Saudi Arabia Big Data And Artificial Intelligence - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Saudi Arabia Big Data And Artificial Intelligence Market Analysis

The Saudi Arabia big data and artificial intelligence market was valued at USD 0.51 billion in 2025 and estimated to grow from USD 0.68 billion in 2026 to reach USD 2.81 billion by 2031, at a CAGR of 32.87% during the forecast period (2026-2031). The surge is propelled by Vision 2030 investment pledges, a USD 40 billion sovereign AI fund launched in 2024, and NEOM’s sensor network that now streams more than 1 petabyte of data every day. Software commands 45.32% revenue as Arabic-language large models mature, while services post the fastest 36.30% CAGR on rising DataOps and MLOps demand. Enterprises already rely on on-premises and hybrid deployments for 59.47% of workloads, yet public-cloud usage is expanding at 37.90% CAGR thanks to hyperscaler build-outs. The Saudi Arabia big data and artificial intelligence market benefits additionally from mandatory e-invoicing that has digitized 85% of transactions and produced billions of structured invoices ripe for analytics.

Saudi Arabia Big Data And Artificial Intelligence Market Trends and Insights

National AI Strategy Funding Surge

The USD 100 billion Project Transcendence budget has underwritten 14 hyperscale campuses and bulk GPU purchases that include an 18,000-GPU supercomputer delivered under the HUMAIN-NVIDIA alliance. The Public Investment Fund lifted U.S. tech allocations to USD 26.7 billion in 2024, focusing on AI chips and software. AMD and Microsoft added separate build-outs, giving Saudi developers privileged access to next-generation accelerators. These moves accelerate sovereign model training for Arabic tasks and set cost hurdles that deter late-market entrants. Businesses reap spillover gains through lower-latency domestic inference services and a maturing local talent ecosystem.

NEOM Sensor-Data Explosion

Daily data volumes in the NEOM region now exceed 1 petabyte, captured from autonomous shuttles, air-quality probes, and utility meters. DataVolt’s liquid-cooled centers near Tabuk process streams in real time for traffic routing and carbon-neutral energy balancing. Aramco and Qualcomm have co-deployed edge rigs that trim industrial energy use by 40% through predictive maintenance. The resulting trove of labelled Arabic datasets supports speech formalization, dialect mapping, and context reinforcement, sharpening regional LLM performance and enabling exportable smart-city blueprints.

Senior Data-Science Talent Gap

The SAMAI scheme aims to train 1 million citizens by 2030, yet demand already triples supply. Competing employers bid salaries 50% above Gulf averages, squeezing startup burn rates. Universities have added joint degrees with MIT and KAUST, but near-term relief depends on imported expertise paired with accelerated upskilling bootcamps.

Other drivers and restraints analyzed in the detailed report include:

1. Mandatory E-Invoicing Roll-Out
2. Cloud-First Workload Migration
3. Fragmented Data-Governance Standards

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Software captured 44.72% revenue in 2025, reflecting the early monetization of language models and analytics engines customized for Arabic. The Saudi Arabia big data and artificial intelligence market size for software is projected to outpace hardware because recurring license fees and platform subscriptions accelerate top-line gains. Intensified investment in ALLaM and ArabianGPT keeps localization capabilities ahead of imported products, creating defensible moats. Services, though smaller, post a 34.85% CAGR as enterprises engage integrators for data pipeline orchestration and model retraining.

Vendors bundle software with managed services, blurring segment lines yet elevating gross margins. Hyper-vertical modules now surround ERP cores, automating invoice validation, Arabic voice chatbots, and reservoir optimization. Open-source packages such as Wan2.1, downloaded more than 2.2 million times, seed ecosystems for startups building compliant toolchains. This flywheel ensures the Saudi Arabia big data and artificial intelligence market maintains localized intellectual property that circulates royalty income domestically.

Large enterprises generated 68.71% of 2025 revenue after early pilots in predictive maintenance, robo-advisory, and real-time fraud detection. Their adoption curves reflect multi-year digital-core programs and captive data lakes. Yet SMEs now record a 36.20% CAGR because cloud platforms shrink entry barriers. The Saudi Arabia big data and artificial intelligence market share commanded by SMEs is expected to widen each year as subscription-based AI suites replace upfront licenses.

Government procurement quotas that favour local suppliers encourage small firms to embed AI in niche solutions, from halal-compliance scanning to Arabic sentiment analytics. Further acceleration comes from fintech open-banking rules that expose customer data via secure APIs, letting SME developers craft micro-services atop bank rails. Aggregated, these forces diversify revenue streams and lessen concentration risk in the Saudi Arabia big data and artificial intelligence market.

The Saudi Arabia Big Data and Artificial Intelligence Market Report is Segmented by Component (Hardware, Software, Services), Organisation Size (SMEs, Large Enterprises), End-User Vertical (IT and Telecom, Retail and E-Commerce, and More), Deployment Model (On-Premises/Hybrid, Public Cloud, and More), Technology, and Geography (Saudi Arabia). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. Microsoft Corporation
2. Amazon Web Services, Inc.
3. Google LLC (Google Cloud)
4. Oracle Corporation
5. SAP SE
6. IBM Corporation
7. NVIDIA Corporation
8. Saudi Telecom Company (STC Group)
9. Aramco Digital Company
10. Etihad Etisalat Co. (Mobily)
11. Alibaba Cloud (Alibaba Group Holding Ltd.)
12. Huawei Technologies Co., Ltd.
13. Databricks, Inc.
14. Snowflake Inc.
15. Palantir Technologies Inc.
16. SAS Institute Inc.
17. Teradata Corporation
18. QlikTech International AB
19. NEC Corporation
20. Nala AI Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support