
Saudi Arabia Cloud Services Market Research Report: Forecast (2025-2030)
Saudi Arabia Cloud Services Market - By Type (Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS)), By Deployment Model (Public Cloud, Pr...ivate Cloud, Hybrid Cloud), By Organization Size (Small & Medium Enterprises, Large Enterprises), By End-User (Banking, Financial Services and Insurance (BFSI), IT & Telecom, Government & Defense, Media & Entertainment, Automotive & Transportation, Healthcare, Retail, Energy & Utilities, Others (Education, Construction & Manufacturing, etc.)), and Others Read more
- ICT & Electronics
- Jan 2025
- 138
- PDF, Excel, PPT
Market Definition
Cloud services are the infrastructure, platform, and software that can be used through the internet without making extra expenses in organizing and downloading them. The market consists of companies that provide cloud services to various industries in Saudi Arabia.
Market Insights & Analysis: Saudi Arabia Cloud Services Market (2025-30):
The Saudi Arabia Cloud Services Market size was valued at around USD 2.6 billion in 2024 and is projected to reach USD 7 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 18% during the forecast period, i.e., 2025-30. The main reason behind this growth is the increasing popularity of cloud services which is directly fueled by advanced internet networks provided by the Saudi Arabian government. The Saudi government has invested around USD24.8 billion from 2018 to 2024 to improve internet services. As a result, about 99% population has access to high-speed internet.
Report Coverage | Details |
---|---|
Historical Years | 2020-23 |
Base Years
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2024
|
Forecast Years
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2025-30
|
Market Value in 2024 | USD 2.6 Billion |
Market Value by 2030 | USD 7 Billion |
CAGR (2025-30) | 18% |
Leading Region | Central |
Top Key Players | Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Oracle, Alibaba Cloud, STC Cloud, Sahara Net, Huawei Cloud, Zain Cloud, Kalaam Telecom, Others |
Key Report Highlights |
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Furthermore, a lot of companies are relocating their headquarters to Saudi Arabia. For instance, in the first half of 2024, approximately 127 international companies have already arrived in the kingdom which shows an increase of about 477% as compared to the previous year, and more companies are expected to come amid the ongoing Vision 2030 goals. As these companies are mainly IT firms, they increase the demand for cloud services for various purposes such as; storing data, running large programming codes, app development, and so on. Therefore, due to the increasing internet penetration and governmental support, the demand for cloud services has increased in past years, and this growth is expected to remain in the forecast period as well.
Moreover, there is a notable trend in long-established and newer companies. The long-established companies are mostly in the Class-A category and they are mainly the local companies such as Sahar Net and Kalaam Telecom, that have been active since the 1990s and 2000s. On the other hand, newer companies are mostly in the Class-C category and they are mainly international brands such as Amazon Web Services, Oracle, Huawei Cloud, and others, that entered the market between 2017 to 2020. Therefore, this shows the high competition in a market consisting of highly investing local companies and well-established foreign companies. Such a scenario is anticipated to create a positive market outlook in the coming years.

Saudi Arabia Cloud Services Market Driver:
Increasing Requirements for Cost-Efficient Computing Operations – The number of companies coming to Saudi Arabia is continuously increasing. For instance, the Saudi government aimed to attract 160 companies to Riyadh in 2023 but ended up attracting more than 200 international companies. In the initial stages, these companies aim to run on the least possible investments. As a result, the demand for cloud services increases as they provide companies with cost-efficient computing operations such as paying only for the used computing power, reducing the cost of setting up physical hardware, reducing maintenance & updating costs, and so on. Therefore, due to the emergence of new companies and start-ups, there is a high need for cloud services to ensure cost-efficiency, and this demand is expected to remain in coming years also as more companies will be attracted to Saudi Arabia as per the Vision 2030 goals.
Saudi Arabia Cloud Services Market Opportunity:
Upcoming Projects Under Saudi Vision 2030 Goals – Various projects are going to be introduced by Saudi such as smart cities and digitalization of various sectors such as healthcare, e-commerce, etc., in line with its Vision 2030 goals. These sectors require cloud services in their work such as storing informational records, managing the data of transactions, and so on, as all these operations help them to improve their operations and enhance their services. For instance, Saudi is making NEOM Smart City, a mega project that is estimated to cost around USD500 billion. It will require cloud services to manage its massive amount of data and share it among various locations to get predictive analysis for improving its operations.
Moreover, in 2023, the government has also made a Cloud Computing Special Economic Zone (SEZ), an area where cloud service companies get benefits like tax reductions, relaxed regulations, and much more. All these efforts are made to attract more cloud service-providing companies to Saudi Arabia. As more such providers and users of cloud services are expected to come to Saudi Arabia, they will provide lucrative growth opportunities for the cloud services industry.
Saudi Arabia Cloud Services Market Challenge:
Strict Rules & Regulations – There is a complicated set of rules set by the government of Saudi Arabia. One of its rules says that the data handled by the cloud service providers must stay inside the borders of the kingdom only. This means that the companies must build their data centers in Saudi Arabia only. As these centers increase the investment required, they pose a challenge for new companies with limited budgets in entering the market.
Moreover, these regulations can also affect the establishment of various international cloud companies as it requires time and investments to adhere to these local regulations. For instance, collecting, processing, storing, and sharing data should be done as per the Personal Data Protection Law of 2021. Also, companies must align with the Saudi National Cybersecurity Authority to ensure the safety of data from cyber-attacks. Therefore, the strict set of rules can impact the growth of newly established companies as well as foreign companies.
Saudi Arabia Cloud Services Market Trend:
Increasing Adoption of Blockchain Technology – Various organizations are adopting blockchain technology in their operations with financial services as the most prominent ones. This is done to enhance the security and transparency of the financial transactions. For instance, Saudi Central Bank SAMA used blockchain technology in its transactions for the first time in 2020. After that, several other banks adopted blockchain technology for transactions such as; National Commercial Bank and Al Rajhi Bank in 2022. These blockchains are stored on cloud-based storages as they consist of big data which have to be used across various branches.
Moreover, other government and private sectors such as healthcare, logistics, etc., are also merging blockchain technology in their operations to align with the digitalization goals of Saudi Vision 2030. Therefore, the adoption of blockchain technology is continuously increasing in various sectors to safely store their important information, thus increasing the demand for cloud services to manage those blockchains.
Saudi Arabia Cloud Services Market (2025-30): Segmentation Analysis
The Saudi Arabia Cloud Services Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–30 at the country level. Based on the analysis, the market has been further classified as:
Based on Type:
- Infrastructure-as-a-Service
- Platform-as-a-Service
- Software-as-a-Service
Based on the type of cloud service, the Infrastructure-as-a-Service segment (IaaS) holds a major market share of more than 50%. This is because IaaS provides various businesses with cost-effective computing operations such as servers, storage, networking, CPU, and so on, for which the users have to pay for the used computing power only. This also saves their cost of setting up physical hardware devices. Therefore, as various new businesses and sectors like; IT, healthcare, finance, etc., grow, the demand for cloud services, mainly IaaS also increases.
Moreover, the upcoming smart cities such as; NEOM, Red Sea Project, etc., and digitalization projects of various public sectors like; healthcare, finance, etc., in line with Saudi Vision 2030 goals will further increase the demand for cloud services. This is because these sectors need IaaS cloud services such as storing informational records, managing the data of transactions, and so on, as all these operations help them to improve their operations and enhance their services. Therefore, due to the high demand for IaaS, this segment dominates the market and is expected to continue in the future as well.
Based on Organization Size:
- Small & Medium Enterprises
- Large Enterprises
Based on the size of the organization, large enterprises are the most prominent users of cloud services with a market share of around 66%. This is because almost every large size organization uses cloud services for various operations such as; storing big data, running typical programming & machine learning codes, testing software, transferring data to other branches, and much more. As there is a significant quantity of such enterprises in Saudi Arabia, they hold the major market share. For instance, Saudi aims to attract 500 international companies to set up their headquarters there by 2030, but the target was achieved in 2024 only with the incoming of more than 540 international companies. Additionally, as the government is attracting more such international companies, the dominance of large enterprises will remain in the future as well.
Saudi Arabia Cloud Services Market (2025-30): Regional Projections
Geographically, the Saudi Arabia Cloud Services Market expands across:
- Central
- North
- East
- West
- South
Regionally, the central region holds a major market share of around 43% with Riyadh as the most prominent province. This is because Riyadh is home to the largest number of companies in Saudi Arabia and most of the leading players are also present in this region only. These companies require cloud services in their operations such as storing & transferring data, running programming codes, training large machine learning models, deployment of apps & software, and much more.
Moreover, Riyadh has major governmental offices. Due to the goals of digitalization under Vision 2030, various government sectors are using cloud services to store and manage data backup, share data across various departments, host video meetings, send e-mails, etc., and align with Vision 2030 goals. Therefore, due to the high use of cloud services by numerous public and private sectors in this region, the central region dominates the market.
Saudi Arabia Cloud Services Industry Recent Development:
- 2024: Oracle announced the establishment of its second cloud region, which would be a part of its USD1.5 billion investment plan. This cloud region will increase the local cloud capacity and hence help in the growth of the kingdom’s AI economy.
- 2024: Amazon Web Services (AWS) to establish an infrastructure region in Saudi Arabia under its USD5.3 billion investment plan. The aim is to store customer data inside the boundaries of the kingdom and serve it to them with low latency when required.
Gain a Competitive Edge with Our Saudi Arabia Cloud Services Market Report
- Saudi Arabia Cloud Services Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & market share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
- This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
- The Saudi Arabia Cloud Services Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.
*Reports Delivery Format - Market research studies from MarkNtel Advisors are offered in PDF, Excel and PowerPoint formats. Within 24 hours of the payment being successfully received, the report will be sent to your email address
Frequently Asked Questions
- Market Segmentation
- Introduction
- Market Definition
- Research Process
- Assumptions
- Executive Summary
- Saudi Arabia Cloud Services Market Trends & Developments
- Saudi Arabia Cloud Services Market Dynamics
- Drivers
- Challenges
- Saudi Arabia Cloud Services Market Regulations, Policies & Standards
- Saudi Arabia Cloud Services Market Hotspot & Opportunities
- Saudi Arabia Cloud Services Market Outlook, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- Market Size & Analysis
- By Type
- Infrastructure-as-a-Service (IaaS)- Market Size & Forecast 2020-2030, USD Million
- Platform-as-a-Service (PaaS)- Market Size & Forecast 2020-2030, USD Million
- Software-as-a-Service (SaaS)- Market Size & Forecast 2020-2030, USD Million
- By Deployment Model
- Public Cloud- Market Size & Forecast 2020-2030, USD Million
- Private Cloud- Market Size & Forecast 2020-2030, USD Million
- Hybrid Cloud- Market Size & Forecast 2020-2030, USD Million
- By Organization Size
- Small & Medium Enterprises- Market Size & Forecast 2020-2030, USD Million
- Large Enterprises- Market Size & Forecast 2020-2030, USD Million
- By End-User
- Banking, Financial Services and Insurance (BFSI)- Market Size & Forecast 2020-2030, USD Million
- IT & Telecom- Market Size & Forecast 2020-2030, USD Million
- Government & Defense- Market Size & Forecast 2020-2030, USD Million
- Media & Entertainment- Market Size & Forecast 2020-2030, USD Million
- Automotive & Transportation- Market Size & Forecast 2020-2030, USD Million
- Healthcare- Market Size & Forecast 2020-2030, USD Million
- Retail- Market Size & Forecast 2020-2030, USD Million
- Energy & Utilities- Market Size & Forecast 2020-2030, USD Million
- Others (Education, Construction & Manufacturing, etc.)- Market Size & Forecast 2020-2030, USD Million
- By Region
- Central
- North
- East
- West
- South
- By Competition
- Competition Characteristics
- Market Share Analysis
- By Type
- Market Size & Analysis
- Saudi Arabia Infrastructure-as-a-Service (IaaS) Cloud Services Market Outlook, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- Market Size & Analysis
- By Deployment Model- Market Size & Forecast 2020-2030, USD Million
- By Organization Size- Market Size & Forecast 2020-2030, USD Million
- By End-User- Market Size & Forecast 2020-2030, USD Million
- Market Size & Analysis
- Saudi Arabia Platform-as-a-Service (PaaS) Cloud Services Market Outlook, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- Market Size & Analysis
- By Deployment Model- Market Size & Forecast 2020-2030, USD Million
- By Organization Size- Market Size & Forecast 2020-2030, USD Million
- By End-User- Market Size & Forecast 2020-2030, USD Million
- Market Size & Analysis
- Saudi Arabia Software-as-a-Service (SaaS) Cloud Services Market Outlook, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- Market Size & Analysis
- By Deployment Model- Market Size & Forecast 2020-2030, USD Million
- By Organization Size- Market Size & Forecast 2020-2030, USD Million
- By End-User- Market Size & Forecast 2020-2030, USD Million
- Market Size & Analysis
- Saudi Arabia Cloud Services Market Key Strategic Imperatives for Success & Growth
- Competitive Outlook
- Company Profiles
- Amazon Web Services (AWS)
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Microsoft Azure
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Google Cloud
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Oracle
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Alibaba Cloud
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- STC Cloud
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Sahara Net
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Huawei Cloud
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Zain Cloud
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Kalaam Telecom
- Business Description
- Operation Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Others
- Amazon Web Services (AWS)
- Company Profiles
- Disclaimer
