Saudi Arabia Cloud Block Storage Market Analysis, Size, and Forecast by Storage Type, Deployment Model, Industry, Organization Size, Use Case, and Pricing Model: 2019-2033

Saudi Arabia Cloud Block Storage Market Growth and Performance

• The Saudi Arabia cloud block storage market size in 2033 will be US$ XX5.1 Million, with a forecasted Compound Annual Growth Rate (CAGR) of 32.6%.
• In terms of storage type classification, the primary segment expected to lead is solid state drive (SSD) block storage, with an estimated market worth of US$ XX9.3 Million by 2033.

Saudi Arabia Africa Block Storage Market Outlook

Saudi Arabia cloud block storage market is undergoing a rapid transformation, driven by the Kingdom's ambitious digital initiatives, regulatory frameworks, and substantial investments in cloud infrastructure. The surge in cloud computing registrations, which saw a 40% year-on-year increase in Q4 2023, is a testament to the growing demand for scalable and high-performance cloud storage solutions. Riyadh has emerged as the epicenter of this growth, followed closely by Makkah and the Eastern Province, aligning with the nation’s goal to establish itself as a regional technology hub under Vision 2030.

The introduction of the Cloud First Policy in 2020 has significantly influenced the adoption of cloud block storage in Saudi Arabia. This policy mandates government entities to prioritize cloud-based solutions over traditional IT infrastructure, driving a shift towards Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Given the policy's emphasis on data localization and security, hyperscalers and cloud service providers are increasingly investing in sovereign cloud storage solutions, ensuring compliance with stringent cybersecurity regulations set by the National Cybersecurity Authority and the National Data Management Office.

The establishment of the Cloud Computing Special Economic Zone (CCSEZ) in Riyadh further reinforces Saudi Arabia’s commitment to fostering cloud innovation. The CCSEZ is expected to account for nearly 30% of the country’s ICT spending by 2030, making it a crucial hub for cloud storage providers. Companies operating within this zone benefit from advanced infrastructure, regulatory support, and access to skilled talent, enabling them to deliver optimized cloud block storage solutions for critical sectors like finance, healthcare, and government services. The increasing reliance on cloud storage is facilitating the adoption of data-intensive applications, including AI-driven analytics, telemedicine, and smart mobility, which require robust and scalable storage architectures.

Saudi enterprises are rapidly shifting towards hybrid and multi-cloud strategies, reflecting a broader global trend. According to the Nutanix Enterprise Cloud Index survey, 81% of organizations in Saudi Arabia recognize the advantages of hybrid multi-cloud environments, integrating private and public cloud storage solutions to optimize performance and cost efficiency. The demand for cloud block storage solutions is further fueled by the Kingdom’s growing investment in AI-powered storage optimization, enabling enterprises to manage unstructured data efficiently while reducing latency and operational costs. The expansion of Kubernetes-based storage solutions and cloud-native applications is also playing a pivotal role in the increasing adoption of block storage systems tailored for high-performance workloads.

The influx of global cloud providers into Saudi Arabia, particularly Google Cloud’s expansion in Dammam, highlights the strategic importance of data sovereignty in the region. Google Cloud, in partnership with CNTXT, is offering advanced data encryption and sovereign cloud controls, ensuring compliance with local data residency laws. The integration of Vertex AI within the Saudi market is further strengthening cloud-based AI storage capabilities, enabling enterprises to leverage machine learning-driven data management solutions. Additionally, the Oracle investment of $1.5 billion to expand its cloud capacity underscores the increasing demand for enterprise-grade cloud storage solutions in the Kingdom.

As cloud adoption accelerates, the economic impact of cloud investments is becoming more pronounced. Saudi Arabia's public cloud spending is projected to reach $2.5 billion by 2026, growing at a CAGR of 25%. With the IT services market expected to surpass $6.4 billion by 2027, cloud block storage solutions will play a crucial role in supporting digital transformation initiatives. The government’s investment of $18 billion in data center infrastructure is creating a robust foundation for cloud storage growth, attracting hyperscalers and local cloud service providers to establish a strong presence in the region.

Saudi Arabia’s cloud block storage market is poised for exponential growth, fueled by regulatory initiatives, foreign investments, and the increasing adoption of hybrid cloud strategies. As enterprises continue to prioritize data sovereignty, performance optimization, and AI-driven analytics, the demand for advanced cloud block storage solutions will surge. The Kingdom’s strategic initiatives, coupled with the expansion of hyperscalers and cloud-native innovations, will solidify Saudi Arabia's position as a regional leader in cloud computing and digital transformation.

Saudi Arabia Africa Block Storage Market Scope