The Saudi Arabia Cloud Computing Market is set for significant growth, with a projected CAGR of 11.33% from 2025 to 2033, reaching US$ 38.23 billion by 2033, up from US$ 14.55 billion in 2024. This expansion is driven by digital transformation, increased enterprise cloud adoption, and government initiatives under Vision 2030 aimed at modernizing IT infrastructure and fostering innovation. The integration of smart city projects, IoT technologies, and sectorial digitization in banking, healthcare, and manufacturing are boosting demand. Key challenges include data residency and a shortage of skilled professionals. Leading global and regional players are expanding cloud infrastructure to meet evolving market needs.
Saudi Arabian Cloud Computing Market
Dublin, Aug. 13, 2025 (GLOBE NEWSWIRE) — The “Saudi Arabia Cloud Computing Market Outlook and Forecast 2025-2033” report has been added to ResearchAndMarkets.com’s offering.
The Saudi Arabia Cloud Computing Market is anticipated to grow at a CAGR of 11.33% during 2025-2033 and reach US$ 38.23 billion by 2033, from US$ 14.55 billion in 2024
The growth is fueled by speedy digital transformation, rising enterprise use of cloud services, and robust government initiatives under Vision 2030 for IT infrastructure modernization and enhancing innovation across industries.
Cloud computing has picked up considerable pace in Saudi Arabia with the push of Vision 2030 for digital transformation. The public and private sectors are quickly embracing cloud solutions to facilitate operational efficiency, enhance cybersecurity, and enable AI and big data drives. Government-driven investments, supportive regulations, and collaborations with international cloud vendors such as Google Cloud, Oracle, and Microsoft Azure have also helped drive growth in the sector.
The growth in smart cities, e-governance, fintech, and healthcare digitization also fuels demand for cloud infrastructure, making Saudi Arabia a major cloud hub in the Middle East.
Growth Drivers in the Saudi Arabia Cloud Computing Market
Vision 2030 and Digital Transformation Agenda
Saudi Arabia’s Vision 2030 drives cloud computing growth. The country’s national strategy, through investment in technology and innovation, is geared towards diversifying the economy from oil. This involves major focus on cloud-based infrastructure to enable e-governance, smart cities such as NEOM, and digital healthcare.
Consequently, the public and private sectors are making a significant move towards cloud services to improve efficiency, accessibility, and scalability in operations. April 2023, H.R.H. the Crown Prince of Saudi Arabia inaugurated the Cloud Computing Special Economic Zone to support Saudi Vision 2030’s objectives of enhancing the ICT and innovation infrastructure in Saudi Arabia to establish the Kingdom as a regional tech hub.
Growth of Smart City and IoT Deployments
The emergence of smart city initiatives, particularly NEOM, and growing use of Internet of Things (IoT) technologies are placing a massive order for real-time data storage and processing. Cloud computing acts as the foundation for these technologies, facilitating uninterrupted data flow, analytics, and automations. The requirement for scalable infrastructure to enable urban planning, transportation, and public security systems is propelling strong cloud adoption in urban development projects.
Increased Demand from BFSI and Healthcare Industries
Saudi Arabia’s banking, financial services, insurance (BFSI), and healthcare industries are adopting cloud computing for data management in a secure environment, quick transactions, and cost savings. Cloud platforms provide full compliance capabilities and advanced cybersecurity features that suit them to managing sensitive financial and medical information. Health record digitization and digital banking platforms are driving cloud adoption at an accelerated pace due to customer demands and regulatory modernization.
Challenges in Saudi Arabia Cloud Computing Market
