Riyadh’s Cloud Computing Economic Zone a ‘game-changer for all sectors’

The Cloud Computing Special Economic Zone in Riyadh will gradually be expanded to cover the technologies that will shape the future. (SPA)
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Updated 25 August 2024
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Riyadh’s Cloud Computing Economic Zone a ‘game-changer for all sectors’

  • CCSEZ is set to account for 30 percent of total information communications technology spend in the Kingdom by 2030

RIYADH: A special economic zone being rolled out in Riyadh is turning Saudi Arabia into a cloud computing hub that will boost jobs and attract foreign investment, experts have told Arab News.

The Cloud Computing Special Economic Zone was launched in April 2023, and is located in the Innovation Tower at King Abdulaziz City for Science and Technology in Riyadh.

It provides access to the latest technologies, world-class infrastructure, and a pool of skilled talent, for companies providing cloud computing services.

The zone is set to account for 30 percent of total information communications technology spend in the Kingdom by 2030 and offers investors the opportunity to take advantage of a growing market for emerging and disruptive digital technologies.

Backed by the Kingdom’s Cloud First Policy, the CCSEZ will gradually be expanded to cover the technologies that will shape the future. With an initial focus on cloud computing, a vital hub for innovation and collaboration is being created to drive the next wave of tech advancement.

Experts have told Arab News that some 15 months on from its launch, the zone is providing investors with significant access to untapped prospects.

According to statistics released by market research firm Mordor Intelligence, the Saudi cloud computing market reached approximately $4.8 billion in 2023, with expectations to soar to $8.8 billion by 2029. This reflects a forecasted compound annual growth rate of 16.85 percent from 2024 to 2029. 

The market is anticipated to grow due to rising demands for lower capital expenditure, increased acceptance of digital business strategies, a greater need for the Internet of Things, and quicker and simpler cloud service implementation.

That said, the CCSEZ offers a distinctive and adaptable model that enables providers to deliver a wide range of cloud computing services within the zone. This includes the flexibility to construct and operate data centers across different regions of the Kingdom – with 400 already online in Saudi Arabia.

Sectors benefiting from the most from the CCSEZ

Aamer Mushtaq, regional solutions engineering manager at US-based cloud computing company Snowflake Aamer Mushtaq told Arab News that the CCSEZ will be a “game-changer for all sectors” but he highlighted three in particular – starting with financial and banking services.

“The secure and compliant cloud environment will be a boom for startups especially in the fintech domain and established institutions alike. Local cloud native solutions will enable innovative mobile payment solutions to enhance consumer experience, improve financial security and prevent fraudulent activity through cloud based analytics,” Mushtaq said.

The expert flagged up government services as another sector to benefit, particularly in the areas of efficiency, transparency, and service delivery. 

“Under the CCSEZ regulation and compliance, government departments will be able to host data securely in the cloud, facilitating digital transformation initiatives such as e-government services, and supporting smart city developments across Saudi Arabia,” he said.

The third sector that Mushtaq shed light on is health care, saying: “Cloud computing in health care can help revolutionize telemedicine and remote patient monitoring by facilitating remote consultations with specialists, improving access to health care in remote areas and reducing wait times.”

He added that medical research and innovation will be accelerated by enabling researchers to share data and findings efficiently. 

Rajat Chowdhary, technology consultant partner at PwC Middle East, also affirmed that health care will benefit from the CCSEZ, but flagged other areas also set to gain.

“The education sector will benefit from e-learning platforms, online resources, and collaborative tools, making learning more accessible,” Chowdhary told Arab News.

“Furthermore, the finance sector will see improved data security, faster transaction processing, and better decision-making through big data and analytics. Government agencies can use cloud services to improve e-government services and achieve greater efficiency,” the PwC partner added.

Additionally, Chowdhary shed light on smart mobility and how it is set to utilize the advantages offered by the CCSEZ.

“Smart mobility will benefit from the collection and analysis of data from connected vehicles, traffic management systems, and public transportation networks, leading to improved traffic flow, real-time route optimization, and predictive maintenance,” the partner explained.

Chowdhary said that as these sectors adopt cloud computing, there will be a significant transformation in their operations driven by enhanced efficiency and data-driven decision-making. 

“The CCEZ will provide the necessary infrastructure, support, and regulatory framework to facilitate this transformation, positioning Saudi Arabia as a leading technology hub in the region,” he added.

CCSEZ impact on ICT sector growth and development

According to business management consultant Kearney, three years ago the Kingdom set itself the ambitious target to have 1,300 megawatts of data center capacity by 2030.
Lukas de Sonnaville, partner at digital and analytics practice Kearney Middle East and Africa, believes the roll out of the zone – together with Amazon Web Services investing more than $5.3 billion in developing data centers in Saudi Arabia – means it is merely a “matter of time” before that “ambitious” goal will be reached.

“This transformation will help the Kingdom become a regional hub for advanced computing technologies, aligning with Saudi Vision 2030’s goal to expand and strengthen technology and innovation infrastructure,” de Sonnaville said.

*CCSEZ role in enhancing cloud offering and boosting cloud utilization locally*

The objective of the CCSEZ in Saudi Arabia is to expedite the adoption of cloud technology within the region.

This is achieved by establishing an environment that is attractive to investors, with simplified regulations and enticing incentives designed to draw renowned cloud service providers to the Kingdom.

“Through increased diversification of local cloud services with reduced latency and improved security and compliance, Saudi businesses will accelerate their digital transformation journeys and drive sustainable growth in the digital economy,” Mushtaq explained.

De Sonnaville echoed this, saying: “By providing a Safe Harbor regulatory regime, the CCSEZ offers significant regulatory incentives to tech companies, fostering a competitive environment that drives innovation and technological advancements within and beyond the tech sector.”

CCSEZ benefits to businesses and organizations within Saudi Arabia

The economic benefits of the CCEZ for businesses and organizations in Saudi Arabia are substantial, with the robust cloud infrastructure attractive to foreign investments and local tech start-ups. 

“Businesses will gain agility and flexibility, allowing them to quickly adapt to market changes. Enhanced customer experiences will result from faster and more reliable applications, leading to higher customer satisfaction. Advanced data analytics capabilities will enable personalized customer experiences,” PwC’s Chowdhary said.

“Finally, the CCEZ will support small and medium-sized enterprises by leveling the playing field. SMEs will have access to advanced cloud services similar to larger corporations, enabling effective competition. Cloud services will provide SMEs with the tools to innovate, scale, and expand their market reach,” he added.

The CCSEZ provides an array of incentives, such as favorable tax treatments and regulatory assistance, establishing an attractive investment landscape for both domestic and global cloud computing firms.

“These incentives are designed to stimulate substantial investment in the sector. In summary: services will be offered at lower cost as incentives are provided – e.g. very low electricity cost at $0.05 per kWh only – allowing a competitive, local KSA cloud market,” Sonnaville said. 

The Kearney partner went on to underline that this flexibility is expected to attract significant FDI, thereby enhancing the global competitiveness of Saudi Arabia’s information and communications technology sector in the process as well as promoting sustained economic growth.

CCSEZ and job creation

The CCSEZ will have a significant impact on job generation by providing unique employment prospects in cutting-edge computing technologies and associated fields.

“The reason why KSA is doubling down on these cloud incentives, is not only to capture the cloud market and related GDP and employment, but that this is the flywheel to localization of many more tech companies, requiring significant (cloud) computing power, such as AI companies,” Sonnaville said.

Undoubtedly, the CCSEZ embraces Saudi Vision 2030’s objectives toward expanding and strengthening the ICT and innovation infrastructure in the Kingdom while turning the country into a regional tech hub.

“The CCSEZ in Saudi Arabia aims to accelerate cloud adoption in the region by creating an investor-friendly environment, with streamlined regulations and incentives, attracting leading cloud service providers into the Kingdom,” Mushtaq said.

“Through increased diversification of local cloud services with reduced latency and improved security and compliance, Saudi businesses will accelerate their digital transformation journeys and drive sustainable growth in the digital economy,” he added. 

From PwC’s perspective, Chowdhary clarified that the CCSEZ is fundamental in positioning Saudi Arabia as a regional tech hub and aligns with Saudi Vision 2030.

“By creating a competitive environment for cloud service providers and encouraging foreign direct investment, the CCEZ supports the Kingdom’s goal of becoming a leader in advanced computing technologies, contributing to economic diversification, and developing a knowledge-based economy,” the partner said.


Pakistan hikes petrol price by Rs5.36, diesel by Rs11.37 per liter

Updated 26 sec ago
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Pakistan hikes petrol price by Rs5.36, diesel by Rs11.37 per liter

  • Petrol now costs Rs272.15 per liter while HSD has risen to Rs284.35
  • The OGRA-recommended prices will remain valid till the end of July

KARACHI: Pakistan’s government has increased the price of petrol by Rs5.36 per liter and high-speed diesel (HSD) by Rs11.37 per liter for the next fortnight, the Finance Division announced late Tuesday.

The revised prices took effect from today, July 16.

According to the official notification, petrol now costs Rs272.15 per liter, up from Rs266.79, while HSD has risen to Rs284.35 per liter from the previous Rs272.98.

“The Government has revised the prices of petroleum products for the fortnight starting tomorrow, based on the recommendation of OGRA [Oil and Gas Regulatory Authority] and the relevant Ministries,” the Finance Division said in its statement.

Fuel prices in Pakistan are adjusted every two weeks and are influenced by global oil market trends, currency fluctuations and changes in domestic taxation.

The increases have a direct impact on inflation, raising production and transportation costs and driving up the prices of essential goods and services, particularly food. The effect is further amplified by Pakistan’s reliance on imported fuel.

This marks the third consecutive increase in fuel prices. On June 16, the government raised petrol by Rs4.80 per liter and HSD by Rs7.95. Another hike followed on July 1, with petrol up by Rs8.36 and HSD by Rs10.39.

Fuel price volatility escalated last month during the 12-day conflict between Iran and Israel, when Pakistan instructed oil marketing companies to maintain mandatory reserve levels.

While the government ruled out supply shortages, the conflict triggered concerns about a potential disruption in oil flows through the Strait of Hormuz.


Saudi Arabia raises $1.34bn through July sukuk issuance

Updated 15 July 2025
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Saudi Arabia raises $1.34bn through July sukuk issuance

RIYADH: Saudi Arabia’s National Debt Management Center raised SR5.02 billion ($1.34 billion) through its riyal-denominated sukuk issuance for July, marking a sharp 113.6 percent increase compared to the previous month.

In June, the Kingdom issued sukuk worth SR2.35 billion, while May and April saw issuances of SR4.08 billion and SR3.71 billion, respectively.

Sukuk are Shariah-compliant financial instruments that offer investors partial ownership in an issuer’s underlying assets, making them a popular alternative to conventional bonds.

According to NDMC, the July issuance was divided into four tranches. The first tranche, valued at SR776 million, will mature in 2029. The second, worth SR1.34 billion, is set to mature in 2032, followed by a third tranche of SR823 million due in 2036. The largest tranche, totaling SR2.08 billion, will mature in 2039.

Saudi Arabia’s debt market has witnessed robust growth in recent years, attracting strong investor interest in fixed-income instruments amid a global environment of rising interest rates.

In April, Kuwait Financial Center, also known as Markaz, reported that Saudi Arabia led the Gulf Cooperation Council in primary debt issuances during the first quarter of the year. The Kingdom raised $31.01 billion from 41 offerings, accounting for over 60 percent of total issuances across the region.

Credit rating agency S&P Global noted in April that Saudi Arabia’s expanding non-oil sector and steady sukuk issuance volumes are likely to support the growth of the global Islamic finance industry.

The agency forecasts global sukuk issuance to reach between $190 billion and $200 billion in 2025, with foreign currency-denominated offerings contributing up to $80 billion, assuming market conditions remain stable.

Echoing that outlook, a report by Kamco Invest published in December said Saudi Arabia is expected to account for the largest share of bond maturities in the GCC between 2025 and 2029, with $168 billion set to mature during the period.

Earlier this month, S&P Global reiterated its positive view, stating that the global sukuk market is on track to maintain its momentum in 2025, with foreign currency-denominated issuances projected to reach between $70 billion and $80 billion.


Saudi Arabia tops MENA VC rankings with $860m in H1: MAGNiTT 

Updated 15 July 2025
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Saudi Arabia tops MENA VC rankings with $860m in H1: MAGNiTT 

RIYADH: Saudi Arabia led venture capital activity in the Middle East and North Africa in early 2025, raising $860 million — a 116 percent annual jump — backed by sovereign support and foreign interest. 

In its latest report, regional venture platform MAGNiTT revealed that the Kingdom witnessed 114 deals in the first half of the year, marking a significant 31 percent rise compared to the same period in 2024. 

This comes on the back of a strong 2024 performance, when Saudi Arabia retained its position as the most funded MENA country for VC for the second consecutive year. Startups raised $750 million, with a 34 percent increase in deal funding rounds below $100 million – dubbed MEGA deals – reflecting growing early- and mid-stage capital formation, according to a report released earlier this year by MAGNiTT and SVC. 

In its latest report for the first half, MAGNiTT stated: “This growth was supported by continued sovereign capital activity, event-driven momentum from LEAP, and early-stage programs backed by new funds and accelerators.” 

Saudi Arabia ranked second among emerging venture markets in total VC funding, trailing only Singapore, which raised $1.28 billion across 120 deals in the first half. 

However, Singapore’s funding declined 37 percent year on year, while the number of deals dropped 31 percent. 

“The drop (in Singapore) signals a continued cooldown in late-stage deployment and foreign investor activity amid macro headwinds,” the report stated. 

Among emerging markets, Saudi Arabia was followed by the UAE, which raised $447 million in funding in the first six months of the year, a rise of 84 percent year on year. 

The UAE also matched Saudi Arabia in deal count, recording 114 deals, up 10 percent compared to the same period last year. This was driven by increased international participation, which reached its highest level in the Emirates since the first half of 2020. 

Elsewhere, Turkiye raised $226 million, followed by Vietnam at $216 million, Egypt at $185 million, and South Africa at $183 million. Nigeria raised $158 million, while Indonesia and Kenya secured $102 million and $71 million, respectively. 

The report further noted that fintech was the leading sector across all three EVM regions in the first half, accounting for 45 percent of VC funding in Southeast Asia, 38 percent in the Middle East, and 45 percent in Africa. 

“The bulk of this activity was concentrated in payment solutions and lending platforms, which emerged as the dominant fintech subsectors,” added the report. 

Meanwhile, mergers and acquisitions activity across emerging venture markets saw 55 transactions in the first half, marking a 31 percent increase compared to the same period last year. 


Closing Bell: Saudi main index closes in red at 11,095

Updated 15 July 2025
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Closing Bell: Saudi main index closes in red at 11,095

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 118.18 points, or 1.05 percent, to close at 11,095.41. 

The total trading turnover of the benchmark index was SR4.52 billion ($1.21 billion), with 46 of the listed stocks advancing and 204 declining. 

The Kingdom’s parallel market Nomu also shed 55.43 points to 27,301.46.

The MSCI Tadawul Index declined by 1.09 percent to close at 1,421.31. 

The best-performing stock on the main market was SHL Finance Co. The firm’s share price increased by 5.21 percent to SR22.62. 

The share price of SICO Saudi REIT Fund rose by 5.1 percent to SR4.33. 

Tourism Enterprise Co. also saw its stock price climb by 3.26 percent to SR0.95. 

Conversely, the share price of Alistithmar AREIC Diversified REIT Fund declined by 4.03 percent to SR9.05. 

On the announcements front, Saudi Co. for Hardware, also known as SACO, said that it signed an agreement valued at SR140.43 million to sell its warehouse in Al-Mashael district in Riyadh. 

In a Tadawul statement, SACO said that the proceeds from the sale will be used to repay existing bank loans and help support its future expansion plans.

The firm further said that the 42,937-sq.-meter warehouse was sold to 6th Iradat Al Imdad Co., a limited liability company. 

The firm added that there are no related parties involved in the deal. 

The share price of SACO dropped by 1.02 percent to SR29.14. 

The shareholders of Saudi Lime Industries Co. approved a recommendation to increase its capital by 5 percent through a one-for-20 bonus share distribution, by capitalizing SR11 million from the firm’s retained earnings account.

The stock price of Saudi Lime Industries Co., listed on the parallel market, advanced by 4.77 percent to SR12.97. 


Saudi Data and Artificial Intelligence Authority, Shareek sign deal to accelerate AI, cloud innovation

Updated 15 July 2025
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Saudi Data and Artificial Intelligence Authority, Shareek sign deal to accelerate AI, cloud innovation

RIYADH: Saudi Arabia’s private sector is set to gain a boost in AI-driven innovation and data capabilities through a new agreement aimed at accelerating digital transformation across key industries. 

The new deal, signed between the Saudi Data and Artificial Intelligence Authority and the Private Sector Partnership Reinforcement Program, known as Shareek, aims to conduct comprehensive market studies and coordinate with relevant authorities, according to an official statement. 

The memorandum of understanding also includes a mandate to develop AI-aligned business models and provide technical consultation services to private sector entities participating in the Shareek program. 

This comes as the Gulf’s largest economy positions itself as a global AI hub under its Vision 2030 strategy, which targets $135.2 billion in economic value from the technology by the end of the decade. 

The same roadmap aims to raise the private sector’s contribution to gross domestic product to 65 percent by 2030, signaling a shift toward tech-led diversification away from oil dependency. 

In a post on X, SDAIA stated that the MoU also seeks to “develop investment opportunities in cooperation with relevant authorities” and to “develop business models for both parties, in accordance with established procedures.” 

It added that the agreement will also focus on “identifying and prioritizing investment opportunities and providing specialized technical consultations,” as well as “sharing investment opportunities with the sector and relevant authorities to join the Private Sector Partnership Reinforcement Program – Shareek.”

Launched in 2021, Shareek is a flagship public-private partnership program aiming to unlock SR5 trillion ($1.33 trillion) in investments by 2030. It supports large Saudi companies in accelerating growth and driving economic development. Its collaboration with SDAIA highlights its role in advancing large-scale digital transformation.

The development comes as the Kingdom expands its global tech alliances, with SDAIA signing an MoU with Advanced Micro Devices, or AMD, on the sidelines of the Saudi-US Investment Forum in Riyadh in May to strengthen the AI ecosystem. 

The agreement aims to develop specialized AI data centers powered by AMD technologies, supporting the Kingdom’s efforts to build a robust digital infrastructure.

These developments come as Saudi Arabia’s global AI standing continues to rise, with the Kingdom ranking third worldwide in the OECD AI Policy Observatory in December, behind only the US and the UK.