IBM and AWS Launch Riyadh Innovation Hub to Accelerate Middle East Cloud Adoption

Last updated 30-09-2025

4 min

IBM and AWS will boost cloud adoption in Saudi Arabia and the UAE, spotlighting Riyadh's new Innovation Hub.

The collaboration supports digital transformation with a focus on security, compliance, and innovative AI-driven solutions.

Sectors like healthcare and finance are eager to modernise but remain cautious about data security.

Training initiatives aim to expand regional tech talent, a key factor for sustaining growth.

This partnership signals a transformative shift for both large enterprises and emerging startups in the region.

IBM has announced that it will be strengthening its collaboration with Amazon Web Services (AWS) to give a push to cloud adoption across the Middle East, with Saudi Arabia and the UAE clearly in the spotlight. The two companies plan to open their first joint Innovation Hub in Riyadh, a space designed to help local businesses test out new technologies, build prototypes, and understand how cloud solutions can change the way they operate.

The move comes at a time when both governments and businesses are racing towards large-scale digital transformation, fuelled by projects such as Saudi Vision 2030 and the UAE Digital Economy Strategy. Cloud adoption, once seen as a bit of a faff for highly regulated industries, is now fast becoming central to national competitiveness. Healthcare, finance, oil and gas, and e-government are among the sectors most eager to modernise. From what I’ve seen talking to entrepreneurs in the region, there’s real appetite but also a nagging concern about security and compliance—it’s not just tech for the sake of it.

IBM Consulting is drawing on its strength in AI, hybrid cloud, and data modernisation, while AWS brings global scale and infrastructure. Together, they’re planning to offer everything from smarter call centres powered by AI, to supply chain optimisation tools, to analytics tailored for the energy sector. I reckon this blend of local focus with global experience could be the difference between flashy pilots and actual transformation.

Security, of course, is high on the menu. The partnership will offer managed services such as IBM’s “Autonomous Security for Cloud,” which applies AI to shore up defences. AWS, for its part, is making a point of working with local regulations, including Saudi’s Essential Cybersecurity Controls and Abu Dhabi’s healthcare security standards. For companies nervous about moving sensitive data off-prem, that’s pretty spot on.

There’s also talk about sustainability, another hot-button topic in Saudi Arabia and the UAE. Here, the focus is on helping organisations modernise their digital infrastructure while cutting carbon footprints—aligning with national green initiatives. Tools like IBM’s Sustainability Disclosure Assist may sound corporate, but they’re likely to carry weight for industries such as oil and gas that face intense scrutiny.

What struck me is the emphasis on talent. Beyond the deals and datacentres, IBM intends to train and certify more practitioners across Saudi and the Emirates. From my own experience working with early-stage founders around the region, lack of skilled technical people can choke growth faster than lack of funding. So, if these training pushes land well, they could ease a long-standing bottleneck.

Lula Mohanty of IBM Consulting Middle East and Africa called this partnership a “significant milestone” for regional organisations seeking digital transformation, while AWS’s Tanuja Randery highlighted how it would help reinvent business processes with AI. Corporate lines aside, the truth is simple: if this collaboration delivers, it could make cloud migration less of a headache and more of a catalyst for innovation.

And believe it or not, this isn’t just a story for massive enterprises. Startups too stand to gain when the ecosystem around them becomes richer and better skilled. At Arageek, we’ve always seen how enabling environments lift young companies, so seeing global players bet on Riyadh and beyond feels—well… quite a boost.

The Middle East cloud market is definately heating up, but with tech giants now doubling down, the real question is whether local firms can keep pace and turn access into tangible impact. Time will tell, but this is one development worth watching.

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