Riyadh - Sharikat Mubasher: Artificial intelligence (AI) is rapidly transforming the Middle East and North Africa (MENA) region, positioning it as a rising global player in the digital economy. The adoption of AI is reshaping industries and contributing to economic diversification across the region, driven by significant investment and a growing ecosystem of startups.

The ‘2025 MENA Early Stage Data Handbook’ report, released by Clear World, revealed that Saudi Arabia hosts 110 AI ventures, representing 34% of MENA’s AI startups and ranking just behind the UAE, which accounts for 45% of the region’s AI ventures.

Together, Saudi Arabia and the UAE have four times as many AI ventures as the rest of MENA combined.

Additionally, the report stated that 12% of Egypt’s AI startups relocated to the UAE and Saudi Arabia, making Egypt the net-exporter and the largest exporter of AI startups in MENA.

The total number of active AI ventures in MENA reached 332 as of 2025, marking a 30% year-on-year (YoY) growth compared to 256 in 2024. This growth has been driven in part by many older startups rebranding themselves as AI startups.

Moreover, the report highlighted the pivotal role of AI in addressing MENA’s shortage of new startups by reducing prototype development time and increasing the efficiency of part-time founders. AI-empowered entrepreneurship could make building startups attractive again.