Saudi Arabia Software as a Service (SaaS) Market is Expected to Register a 14.63% CAGR Through 2030

Saudi Arabia Software as a Service (SaaS) Market is expected to be led by the BFSI and Manufacturing sectors, supported by robust cloud infrastructure and strong digital transformation initiatives under Vision 2030, during the forecast period.

According to TechSci Research report, “Saudi Arabia Software as a Service (SaaS) Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, Saudi Arabia Software as a Service (SaaS) Market was valued at USD 2.86 Billion in 2024 and is expected to reach USD 6.49 Billion by 2030 with a CAGR of 14.63% during the forecast period.

The rapid expansion of local cloud infrastructure in Saudi Arabia has become a transformative force in the growth of the Software as a Service (SaaS) market. Leading global cloud providers—such as Oracle, Microsoft, Google, and Amazon Web Services—have established in-country data centers to align with the Kingdom’s strict data residency and cybersecurity requirements. These investments directly support Vision 2030’s focus on digital sovereignty and provide a secure, scalable foundation for widespread SaaS adoption across both public and private sectors. Localized hosting is particularly critical for industries like banking, government, and healthcare, which handle highly sensitive data and are governed by strict compliance mandates.

In parallel, the implementation of Saudi Arabia’s Cloud Computing Regulatory Framework has created a standardized environment for cloud service providers and SaaS vendors. This regulatory clarity fosters trust, ensures data protection, and encourages innovation in software offerings tailored to Saudi organizations. By 2024, more than 70 percent of cloud-hosted SaaS applications in the Kingdom operated from local data centers, up significantly from 20 percent in 2020. This dramatic shift highlights the market’s maturing infrastructure and growing preference for compliant, low-latency, locally governed cloud solutions. As more enterprises migrate to cloud environments, the role of localized infrastructure will remain pivotal in sustaining the momentum of SaaS growth.

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Based on End User, Manufacturing segment emerged as the fastest-growing end user in the Saudi Arabia Software as a Service (SaaS) Market in 2024, driven by a strong national push toward industrial modernization and smart manufacturing initiatives. As part of Vision 2030, the Kingdom is prioritizing the transformation of its industrial base, with an emphasis on digital technologies, automation, and data-driven operations. SaaS platforms are becoming central to these advancements, offering scalable solutions for supply chain optimization, predictive maintenance, real-time monitoring, and production analytics.

Manufacturing firms across sectors—such as petrochemicals, construction materials, and consumer goods—are adopting SaaS-based enterprise resource planning (ERP), inventory management, and digital twin platforms to improve productivity and reduce costs. These cloud-native solutions help manufacturers reduce time-to-market, integrate plant-level data across multiple locations, and remain compliant with regulatory frameworks. Local and international providers are also developing vertical SaaS offerings tailored specifically for industrial operations in the Saudi context.

With continued investment in industrial zones like NEOM, the King Salman Energy Park (SPARK), and the National Industrial Development and Logistics Program (NIDLP), the demand for intelligent and agile software solutions is expected to accelerate. As manufacturing companies scale operations and integrate more IoT devices into their facilities, the reliance on flexible, cloud-based SaaS platforms will deepen—cementing the sector’s role as the fastest-growing vertical in the national SaaS ecosystem.

Western Saudi Arabia has rapidly emerged as the fastest-growing region in the Kingdom’s Software as a Service (SaaS) market, fueled by the government’s heavy investment in infrastructure, smart cities, and digital transformation initiatives under Vision 2030. Major urban centers like Jeddah, Makkah, and NEOM are experiencing increased demand for cloud-based solutions across sectors such as tourism, logistics, retail, and public services. This demand is driving the accelerated adoption of SaaS platforms for enterprise resource planning, customer relationship management, and productivity tools.

The region also benefits from a vibrant startup ecosystem and a rising number of small and medium-sized enterprises seeking flexible, subscription-based technologies to streamline operations. The influx of digital services in e-government, healthcare, and education has created a favorable environment for SaaS providers. As Western Saudi Arabia continues to build world-class digital infrastructure and attract foreign investment, it is expected to remain a key engine of growth for the country’s SaaS landscape.

Major companies operating in the Saudi Arabia Software as a Service (SaaS) Market are:

• Saudi Manpower Solutions Co.
• Knowledge Net Company
• Elm Company
• Al Moammar Information Systems Company
• Amazon.com, Inc.
• Oracle Corporation
• Microsoft Corporation
• SAP SE

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“The Saudi Arabia Software as a Service (SaaS) Market is poised for robust growth driven by accelerated digital transformation, cloud adoption, and government-backed initiatives like Vision 2030. Increasing demand for scalable, cost-efficient software solutions across sectors such as finance, healthcare, retail, and education is fueling adoption. The rise of remote work, cybersecurity needs, and data localization requirements further support SaaS deployment. Local startups and global players are expanding services, while public-private collaborations enhance market maturity. With strong investment in infrastructure and a growing appetite for AI-integrated platforms, the SaaS market in Saudi Arabia is expected to witness sustained and dynamic expansion.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Saudi Arabia Software as a Service (SaaS) Market By Application (Marketing, Customer Relationship Management, Business Operations, Finance, Database Management, Enterprise Resource Planning, Others), By Offering (Horizontal SaaS, Vertical SaaS), By End User (Manufacturing, Healthcare, IT & Telecom, Retail, Education, BFSI, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia Software as a Service (SaaS) Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Software as a Service (SaaS) Market.

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