The Saudi tech industry experienced significant growth in the second quarter, marked by a notable rise in registrations for artificial intelligence (AI) technologies and cloud computing services. According to the Ministry of Commerce’s quarterly business sector bulletin, the Kingdom issued 8,948 official identification cards for AI technologies during the second quarter, compared to 5,820 in the same quarter last year, representing a 53 percent increase. Similarly, 2,358 documents were issued for cloud computing services, up from 1,648 in the same quarter of the previous year, showing a 43 percent rise.
This growth reflects Saudi Arabia’s strong global market competitiveness, as the nation ranks 16th out of 67 countries in the World Competitiveness Ranking by the International Institute for Management Development. Riyadh accounted for the largest share of AI technology permits with 5,492, followed by Makkah with 1,789, the Eastern Province with 939, Madinah with 254, and Asir with 115.
The data also revealed a surge in the arts, entertainment, and leisure sector, with 20,465 commercial records issued in the second quarter of this year, up from 16,438 in the same period last year. Additionally, the electronic games sector saw 336 registrations in the second quarter of this year, up from 260 in the same quarter the previous year, indicating a 29 percent growth.
Meanwhile, the ground passenger transport services sector issued 8,213 records in cities and suburbs in the second quarter, up from 6,227 in the same period last year. The short-term accommodation sector experienced a 22 percent increase, issuing 22,435 business records compared to 18,398 in the same quarter last year. The mining and quarrying sector recorded 7,871 registrations, up from 6,671 in the same quarter last year.
The pharmaceuticals and medical products business saw a 34 percent increase in issuance, with 1,155 commercial records issued compared to 859 in the same quarter the previous year. Overall, the ministry issued more than 120,000 commercial registrations in the second quarter of 2024, marking a 78 percent year-on-year increase. Specifically, a total of 121,521 official identification cards for businesses were issued during the period, up from 68,222 in the same period last year.