Saudi Arabia Cloud Computing Market worth $14,608.9 million by 2030
The report "Saudi Arabia Cloud Computing Market by Service Model (IaaS (Compute, Storage, Networking), PaaS (Application Development & Integration, Database & Data Analytics & Reporting), SaaS (CRM, SCM, Collaboration & Productivity)), Impact of AI - Forecast to 2030" is projected to grow from USD 5,069.5 million in 2025 and to reach USD 14,608.9 million by 2030, at a Compound Annual Growth Rate (CAGR) of 23.6% during the forecast period.
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The cloud computing market in Saudi Arabia is expanding. The market is expected to grow from USD 5,069.5 million in 2025 to USD 14,608.9 million by 2030, at a CAGR of 23.6%. Organizations are adopting cloud platforms to operate data and applications without investing heavily in physical IT hardware. As digital services increase across government offices, banking systems, retail platforms, and remote work setups, cloud services are becoming part of normal business operations. Organizations use cloud systems to handle larger workloads and run applications that need fast access to data. Cloud adoption is also guided by data security and data storage rules. Regulations issued by the Communications, Space & Technology Commission and the National Cybersecurity Authority require sensitive data to be stored within Saudi Arabia and protected through approved security measures. These rules affect how cloud services are selected and used by both public and private organizations.
The compute sub-segment within IaaS is estimated to account for the largest market share during the forecast period.
In the cloud computing market in Saudi Arabia, the compute segment under the Infrastructure as a Service (IaaS) model is expected to hold the largest market share. Organizations are spending more on computing resources as they upgrade IT systems and use applications that process large amounts of data. Industries such as banking & financial services, oil & gas, retail, and government depend on systems that require steady processing capacity. These systems include data analysis tools, digital banking platforms, and basic automation software. As usage increases, demand is growing for virtual machines, graphics processing unit (GPU)-based instances, and high-capacity computing setups. Compute services are also used for artificial intelligence tasks, large data processing, and Industry 4.0 applications. Local hosting requirements and cloud-first approaches are further increasing demand for compute-focused IaaS services.
The supply chain management sub-segmentis poised for the fastest growth rate during the forecast period.
In the Software as a Service (SaaS) segment, the supply chain management solutions subsegment is projected to register the highest growth rate in Saudi Arabia. This growth is linked to higher industrial activity, rising online retail sales, and changes in logistics operations. Many organizations are shifting supply chain tasks to digital platforms to improve planning and coordination. Cloud-based supply chain tools help manage inventory, procurement, and transportation. Real-time data access allows organizations to track operations more closely and control costs. As supply chains involve more partners and locations, Saudi companies are increasingly using SaaS solutions that connect with enterprise resource planning and warehouse systems. This shift is driving strong growth in the supply chain management SaaS segment.
The major players in the Saudi Arabia cloud computing market include Microsoft (US), Google (US), IBM (US), AWS (US), Oracle (US), Salesforce (US), Tencent Cloud (China), SAP (Germany), Alibaba Cloud (China), Adobe (US), Zain Cloud (Kuwait), NourNet (Saudi Arabia), STC (Saudi Arabia), Sahara Net (Saudi Arabia), and NashirNet (Saudi Arabia).
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