The Kingdom of Saudi Arabia’s (KSA) cloud landscape is transforming fast, and a pivotal moment has arrived. Multi-cloud environments, created by the likes of Google (GCP), AWS, Microsoft Azure, Oracle Cloud, and Alibaba Cloud are about to be fully operational – ushering in a new era of innovation and growth.

• The Vision 2030 initiative has accelerated the journey to this crucial cloud milestone, designed to catapult the KSA’s IT sector into the global top ten and build a future-ready economy.
• As a result of this rapid pace, very few CEOs in the region have fully leveraged cloud-based technology to date, meaning that many players are not fully equipped at this defining fork in the road.

CEOs that act now and supercharge their cloud strategies will seize a vital competitive advantage, positioning their institutions as future banking leaders in Saudi Arabia. In this article, we will take a closer look at the evolving KSA hyperscaler ecosystem, what it means for banks, and four key steps to make meaningful progress.

‍

‍

A Hyperscaler Hotbed

As of 2025, all five major hyperscalers are actively building advanced cloud infrastructure in KSA and simultaneously investing in major skilling initiatives. To demonstrate the stratospheric rise of cloud infrastructure in the region, we have tracked the course of events going back to 2020:

‍

- to be inserted- Exhibit 1 (timeline) (Key developments in cloud infrastructure inthe region)

‍

Riding this wave, local FinTech players have emerged as a dynamic engine for growth – demonstrating the value of cloud to the wider industry. We are seeing many FinTechs in KSA adopting cloud technologies and using them to build innovative platforms, equipping them to meet the demands of a fast-evolving financial market.

‍

Top 5 Cloud Benefits for Financial Institutions

‍Increasing numbers of financial institutions across the globe are exploring cloud technology as a way to transform their operations, and we see five main beneficial levers that CEOs inKSA should be aware of: ‍

‍

1. Unparalleled Flexibility and Scalability

Whether you are looking to expand into new markets, launch new services, or navigate seasonal fluctuations more effectively – the ability to respond quickly to shifting demands is essential (and cloud offers the agility of the future). The technology makes it possible to scale up or down in a highly reactive way, enabling banks to optimize IT workloads in response to market demands.

‍

2. Next-generation Security and Threat Detection

Working with hyperscalers enables financial institutions to tap into world-leading security at a time of unprecedented cyber risk. These cloud providers leverage their global scale to analyse patterns and achieve unmatched visibility, which financial institutions can use to bolster their own security frameworks.

3. AI and Big Data Innovation

Cloud infrastructure is critical for accessing big data analytics, predictive modelling, and fraud detection. Embracing cloud technologies enables financial institutions to deliver personalized, data-driven services that result in differentiated customer experiences (and a significant competitive edge).

‍

4. Banking R&D

Because of the scalability and flexibility enabled by cloud, the technology is highly advantageous for leveraging the temporary resources and varied services required for effective banking R&D. Cloud platforms streamline and accelerate the provisioning of resources, which is ideal for Proof of Concepts (POCs), testing, and development – without incurring substantial infrastructure costs upfront.

‍‍

5. Global Operations & Expansion

For institutions in KSA with global operations or expansion plans, cloud offers a convenient way to spread IT service provisioning across multiple locations and process data closer to endusers.

‍

By leveraging multi-geo cloud architectures, banks can efficiently deploy resources and ensure optimal service availability – this not only reduces latency and improves customer experience, it shortens time-to-market significantly. Having data processing capabilities in many locations also helps with addressing location-specific public regulations.

‍

These advantages and others have been harnessed by financial institutions in the United Arab Emirates (UAE), where hyperscaler cloud capabilities have been available for a few years.

‍

‍

A Cloud Compliance Breakthrough

The Cloud Computing Regulatory Framework (CCRF), introduced in 2017 and revised in 2018, strictly regulates data residency to ensure sensitive customer information remains within the Kingdom. Under the CCRF, data is categorized into four levels - anything labelled L3 and above, including customer financial records, must be stored locally.

‍

While the framework did not ban cloud usage outright, the lack of local hyperscaler infrastructure made compliance challenging, effectively preventing financial institutions from leveraging cloud at scale.

‍

- to be inserted - Exhibit 2

‍

But the arrival of the major hyperscalers in the region marks a turning point. With data processing now available locally, financial institutions can leverage the flexibility, security, and innovation offered by the cloud while remaining fully compliant with regulatory requirements.

‍

Now that compliance hurdles have been overcome, CEOs have a chance to seize this defining opportunity for their institutions.

‍

What CEOs Need to Do Now

There is a small window of opportunity for financial institutions in KSA to get ahead of their competitors, so CEOs need to take action now. A structured approach that aligns with organizational goals and regulatory requirements is crucial – here are the steps we recommend:

‍‍

1. Define a cloud strategy

‍Financial institutions must define a clear adoption strategy and decide whether an on-premises, hybrid, or fully cloud-first model is the right choice. This involves:

• Reviewing the existing application portfolio to identify workloads suitable for migration.
• Assessing regulatory landscapes and conducting risk analyses to determine which data can be moved to the cloud.‍

‍

2. Upskilling workforces

This is to maximize the benefits of cloud adoption and ensure that workforces are cloud ready. This involves:

• Developing skilling plans to enhance the expertise of existing teams and stay ahead of evolving technological demands (one option is to leverage training programs offered by hyperscalers). ‍

‍

3. Foster R&D and innovation

Institutions should prioritise POCs and experimental projects to explore cloud capabilities. Many institutions go directly to hyperscalers for support with their dedicated co-innovation programs.

‍

4. Establish cloud governance

Develop a centralized approach to managing cloud adoption that covers policy development, governance, and regulatory compliance. This will enable a smooth, secure transition to the cloud. ‍

‍

Some opt for a Cloud-Smart strategy that involves selectively moving value-adding workloads to the cloud (while maintaining a hybrid model). But for those seeking to tap the full potential of the cloud, a more ambitious Cloud-First approach would be the right choice. This strategy focuses on designing new applications specifically for the cloud and migrating legacy systems to cloud-native architectures.