Other BriefingsSaudi Arabia, China Working Closely Together In Artificial Intelligence Life Management Applications
Riyadh could develop as an AI hub serving the Middle East and Central Asia
While Xi Jinping’s State Visit to Saudi Arabia last week gained a great deal of attention, it is actually a rather smaller Saudi-Sino deal agreed a couple of months earlier that may yet prove to have the longer lasting implications.
The Saudi Company for Artificial Intelligence (SCAI) has announced an investment of US$776 million in a joint venture with China’s SenseTime to develop the artificial intelligence ecosystem in the country. The announcement was made by Ayman AlRashed, CEO of SCAI, during the Global AI Summit in Riyadh on September 13.
SCAI is wholly owned by the Saudi Arabian Public Investment Fund, and coordinates with the Saudi Vision 2030, the National Development plan that sets out impressive goals to transform the country – and is increasingly aligned with China’s Belt and Road Initiative. SCAI aims to position Saudi Arabia as a global AI leader by supporting local firms as they start to embrace the new technologies that AI will introduce.
According to a press release made at the time, SCAI will work closely with SenseTime, including the joint operations of an AI laboratory acting as a dedicated research and development center, allowing the next generation of data scientists to benefit from the transfer of AI technology from China.
“Today’s agreement represents an important strategic step on SCAI’s journey to develop national capabilities and build a robust, innovation-driven AI ecosystem. We look forward to working closely to provide world-class AI solutions that will contribute to the success of diverse smart city, business intelligence, health care, and education initiatives in the Kingdom and beyond.” said AlRashed.
Xu Li, executive chairman and CEO of SenseTime, said: “It’s exciting to see the rapid digital transformation that the Kingdom of Saudi Arabia is undertaking, especially in the development of an AI ecosystem.” Li added that the new partnership will contribute to the goals outlined in Vision 2030 and will emerge as a “driving engine of next-generation cities across the Kingdom.”
He further noted that Saudi Arabia is undergoing a rapid digital transformation, especially in the AI sector.
In January this year, SCAI launched operations in the country to develop artificial intelligence and emerging technologies industries. Al-Rashed said that AI is swiftly altering the way of living and the Kingdom should invest in the sector’s foundation to unveil long-term sustainable value for shareholders. The launch of SCAI is a part of the Kingdom’s plan to diversify its economy by 2030, and also aligns with PIF’s strategy aimed at prioritizing thirteen major sectors, including technology.
According to SCAI, this includes smart technologies to be used in the energy, education, healthcare, government, financial and smart city arenas. This will certainly be needed to power futuristic projects such as ‘The Line’. The Line is a linear smart city under construction in Saudi Arabia in Neom, Tabuk Province, which is designed to have no cars, streets or carbon emissions. The 170 km long project is also part of Saudi Vision 2030 project, which Riyadh claims will create 460,000 jobs and add US$48 billion to the country’s GDP. The Line is planned to be the first development in Neom, a US$500 billion project which also includes resorts and eco-friendly areas. The Line city plans anticipate a population of 9 million.
The significance of these projects should not be underestimated. ‘The Line’ lays out a concept where humans can live under difficult external conditions created by global warming and desertification, where issues such as recycling and green technologies are paramount. AI is of course needed to drive and manage the support systems.
Chris Devonshire-Ellis of Dezan Shira & Associates points out other implications, stating that “With this partnership, Saudi Arabia will develop as a regional AI development hub. Saudi Arabia is also a candidate member for the enlarged BRICS grouping and is already a dialogue partner to the Shanghai Cooperation Organisation – both alongside China and Russia. This means that new AI technologies can be expected, should the partnership prove successful, to be based on Saudi-Sino technical knowledge and assist in building AI developments across the entire Middle East and Central Asian regions, possibly with Riyadh as a partial central hub.”
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