How to Establish a Cloud Services Company in Saudi Arabia: Registration Steps and Obligations 2026

Starting a cloud services company in Saudi Arabia requires registration with the Communications, Space and Technology Commission (CST) under regulations adopted in October 2023. Providers must meet local infrastructure standards and store data inside the Kingdom. An independent study cited by Al-Eqtisadiah projects cloud adoption could generate $191 billion in economic value for the country by 2033.

Cloud computing delivers technology resources such as servers, storage, and databases over the internet rather than through on-premises hardware. Saudi Arabia has become a magnet for this sector. Major global firms are launching local cloud regions to serve government, financial, and healthcare clients that need sensitive workloads processed domestically, according to Madhavi Reddy, AWS Managing Director for the Middle East, North Africa, and Turkey, speaking to Al-Eqtisadiah.

What Are the Legal Regulations for Cloud Companies in Saudi Arabia?

The CST issued its cloud computing service regulations under Decision No. 506/1445, approved on 08/10/2023. The framework was designed to develop the information and communications technology sector after reviewing market developments and aligning with national data and cybersecurity rules, according to the commission's website.

The regulations aim to stimulate investment in cloud computing, strengthen market competition, improve service quality, and expand provider capabilities. The document defines the rights and obligations of both cloud service providers and users across individual, government, and private sectors.

How Do You Register as a Cloud Service Provider?

To implement those regulations, the CST published the "Cloud Computing Service Providers Guide" under the same Decision No. 506/1445 dated 08/10/2023. The guide details registration procedures and requirements for operating in Saudi Arabia, as posted on the commission's website.

Follow these steps under the regulatory framework:

1. Review the CST cloud computing regulations to understand your rights and obligations as a provider.
2. Consult the providers guide for the full list of requirements and detailed registration procedures.
3. Build technical infrastructure that complies with Saudi data and cybersecurity regulations.
4. Submit your registration application to the CST along with the documents specified in the guide.

What Are the Infrastructure and Local Data Storage Requirements?

Saudi regulations require workloads to run and data to be stored and processed locally. Major companies are meeting this condition by building cloud regions inside the country. AWS plans to launch its Saudi cloud region in December 2026 with a $5.3 billion (19.9 billion riyals) investment, part of broader capital commitments exceeding $10.3 billion in the Kingdom, Al-Eqtisadiah reported.

The upcoming region will include three independent availability zones to support government agencies and businesses. AWS is also working with Humain to build a dedicated artificial intelligence zone in Riyadh with investments exceeding five billion dollars. That facility targets 50 megawatts of capacity by 2028 and the deployment of up to one hundred fifty thousand AI accelerators.

Why Does Moving to Cloud Services Matter in the Saudi Market?

Shifting from traditional IT infrastructure to cloud services can cut operating costs by 50 to 80 percent while increasing operational flexibility and accelerating digital service launches, Reddy told Al-Eqtisadiah.

Entering this market, however, demands strong local partnerships. Global firms are expanding their Saudi alliances with entities including stc, ZainTECH, and Almosafer, alongside Misar Information Systems and Tamkeen Technologies. These partnerships cover technical projects such as migrating Almosafer's enterprise resource planning system to RISE with SAP on AWS solutions, plus a six-year regional alliance with Accenture, according to the same source.

What Training and Workforce Opportunities Exist in the Cloud Sector?

Running cloud services requires qualified staff. AWS aims to train one hundred thousand Saudis in cloud computing and generative AI skills, in cooperation with the Ministry of Communications and Information Technology and the Public Investment Fund, Al-Eqtisadiah reported. For a new cloud company founder, this initiative builds a pool of trained local talent to support operations.

Key Figures

• Projected economic value of cloud computing: $191 billion for Saudi Arabia by 2033 (Al-Eqtisadiah).
• AWS capital investments in the Kingdom: Exceeding $10.3 billion (Al-Eqtisadiah).
• Cost of launching the new cloud region: $5.3 billion / 19.9 billion riyals (Al-Eqtisadiah).
• Potential reduction in operating costs: 50 to 80 percent (Al-Eqtisadiah).
• Number of independent availability zones: Three (Al-Eqtisadiah).
• Targeted capacity for the AI zone: 50 megawatts by 2028 (Al-Eqtisadiah).
• Cloud computing regulation decision number: 506/1445 dated 08/10/2023 (Communications, Space and Technology Commission).
• Saudis targeted for training: One hundred thousand trainees (Al-Eqtisadiah).

What Should You Monitor Next?

Start by reviewing the cloud computing regulations and the providers guide issued by the CST in October 2023. They form the primary reference for registration steps and compliance obligations. Track the December 2026 launch of the new AWS cloud region, which will reshape the infrastructure available to local providers. If you plan to serve government or financial clients, prepare your strategy to ensure all data processing and storage occurs entirely within the Kingdom, in line with the regulatory and security requirements outlined above.