The report suggests that companies like Starlink, Darktrace, and Odyssey Cybersecurity are enhancing local services, while Kaspersky and Kalaam Telecom are expanding their presence in Riyadh with new data centres and security operations. Investment in industrial cyber security is also on the rise, illustrated by Honeywell’s New Jubail centre focused on critical infrastructure protection. Recent announcements at Black Hat Middle East and Africa 2025 regarding a new headquarters and partnerships further underscore the strong demand for advanced cybersecurity solutions in the Kingdom.

Strong managed services segment 

Managed services are projected to account for the largest market share in the Kingdom of Saudi Arabia cyber security market, as organisations increasingly outsource security operations to address evolving threats and workforce shortages. Government agencies, financial institutions, energy firms, telecom operators, and critical infrastructure providers are adopting managed SOC, MDR, cloud security, and continuous monitoring services to strengthen protection across IT and OT environments. Regulatory requirements from the NCA and sector regulators are further accelerating demand for 24/7 monitoring, incident response, and compliance support. As digital transformation expands, managed services are becoming the preferred approach for scalable and cost-efficient cyber security.

Cloud deployment to grow at highest CAGR

Cloud deployment is rapidly increasing in the Kingdom of Saudi Arabia cyber security market due to national digital initiatives and a shift towards services like SaaS and IaaS. This growth is driven by the preference for cloud-delivered cyber security, which provides scalability, quick deployment, and flexible protection for remote operations. As critical applications move to the cloud, tools like cloud access security brokers (CASB) and cloud workload protection platforms (CWPP) are becoming essential for visibility and security in multi-cloud environments. Furthermore, identity-based access controls such as IAM and MFA are being integrated to enhance user security in cloud applications, enabling organisations to manage evolving threats effectively.

Expanding digitalisation fuels SME growth

Small and medium enterprises (SMEs) are expected to grow at the highest rate as digitalisation extends beyond large corporations. More SMEs are adopting online services, digital payment platforms, and cloud applications to improve operational efficiency and expand their businesses. According to Monsha’at, Saudi Arabia had 1.6 million registered small and medium enterprises by the fourth quarter of 2024, reflecting rapid growth in the segment. This shift increases exposure to cyber threats such as phishing, ransomware, and data breaches, while also introducing new compliance requirements. To manage these risks, SMEs are increasingly using managed detection and response services, endpoint protection, and cloud security tools. Additionally, limited internal cyber security expertise and budget constraints are also accelerating the adoption of outsourced and subscription-based security solutions, supporting rapid growth in the SME segment.