Iran Invests Less Than $50 Million in AI and Smart Technologies, Minister Admits

The Iranian Ministry of Information and Communications Technology (ICT) and the National Development Fund signed a cooperation agreement on Saturday, April 12, 2025, aimed at advancing "smart governance and an AI-driven economy."

At the signing ceremony, ICT Minister Sattar Hashemi acknowledged Iran’s lagging position in the global AI index. “Our regional standing is not satisfactory,” he said. “Iran ranks 60th globally, while countries like Saudi Arabia and the UAE are performing significantly better.”

Hashemi attributed this gap to limited investment in the sector. “Saudi Arabia and the UAE have heavily invested in digital economy infrastructure and artificial intelligence. Saudi Arabia’s investment is estimated at around $20 billion, and the UAE’s at $1.4 billion. In contrast, Iran’s investment in AI and smart technologies has been less than $50 million.”

Mahdi Ghazanfari, head of the National Development Fund, also announced at the event that the fund will allocate 15 trillion rials (roughly $300 million) in loans to knowledge-based companies in the coming year.