Saudi Venture Capital invests $30m in Olive Rock Partners Fund I

RIYADH: Saudi Arabia continues to prioritize artificial intelligence as a cornerstone of its digital transformation, a top official said.

In an interview with Arab News during the third edition of LEAP 2025, Mohammed Robayan, deputy minister for technology at the Saudi Ministry of Communications and Information Technology, stated that the Kingdom is dedicated to ensuring robust computing infrastructure to fuel AI-driven innovation and economic diversification.

He underscored that AI is at the heart of Saudi Arabia’s digital transformation strategy, with unwavering support from the nation’s leadership, government agencies, and the private sector.

“It’s all about AI. It’s top of mind of our leadership. It’s top of mind of our ministry, of the different government entities that we collaborate with to achieve this agenda,” Robayan said.

He continued: “It’s also top of mind of the private sector, which is extremely important, so AI is really important. We have to make sure that this computing power is available to our ecosystem here in Saudi Arabia. I would say this is the No.1 agenda item that we’re tackling.”

Robayan also emphasized that a flourishing startup ecosystem is a vital element of the nation’s long-term digital strategy. He highlighted that supporting startups is key to cultivating a pipeline of companies with the potential to become unicorns—startups valued at over $1 billion.

“But another important part is the startup ecosystem here in Saudi Arabia. This is extremely important. This feeds into the pipeline of companies that eventually graduate to become unicorns,” Robayan said.

He added: “We have seven unicorns already in the market, and you need to build the pipeline… We have multiple initiatives that we are working on.

Robayan went on to say: “We have the National Technology Development Program. We have the Garage. They have been extremely helpful. They’re pumping a lot of money into this tech sector here in Saudi, and this has resulted in jobs, which is a big priority for us.”

The Kingdom is also experiencing substantial private sector investments in AI and technology, which are crucial for bolstering computational capacity and supporting economic diversification under Vision 2030. According to Robayan, these investments will play a pivotal role in reshaping Saudi Arabia's technology landscape.

“These will enable us to, first of all, have different computer power that is necessary for the Kingdom to advance in its agenda. This is one of the highest priorities, technology and the adoption of technology,” he said.

He said the these initiatives will have a profound impact on the Kingdom and its efforts to diversify away from oil.

Additionally, ensuring a balanced regulatory framework is a key focus for the Ministry, as it strives to foster investment while protecting innovation.

“With regulation, you don’t want to overdo it—just enough to avoid stifling innovation. Protecting investments and ensuring the democratization of AI and compute power is critical,” Robayan said.

Cybersecurity is another top priority, with Saudi Arabia positioning itself as a global leader in cyber defense. Robayan stressed that collaboration with the National Cyber Security Agency plays a critical role in ensuring regulatory requirements are met early, offering clear guidelines for investors.

“Cybersecurity is extremely important, and you can imagine why and Saudi Arabia is one of the top-ranking countries in cybersecurity. This is also part of the education of the investors throughout the journey prior to announcing different investments. We don’t want any surprises to happen for them or for the market,” he said.

The Kingdom has already secured nearly $15 billion in tech investments announced at LEAP 2025, with more to come. Robayan hinted at upcoming initiatives to further accelerate the Kingdom’s digital transformation.

RIYADH: Digital system integrator Orange Business is set to roll out “Smart City-as-a-Service” in Saudi Arabia, aiming to drive significant financial and time savings, a senior company official said.

Speaking to Arab News on the sidelines of LEAP 2025 in Riyadh, Mohammed Al-Jeraisy, managing director for Saudi Arabia and Africa, said the service will develop Smart City applications for cloud deployment, capitalizing on the sector’s rapid growth.

The Saudi Smart Cities market is projected to expand considerably, with revenue expected to hit $560 million by 2025, according to data firm Statista. Globally, the US is forecasted to generate the highest revenue in the segment at $27.06 billion in the same year.

“This is something that is known — it’s a challenge. When you implement a Smart City solution, deployment is costly and time-consuming. These projects typically take years to develop and build. What a Smart City-as-a-Service solution does today is help customers adopt the solution quickly, saving both time and costs,” Al-Jeraisy said.

He added that the new model could cut costs by 40 to 60 percent and reduce adoption time by up to 80 percent.

Al-Jeraisy also highlighted the flexibility of the subscription-based model, which allows customers to choose specific Smart City services as needed.

“When it comes to Smart City services, there are many — plenty of them. You can think of major services like a city’s command and control center, which is essential. You also need solutions for the environment and applications for traffic management. Today, you can start using these services immediately and access them through the platform,” Al-Jeraisy said. 

The model enables customers to opt in and out of services as required. “You can subscribe to the service today, use it for as long as you need, and stop whenever you decide. You can then go for another service. I think that’s one of the key benefits we offer to customers,” he added.

Despite the name, Smart City-as-a-Service is not limited to cities, Al-Jeraisy said. “It can be used for campuses, stadiums, events, and even universities because what truly matters are the applications and use cases we build on the platform,” Al-Jeraisy said, noting that both small and large cities, as well as airports and schools, can benefit from these services.

Saudi Arabia is emerging as a leader in Smart City and AI adoption, he noted, adding that the global adoption rate for Smart City-as-a-Service currently stands at 33 percent and is expected to rise as more customers recognize its benefits.

Orange Business has been involved in large-scale Smart City projects in Saudi Arabia and the Middle East for more than a decade. It is engaged in major regional developments, including projects in Egypt and the Arabian Gulf states, and contributes to the SMART Africa initiative to accelerate sustainable socio-economic development across the continent.

The company signed a deal in September 2023 with the King Abdullah Financial District Development & Management Company to design, build, and operate a Smart City platform integrating existing digital technologies at Saudi Arabia’s prime business district, KAFD. 

The platform leverages AI and data analytics while providing Digital Master Systems Integration services. Orange Business is also orchestrating a partner ecosystem to drive new use cases and seamless integration.