Saudi Arabia on Track to Become the Silicon Valley of the Middle East, Say Experts

RIYADH – Saudi Arabia is rapidly emerging as a leading regional tech powerhouse, with experts drawing parallels to Silicon Valley due to the Kingdom's bold investments, strategic partnerships, and its Vision 2030 reform agenda.

A $100 Billion Vision: Project Transcendence

At the core of Saudi Arabia’s tech transformation is Project Transcendence, a $100 billion initiative launched in 2024 by the Public Investment Fund (PIF) in collaboration with Google. The project aims to create a comprehensive artificial intelligence ecosystem within the Kingdom, fostering homegrown startups, generating employment, and forming strong ties with global tech firms.

This initiative complements the annual LEAP technology conference, which continues to garner global attention. The 2025 edition drew over 170,000 visitors and secured more than $14.9 billion in tech investments, reinforcing Saudi Arabia’s position as a magnet for innovation and investment.

Vision 2030: Driving the Digital Shift

These efforts align closely with Vision 2030, the Kingdom’s ambitious economic diversification plan aimed at reducing dependency on oil by investing in sectors such as AI, fintech, and digital infrastructure.

Noor Alnahhas CEO of UAE-based tech company nybl, praised Saudi Arabia’s rapid transformation, saying:

“This is the Silicon Valley of the Middle East — a thriving ecosystem for AI and deep tech startups. The momentum here is unlike anywhere else in the region.”

Infrastructure, Talent, and Partnerships

Mamdouh Aldoubayan , MENA Managing Director at Globant, emphasized the importance of strategic partnerships and robust infrastructure:

“Saudi Arabia is investing heavily in digital infrastructure and innovation. Long-term partnerships are essential to sustaining this growth.”

However, he also noted challenges such as the need for a strong local talent pipeline and the complexity of regulatory navigation as the tech sector rapidly expands.

The Role of SMEs and Homegrown Innovation

Vikas Panchal, Middle East GM at Tally Solutions, highlighted the pivotal role of SMEs in driving digital transformation:

“SMEs are thriving in Saudi Arabia’s pro-business environment, thanks to support from initiatives like Monsha’at and investments in scalable tech tools.”

Still, the cost and expertise gaps in adopting digital tools remain obstacles for many small businesses, particularly when transitioning to AI and cloud-based systems.

Al-Nahhas stressed the importance of developing local innovation instead of relying solely on imported technologies. He pointed to China’s DeepSeek AI, which has surpassed ChatGPT in performance and global popularity, as a lesson in the power of domestic innovation.

“Why import tech when Saudi Arabia has the resources to lead? To truly become a tech leader, the Kingdom must invest in homegrown deep tech solutions.”

Security, Startups, and Sustainable Growth

As Saudi Arabia’s digital landscape evolves, concerns over cybersecurity and data privacy are rising Dhrav Verma, CEO of Thriwe, noted that robust data protection laws are essential but could pose challenges for foreign companies unless private sector collaboration remains strong.

Arun Bruce , CEO of consultancy firm TransformationX, reiterated the importance of cultivating the local startup ecosystem to achieve sustainable long-term growth.

“The startup scene in Saudi Arabia is growing with support from accelerators and public funding, but more local innovation is needed to compete with global hubs.”

He cited PIF-backed ALAT as a model for driving Saudi-led technological advancements.

The Road Ahead

As the Kingdom continues its digital journey, experts agree that building domestic capabilities, attracting global talent, and fostering innovation will be key to sustaining its rise as a global tech hub.

“Saudi Arabia isn’t just consuming technology anymore,” said Al-Nahhas. “It’s poised to create the next wave of innovation for the world.”