Middle East AI Market Overview
$2.37B
2024 Market Size
38.3%
CAGR (2025-2030)
$15.83B
2030 Projection
6.1%
Global Market Share
The Middle East artificial intelligence market is experiencing unprecedented growth, driven by ambitious national strategies, substantial investments, and a strong focus on economic diversification. The region accounted for 6.1% of the global AI market in 2023 and is projected to reach $15.83 billion by 2030.
Key drivers include government initiatives, growing startup ecosystems, and strategic partnerships with global tech leaders. The UAE and Saudi Arabia are leading the regional AI race, with both countries implementing comprehensive national AI strategies.
Market Size & Growth Projections
Key Insights
- Market expected to grow from $2.37B in 2024 to $15.83B by 2030
- Compound Annual Growth Rate (CAGR) of 38.3% from 2025-2030
- Middle East projected to gain $320B in economic benefits from AI by 2030
- AI spending in MEA region expected to reach $6.4B by 2026
Country Analysis
United Arab Emirates
Key Initiatives:
- World's first Minister of AI
- $100B AI investment fund (MGX)
- World's largest AI data center cluster
- Microsoft-G42 $1.5B partnership
Saudi Arabia
Key Initiatives:
- $100B Project Transcendence
- SDAIA (Saudi Data & AI Authority)
- GAIA AI Accelerator ($1B)
- 45,000+ AI professionals trained
Israel
Key Initiatives:
- Center for Regulation and AI Policy
- Strong startup ecosystem
- Advanced R&D capabilities
- Defense and cybersecurity focus
Investment Landscape
$660M
Total Funding (2022-2024)
322
AI Deals
66%
YoY Growth (2024)
Major AI Funds
MGX AI Fund
$100B
UAE
HUMAIN
$15B
Saudi Arabia
STV AI Fund
$1B
Saudi Arabia
Startup Ecosystem
322
AI Deals (2022-2024)
66%
Funding Growth (2024)
20%
of all VC Deals
Notable AI Startups
Perle
$9M
UAE - AI Training
DEEP.SA
$1.2M
Saudi Arabia - AI Solutions
Halan
$157.5M
Egypt - Mobility
Talent Development
45,000+
AI Professionals Trained
20,000
Target by 2030 (Saudi Arabia)
#1
Global Rank for Gov AI Strategy
Key Talent Initiatives
- SDAIA Training Programs
- MBZUAI (Mohamed bin Zayed University)
- National Coding Programs
- University AI Curricula
- Global Talent Attraction
Skills in High Demand
Future Outlook
$320B
Economic Impact by 2030
250,000
New Jobs Expected
2%
Global AI Benefits Share
Challenges
- Talent shortage, especially senior roles
- Regulatory frameworks development
- Data privacy and security concerns
- High infrastructure costs
- Global competition for resources
Opportunities
- Economic diversification from oil
- Global leadership positioning
- Youth employment solutions
- Technology export potential
- Regional collaboration growth