New Google Cloud region in KSA could add $109 billion to economy

27 November 2023 3 min. read
More news on

Google Cloud has announced the launch of a a new cloud region in Dammam, which could contribute around $109 billion to the country’s GDP by 2030. The expansion will extend Google Cloud’s high-performance, low-latency services to a wide range of customers in Saudi Arabia and the wider Middle East.

The services offered by Google Cloud range from cloud computing and data analytics to cloud-powered artificial intelligence and management tools. The suite of tools is targeted towards all types of companies, with a notable focus on small and medium-sized enterprises (SMEs).

In addition to the estimated $109 billion increment to the GDP of KSA (equivalent to 10% of the real GDP in 2022), the new Google Cloud region could also generate around 148,600 by 2030. That is according to research by technology consultancy Access Partnership commissioned by Google Cloud.

Breakdown of cumulative gross economic output driven by Google Cloud Region

“Our new cloud region in Saudi Arabia will help both public and private sector organizations make the most of their data, leverage generative AI solutions, and create a culture of innovation underpinned by a modern, sustainable infrastructure with built-in security,” said Thomas Kurian, CEO of Google Cloud.

There are already 39 Google Cloud regions and 118 zones around the world, with Google Cloud services offered to over 200 nations and territories globally. Existing regions are spread across North America, Europe, and Asia-Pacific, with some in South America and future regions planned for Mexico and Johannesburg.

Other regions that were added this year include those in Doha, Qatar and Berlin, Germany.

Cumulative increase in economy-wide production activity over 2024-2030 due to productivity spillovers

According to the research from Access Partnership, the services sector is expected to contribute almost two-thirds (61%) of the estimated increase in economy-wide production activity arising from cloud-enabled productivity gains. This shows how the services sector makes up a relatively large share of Saudi Arabia’s economy. Another 36% of the expected activity will be in manufacturing and 3% in the public sector.

Google Cloud eliminates the need for customers to own and operate their own physical data centers and servers, which can be cost-prohibitive, particularly for SMEs that often face financial and skill gaps. The Google tools serve as an IT infrastructure solution that can be immensely useful to the 1.2 million SMEs in Saudi Arabia.

“We aim to support the digital empowerment of every business, and every individual in Saudi Arabia,” said Bader Al Madi, Saudi Arabia Country Manager at Google Cloud.

“By providing accessibility to cloud technologies and artificial intelligence to the Saudi market, we are actively paving the path for the kingdom’s digital transformation using the latest digital technologies to optimize business processes and customer experiences to meet rapidly-changing business and market dynamics.”