AI-native startups in Saudi Arabia 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 Strand Partners.
The Engines of Growth study surveyed 3,413 founders and senior executives across 20 countries. KSA’s AI-native startups recorded average annual revenue growth of 150%, compared with 62% across startups in the country overall and 156% for AI-native startups globally.
The report also found that 48% of Saudi Arabia’s AI-native startups generate more than $400K in revenue per employee, compared with 28% of startups overall. Meanwhile, 89% reported productivity gains from AI, versus 64% across the wider startup sector.
AI-native companies were also more likely to have a formal AI strategy, with 72% reporting one, and 98% had cloud services in place. In addition, 63% had developed proprietary AI capabilities such as custom models.
The segment remains relatively small: just 15% of Saudi Arabia startups qualify as AI-native, compared with 30% in the US and 27% in Singapore. The report also found that 51% of Saudi Arabia’s AI-native startups increased AI spending over the past year.
Source: Jawlah
