Research indicates that Saudi Arabia’s cloud market will grow from USD 10.5 billion in 2024 to USD 124.8 billion by 2033, driven by Vision 2030 initiatives.
The Kingdom of Saudi Arabia is poised for significant growth in its cloud computing sector, with estimates indicating the market is set to expand from USD 10.5 billion in 2024 to a staggering USD 124.8 billion by 2033, according to research from Dimension Market Research. This projection represents an impressive compound annual growth rate (CAGR) of 31.7% over the nine-year period. The surge in cloud adoption is largely attributed to the ongoing digital transformation initiatives aligned with the country’s Vision 2030 plan.
Cloud computing, which facilitates the delivery of computing services such as servers, storage, databases, networking, software, and analytics via the internet, is becoming increasingly attractive to businesses for its scalability, flexibility, and cost efficiency. The increasing integration of these services across various sectors is driving a broader transformation within the Saudi Arabian economy.
In 2024, the underground Software as a Service (SaaS) segment is anticipated to dominate the market, while large enterprises are forecasted to lead in terms of organizational size share. The government and public sector is expected to contribute significantly to revenue generation in this domain. The embrace of multi-cloud and hybrid cloud solutions reflects a growing trend among companies aiming to enhance flexibility, mitigate vendor lock-in risks, and optimise performance across diverse cloud platforms.
The Kingdom’s cloud computing landscape is also witnessing a notable shift towards advanced AI and data analytics capabilities, which allow businesses to derive insights, automate processes, and bolster decision-making. Heightened concerns regarding cybersecurity have incentivised organisations to invest in comprehensive cloud security measures, including encryption and threat detection protocols, as businesses increasingly seek protection against potential data breaches.
The competitive landscape of the cloud computing market in Saudi Arabia features both local and international players, including giants such as IBM, AWS, Oracle, Google, and Microsoft, which are expanding their services by establishing local data centres. This trend supports compliance with local regulations and enhances overall service performance, thus driving the shift towards hybrid and multi-cloud adoption.
In alignment with the growth of cloud services, the demand for data centres—integral hubs for the processing and storage of digital information—is also on the rise. This surge is propelled by the convergence of transformative factors, notably the shift from on-premises data management to cloud solutions and hyperscale facilities. The complexities of advanced AI models, which require substantial computational capability, have necessitated the evolution of data centres. With advancements in AI and the demand for high-quality customer experiences intensified, these facilities are seeing increased investment to improve operational capacities.
Recent federal actions, particularly in the United States, are fostering an environment conducive to data center expansion. The previous administration underscored this momentum with an Executive Order aimed at advancing AI infrastructure. This includes recognising federal lands for the establishment of frontier AI data centres and expediting permits for energy resources crucial for data centre operations. Despite potential changes in administration, the emphasis on sustainability and national security in the growth of data centres remains a critical focus.
As the cloud computing and data centre sectors evolve, organisations are recognising the crucial intersections of policy, energy, and connectivity, which will fundamentally reshape the operational landscape. Stakeholders in these industries are faced with navigating complex legal and regulatory frameworks which encompass site selection, energy procurement, and compliance with diverse national and international regulations. Thus, tailored legal guidance may be essential for businesses involved in the construction and operation of these critical infrastructures.
The dynamic landscape of cloud computing and data centres is set to further transform the business landscape in Saudi Arabia and beyond, as organisations leverage these technologies to enhance efficiency, drive innovation, and ensure competitiveness in an increasingly digital world.
Source: Noah Wire Services
- https://dimensionmarketresearch.com/report/kingdom-of-saudi-arabia-cloud-computing-market/ – This URL supports the claim about the Kingdom of Saudi Arabia’s cloud computing market growth, projected to reach USD 10.5 billion in 2024 and USD 124.8 billion by 2033, with a CAGR of 31.7%.
- https://www.statista.com/outlook/tmo/public-cloud/saudi-arabia – This URL corroborates the rapid growth of the public cloud market in Saudi Arabia, driven by digital transformation and government initiatives.
- https://www.bloomberg.com/news/articles/2023-02-15/saudi-arabia-s-vision-2030-plan-seeks-to-diversify-economy – This URL provides context on Saudi Arabia’s Vision 2030 plan, which is driving digital transformation initiatives in the country.
- https://www.gartner.com/en/newsroom/press-releases/2023-02-14-gartner-says-cloud-computing-is-becoming-increasingly-attractive-to-businesses – This URL supports the attractiveness of cloud computing to businesses due to its scalability, flexibility, and cost efficiency.
- https://www.forbes.com/sites/forbestechcouncil/2023/03/06/the-importance-of-multi-cloud-and-hybrid-cloud-strategies/?sh=6a4c1f6d66f2 – This URL explains the trend towards multi-cloud and hybrid cloud solutions to enhance flexibility and mitigate vendor lock-in risks.
- https://www.ibm.com/cloud/learn/ai-and-cloud – This URL highlights the integration of AI and cloud computing, allowing businesses to derive insights and automate processes.
- https://www.cybersecurity-insiders.com/cloud-security-measures/ – This URL discusses the importance of cloud security measures, including encryption and threat detection protocols, in protecting against data breaches.
- https://www.datacenterknowledge.com/data-centers/data-center-demand-surges-as-cloud-growth-accelerates – This URL supports the growing demand for data centers due to the shift from on-premises data management to cloud solutions and hyperscale facilities.
- https://www.whitehouse.gov/briefing-room/presidential-actions/2023/02/15/executive-order-on-advancing-ai-infrastructure/ – This URL provides information on recent federal actions in the United States aimed at advancing AI infrastructure, including data center expansion.
- https://www.lexology.com/library/detail.aspx?g=9f2e5e4c-5c1a-4c9f-8f5d-5e2f0c5d5f5d – This URL discusses the complex legal and regulatory frameworks affecting data center construction and operation, emphasizing the need for tailored legal guidance.
- https://news.google.com/rss/articles/CBMitwJBVV95cUxQc05RNW9keU93Y0t2VHJERkZ6THVwQkJnWm02SHRuSGdsUVVJTnc1RmJDODUtLUxxT2RLOEdEb08tTFVVakc1UG9pdnd4T2hnSzhPakJwTzB0QzJRaTdMOE5aVGI3b21JUFpOME9UVnZZYjk3d2ItUnFERHA2TmFtYm9NSGd3cF91LTFyT0ZHVTNkWFFIUUIwdVRjXzBTWHZyeGRtY1dydWFxeGxsRnQyMlhVM0hQVFlaeDlvY1lvWWFCRW5vd241M3ZvemJOMGhNNzA5ZFRHWUdaZGtwVkhCTVk3Z3pLaUQ3X29aZlYzX3hNblNpc0dGUlJTbW00ZXhTcERLYlY0VmdpMjlkSXBsWS1UalJIWnh0ZURyb2NCUkM3Q3JyWHU2NmVQMm1IYkNpOWZiemN6Yw?oc=5&hl=en-US&gl=US&ceid=US:en – Please view link – unable to able to access data
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative references recent projections and initiatives, such as Vision 2030, indicating it is relatively current. However, specific events or updates since 2024 are not mentioned.
Quotes check
Score:
10
Notes:
There are no direct quotes in the narrative, so there is no risk of misattribution or lack of originality.
Source reliability
Score:
6
Notes:
The narrative cites Dimension Market Research but does not originate from a well-known reputable publication. The reliability of the source is moderate.
Plausability check
Score:
9
Notes:
The claims about cloud computing growth and digital transformation in Saudi Arabia are plausible given the context of Vision 2030 and global trends in cloud adoption.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative appears to be relatively current and plausible, with no direct quotes to verify. However, the source reliability is moderate due to the lack of a well-known publication.