KSA Cloud Computing Market Size

KSA Cloud Computing Market Analysis

The KSA Cloud Computing Market size is estimated at USD 13.66 billion in 2024, and is expected to reach USD 24.79 billion by 2029, growing at a CAGR of 12.66% during the forecast period (2024-2029).

• Saudi Arabia's (KSA) cloud computing market is experiencing robust growth, driven by government initiatives, technological advancements, and a unified push towards modernization across multiple sectors. Central to this momentum is Saudi Arabia's Vision 2030, which seeks to diminish the nation's oil dependency and transition towards a diverse, digital economy. This bold vision is bolstered by hefty investments in tech infrastructure, highlighted by the rollout of 5G networks and the groundbreaking NEOM smart city project. Additionally, there is a strong focus on enhancing digital literacy, with tailored programs aimed at equipping the workforce for the demands of the digital era.
• Saudi Arabia has a dedicated policy for the cloud, known as the Cloud First Policy, which was launched in 2019. This policy was launched to accelerate cloud adoption across its public and private sectors. With its ICT readiness and use of cloud computing, Saudi Arabia is emerging as a key player in the MENA region. The Saudi leaders offer more diverse services and ensure enhanced data privacy protection as they recognize that cloud computing adoption is the key to economic progress. Methodologies that match IT resources with business and application needs are prioritized to improve cloud performance and hasten the achievement of ideal business objectives.
• One of the key components of the policy lies in establishing the Cloud Computing Special Economic Zone in April 2023. The Cloud Computing Special Economic Zone (SEZ) stands as a pioneering initiative in Saudi Arabia. It empowers cloud service providers with the flexibility to set up data centers throughout the country, enabling them to deliver a diverse range of cloud computing services directly from the zone. Governed by unique business and commerce laws, this SEZ fosters a specialized regulatory landscape. Projections indicate that by 2030, Saudi Arabia anticipates the SEZ will bolster its GDP by SAR 7 billion.
• Moreover, leading the charge in Saudi Arabia's digital transformation is the Digital Government Authority. Their primary focus is on enhancing communication between agencies, promoting data sharing, and strengthening strategies for business continuity. These initiatives are designed to improve service delivery and bolster resilience against disruptions.
• Additionally, in September 2023, Huawei Cloud launched its Riyadh Region, aiming to stimulate a digitally-driven economic growth. Strategically, the focus is on catering to the Middle East, Central Asia, and Africa from its Saudi base, ensuring the provision of innovative, secure, and sustainable cloud services. This move underscores Huawei CLOUD's unwavering support for Saudi Arabia's Vision 2030, aligning seamlessly with the nation's aspirations for technological leadership and innovation.
• Bbusinesses in KSA are turning to digital technologies to boost efficiency, cut costs, and elevate customer experiences. Cloud computing provides the essential flexibility and scalability to back these digital transformation efforts. For example, in March 2024, Cisco unveiled new strategic moves in Saudi Arabia, underscoring its enduring commitment to local clients and partners. Cisco, armed with a Regional Headquarter license from the Ministry of Investment, opened a new regional head office in Riyadh and kicked off a new phase of its Country Digital Acceleration (CDA) Program.
• In September 2024, At the Huawei Cloud Summit Saudi Arabia 2024, Huawei Cloud unveiled a series of pioneering artificial intelligence (AI) initiatives, underscoring its commitment to expedite Saudi Arabia's digital transformation and align with the Vision 2030 objectives.
• Cloud computing, despite its on-demand platforms, software, and infrastructure, has been vulnerable to data breaches. Customers expressed reservations about relying on public cloud services, even with assurances of strong security measures. Notably, even with cloud service providers' dedicated efforts to protect client data, significant data breach incidents have affected some of the industry's leading players.