Saudi Arabia Software as a Service (SaaS) Market Research Report: Forecast (2025-2030)

Market Definition

SaaS (Software as a Service) is a software delivery model in which a service provider hosts the application and makes it available to customers via the Internet without the need for local installation or management of the infrastructure. Compared to traditional models, SaaS offers several advantages like enhanced flexibility, scalability, & cost-effectiveness as organizations can opt for these solutions on a pay-as-you-go basis and thus avoid the upfront costs of purchasing licenses & infrastructure.

Market Insights & Analysis: Saudi Arabia Software as a Service (SaaS) Market (2025-30)

The Saudi Arabia Software as a Service (SaaS) Market size was valued at around USD 427.30 million in 2024 and is projected to reach USD 572.95 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 5.01% during the forecast period, i.e., 2025-30. The growth of the market would be driven primarily by various digital transformation initiatives by the government & organizations, the cost advantages of SaaS, the ever-increasing need for agility & innovations in businesses, and the mounting focus of organizations on enhancing customer experiences. Besides, the increasing connectivity & collaboration requirements of organizations are also projected to boost the market in the future as SaaS solutions provide collaboration tools, document-sharing platforms, and integrated workflows, which can aid businesses in enabling seamless communication and enhancing productivity across different teams & departments.

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Moreover, massive investments in smart grids, growing automation trends in chemical plants as well as other manufacturing & assembling units, and the increasing government emphasis on strengthening the IT infrastructure by investing in disruptive IT solutions, digital transformation, entertainment hubs, advanced healthcare institutes, etc., i.e., in line with Saudi Vision 2030, are further expected to bode well for the market expansion in the coming years. Traditional software models often involve massive upfront costs for licenses, hardware, & maintenance. On the contrary, SaaS is a subscription-based or pay-as-you-go model that allows organizations to pay for what they use and scale their software resources according to their requirements. This cost-effectiveness associated with SaaS makes it attractive to various businesses in Saudi Arabia, especially SMEs, as they have tighter budgets.

Furthermore, SaaS solutions offer customer-centric applications like CRM systems, marketing automation platforms, and helpdesk tools that can help businesses to deliver personalized customer experiences and enhance overall customer satisfaction. Hence, these factors are expected to spur growth in the Saudi Arabia Software as a Service (SaaS) Market through 2030 and create lucrative prospects for the leading companies operating in the industry to generate significant revenue.

Saudi Arabia Software as a Service (SaaS) Market Driver:

Various Government Initiatives for Digital Transformation in Saudi Arabia - The government of Saudi Arabia, as well as both public & private sector companies in the country, are actively taking digital transformation initiatives for prioritizing agility, efficiency, productivity, & innovations to improve customer experiences, in which cloud computing plays a crucial role. As SaaS, being a cloud-based model, provides flexible, scalable, and cost-effective software solutions that can be quickly deployed & aligned with evolving business requirements, they align well with this digitization approach of the country. In addition, these solutions free businesses from the limitations of conventional on-premise software and thus enable them to innovate & launch new services & products more efficiently. Hence, these aspects are projected to drive the Saudi Arabia Software as a Service (SaaS) Market during 2023-28

Saudi Arabia Software as a Service (SaaS) Market Challenge:

Data Security and Privacy Concerns among Organizations - Among the most critical considerations for organizations adopting SaaS solutions are data security & privacy. Some companies, especially those in highly regulated industries like the BFSI & healthcare, have concerns over data breaches, compliance with local data protection regulations, and data sovereignty. As a result, they refrain from opting for SaaS solutions, which is the prime aspect projected to hinder the Saudi Arabia Software as a Service (SaaS) Market during 2023-28 unless these concerns are addressed by ensuring robust security measures.

Saudi Arabia Software as a Service (SaaS) Market (2025-30): Segmentation Analysis

The Saudi Arabia Software as a Service (SaaS) Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the country level. Based on the analysis, the market has been further classified as:

Based on Business Application:

• Customer Relationship Management (CRM)
• Human Resource Management (HRM)
• Enterprise Resource Planning (ERP)
• Operations and Manufacturing (O&M)
• Supply Chain Management (SCM)
• Others (Security Management, Transaction Processing, etc.)

Of these all, Enterprise Resource Planning (ERP) solutions hold a prominent share of the Saudi Arabia Software as a Service (SaaS) Market. These software solutions offer scalability, flexibility, & cost-effectiveness, which is why they are being adopted extensively by both SMEs & large-scale enterprises businesses in Saudi Arabia for managing & integrating core business processes like finance, human resources, inventory, & supply chain.

Compared to traditional on-premises ERP systems, SaaS-based ERP solutions are more cost-effective and offer enhanced accessibility & scalability. Hence, using pay-as-you-go models of SaaS, organizations are able to avoid upfront infrastructure costs associated with server installations & maintenance, scale their ERP usage as required, and reduce the total cost of ownership. In addition, since these solutions offer easy accessibility to users across multiple locations, it becomes highly beneficial for companies with branches or operations in different cities, especially in a geographically expansive country like Saudi Arabia.

Moreover, SaaS-based ERP solutions can be deployed quickly as the infrastructure & software are already in place, and organizations can easily configure & customize the solution to meet their specific business processes. This agility in deployment enables companies operating in Saudi Arabia to expedite their digital transformation efforts while realizing the benefits of ERP without major delays. Hence, these aspects are driving the demand for SaaS-based ERP solutions in the country and, in turn, spurring growth in the Saudi Arabia Software as a Service (SaaS) Market.

Based on End-User:

• BFSI
• Information & Communication Technology
• Hospitality
• Healthcare
• Manufacturing
• Government Agencies
• Others (Educational Institute, Water Treatment Plants, etc.)

Here, the BFSI sector accounts for a significant market share. It is one of the prominent industries that has shown increasing adoption of SaaS solutions in Saudi Arabia. Integrating SaaS services in banks & other financial institutions offers advanced security and enhanced access management. By controlling access rights using a uniform framework for user authentication and imposing perimeter network control through pre-defined firewalls, intrusion detection, & prevention systems, banks can minimize the risk of security breaches.

In addition, companies operating in the BFSI sector have stringent compliance & security requirements. As SaaS providers often invest substantially in robust security measures & regulatory compliance certifications, it helps banks & financial institutions meet industry standards & data protection regulations. Moreover, using SaaS solutions, the BFSI sector can free up internal resources & IT teams to focus on core proficiencies like risk management, customer service, as well as innovations rather than putting time & effort into software maintenance & infrastructure management. Hence, these benefits of SaaS solutions are playing a crucial role in amplifying their adoption in the BFSI sector and, in turn, stimulating the overall growth of the Saudi Arabia Software as a Service (SaaS) Market.

Saudi Arabia Software as a Service (SaaS) Industry Recent Developments 

• 2025: SAP announced the availability of its SAP Business Technology Platform (SAP BTP) on Google Cloud in the Kingdom of Saudi Arabia, exclusively for regulated* customers. This strategic collaboration aims to advance Saudi government organizations and critical national infrastructure entities with scalable, secure, and innovative cloud solutions. SAP BTP is an innovation platform optimized for SAP applications in the cloud that brings together application development and automation, data and analytics, integration, and AI capabilities in one unified environment.

• 2025: Cisco launched advanced cloud data centers in Saudi Arabia, delivering secure cloud services and enabling the Webex Collaboration Platform for local enterprises. These centers support SaaS offerings with enhanced cybersecurity, including Secure Service Edge (SSE), Secure Access, and Umbrella DNS, all tailored to the needs of Saudi organizations

• 2024: Microsoft launches latest Copilot+ PCs Surface devices to empower professionals across Saudi Arabia to accelerate innovation in the new AI era.

Gain a Competitive Edge with Our Saudi Arabia Software as a Service (SaaS) Market Report

1. Saudi Arabia Software as a Service (SaaS) Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Saudi Arabia Software as a Service (SaaS) Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations 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.