Saudi Arabia SaaS 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: Regulatory updates for cloud provisioning and localisation have become decisive procurement filters for Saudi public and regulated buyers. The Communications, Space and Technology Commission issued Cloud Computing Services Provisioning Regulations in Oct-2023 that introduced registration, service-quality and localisation expectations for cloud operators. Procurement and legal teams now treat a provider’s registration status, documented export controls and certified hosting provenance as preconditions for consideration in government and critical-infrastructure projects. Architects segregate regulated processing into locally registered enclaves while adopting hybrid routing for non-sensitive functions. As a result, vendors offering registered, locally proven hosting combined with clear compliance artefacts shortened RFP cycles and reduced legal pushback for large-scale digital transformations.

Industry Player Insights: Companies shaping sector outcomes in Saudi include STC, AWS, Microsoft, and Oracle etc. STC announced strengthened collaborations with AWS and regional hyperscalers in Feb-2025 to fast-track cloud services and managed deployments for enterprise customers, which led systems integrators to present joint telco–hyperscaler bundles that combine local billing, SLA commitments and migration frameworks. AWS and other hyperscalers increased regional capacity and compliance documentation through 2024–2025, which encouraged enterprises to pilot low-latency, in-country-hosted SaaS modules for financial services and government workloads. Those commercial trajectories favoured suppliers that could pair hyperscaler-backed performance with telco-led local delivery and certified regulatory artefacts.