Saudi Arabia Public Cloud Market 2025-2033: Transforming Digital Infrastructure

Saudi Arabia Public Cloud Market Overview

Market Size in 2024: USD 2.1 Billion

Market Size in 2033: USD 7.1 Billion

Market Growth Rate 2025-2033: 13.7%

According to IMARC Group's latest research publication, "Saudi Arabia Public Cloud Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2023", The 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.

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How Food Innovation Technology is Reshaping the Future of Saudi Arabia Public Cloud Market

• AI investments in Saudi Arabia’s public cloud market now drive a $600 billion digital economy transformation, with $20 billion earmarked for AI data centers and cloud innovations.
• The National Strategy for Data and AI has fueled government cloud services like Deem, reducing infrastructure costs and boosting performance for public sector entities.
• Oracle opened its second public cloud region in Riyadh, enhancing AI adoption and providing local data hosting to meet soaring demand.
• Saudi firms partnered with global cloud providers to launch AI-powered UltraCluster networks, enabling advanced analytics for energy, healthcare, and government sectors.
• The Saudi cloud market grew 31% year-on-year in public sector adoption, reaching $2.7 billion revenue driven by increased AI and automation integration.

Saudi Arabia Public Cloud Market Trends & Drivers:

Saudi Arabia’s public cloud market is rapidly expanding thanks to robust government initiatives like the National Strategy for Data and AI, which drives nationwide digital transformation. This strategic push allocates billions toward building AI and cloud infrastructure, positioning the Kingdom as a regional tech leader. The government’s investment in cloud services for public sector agencies enhances efficiency and security, cutting costs while boosting data sovereignty. These efforts have significantly increased cloud adoption among government entities and ministries, facilitating smoother digital services for citizens and businesses. Such focused policy support creates a favorable ecosystem for cloud providers and accelerates market growth.

The surge in corporate digital transformation across sectors like energy, healthcare, and finance catalyzes demand for scalable public cloud solutions in Saudi Arabia. Leading firms are adopting cloud platforms integrated with AI and machine learning capabilities for advanced analytics and automation. For example, partnerships between Saudi companies and global cloud giants have introduced AI-powered UltraCluster networks, enabling real-time data processing and predictive decision-making. This growing reliance on cloud-native AI tools is creating new opportunities for innovation and efficiency, making public cloud essential for operational agility amid the Kingdom’s expanding economy and technological ambitions.

Another significant trend driving Saudi Arabia’s public cloud market growth is the rapid expansion of local data centers, which addresses data sovereignty and latency concerns. For instance, Oracle’s launch of a second cloud region in Riyadh provides enterprises with localized hosting, improving data security and compliance with national regulations. The increase in private-public partnerships aims to build a resilient cloud infrastructure that supports AI innovation and emerging technologies at scale. This infrastructure expansion is critical to accommodating soaring cloud workloads and fostering a competitive environment where startups and established companies can quickly scale cloud-based applications and services.

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Saudi Arabia Public Cloud Industry Segmentation:

The report has segmented the market into the following categories:

Service Insights:

• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)

Enterprise Size Insights:

• Large Enterprises
• Small and Medium-sized Enterprises
• End Use Insights:
• BFSI
• IT and Telecom
• Retail and Consumer Goods
• Manufacturing
• Energy and Utilities
• Healthcare
• Media and Entertainment
• Government and Public Sector
• Others

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Public Cloud Market

• September 2025: Saudi Arabian government launches a cloud-first policy, driving 40% of public sector workloads to local cloud platforms to boost digital transformation.
• September 2025: Advanced AI-driven cloud services gain traction, with 35% adoption in industries like finance and healthcare for enhanced data analytics.
• August 2025: Local cloud providers integrate quantum-safe encryption technology, improving data security standards for 50% of enterprise clients.

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About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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