Saudi Arabia Cloud Services Market - Growth, Trends,COVID-19 Impact, and Forecasts (2022-2027)

Saudi Arabia Cloud Services Market is Segmented by Deployment (Public Cloud, Private Cloud), and by End-User Industry (Oil, Gas and Utilities, Government and Defense, Healthcare, Financial Services, Manufacturing, and Construction)

Market Snapshot

Saudi Arabia Cloud Services Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 17.76 %
Saudi Arabia Cloud Services Market Major Players

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Market Overview

The Saudi Arabia Cloud Service Market is expected to register a CAGR of 17.76% during the forecast period. The market is expected to witness growth owing to the growing requirements for lower Capital Expenditure, increasing adoption of digital business strategies, growing demand for the Internet of Things (IoT), and faster and easier deployment of cloud services.

  • The government of Saudi Arabia has prioritized the adoption of cloud infrastructure in the country and added this as a pivotal aspect of Saudi Arabia's Vision 2030 program, which is primarily concerned with the government's digital transformation. A cloud-first strategy improves service quality, lowers the total cost of ownership, strengthens cybersecurity, and improves interoperability with other organizations. E-government services are being implemented to save costs, increase facilities, save time, and improve the public sector's overall efficacy and performance. In addition to such adoptions, the Kingdom of Saudi Arabia has enacted a cloud-first policy. This plan aims to hasten the transition of government organizations from traditional IT to cloud-based solutions.
  • Cloud services significantly reduce the capital required to start a new firm or sustain and expand an existing one. Many entrepreneurs who previously could not launch their dream businesses owing to a lack of funds to spend on IT and database technologies and infrastructure can start their business with the help of cloud services. For example, Nana Direct, a Saudi-based online grocery shopping firm, has partnered with Google Cloud to change the Kingdom's shopping experience. Nana Direct will be able to connect homes with local grocery retailers and ensure home delivery in under 15 minutes because of the partnership.
  • The country is witnessing increasing penetration of global cloud technology giants in the region. The high adoption and the availability of services in the country are driving the Saudi Arabia cloud services market. For example, Alibaba Cloud has formed a joint venture in Saudi Arabia with Saudi Telecom Co and eWTP Arabia Capital as local partners. Alibaba Group Holding's cloud-computing unit will invest USD 500 million in two new data centers in Saudi Arabia.
  • Many large companies and institutions will not allow anyone to view their databases, especially since dealing with the cloud computing system is done over the Internet. The most significant challenges are how to maintain the confidentiality of customer data. As a result, in Saudi Arabia, companies provide cloud computing services using secure systems that ensure the privacy and confidentiality of customer data. The availability of cloud services suitable for all organizations is the second obstacle. The cost should be less than the cost of using traditional computer networks in businesses and universities in the country.
  • The COVID-19 situation has transformed organizations into different working dimensions. Local businesses have turned to global hyper scalers for help with cloud services adoption to make their operations more efficient. Furthermore, during the pandemic, all supply chains were disrupted, hampered the delivery of hardware to the client's data center. As a result, the country's demand for the cloud service market has grown.

Scope of the Report

Cloud services are platforms, infrastructure, or software hosted by third-party providers and made available to users through the internet. These services enable simple, cost-effective access to applications and resources without requiring internal infrastructure or hardware.

The Saudi Arabia Cloud Service Market is Segmented by Deployment (Public Cloud, Private Cloud) and by End-User Industry (Oil, Gas and Utilities, Government and Defense, Healthcare, Financial Services, Manufacturing and Construction, and other end-users).

By Deployment
Public Cloud
Software-as-a-Service (SaaS)
Platform-as-a-Service (PaaS)
Infrastructure-as-a-Service (IaaS)
Private Cloud
By End-User Industry
Oil, Gas, and Utilities
Government and Defense
Financial Services
Manufacturing and Construction

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Key Market Trends

Government policies and initiatives related to Cloud Services in the country

  • The "Cloud First Policy" of the Kingdom of Saudi Arabia is a policy that applies to government entities. The purpose is to hasten the adoption of Cloud computing services by directing these organizations to think about Cloud possibilities when making new I.T. investments. By having an internal CFP, the commercial sector is incentivized to follow suit. This government initiative is working on identifying the benefits of cloud adoption, assisting the Cloud Computing Adoption Team with critical financial data as needed, and the Cloud Computing Adoption Team with appropriate incentives.
  • The U.S.-Saudi Arabia Commercial Partnership Shared Work Plan, launched by Secretary of Commerce Gina M. Raimondo and Minister of Commerce Majid Alkassabi, is a roadmap that will guide cooperation between the U.S. Department of Commerce and the Saudi Arabian Ministry of Commerce as the countries' bilateral commercial relationship continues to deepen. Continued consultations with Saudi Arabia's Data and Artificial Intelligence Authority and U.S. industry leaders on Saudi rules affecting U.S. enterprises in areas such as cloud services, financial services, and e-commerce, as well as cross-border data, flows, and interoperability.
  • The International Exhibition and Conference on Artificial Intelligence and Cloud Computing will be held in Saudi Arabia. Leaders and pioneers in the technological sectors, both in local and worldwide government, as well as commercial institutions, will be featured at the event. The Saudi Data and Artificial Intelligence Authority, or SDAIA, is expected to moderate a panel discussion at the conference. The Public Authority for Small and Medium Businesses will be present at the conference to highlight the role of small and medium businesses, including various government agencies and major private companies. This shows the government's involvement in cloud services in the region.
  • The Governor of the Digital Government Authority (DGA) stated that the Kingdom of Saudi Arabia has the largest government technology investment in the world, accounting for 21.7 percent of total national technical spending and expected to reach USD 24.8 billion by 2025. According to the government, there are currently 6442 open data sets published by 141 government agencies. In terms of government demand, information technology services would capture 74% of the total demand for cloud computing solutions, software, and big data in the coming years.
  • Saudi Arabian government has planned USD 6.4 billion investments in future technologies, according to the Saudi minister of communication and information technology, as the kingdom tries to diversify its economy away from oil in the face of severe regional competition. Climate change guidelines and oil price volatility have strained government finances. The country has begun programs to stimulate non-oil growth and lessen reliance on crude oil. According to Saudi Arabia's minister of finance, the investments announced include a USD 2 billion joint venture between eWTP Arabia Capital, a vehicle backed by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), and Alibaba, and China's J&T Express Group and specifically in areas of digital content and cloud services. This diversification of focus of the government will induce a positive impact on the Cloud Service market in the country.
Saudi Arabia Cloud Services Market Share

Increasing penetration of IT and peripheral companies in the country

  • All the global companies in the cloud service sectors are strategizing their business growth by expanding their businesses in Saudi Arabia. For example, Oracle has constructed a cloud service center in Jeddah, Saudi Arabia. Neom Tech & Digital Holding Company, a Neom subsidiary, has announced that Oracle would be the first tenant of the new city's hyper-scale data center. Oracle Cloud infrastructure will be housed within the building. Neom is a project that aims to build a massive new smart metropolis on the Red Sea coast in the Saudi province of Tabuk in the northwestern part of the country.
  • Arab Sea Information Systems Co, a Saudi-listed company, has completed the foundation of Era Data, a cloud service unit with a capital of USD 1.33 million. According to a bourse filing, the information technology company has already signed agreements with local enterprises to set up data centers, supply devices, and accessories. Adding Era Data's cloud services to Arab Sea's portfolio will complement the Kingdom's ongoing digitalization efforts.
  • Organizations in Saudi Arabia and the wider region have seen a demand for agile and scalable IT infrastructures and business solutions that are not only efficient but also quick to adapt to changing scenarios, enabling seamless adoption of new technologies and encouraging new business models, as digital transformation fuels significant change in the country's business environment. For example, SAP SE and its key partner Google Cloud are collaborating to understand the impact and importance of cloud services in allowing Saudi Arabian businesses to adapt and digitize their operations in the country.
  • In addition, Mobily and Cisco announced the completion of the region's largest Mobile IoT, or Internet of Things, cloud platform hosted in Saudi Arabia. The new cloud platform, powered by Cisco's IoT solution and includes artificial intelligence and machine learning capabilities, allows for fully automated administration of IoT devices.
  • Aramco, Saudi Arabia-based company, and VMware, located in California, agreed to work together on cloud services, cybersecurity, and digital transformation. According to an agreement inked at LEAP in Riyadh, the firms plan to share ideas and knowledge and explore the potential for software advancements for organizations in the area and around the world. Local procurement will be enhanced and expanded because of the relationship. Its goal is to serve as an example of digital best practices in Saudi Arabia and promote digital transformation activities in the energy industry. Through these collaborations, the Saudi Arabian Cloud Service market is growing exponentially.
Saudi Arabia Cloud Services Market Trends

Competitive Landscape

The Saudi Arabia Cloud Services Market is highly competitive owing to the presence of numerous large firms such as Google, AWS, Microsoft, Oracle, and CloudSigma. Moreover, with product innovations, significant R&D spending, partnerships, and acquisitions are the key strategic activities to have a competitive edge over others.

  • June 2022: Saudi Cloud Computing Business (SCCC), a new joint venture company founded by Chinese and Saudi companies, has started its service in Saudi Arabia to address the kingdom's growing demand for cloud services.
  • June 2022: Cartlow, a reverse logistics company, has raised USD 18 million in a Series A fundraising round from AlSulaiman Group to help the company expand in the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE).
  • June 2022: SAS affirms its commitment with its purpose-built Customer Intelligence 360 Cloud solutions that reflect the vision of the new regulatory framework and enable companies to comply with the legislation as the Kingdom of Saudi Arabia enters a new digital era with the introduction of the new Personal Data Protection Law (PDPL).

Recent Development

  • May 2022: Zain KSA, a Saudi Arabian mobile telecommunications company, is bolstering strategic relationships to achieve statewide digital transformation and knowledge-based society.
  • June 2022: Bader Almadi has been appointed Country Manager for the Kingdom of Saudi Arabia at Google Cloud. Bader, based in Riyadh, will lead the Google Cloud's strategy in the Kingdom. His professional responsibilities include expanding Google Cloud's team in Saudi Arabia and assisting customers with growth and scaling in various industries, including retail, healthcare, financial services, entertainment, and others.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Government policies and initiatives

      2. 4.2.2 Economic benefits leading to cloud adoption

      3. 4.2.3 Increasing penetration of technology giants

    3. 4.3 Market Restraints

      1. 4.3.1 High dependence on external sources to balance the skill deficit

      2. 4.3.2 Trends in professional services

      3. 4.3.3 Relative analysis of KSA and other Middle Eastern Countries

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 COVID-19 Impact on the Market


    1. 5.1 By Deployment

      1. 5.1.1 Public Cloud

        1. Software-as-a-Service (SaaS)

        2. Platform-as-a-Service (PaaS)

        3. Infrastructure-as-a-Service (IaaS)

      2. 5.1.2 Private Cloud

    2. 5.2 By End-User Industry

      1. 5.2.1 Oil, Gas, and Utilities

      2. 5.2.2 Government and Defense

      3. 5.2.3 Healthcare

      4. 5.2.4 Financial Services

      5. 5.2.5 Manufacturing and Construction

      6. 5.2.6 Others


    1. 6.1 Company Profiles

      1. 6.1.1 Google LLC

      2. 6.1.2 AWS Inc

      3. 6.1.3 Alibaba Cloud

      4. 6.1.4 Microsoft

      5. 6.1.5 Oracle Corporation

      6. 6.1.6 CloudSigma

      7. 6.1.7 Cloudex

      8. 6.1.8 Salesforce

      9. 6.1.9 Saudi Telecom

      10. 6.1.10 Saharanet

      11. 6.1.11 SAP SE

    2. *List Not Exhaustive
  7. 7. Investment Analysis

  8. 8. Future of the Market

**Subject to Availability

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Frequently Asked Questions

The Saudi Arabia Cloud Services Market market is studied from 2020 - 2027.

The Saudi Arabia Cloud Services Market is growing at a CAGR of 17.76% over the next 5 years.

Google LLC , Amazon Web Services, Inc., Alibaba Cloud, Oracle Corporation, SAP SE are the major companies operating in Saudi Arabia Cloud Services Market.

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