Saudi Arabia’s AI-native startups are 4.9 times more likely to generate more than $1M in annual revenue than traditional startups, according to a new report from Amazon Web Services (AWS) and UK-based communications firm Strand Partners.
The Engines of Growth study surveyed 3,413 founders and senior leaders across 20 countries. Saudi AI-native startups reported average annual revenue growth of 150%, compared with 62% for startups overall in the Kingdom and a 156% global average for AI-native companies.
The report also found that 48% of Saudi AI-native startups generate more than $400K in revenue per employee, versus 28% of startups overall. Some 63% have built proprietary AI capabilities, while 72% have a formal AI strategy and 98% use cloud services.
AI-native companies remain a small segment of the local ecosystem. Only 15% of Saudi startups meet the report’s definition of AI-native, compared with 30% in the US and 27% in Singapore.
The report said 89% of Saudi AI-native startups have seen productivity gains from AI, while 51% increased their AI spending over the past year. Globally, the biggest constraints for AI-native founders were access to capital, talent shortages and regulatory complexity.
Source: Middle East AI News
