Saudi Arabia Data Protection as a Service (DPaaS) Market Overview

Market Size in 2025: USD 444.7 Million

Market Forecast in 2034: USD 1,817.1 Million

Market Growth Rate 2026-2034: 16.93%

According to IMARC Group's latest research publication, "Saudi Arabia Data Protection as a Service (DPaaS) Market Size, Share, Trends and Forecast by Service Type, Deployment Type, Organization Size, End Use Industry, and Region, 2026-2034", the Saudi Arabia data protection as a service (DPaaS) market size reached USD 444.7 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 1,817.1 Million by 2034, exhibiting a growth rate (CAGR) of 16.93% during 2026-2034.

Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-data-protection-as-a-service-(dpaas)-market/requestsample

How AI is Reshaping the Future of Saudi Arabia Data Protection as a Service (DPaaS) Market

• AI-powered predictive maintenance systems reduce unplanned downtime in Saudi data protection infrastructure by 40%, using sensors and machine learning to detect security vulnerabilities and equipment failures before they compromise sensitive data.
• Machine learning algorithms analyze millions of data points per second, cutting false security alarms by 30% and improving real-time threat detection accuracy across Saudi Arabia's rapidly expanding cloud infrastructure.
• AI-driven Zero Trust Architecture deployed by major Saudi enterprises like Saudi Aramco and STC Solutions ensures continuous authentication and adaptive security policies, significantly reducing data breach risks and enhancing compliance with PDPL requirements.
• Vision 2030 cybersecurity initiatives leverage AI to power 60% of DPaaS solutions by 2025, as the National Cybersecurity Strategy accelerates adoption of intelligent security platforms across government and private sectors throughout the Kingdom.
• AI-enabled digital twins simulate data protection scenarios under various operating conditions, accelerating product development cycles by 30% and reducing testing costs for DPaaS providers serving Saudi Arabia's demanding regulatory environment.

Saudi Arabia Data Protection as a Service (DPaaS) Market Trends & Drivers:

One key driver propelling the Saudi Arabia DPaaS market forward is the enforcement of the Personal Data Protection Law (PDPL) and stringent regulatory compliance requirements reshaping data governance across the Kingdom. The PDPL, formally enacted on 14 September 2023 under Royal Decree No. M/19, represents Saudi Arabia's first comprehensive data protection law, inspired by the EU's GDPR and mandating robust data privacy and security measures for all organizations processing personal data of Saudi residents. The Saudi Data and Artificial Intelligence Authority (SDAIA) enforces the PDPL with extraterritorial reach, applying to any entity—local or foreign—that processes personal data of individuals within Saudi Arabia, making compliance a critical priority for businesses operating in the Kingdom. In September 2024, SDAIA began actively enforcing PDPL requirements after the one-year grace period concluded, responding promptly and forcefully to data subject complaints and requiring controllers to provide supporting evidence within short timeframes. Organizations must register on the National Data Governance Platform if they process sensitive data such as health information, biometric data, or criminal records, creating substantial demand for DPaaS solutions that ensure continuous compliance. According to SDAIA, over 70% of enterprises in the Kingdom are migrating to localized cloud storage to enhance compliance and security, with sovereign cloud adoption expected to grow at a CAGR of 25% from 2023 to 2025. The Ministry of Communications and Information Technology (MCIT) announced $2 billion in investments in 2024 to expand national cloud storage infrastructure, directly supporting DPaaS capabilities and market expansion. This regulatory environment creates sustained demand for comprehensive data protection services that address compliance, security, and governance requirements across all sectors operating in Saudi Arabia.

Another significant factor is the escalating cyber threat landscape and increasing adoption of AI-driven cybersecurity solutions transforming data protection strategies across the Kingdom. Saudi Arabia experienced a 20% increase in cybercrime incidents in 2023, according to the National Cybersecurity Authority (NCA), driving urgent demand for sophisticated DPaaS solutions that prevent data breaches, enhance threat detection, and ensure rapid incident response. The National Cybersecurity Strategy promotes widespread adoption of AI-powered security platforms, with AI security tools expected to power 60% of DPaaS solutions in the Kingdom by 2025. Major Saudi enterprises including Saudi Aramco and STC Solutions have invested substantially in AI-driven Zero Trust Architecture, implementing continuous authentication and adaptive security policies that protect sensitive corporate data against evolving threats. AI-powered security platforms analyze millions of data points per second, reducing false alarms by 30% and significantly improving real-time threat detection capabilities essential for protecting critical infrastructure and sensitive information. Leading global cybersecurity providers such as Palo Alto Networks and IBM Security have expanded operations in Saudi Arabia, offering AI-powered data protection solutions specifically tailored to local compliance requirements and threat landscapes. The improved effectiveness, faster response times, and reduced risk of data loss associated with AI-driven DPaaS solutions are driving massive market growth as organizations recognize the critical importance of advanced security measures. The NCA rolled out new licensing frameworks for Managed Security Operations Centers (MSOCs) with tiered structures based on service capabilities and mandatory certification for cybersecurity analysts, further professionalizing the market and elevating service quality standards across the Kingdom's rapidly evolving digital security infrastructure.

An emerging trend reshaping the market is the rapid expansion of sovereign cloud infrastructure and localized data storage policies strengthening data protection capabilities across Saudi Arabia. The Personal Data Protection Law (PDPL) and updated Data Transfer Regulations implemented in September 2024 mandate data localization for specific sensitive information types, requiring certain data to be stored and processed exclusively within the Kingdom's borders. Leading global cloud providers including Oracle, Microsoft Azure, and Google Cloud have launched localized data centers in Riyadh and Jeddah, ensuring compliance with Saudi data sovereignty laws while reducing latency issues for businesses operating throughout the region. SDAIA confirmed that over 70% of enterprises are actively migrating to localized cloud storage to enhance compliance and security, with sovereign cloud adoption projected to grow at a robust CAGR of 25% through 2025. The Kingdom's ambitious Project Transcendence initiative targeting global AI leadership includes plans to invest up to USD 100 billion in data centers, AI startups, and essential technology infrastructure, creating unprecedented opportunities for DPaaS providers. The Ministry of Communications and Information Technology's $2 billion investment announced in 2024 to expand national cloud infrastructure directly supports DPaaS market expansion by providing the physical and digital foundation necessary for secure, compliant data protection services. With increasing volumes of sensitive financial, healthcare, and government data requiring protection, sovereign cloud solutions ensure 100% data residency compliance while addressing latency concerns that previously hindered cloud adoption. This combination of regulatory requirements, massive infrastructure investments, and growing data volumes positions the sovereign cloud and localized storage segment as a critical growth driver for Saudi Arabia's DPaaS market throughout the forecast period.

Saudi Arabia Data Protection as a Service (DPaaS) Industry Segmentation:

The report has segmented the market into the following categories:

Service Type Insights:

• Disaster Recovery as a Service (DRaaS)
• Backup as a Service (BaaS)
• Storage as a Service (STaaS)

Deployment Type Insights:

• Public Cloud
• Private Cloud
• Hybrid Cloud

Organization Size Insights:

• Large Enterprises
• Small and Medium Enterprises

End Use Industry Insights:

• BFSI
• Healthcare
• Government
• IT and Telecom
• Defense
• Energy and Power
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Data Protection as a Service (DPaaS) Market

• September 2025: SDAIA amends PDPL rules, mandating DPO registration and 10-day response times to regulators, enhancing DPaaS accountability for 70% of cloud providers.
• April 2025: Public consultation launches DPaaS oversight framework, requiring encryption and audits, boosting secure service adoption by 40% among enterprises.
• August 2025: PDPL updates enable legitimate interest processing and streamlined cross-border transfers, cutting DPaaS compliance costs by 25% for Saudi firms.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:

IMARC Group

134 N 4th St. Brooklyn, NY 11249, USA

Email: sales@imarcgroup.com

Tel No:(D) +91 120 433 0800

United States: +1-201-971-6302