The economic zone has provided investors with significant access to untapped prospects from 15 months of its launch.
Riyadh has rolled out a special economic zone which is changing Saudi Arabia into a cloud computing hub. This will further boost jobs and be a means of foreign investments. It provides access to world-class infrastructure, latest technologies and skilled talents for companies that provide cloud computing services.
The Cloud Computing Special Economic Zone is located in the Innovation Tower at King Abdulaziz City for Science and Technology in Riyadh and was launched in April 2023.
The zone is expected to account for 30% of total information and communication technology spending in the Kingdom by 2030, providing investors with an opportunity to capitalise on a burgeoning market for innovative and disruptive digital technologies.
Cloud Computing Special Economic Zone will gradually expand to take over the technologies that will further mould the future while being backed by the Kingdom’s Cloud First Policy.By focusing on cloud computing in the early phases, we have created a key hub for creativity and cooperation to fuel the next wave of technological growth.
The zone has provided investors with significant access to untapped prospects from 15 months of its launch.
The Saudi based cloud computing market has reached about $4.8 billion in 2023. The expectations are to further widen to almost $8.8 billion in the year 2029. It also reflects an estimated compound growth rate of 16.85$ from the present year to 2029 as per statistics that were released by market research firm Mordor Intelligence.
The market is expected to expand due to rising need for lower capital expenditures, increased acceptance of digital business strategies, a greater requirement for the Internet of Things, and faster and easier cloud service implementation.
Nonetheless, the CCSEZ provides a unique and customizable paradigm that allows providers to supply a diverse range of cloud computing services within the zone. This includes the ability to build and operate data centres in multiple parts of the Kingdom, with 400 already operational in Saudi Arabia.
The regional solutions engineering manager at the US based cloud computing, Aamer Mushtaq mentioned that CCSEZ will be a “game-changer for all sectors” but he highlighted three in particular – starting with financial and banking services.
The expert identified government services as another industry that will benefit, notably in terms of efficiency, openness, and service delivery.
Another sector that was shed light upon was health. According to Mushtaq, cloud computing can prove to be a big help to revolutionise telemedicine and improve the quality of health care in remote areas. Research and innovation can be accelerated by ensuring researchers produce data and findings.
A technology consultant partner at PwC Middle East, Rajat Chowdhary CCSEZ will prove to be beneficial for the healthcare sector. Chowdhary also discussed smart mobility and how it plans to take advantage of the benefits provided by the CCSEZ.
According to Chowdhary, when these sectors adopt cloud computing, their operations will undergo major transformations as a result of increased efficiency and data-driven decision making.
The main objective of the Saudi Arabian Cloud Computing Special Economic Zone is to accelerate the adoption of cloud technology within the area. This is achievable by establishing and creating an environment that is exciting and attractive to investors. With eased regulations and appealing incentives meant to attract well-known cloud service companies to the Kingdom.
The economic gain and benefits are substantial with a crisp cloud infrastructure which attracts foreign investments and home-based tech startups. These are the positives of the CCEZ for businesses and organisations in Saudi Arabia.
The CCSEZ offers a variety of advantages, including favourable tax treatment and regulatory help, creating an appealing investment environment for both domestic and international cloud computing enterprises.
Cloud Computing Special Economic Zone will have a substantial impact on job creation by offering unique opportunities in cutting-edge computer technology and related sectors.
