Saudi Arabia has long relied on oil as the main pillar of its economy, but the situation is now changing. Investment Minister Khalid Al Falih stated that more than half—50.6% to be exact—of the Saudi economy is now unrelated to oil. Moreover, this share continues to grow. Government revenues previously depended almost exclusively on oil, but now 40% of them come from other, non-oil sectors. Khalid Al Falih said this in an interview with CNBC, where he emphasized that the kingdom is performing well but wants to accelerate diversification and growth even further.
The kingdom's economy is expanding into new areas such as artificial intelligence (AI), tourism, and sports. According to the quarterly budget report, total government revenues in the first half of 2025 reached 565.21 billion Saudi riyals, equivalent to approximately CZK 3.187 trillion. Oil accounted for 53.4% of these revenues, down from 67.97% in the same period in 2019. In 2024, gross domestic product (GDP) grew by 1.3%, with non-oil sectors expanding by 4.3%, while oil activities declined by 4.5% compared with the previous year.
A Major Bet on AI
Saudi Arabia has identified artificial intelligence as one of its main areas of growth. Khalid Al Falih stated that the kingdom will become a key investor in the development of AI applications and large language models. It plans to build data centers on a massive scale and at competitive prices unavailable elsewhere. According to him, AI has emerged over the past three to four years and will define the future of every country. Those that invest will lead, while the rest will be left behind.
Groq CEO Jonathan Ross told CNBC that Saudi Arabia is an ideal location for AI infrastructure because of its energy surplus. According to a PwC study, AI could generate gains exceeding CZK 2.854 trillion for the kingdom by 2030. The national AI strategy, which is part of the broader Saudi Arabia Vision 2030 plan, integrates AI into areas such as cloud computing, high-performance computing (HPC), data management, and key sectors. The aim is to modernize public services in healthcare, education, energy, logistics, etc.
Testing Grounds and Global Cooperation
Projects such as NEOM serve as vast testing grounds for AI in practice. These initiatives deliver real-world benefits in energy, logistics, smart cities, and sustainable infrastructure. Saudi Arabia is investing heavily in cloud capacity, high-performance computing, and smart cities, attracting global technology companies while supporting local talent and startups. The goal is to create an environment where research, innovation, and commercialization intersect.
The Saudi Arabia AI Summit has become an important meeting place for policymakers, entrepreneurs, and scientists. This summit is not merely symbolic—it serves to showcase practical applications and build partnerships with AI companies in the Middle East and elsewhere. The kingdom is thus actively shaping global AI standards. Talent programs include specialist training, research support, and the development of regulatory frameworks. They focus on machine learning, robotics, and natural language processing to address local challenges.
Sources: cnbc.com and beam.ai
