Saudi Arabia has dedicated $100 billion to developing AI and semiconductors, aiming to strengthen its position as a technology leader and diversify beyond oil.
According to a Bloomberg report published on the 7th November 2024, “Project Transcendence” is the initiative that will attract the best talent to the kingdom. Furthermore, it will also strengthen the local technology ecosystem.
#Saudi Arabia is preparing a new #AI project with support of up to $100 billion and aimed at developing a technology hub capable of competing with its neighbors. #UNITED ARAB EMIRATES via @technology @DNair5 @MattMartin128 @EdLudlow
– Zainab Fattah (@ZainabFattah) November 7, 2024
Additionally, Saudi Arabia is striving to become a leader in the region’s AI and semiconductor sectors, and become the technology hub of the UAE.
The investment will be initiated by Saudi Arabia’s Public Investment Fund (PIF), while development activities will be done through its technology-focused unit, ‘Alat’.
DISCOVER: Generative AI and 3 Scary Things Artificial Intelligence Will Do by 2030
Will AI and semiconductors boost the Saudi crypto market?
Saudi Arabia’s $100 billion AI and semiconductor initiative is expected to potentially support the growth of the blockchain and cryptocurrency sector in the kingdom.
Edge Middle East reported that the Middle East and North Africa accounts for 7.5% of the cryptocurrency market, valued at $338.7 billion, according to on-chain data from July 23 to June 24.
The latest investment aligns with Saudi Arabia’s goal of building technological infrastructure capable of meeting the IT requirements of blockchain technology.
Saudi Arabia’s initiatives aim to elevate its position in digital finance, making it an attractive destination for institutional crypto investors.
Additionally, Saudi Arabia recently joined the mBridge project, a central bank digital currency (CBDC) pilot organized by the Bank for International Settlements (BIS). This is done in partnership with the central banks of China, Hong Kong, Thailand and the United Arab Emirates.
The mBridge project focuses on enabling faster and more cost-effective cross-border transactions via CBDCs. Saudi Arabia’s participation reflects its interest in exploring CBDCs through a regulated international collaboration. This allows the Kingdom to assess the potential benefits of digital currency solutions in global finance.
Reinventing the Saudi Economy with AI and the Power of Semiconductors
Through Alat, Saudi Arabia’s Public Investment Fund plans to channel its resources towards building a domestic AI and semiconductor industry.
Speaking at the 8th FII Conference, Amit Midha, CEO of Alat, said: “Our mandate is to build a global supply chain node, enabling world-class companies to establish a presence in Saudi Arabia. . »
"Saudi Arabia stands ready to partner for resilience." CEO of Alat @amitmidhaCEO highlighted how the Kingdom is poised to lead the next era of global supply chains through #Alat to recent #FII8 in Riyadh. #TomorrowDoesBetter pic.twitter.com/NnRpRsZ7CA
—Alat | #TomorrowMakesBetter (@alat_tech) November 8, 2024
This effort would primarily target sectors where AI integration could improve efficiency and meet global standards.
Meanwhile, in the semiconductor sector, Alat focuses on establishing a manufacturing and production network that serves local and international markets.
The collaboration would focus on developing a skilled workforce in AI and semiconductor technologies. This aligns with the broader diversification goals of Vision 2030.
Additionally, the kingdom is partnering with major technology companies like Lenovo Group, which signed a $2 billion convertible bond deal with Alat. The initiative will aim to establish Lenovo’s regional headquarters and manufacturing facility in Saudi Arabia to serve the Middle East and Africa.
DISCOVER: The Next AI Boom: Will There Be OpenAI Stock?
Saudi Arabia’s tech expansion signals major economic shifts
Saudi Arabia’s investments in AI and semiconductors have attracted considerable international interest. Bloomberg highlighted a regional shift toward technology-driven development.
Partnerships with companies like SoftBank and Lenovo could essentially create avenues for foreign direct investment (FDI). This will allow Saudi Arabia to align with Western technology standards and collaborate with US-based companies.
Saudi Arabia is focusing on workforce development and expansion of manufacturing facilities. Therefore, tThis could mean a shift from an economy dependent on oil to one centered on innovation and technology.
Saudi Arabia’s $100 billion AI vision: can it surpass the UAE’s tech hub? appeared first on .
