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Smart Energy Management Solutions Through AI in Saudi Arabia

Opportunity overview

Develop smart software solutions to monitor and manage energy consumption.

Invest in developing AI-powered smart energy management solutions in Saudi Arabia. This initiative aligns with the country’s ambitious Vision 2030 goals for sustainable energy transition, leveraging advanced technologies like AI, IoT, and cloud computing to monitor and optimize energy usage across households, industries, and utility grids.

Key Highlights

Market Potential :

Cumulative market capture by local players could reach SAR 1,904 million by 2033.

Investment Requirements :

Estimated cumulative investment of SAR 240 million by 2033.

Profitability :
  • EBITDA: ~13.4% expected by 2033
  • IRR: 27% expected within KSA

Market Drivers :

  • Increasing demand for energy optimization from households, industries, and grid operators.
  • Strong national push for AI-based solutions in the energy sector, backed by a SAR 75 billion government investment in AI projects by 2030.
  • Growth in predictive analytics and cloud-based applications globally.

Why Invest in Saudi Arabia ?

  • The KSA market accounts for 30% of the MEA market, growing at 16% CAGR annually until 2026.
  • Strategic location offers scalability and export opportunities to the wider MEA region.
  • Ecosystem support from institutions like SDAIA and KAUST for talent training and intellectual property protection.

Additional Highlights

  • Aramco’s success with AI-based solutions demonstrates tangible benefits, such as reducing energy consumption by 18% and maintenance costs by 30%.
  • National strategies and frameworks prioritize the development of supporting technologies like 5G, IoT, and robotics.
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