Saudi Arabia to account for 27% of artificial intelligence investments by 2025
The latest data from MAGNiTT, a platform specializing in tracking venture capital investment in startups, reveals a radical shift in the fintech and technology landscape of the Middle East and North Africa. The figures show an unprecedented surge in capital flows into the artificial intelligence sector during 2025, reflecting a growing maturity in the region's investment environment.
Record numbers and exceptional growth
According to the report, the value of venture capital investments in artificial intelligence in the region jumped to $858 million , registering a massive increase of 211% 194 deals executed at an annual growth rate of 28%, indicating an open appetite among investors to adopt modern technologies.
The Kingdom strengthens its digital leadership
At the heart of this growing landscape, Saudi Arabia has emerged as a pivotal player, attracting nearly $235 million of these investments. This represents approximately 27% of the total funds invested in the artificial intelligence sector across the Middle East and North Africa region. This achievement reflects the success of the Kingdom's strategic plans under Vision 2030, which aims to diversify the national economy and reduce dependence on oil by building a robust digital economy based on knowledge and innovation.
Artificial intelligence as a cornerstone of the future economy
Analytical data indicates that artificial intelligence is no longer merely a sub-sector, but has become a fundamental pillar of the region's venture capital ecosystem. The sector accounted for 22% of total venture capital invested in 2025, double the figure recorded in 2024. This qualitative shift underscores the growing awareness among investment funds and individual investors of the strategic importance of AI technologies and their potential to drive fundamental changes across various economic and service sectors.
Investor preferences: AI-powered companies lead the way
In a detailed breakdown of the investments, the report revealed a clear trend toward companies where artificial intelligence (AI-native) is at the core of their operations. These AI-based startups successfully raised $589 million , representing 69% of the total funding allocated to the sector. In contrast, companies that utilize AI as a tool (AI-enabled) raised approximately $269 million . This disparity reflects investors' desire to support deep innovation and radical technological solutions that can deliver high and sustainable added value to the regional and global economy.
