Competitiveness Ranking by the International Institute for Management Development. 

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. 

The data also revealed a surge in the arts, entertainment, and leisure sector, with 20,465 commercial records issued in the second quarter of this year, up from 16,438 in the same period last year. 

In a notable expansion for the electronic games sector, the ministry recorded 336 registrations in the second quarter of this year, up from 260 in the same quarter the previous year, indicating a 29 percent growth. 

Meanwhile, there were 8,213 issuances for ground passenger transport services in cities and suburbs in the second quarter, up from 6,227 in the same period last year. 

Additionally, the short-term accommodation sector experienced a 22 percent increase, issuing 22,435 business records compared to 18,398 in the same quarter last year. 

The mining and quarrying sector recorded 7,871 registrations, up from 6,671 in the same quarter last year. 

Meanwhile, the pharmaceuticals and medical products business saw a 34 percent increase in issuance, with 1,155 commercial records issued compared to 859 in the same quarter the previous year. 

This comes as the ministry issued more than 120,000 commercial registrations in the second quarter of 2024, marking a 78 percent year-on-year increase. Specifically, a total of 121,521 official identification cards for businesses were issued during the period, up from 68,222 in the same period last year.