IMF Commends Saudi Arabia's AI Leadership, Projects 6% GDP Boost
The institution calls for addressing constraints to AI adoption and managing risks, including job displacements, to unlock productivity gains.
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Saudi Arabia’s investment in AI could increase the country’s economic output by around 6% over time, according to the International Monetary Fund (IMF), which praised the kingdom’s progress in building AI capabilities and digital infrastructure.
The assessment came in the IMF’s latest Article IV Consultation for Saudi Arabia, an annual review of the country’s economic and financial policies. The report said Saudi Arabia has emerged as a global leader in AI adoption, supported by sustained investment in digital infrastructure, regulatory reforms, and workforce development.
The IMF highlighted the role of the Saudi Data and AI Authority (SDAIA) in advancing the National Data and AI Strategy and the National Artificial Intelligence Index (NAII), noting that these initiatives have strengthened the country’s ambition to become a global AI hub.
“The authorities expect AI-related investment (including data centers) to remain robust despite the conflict, supported by investment commitments, low energy costs, and abundant land,” the report said.
The IMF also warned that Saudi Arabia will need to address barriers to AI adoption and manage risks such as labor displacement to fully realize the technology’s productivity gains.
The report follows a series of major AI investments by Saudi Arabia. In June, the kingdom announced plans to invest $100 billion in AI infrastructure through HUMAIN, while recent research from Amazon Web Services found Saudi AI startups outperforming many global peers on several growth metrics.
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