Oracle Corporation has announced its plans to invest $1.5 billion in Saudi Arabia over the next few years to expand its cloud presence in the region and open a third public cloud region in Riyadh. The technology giant aims to establish a stronger foothold in Neom City, the futuristic economic zone located on the Red Sea coast, by augmenting the size of its existing cloud region in Jeddah and setting up a new public cloud region in Riyadh.
According to Nick Redshaw, a senior vice president at Oracle, the company is in the process of finalizing plans with its suppliers before making an official announcement. The investment, which will be made over an extended period of time, will help Oracle stay ahead of its competitors, such as Microsoft, Amazon, and Google, in the race for cloud computing dominance in Neom City and the wider region.
The government of Saudi Arabia has been encouraging foreign companies to invest in the country and transfer their main offices to Riyadh to take advantage of the available government contracts. Oracle is collaborating with the Saudi administration to fulfill the regional headquarters requirement and will make an official announcement once the preparations are completed.
Neom City is one of the largest users of cloud services in Saudi Arabia and has been designated as a key component of the kingdom’s ambitious Vision 2030 initiative, which aims to diversify the economy away from oil and attract foreign direct investment. Despite the slow progress, the Saudi government has been motivating foreign companies to establish offices in the country before 2023 or risk being excluded from obtaining government contracts.
Oracle’s $1.5 billion investment in Neom City and its cloud presence in Saudi Arabia is expected to fuel its growth and contribute to the kingdom’s ambitious Vision 2030 initiative. With its futuristic economic zone, abundant resources, and supportive government, Neom City is poised to become a hub for cloud computing and other innovative technologies.