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LEAP 2025, held from February 9-12 in Riyadh, showcased Saudi Arabia’s ambitious push to become a global technology hub under its Vision 2030 initiative, attracting over 200,000 attendees. A significant focus of the event was on AI and data analytics solutions, including various data center hardware, applications and tools alongside smart home devices and AI-driven IoT hardware. Notably, IoT solutions were presented mainly by system integrators using third-party hardware.
The event also highlighted the country’s commitment to hard-tech development, particularly semiconductor manufacturing, with an impressive $14.9 billion in investments announced. Notable partnerships included a $1.5 billion deal between Aramco Digital and Groq to enhance AI-powered cloud computing and a $2 billion investment from Alat and Lenovo to establish an AI and robotics manufacturing hub in Riyadh.
While Saudi Arabia boasts over 1,000 startups, with half focusing on AI and IoT, the hardware startup ecosystem is still emerging. However, with active semiconductor investments, the country aims to attract 50 semiconductor companies by 2030, with the goal to achieve its first chip tape-out by July 2025—a significant milestone that, if realized, will advance the country’s semiconductor capabilities.
That said, most hardware solutions promoted at the show appeared to be manufactured elsewhere, highlighting many opportunities for founders who are willing to commit long-term to establishing and expanding their businesses in the region. If you have a long-term vision for building a hardware company here, now is the time to invest and establish your presence, despite the near-term challenges. It is no surprise that companies like Qualcomm are establishing local development teams in Riyadh. In the short term, there are abundant opportunities for hardware device and solution developers to partner with local companies to distribute their products, perhaps while assessing the feasibility of setting up local operations.
My ventureLAB HCI client, Lumotive, announced a joint venture with E-Photonics at the show. This partnership was formed to manufacture LIDAR solutions locally for the region and global markets. At LEAP 2025, E-Photonics stood out in this category. It is no surprise that their booth attracted significant traffic and captured the attention and engagement of one of the most prominent Saudi Arabian companies present at the event.
Overall, LEAP 2025 highlighted Saudi Arabia’s determination to become a leading player in the global technology arena. The show emphasized their strategic focus on integrating AI with consumer electronics, advancing semiconductor manufacturing, and cultivating a strong deep tech ecosystem. The country is rapidly adapting and presents excellent opportunities for companies in the hardware and deep tech sectors. Riyadh is also a safe and welcoming destination, with English widely spoken, making it easier to establish connections and navigate the business landscape.
I made many valuable connections that could assist ventureLAB founders with semiconductor manufacturing, packaging, testing, market insights, event marketing, setting up a local office, hiring talent, and more. Feel free to reach out if you’d like to explore opportunities in the region.
Signing off from Riyadh—where the weather is hot, but the tech opportunities are even hotter.
—Ravi
