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.


CMA approves new rules to spur Saudi investment fund sector

Updated 09 July 2025
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CMA approves new rules to spur Saudi investment fund sector

RIYADH: Saudi Arabia’s Capital Market Authority has announced a package of regulatory enhancements aimed at strengthening the investment fund environment in the Kingdom, according to a press release issued on Wednesday.

The reforms, which involve amendments to the Investment Funds Regulations, Real Estate Investment Funds Regulations, and the glossary of terms used across CMA regulations, are designed to advance the regulatory framework governing investment funds.

The goal is to elevate the competitiveness of the asset management industry by identifying development opportunities, adopting international best practices, and enhancing transparency and governance.

The reforms reflect Saudi Arabia’s broader efforts to deepen its capital markets and attract more local and international investment, in line with Vision 2030 economic diversification goals.

According to a CMA board decision, the updated rules will help expand and develop the investment fund and REIT sectors, increase transparency for unitholders, and improve investor protection through more robust governance standards.

Key reforms

One of the major changes includes broadening the categories of entities allowed to distribute investment fund units. Under the new rules, fund units may now be distributed via licensed investment platforms and e-money institutions approved by the Saudi Central Bank, including through their websites and mobile apps.

Additional reforms cover the procedures for fund termination and the removal of fund managers, as well as new guidelines for voluntary withdrawal by managers of both public and private funds.

A key requirement is obtaining CMA approval for such withdrawals, and ensuring that the outgoing fund manager transfers all management responsibilities to a successor within 60 days. This is aimed at safeguarding investor rights and ensuring a smooth transition process.

REIT flexibility in parallel market

In a move to expand investment opportunities and increase potential returns for investors, the CMA will now allow traded real estate investment funds listed on the parallel market to invest in real estate development projects at the time of fund establishment.

These investments will not be bound by the standard asset allocation ratios and restrictions previously outlined in the Real Estate Investment Funds Regulations.


Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says

Updated 09 July 2025
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Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says

  • Urban food and beverage prices were down 1.2%

DUBAI: Egypt’s annual urban consumer price inflation slowed to 14.9 percent in June from 16.8 percent in May, data from statistics agency CAPMAS showed on Wednesday.

The drop in inflation is steeper than the median forecast of 15 analysts polled by Reuters, which had seen annual urban consumer inflation last month at 16.2 percent.

Urban food and beverage prices were down 1.2 percent overall compared to May 2025 but were up by 6.9 percent against June 2024, according to CAPMAS.

Urban inflation on a monthly basis inched down in June by 0.1 percent compared to May, as meat and poultry prices were down by 3.8 percent, fruits by 2.1 percent and vegetables by 1 percent, while the prices of bread and cereals were up by 0.3 percent and seafood by 0.8 percent.

Egypt’s annual inflation has plunged from a record high of 38 percent in September 2023, helped by an $8 billion financial support package agreed with the International Monetary Fund in March 2024. 


Most Gulf markets close higher shrugging off Trump’s tariff news

Updated 09 July 2025
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Most Gulf markets close higher shrugging off Trump’s tariff news

  • Saudi Arabia’s benchmark index eased 0.1%
  • Abu Dhabi index added 0.4%

LONDON: Most stock markets in the Gulf reversed early losses to close higher on Wednesday as investors appeared unfazed by the latest tariff threats from US President Donald Trump. 

Trump ramped up his trade offensive on Tuesday, announcing a 50 percent tariff on copper and renewed long-threatened levies on semiconductors and pharmaceuticals. He also reiterated plans to slap 10 percent tariffs on imports from Brazil, India, and other BRICS countries. 

Saudi Arabia’s benchmark index eased 0.1 percent, dragged down by a 3.1 percent slide in utilities heavyweight ACWA Power and a 0.9 percent decrease in oil giant Saudi Aramco.

In the UAE, Dubai’s main index gained 0.7 percent, hitting a fresh 17-year high, lifted by a 3.6 percent rise in Emirates Central Cooling Systems Corp. 

Emirates has signed a preliminary agreement with Crypto.com to accept payments through its platform. 

The UAE continues to grow as a regional hub for crypto firms, with several enabling crypto payments for real estate, tuition, and transport. 

Abu Dhabi index added 0.4 percent, posting its sixth straight session of gains. 

Abu Dhabi National Insurance Co. advanced 6.4 percent following regulatory approval to open a branch in India. 

Qatar’s benchmark index closed flat. 

Outside the Gulf, Egypt’s blue-chip index, which traded after a session’s break, finished 0.4 percent higher, with Commercial International Bank rising 0.6 percent higher. 

Egypt’s stock exchange suspended trading on Tuesday, citing ongoing disruptions affecting brokerage firms’ ability to communicate efficiently across the trading system, after a fire broke out on Monday in a telecoms data center in Cairo. 


Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 

Updated 09 July 2025
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Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 

  • Initiative aims to support development of sustainable infrastructure, focusing on clean technologies
  • Deal includes development of dedicated charging stations for vehicle fleets

JEDDAH: Electric vehicle charging infrastructure is set to expand across Saudi Arabia following a strategic partnership between Blacklane and EVIQ, accelerating the Kingdom’s shift toward clean and sustainable mobility. 

Under the agreement, EVIQ — a joint venture between the Public Investment Fund and Saudi Electricity Co. — will collaborate with the international chauffeur-driven transport firm to support the expansion of the Kingdom’s EV charging network across key cities and mobility hubs, according to a press release. 

The initiative aims to support the development of sustainable infrastructure in line with Saudi Vision 2030, focusing on clean technologies and environmental responsibility. It also supports the Kingdom’s goal to transition 30 percent of vehicles in Riyadh to electric by 2030 and achieve net-zero emissions by 2060 — a target it aims to reach ahead of schedule

Mohammed Bakr Gazzaz, CEO of EVIQ, said: “By integrating national charging infrastructure with premium fleet operations, we aim to reinforce the foundation for a scalable, future-ready transport ecosystem aligned with Saudi Arabia’s Vision 2030.” 

The deal includes the development of dedicated charging stations for vehicle fleets, most notably an integrated charging center at Blacklane’s new regional headquarters for the Gulf region in Riyadh. 

“As we rapidly scale operations across the nation, we’re thrilled to have EVIQ on-board to actively support our expanding electric fleet. Together we are setting new benchmarks for sustainable innovation and success,” said Jens Wohltorf, CEO and co-founder of Blacklane. 

Blacklane will incorporate EVIQ’s public charging network into its operations in Saudi Arabia to support its growing electric vehicle fleet. Both companies also plan to explore opportunities for system integration aimed at improving network functionality and user accessibility. 

The partnership follows Blacklane’s recent introduction of Lucid electric vehicles into its Saudi fleet, as part of efforts to expand its EV offerings. EVIQ’s fast-charging network supports the company’s goal of enhancing its electric mobility services in the Kingdom, the release added. 

As part of the partnership, the companies will co-develop training programs under Blacklane’s Chauffeur Training Academy, focusing on EV charging best practices to support service quality, safety, and sustainability. 

Blacklane’s expansion in Saudi Arabia is backed by TASARU Mobility Investments, a wholly owned investment arm of PIF.


Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

Updated 09 July 2025
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Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

  • Parallel market Nomu gained 104.43 points to close at 27,448.22
  • MSCI Tadawul Index edged down 0.27% to 1,445.25

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped marginally on Wednesday, shedding 16.34 points or 0.14 percent to close at 11,277.73. 

The total trading turnover of the benchmark index was SR5.48 billion ($1.46 billion), with 140 of the listed stocks advancing and 109 declining. 

The Kingdom’s parallel market Nomu, gained 104.43 points to close at 27,448.22.

The MSCI Tadawul Index edged down by 0.27 percent to 1,445.25.

The best-performing stock on the main market was Umm Al Qura for Development and Construction Co. The firm’s share price increased by 8.62 percent to SR26.70. 

The share price of Saudi Real Estate Co. also rose by 7.68 percent to SR20.89. 

Retal Urban Development Co. also saw its share price advance by 6.62 percent to SR16.10. 

On the announcements front, Alinma Bank said that it completed the issuance of US dollar-denominated sukuk worth $500 million, under its Trust Certificate Issuance Program. 

According to a press statement, the sukuk issue is expected to settle on July 15. 

The share price of Alinma Bank declined by 1.19 percent to SR26.68. 

Jahez International Co. for Information System Technology announced that it has signed an agreement to acquire a 76.56 percent stake in Snoonu Corporation Holding LLC, a Qatari-based technology and logistics firm that operates an e-commerce and on-demand delivery platform. 

In a press statement, the company revealed that it will acquire 8.14 million shares, representing 75 percent of Snoonu’s share capital, from existing shareholders for $225 million. 

Jahez will also subscribe to 723,960 newly issued shares in Snoonu, representing 1.56 percent of the stake, for $20 million. 

The share price of Jahez edged up by 1.11 percent to SR27.44.