Wasim Alnahlawi - stock.adobe.co
Middle East cloud ambitions get boost from IBM-AWS partnership
With demand for AI, datacentres, and smart city tech rising, Riyadh Innovation Hub promises tailored solutions for the region
IBM and Amazon Web Services (AWS) are strengthening their partnership with a strong focus on the Middle East. The two companies plan to open their first joint Innovation Hub in Riyadh, designed to speed up cloud adoption and digital transformation in support of national goals like Saudi Vision 2030 and the UAE Digital Economy Strategy.
The Riyadh hub will be a working centre where businesses and government organisations can test new ideas, try out generative AI, and develop industry specific solutions. IBM Consulting will provide its expertise in cloud, AI and cyber security, while AWS brings its global cloud infrastructure and regional datacentres.
“This collaboration represents a significant milestone in IBM’s commitment to helping organisations across the Middle East, especially in Saudi Arabia and the UAE, realise their digital transformation ambitions,” said Lula Mohanty, managing partner, Middle East and Africa at IBM Consulting.
Saudi Arabia and the UAE are investing heavily in digital infrastructure as part of their diversification agendas. Cloud is at the centre of these initiatives, from enabling smart cities such as Neom to driving modernisation in banking, healthcare, and government services.
“These government initiatives are gamechangers,” said Shumon Zaman, chief information and digital officer at business services company Ali&Sons.
“Vision 2030, for example, aims to diversify Saudi’s economy and heavily backs tech infrastructure, including datacentres. The UAE is also pushing hard on its digital economy targets, making the region super attractive for tech investors.”
Cloud demand surges
The collaboration begins against the backdrop of a rapid boom in datacentres and localised cloud services. CIOs across the region point to three main drivers - the rise of generative AI, strict government data localisation rules, and a growing shift to sustainable infrastructure.
“It’s a mix of things really,” Zaman added. “Smart cities like Neom need powerful tech backbones. Plus, governments are pushing for data localisation, keeping data within national borders which means local datacentres are a must. There’s also a shift toward sustainable energy, and new datacentres are being built with green tech in mind.”
Security and trust at the core
Security is another cornerstone of the IBM-AWS plan. The companies say they will offer organisations in regulated sectors such as healthcare, energy, and banking, tailored security frameworks aligned with the Saudi Arabian National Cybersecurity Authority’s Essential Cybersecurity Controls (ECC) and Abu Dhabi’s Healthcare Information and Cybersecurity Standard (ADHICS). IBM’s Autonomous Security for Cloud service will bring AI-driven automation to enforce compliance from the start of a cloud migration journey.
“Our collaboration with IBM will enable businesses and governments across the Middle East to adopt breakthrough technologies at scale, while reinventing core processes with AI,” said Tanuja Randery, managing director and vice president, EMEA at AWS.
Building a sustainable digital future
Both IBM and AWS say they will align their offerings with regional sustainability priorities, including the Saudi Green Initiative and the UAE’s net-zero commitments. This will include localised sustainability reporting tools and cloud solutions designed to reduce environmental impact.
With IBM set to expand its AWS-certified talent pool in Saudi Arabia and the UAE, and AWS supporting the roll-out of industry-specific solutions, the Riyadh hub is expected to become a focal point for innovation in the Gulf.
As CIOs weigh their options in an increasingly competitive cloud market, one thing is clear: scale, security, and sustainability will define the next chapter of the Middle East’s digital transformation.
Read more about IT in the Middle East
- Saudi puts $15bn into AI as experts debate next steps - The kingdom’s Leap 2025 tech show is the backdrop for huge investment, plus debate over the future of artificial intelligence as a productivity tool but which can also potentially undermine human society.
- Trump visit bolsters Saudi AI - A new AI datacentre is among the initiatives the White House announced during the president’s Middle East visits.
- Opinion: Saudi plans to be an IT superpower, but challenges lie ahead - Impressions of Saudi Arabia during Leap 2025: Big plans ahead, but challenges in physical and digital infrastructure, and in transition from public to private sector dominance.
