The Saudi tech industry experienced substantial growth in the second quarter, with a notable increase in registrations for artificial intelligence (AI) technologies and cloud computing services, rising by 53 percent and 43 percent, respectively.

Surge in AI and Cloud Computing Registrations

The Ministry of Commerce’s quarterly business sector bulletin reported that the Kingdom issued 8,948 official identification cards for AI technologies during the second quarter, a significant rise from the 5,820 issued in the same period last year. Similarly, 2,358 documents were issued for cloud computing services, compared to 1,648 in the same quarter of the previous year.

This growth aligns with Saudi Arabia’s robust global market position, with the nation ranking 16th out of 67 countries in the World Competitiveness Ranking by the International Institute for Management Development.

Regional Leaders in AI Technology Permits

Riyadh led the issuance 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. This regional breakdown highlights the concentrated efforts in the capital and major provinces to drive technological advancements.

Expansion in Arts, Entertainment, and Leisure Sectors

In addition to the tech sector, the arts, entertainment, and leisure sectors saw a surge, with 20,465 commercial records issued in the second quarter, up from 16,438 in the same period last year. This growth underscores the Kingdom’s diversification efforts and investments in cultural and recreational industries.

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Growth in the Electronic Games Sector

The electronic games sector also expanded notably, with 336 registrations in the second quarter, up from 260 in the same period last year, reflecting a 29 percent growth. This sector’s growth is indicative of increasing demand for digital entertainment and gaming within the Kingdom.

Increase in Ground Passenger Transport Services

Furthermore, there were 8,213 issuances for ground passenger transport services in cities and suburbs during the second quarter, compared to 6,227 in the same period last year. This 32 percent increase is a testament to the growing urban mobility and infrastructure development in Saudi Arabia.

Short-Term Accommodation Sector Sees Uptick

The short-term accommodation sector recorded a 22 percent increase, issuing 22,435 business records compared to 18,398 in the same quarter last year. This rise reflects the Kingdom’s burgeoning tourism industry and its efforts to accommodate an increasing number of visitors.

Mining and Quarrying Sector Growth

The mining and quarrying sector registered 7,871 new records, up from 6,671 in the same period last year. This growth highlights the sector’s vital role in the Kingdom’s economic diversification strategy and its commitment to exploiting its natural resources.

Pharmaceuticals and Medical Products Sector Expansion

The pharmaceuticals and medical products sector also saw a 34 percent rise, with 1,155 commercial records issued compared to 859 in the same quarter the previous year. This increase aligns with Saudi Arabia’s focus on enhancing its healthcare sector and ensuring the availability of medical supplies.

Overall Business Registration Increase

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

Perspective: A Promising Future for Saudi Arabia

From my perspective, this impressive growth across various sectors reflects Saudi Arabia’s strategic initiatives to diversify its economy and foster innovation. The significant rise in AI and cloud computing registrations indicates the Kingdom’s commitment to becoming a global tech hub. The expansion in entertainment, transport, and healthcare sectors further underscores the nation’s holistic approach to development, catering to both economic and social needs.

As Saudi Arabia continues to invest in various industries, it sets a precedent for other nations in the region, showcasing the potential of comprehensive economic reforms and forward-thinking policies. The future looks promising for the Kingdom as it leverages technology and innovation to drive sustainable growth and development

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