Google Cloud Expects to Contribute $110 Billion to Saudi Economy

Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)
Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)
TT
20

Google Cloud Expects to Contribute $110 Billion to Saudi Economy

Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)
Startups and large enterprises can exploit Google Cloud's capabilities to develop innovative solutions and keep up with the latest technologies. (Shutterstock)

Google Cloud, the cloud computing arm of the technology giant Google, expects to contribute about $110 billion to the Saudi economy over the next seven years.

Abdul Rahman Al-Thehaiban, General Manager of Google Cloud in the Middle East, Türkiye and Africa, said the recent establishment of three cloud zones in Dammam, Doha and South Africa embodies Google Cloud’s dedication to strengthening its infrastructure to better serve the diverse needs of the region.

In an interview with Asharq Al-Awsat on the sidelines of LEAP, the international tech event, which was held in Riyadh on March 4-7, Al-Thehaiban noted that the establishment of the three cloud zones “not only indicates a major investment in the future of the digital landscape in the region, but also makes us a pivotal player” in the technological revolution sweeping these markets.

He added that Google Cloud’s approach was based on three basic pillars: infrastructure development, ecosystem partnership, and capacity building.

Badr Al-Madi, General Manager of Google Cloud in Saudi Arabia, pointed out that the launch of the cloud zones in November meets the needs of 1.2 million small and medium enterprises in the Kingdom, highlighting the importance of this achievement for the technology giant.

Regarding the broader economic impact of Google Cloud’s operations in Saudi Arabia, Al-Madi expects a contribution of about $110 billion to the local economy over the next seven years.

This contribution is likely to be driven by changes in business models and the creation of about 150,000 job opportunities, “which confirms the role of Google Cloud in supporting not only the digital landscape but also the general economy in the region,” he underlined.

Google Cloud is working to expand its internal team and launch centers of excellence that are designed to “raise the level of skills and ensure that the local workforce is equipped to benefit from Google Cloud technologies effectively,” according to Al-Thehabian, who emphasized the importance of these initiatives in supporting the digital transformation journey in the region.

Al-Madi believes that launching the cloud zone in November 2023 is consistent with the goals of Saudi Vision 2030, which seeks to enhance the contribution of small and medium-sized companies to the GDP and stimulate economic growth.



Saudi-European Partnership Launched between SIDF Investment and Investindustrial  

Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 
Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 
TT
20

Saudi-European Partnership Launched between SIDF Investment and Investindustrial  

Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 
Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 

In a significant step toward strengthening Saudi Arabia’s industrial capabilities, SIDF Investment Co., the financial arm of the Saudi Industrial Development Fund, signed a strategic partnership agreement with European private equity firm Investindustrial on Tuesday.

The alliance aims to attract global institutional capital and advanced industrial expertise to the Kingdom, reinforcing its position as a regional hub for high-value-added manufacturing.

Fahad Al-Naeem, CEO of SIDF Investment Co., described the agreement as a pivotal new chapter in the firm’s investment strategy.

“This partnership with Investindustrial is designed to connect niche industrial specializations and operational know-how with global markets,” he said. “It will support Saudi Arabia’s industrial ecosystem and empower the Kingdom to become both a regional and international platform for manufacturing growth.”

Al-Naeem added that SIDF Investment would leverage its deep local market knowledge to smooth the entry of global manufacturers into Saudi Arabia and integrate them into international supply chains.

Investindustrial Chairman Andrea Bonomi expressed confidence in the alignment between the firm’s investment portfolio and Saudi Arabia’s Vision 2030 goals. “Many of our investments are well positioned to support the Kingdom’s strategic ambitions, creating long-term partnerships and delivering sustainable value,” he said.

The agreement was signed in the presence of Prince Sultan bin Khalid bin Faisal, Vice Chairman of SIDF Investment Company, and Italy’s Ambassador to Saudi Arabia Carlo Baldocci.

According to the Saudi Press Agency (SPA), Investindustrial currently manages more than $19 billion in assets and operates across eight global offices. The firm specializes in medium-sized companies, focusing on sustainable value creation and international expansion.

This partnership reinforces the objectives of Saudi Arabia’s National Industrial Strategy and Vision 2030, both of which seek to position the Kingdom as a global center for advanced manufacturing and integrated supply chains.

The collaboration will focus on joint investments to localize advanced industries within the Kingdom, while enabling Saudi small and medium enterprises (SMEs) to tap into global value chains managed by Investindustrial.

Key sectors targeted by the agreement include machinery and equipment, automation, medical devices, food production, and sustainable consumer goods. The goal is to maximize local added value, stimulate innovation, and enhance competitiveness across the Saudi industrial landscape.

This move is expected to accelerate industrial transformation in the Kingdom, paving the way for increased foreign investment, job creation, and greater integration with international markets.