Dispatches from the Field: Insights from LEAP 2025

LEAP 2025, held from February 9-12 in Riyadh, marked a significant milestone in Saudi Arabia’s aim to become a global digital technology center, aligning with its Vision 2030 plans. Drawing over 200,000 attendees, the event prominently featured advancements in artificial intelligence (AI) and data analytics, showcasing an array of data center hardware, applications, smart home devices, and AI-driven Internet of Things (IoT) solutions. A notable observation was that many of the IoT solutions presented were primarily developed by system integrators utilizing third-party hardware.

One of the key themes of the event was Saudi Arabia's commitment to investment in hard-tech industries, particularly semiconductor manufacturing, with an impressive $14.9 billion allocated for this sector. Noteworthy collaborations included a $1.5 billion agreement between Aramco Digital and Groq aimed at enhancing AI-enabled cloud computing services, alongside a $2 billion investment from Alat and Lenovo to develop an AI and robotics manufacturing hub in Riyadh.

Despite housing over 1,000 startups, half of which center around AI and IoT, the country’s hardware startup ecosystem is still in the developmental phase. Saudi Arabia is actively working to attract 50 semiconductor companies by 2030, with a key objective of achieving its first chip tape-out by July 2025, a significant benchmark that would elevate the nation’s semiconductor capabilities. However, many hardware solutions showcased at LEAP 2025 were manufactured abroad, indicating a substantial opportunity for entrepreneurs committed to establishing and developing hardware businesses in the country. Companies such as Qualcomm are already setting up local development teams in Riyadh, demonstrating the growing interest in long-term investment in the region.

The presence of ventureLAB's client, Lumotive, highlighted the possibilities within this evolving landscape. Lumotive announced a joint venture with E-Photonics focused on manufacturing LIDAR solutions locally, underscoring the event's role in fostering partnerships that benefit both regional and global markets. E-Photonics garnered significant interest during the expo, indicative of the demand for innovative technology solutions in Saudi Arabia.

Overall, LEAP 2025 reinforced Saudi Arabia's ambitious vision to carve out a prominent role in the international technology sphere. The event showcased a strategic focus on the integration of AI within consumer electronics, advancements in semiconductor production, and the cultivation of a robust deep tech ecosystem. The rapid adaptation and investment in these areas create a fertile ground for prospects in the hardware and deep tech sectors.

Additionally, Riyadh offers a welcoming environment for foreign businesses, with English widely spoken, simplifying the process of building connections and navigating the business landscape. The event provided ample networking opportunities, allowing for potential partnerships in semiconductor manufacturing, packaging, testing, market insights, and talent acquisition.

In conclusion, those interested in capitalizing on the increasing tech opportunities in Saudi Arabia can consider this an opportune time to invest and establish a local presence, taking advantage of the growing trajectory in the technology domain.