Saudi Arabia IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Saudi Arabia’s trajectory is shaped by Vision 2030’s digital mandates, surging AI adoption, and the government’s push for large-scale sovereign cloud infrastructure (Oct-2023). Enterprises increasingly prioritize domestic compute zones to comply with regulatory and sectoral requirements. A defining example is the rapid build-out of hyperscale-ready DC capacity across Riyadh and Dammam, accelerating hybrid-cloud adoption in BFSI, telecom, and public-services sectors.

Industry Progression: Progression gained momentum with Google Cloud’s Nov-2023 confirmation of its Saudi Arabia cloud region launch plan, designed to support AI workloads and regulated industries. This reshapes the competitive field by boosting domestic cloud availability and accelerating timelines for local providers to enhance resilience and multi-zone architectures.

Industry Player Insights: Saudi Arabia’s national cloud ecosystem is shaped by Amazon Web Services, Google Cloud, STC Cloud, and Mobily Cloud. STC Cloud’s Jan-2024 expansion of its Riyadh DC added sovereign-aligned compute capacity, strengthening national AI-readiness and intensifying competition with incoming hyperscalers.