Report Format:
| Pages: 110+
Type: Parent Industry Monitor
| ID: CCT1568
| Publication: June 2024
|
US$925 |
Saudi Arabia cloud computing market is experiencing remarkable growth, driven by the Kingdom's commitment to digital transformation and economic diversification under Vision 2030. The launch of Riyadh's Cloud Computing Special Economic Zone (CCSEZ) in April 2023 marks a pivotal step in positioning the country as a regional technology leader. Situated in the Innovation Tower at King Abdulaziz City for Science and Technology, CCSEZ provides world-class infrastructure, access to cutting-edge technologies, and a skilled workforce for cloud computing providers. With a projected compound annual growth rate (CAGR) of 16.85% from 2024 to 2029, the CCSEZ is expected to contribute 30% of the total information communications technology (ICT) spending in Saudi Arabia by 2030. This strategic initiative aligns with the Kingdom’s Cloud First Policy, fostering foreign investment, job creation, and a secure cloud ecosystem that benefits sectors such as finance, government, healthcare, and smart mobility.
The Saudi Arabia cloud computing market is witnessing a rapid surge in adoption, fueled by increasing reliance on cloud-based solutions. The country has recorded a 40% year-on-year growth in cloud computing registrations, with 1,759 permits issued in the last quarter of 2023. This trend underscores the rising demand for digital services and the Kingdom’s proactive approach to digital transformation. Further, tech giants such as Google and Oracle have made significant investments in Saudi Arabia. Google’s new cloud region is projected to contribute $109 billion to the economy and create approximately 148,600 jobs by 2030. Additionally, Oracle has committed $1.5 billion to expand cloud capacity in the Kingdom. These investments, along with the government’s $18 billion infrastructure initiative, are strengthening Saudi Arabia’s cloud computing industry and paving the way for future innovations.
Saudi Arabia cloud computing industry is undergoing a rapid transformation, driven by government policies and large-scale investments. Several key trends are shaping the market:
- Saudi Cloud Strategy: Launched in 2019, this framework serves as the foundation for cloud adoption in the Kingdom.
- Cloud First Policy: Encouraging businesses and government entities to migrate to cloud solutions for enhanced efficiency and security.
- Infrastructure Expansion: The Ministry of Communications and Information Technology (MCIT) has committed $18 billion to develop data centers across the Kingdom.
- Tech Giant Investments: Google, Oracle, and Cisco are establishing cloud regions and AI-driven services to boost digital transformation.
- Emerging Technologies: The integration of AI, Big Data, analytics, and IoT with cloud computing is driving innovation across multiple sectors.
These developments reflect the Kingdom’s ambition to set global benchmarks in cloud computing, ensuring robust security, scalability, and regulatory transparency.
The Saudi Arabia cloud computing market is highly competitive, with both global and local players contributing to its rapid expansion. Some of the major players include:
- Google Cloud: Launched its first Saudi cloud region in November 2023, contributing significantly to the local economy.
- Oracle: Established a second cloud region in Riyadh and is expanding to NEOM, strengthening its presence in the Middle East.
- Microsoft Azure: Partnered with Aramco Digital and Armada to deploy containerized Edge data centers, enhancing digital safety and AI-driven analytics.
- Cisco: Announced strategic initiatives, including AI talent development and local manufacturing, to support Saudi Arabia’s digitalization efforts.
- Hewlett Packard Enterprise (HPE): Showcasing AI-powered cloud solutions at LEAP 2025, emphasizing its commitment to local production and cloud services.
Saudi Arabia cloud computing industry is experiencing significant development through regulatory support and strategic investments. The Communications and Information Technology Commission (CITC) has introduced a Cloud Computing Regulatory Framework to enhance cloud services and ensure compliance. Additionally, the Kingdom’s focus on a robust digital economy is evident through:
- The establishment of Riyadh’s Cloud Computing Special Economic Zone (CCSEZ) to attract cloud providers and foster innovation.
- Armada and Microsoft’s partnership to deploy AI-driven digital safety solutions at Aramco construction sites.
- Oracle’s expansion with a second public cloud region in Riyadh, advancing cloud and AI capabilities.
- Cisco’s launch of advanced cloud data centers and AI talent programs in collaboration with KACST.
These strategic initiatives are propelling the Saudi Arabia cloud computing market forward, reinforcing the Kingdom’s ambition to become a tech leader.
Saudi Arabia Cloud Computing Market Scope