Amazon Web Services Invests USD 5.3B in Saudi Tech Hub

Amazon Web Services (AWS) is making a major play for the Saudi Arabian technology market, announcing plans to invest over USD 5.3 billion in the region. This significant investment underscores the growing importance of the Middle East in the global cloud computing landscape.

A key element of the investment is the establishment of an AWS infrastructure Region in Saudi Arabia by 2026. This will provide local businesses, startups, and entrepreneurs with access to in-country data center infrastructure for their cloud-based solutions. The hub will offer a broad range of services, including compute, storage, databases, analytics and artificial intelligence.

This move aligns with Saudi Arabia's goal of becoming a regional technology hub. The kingdom is actively positioning itself as a leader in digital technologies, particularly with its bid to host World Expo 2030 in Riyadh.

AWS joins competitors like Huawei, Microsoft, and Oracle who have all made similar investments in recent years.

Amazon emphasizes the security and resilience of its cloud infrastructure as a key benefit for Saudi Arabian businesses. This focus reflects the growing demand for reliable cloud services across the Middle East.

While the official reasons behind the investment haven't been stated, foreign firms in the region have been offered incentives to move operations within Saudi Arabia to secure government contracts. This trend has prompted companies like Amazon, Google, and Microsoft to establish regional headquarters in the country.