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

14% GDP Contribution by 2030 $91B Absolute Contribution Rank: #1

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

12.4% GDP Contribution $135.2B Absolute Contribution Rank: #2

Key Initiatives:

  • $100B Project Transcendence
  • SDAIA (Saudi Data & AI Authority)
  • GAIA AI Accelerator ($1B)
  • 45,000+ AI professionals trained

Israel

8.5% GDP Contribution $45B Absolute Contribution Rank: #3

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

AI Development Timeline

2017
UAE launches National AI Strategy
2020
Saudi Arabia establishes SDAIA
2024
$100B Project Transcendence launched
2025
$14.9B investments announced at LEAP