Cloud Computing Special Economic Zone
Riyadh · Est. 2023 · Same, plus: per the Jan-2026 regulatory framework (Official Gazette, Cabinet/Ministerial Resolution 468), the authority concerned for the Cloud Computing SEZ is CST in coordination with the Royal Commission for Riyadh City (RCRC).
Hyperscale cloud service providers, data-centre operators and AI-infrastructure companies that need Saudi data-sovereignty-compliant infrastructure and direct alignment with CST to serve government and regulated-sector clients.
SaaS/services companies without data-localisation needs, SMEs seeking cheap fast setup with transparent package pricing, and any non-digital business — a mainland Saudi LLC (or a UAE free zone for regional holding purposes) is a better fit.
01Capability profile
02Where Cloud Computing SEZ sits
Cloud Computing SEZ: 1th percentile (AED 80,000) · Licence + registration, AED.
Cloud Computing SEZ: 3th percentile (56 days) · Total estimated days from application to operational.
Cloud Computing SEZ: 73th percentile (150 visas) · Absolute maximum visa allocation. Values above 500 clipped to the right edge so the bulk of the distribution stays readable.
Cloud Computing SEZ: Moderate · Corporate bank account opening difficulty. Each cell is one zone.
03Costs
- Base licence
- AED 80,000
- 2-year visa cost
- AED 3,200
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04Visas & workspace
- Maximum visas
- 150
- Flexi-desk cap
- 2
- Office cap
- 6
- Family sponsorship
- Available
- Freelancer permit
- Not available
- Medical required
- Yes
- Processing time
- ~15 days
- Virtual office
- Yes
- Flexi-desk
- Yes
- Coworking
- Yes
- Dedicated office
- Yes
- Executive office
- Yes
- Warehouse
- No
- Industrial unit
- No
- Land plot
- No
- Ejari issued
- No
- Parking
- Yes
05Banking & setup
- Difficulty
- Moderate
- Time to account
- ~14 days
- Minimum deposit
- AED 25,000
- Corp tax rate
- 5%
- Audit cost (est)
- AED 15,000
- UBO filing
- Required
- AML / KYC
- standard (SAMA-regulated banking; Saudi Arabia is a full FATF member since 2019)
- Registration modeFully online — no in-person visit required
- Documents & applicationPassport, visa, business plan — ~3–5 days
- Licence issued~28 business days after submission
- Bank account activeAdditional ~14 days · Moderate banking
- OperationalTypically ~56 days, up to ~180 days
06Permitted activities
Provision of cloud services from the zone with data centres located anywhere in the Kingdom
Hyperscale data-centre build-out at subsidised power rates
Serving regulated sectors (government, fintech, health-tech) under Saudi data-sovereignty rules
07Jurisdiction & ecosystem
This zone offers physical-office options sufficient for a standard QFZP substance posture, though the bar still applies at the entity level (CTGFZP1).
Focus: Cloud computing, Information technology, Digital services
Microsoft (CST MoU re SEZ opportunities, May 2023), Oracle (CST MoU re SEZ opportunities, May 2023), AWS, Google Cloud, Oracle, Alibaba Cloud, Huawei Cloud operate/announced KSA cloud regions — KSA-wide commitments, NOT confirmed as zone tenants, 29 cloud service providers registered with CST as of Aug 2024 (national register, incl. stc, SITE, Cloud4C)
QFZP, audit, mainland-permit and substance values are sourced where the zone authority or FTA publishes them, and inferred from published zone characteristics otherwise. How we determine these values.
08Strengths & limitations
- Only cloud/data-centre-dedicated SEZ in the region; licensed operators can build and run data centres anywhere in Saudi Arabia while seated in Riyadh
- Zakat exemption plus OECD-aligned special tax treatment; ECZA-advertised 5% CIT (up to 20 yrs) for qualifying SEZ activity
- Expat-levy exemption for employees and their families + flexible Saudization rules in first 5 years cuts staffing cost materially
- Competitive power (~USD 0.05/kWh) and connectivity pricing — the dominant cost factor for data centres
- Direct regulatory proximity to CST (data/cloud regulator), easing PDPL/NCA compliance for serving government and regulated sectors
- 100% foreign ownership, full profit repatriation, no fee for CST cloud/data-centre provider registration
- No published license fee schedule, tenant list or activity list — commercial terms only via direct ECZA/CST negotiation; low transparency vs UAE free zones
- Jan-2026 implementing regulations give the Cloud SEZ a narrower incentive set than marketed: no statutory 5% CIT, no WHT/VAT/customs relief of the three industrial SEZs — final treatment depends on pending ZATCA guides
- Not suitable for non-cloud businesses: single-sector license, Saudi-scale compliance stack (MISA, CR, ZATCA, GOSI, Qiwa, CST) and substance requirements
- Saudi banking/audited-accounts/PDPL compliance burden is heavier than typical UAE free-zone setups
Not ideal for: SaaS/services companies without data-localisation needs, SMEs seeking cheap fast setup with transparent package pricing, and any non-digital business — a mainland Saudi LLC (or a UAE free zone for regional holding purposes) is a better fit.
09Tax considerations
Will you need audited accounts even if this zone doesn't require them?
FTA corporate-tax filing typically expects audited accounts for revenue above AED 50M, and banks often request them at much lower thresholds.
Do any of your customers, suppliers, or shareholders meet the FTA's related-party definition?
Related-party transactions need transfer-pricing documentation and may push otherwise-qualifying income into the 9% bracket.
These prompts are due-diligence questions, not tax advice. Confirm every answer with a UAE-licensed tax advisor before incorporating.
10Similar zones in Riyadh
11About this data
Cloud Computing SEZ data is sourced from official zone authority publications, government fee schedules, and where available, verified against direct communications with the zone. All figures in AED.
- Location
- Riyadh
- Established
- 2023
- Authority
- Same, plus: per the Jan-2026 regulatory framework (Official Gazette, Cabinet/Ministerial Resolution 468), the authority concerned for the Cloud Computing SEZ is CST in coordination with the Royal Commission for Riyadh City (RCRC).
- Last verified
- 2026-07-18
- Confidence
- high
- Methodology
- How we score →
- QFZP eligibility (0% corporate tax)Secondary · 2026-07-18Primary source ↗
- Audit requirementSecondary · 2026-07-18Primary source ↗
- Economic substanceSecondary · 2026-07-18Primary source ↗
- Mainland trading permitSecondary · 2026-07-18Primary source ↗
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