Market Overview 2025-2033
Saudi Arabia public cloud market size reached USD 2.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 7.1 Billion by 2033, exhibiting a growth rate (CAGR) of 13.7% during 2025-2033. The market is expanding due to accelerated digital transformation, cost-efficient scalability, and widespread cloud adoption across sectors. Growth is fueled by government initiatives, rising demand for AI-driven solutions, and significant investments in local infrastructure. Enhanced data security and evolving enterprise needs are shaping a dynamic and competitive landscape.
Key Market Highlights:
✔️ Strong market growth driven by increasing digital transformation and cloud adoption across industries
✔️ Rising demand for scalable, cost-efficient, and secure cloud infrastructure
✔️ Expanding government initiatives under Vision 2030 to promote cloud-first strategies and smart services
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Saudi Arabia Public Cloud Market Trends and Drivers:
Saudi Arabia public cloud market report is growing rapidly. This growth is fueled by the government’s Vision 2030 plan, which aims to diversify the economy and reduce oil dependence. Key steps include creating the Saudi Data and Artificial Intelligence Authority (SDAIA) and launching the National Cloud Computing Program. These initiatives focus on cloud infrastructure as a key part of digital transformation.
In 2024, the government set aside over $1.2 billion to upgrade IT infrastructure. This funding will help public sector entities move old systems to secure and scalable cloud platforms. As a result, demand for major cloud providers like AWS, Microsoft Azure, and Alibaba Cloud is rising. These companies are expanding local data centers to meet data residency laws.
New regulations, like the Personal Data Protection Law (PDPL), have boosted enterprise trust in cloud solutions for sensitive data. With public investment, clear rules, and partnerships with global providers, Saudi Arabia is leading in cloud-driven governance.
Saudi enterprises in sectors such as energy, healthcare, and finance are adopting hybrid cloud models more than ever. This helps them balance scalability and data sovereignty. In 2024, hybrid cloud adoption surged by 2828 year-on-year. This growth stems from the need to connect on-premises systems with public cloud platforms for advanced analytics and AI. For example, Aramco’s partnership with Google Cloud to create AI-powered oilfield optimization tools highlights this trend. Similarly, healthcare providers like Dr. Sulaiman Al Habib Medical Group use hybrid clouds to manage patient data securely while utilizing public cloud resources for telemedicine.
The rise of Industry 4.0 technologies is increasing demand. Manufacturers are using cloud-based IoT systems to improve supply chains. This shift has led cloud providers to offer localized hybrid solutions, merging edge computing with centralized cloud services to meet low-latency needs.
The Saudi public cloud market share is changing as providers add AI and IoT features. In 2024, over 4040 cloud contracts included AI-as-a-Service (AIaaS) components. This shows that enterprises value predictive analytics and automation. For instance, Riyadh Bank used Microsoft Azure AI for fraud detection. This reduced false positives by 3535.
At the same time, smart city projects like NEOM are increasing the need for IoT-enabled cloud platforms. These platforms help manage interconnected infrastructure. Local startups, such as Lean Technologies and Foodics, are using cloud-native AI tools to grow fintech and SaaS solutions in the Gulf.
To support this growth, AWS and Saudi Telecom Company (STC) launched an AI accelerator program in 2024. This program aims to develop cloud-focused startups. As AI workloads lead cloud spending, providers are focusing on GPU-optimized infrastructure. They are also forming partnerships with AI framework developers to stay competitive.
The Saudi public cloud landscape is rapidly evolving. It aligns with global digital trends. A major change in 2024 was the “Cloud-First” policy. This policy requires government agencies to choose cloud solutions over traditional IT. As a result, public cloud spending jumped by 2222%, reaching $3.1 billion by Q3 2024, according to IDC. Hyperscalers are seizing this opportunity by localizing services. Microsoft’s Azure regions in Riyadh and Oracle’s data center in Jeddah now host over 60% of Saudi public sector workloads.
Sustainability is also a key trend. Providers like Google Cloud plan to power Saudi data centers entirely with renewable energy by 2030. Another important shift is the rise of industry-specific cloud platforms. For example, SAP’s “Cloud for Energy” is tailored to Saudi Aramco’s upstream operations. However, challenges remain, such as a lack of skilled cloud architects and concerns about vendor lock-in.
To tackle these issues, the Saudi Federation for Cybersecurity, Programming, and Drones (SAFCSP) launched cloud certification programs. They trained over 5,000 professionals in 2024 alone. As Saudi Arabia strengthens its position as a tech hub in the Middle East, the public cloud market in saudi arabia is set to exceed $6.8 billion by 2027. This growth will be driven by AI innovation, regulatory support, and cross-sector digitalization.
Saudi Arabia Public Cloud Market Segmentation:
The report segments the market based on product type, distribution channel, and region:
Study Period:
Base Year: 2024
Historical Year: 2019-2024
Forecast Year: 2025-2033
Breakup by Service:
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
Breakup by Enterprise Size:
- Large Enterprises
- Small and Medium-sized Enterprises
Breakup by End Use:
- BFSI
- IT and Telecom
- Retail and Consumer Goods
- Manufacturing
- Energy and Utilities
- Healthcare
- Media and Entertainment
- Government and Public Sector
- Others
Breakup by Region:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.
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