Saudi Arabia Cyber Insurance Market

Saudi Arabia Cyber Insurance Market Overview:

The Saudi Arabia cyber insurance market size reached USD 127.80 Million in 2024. The market is projected to reach USD 696.01 Million by 2033, exhibiting a growth rate (CAGR) of 18.47% during 2025-2033. The market is expanding due to rising cases of cyberattacks and increased digital adoption across key sectors. Regulatory support and growing awareness of financial protection are also contributing to Saudi Arabia cyber insurance market share across banking, energy, and government-led digital initiatives.

Saudi Arabia Cyber Insurance Market Trends:

Rising Frequency of Cyberattacks

The Saudi Arabia cyber insurance market is primarily driven by the increasing frequency and sophistication of cyberattacks targeting businesses, government agencies, and critical infrastructure. A worldwide industry analysis by Tenable showed that from September 2024 to August 2025, a significant 95% of organizations in Saudi Arabia faced a cyberattack that affected their businesses. As the Kingdom is experiencing swift digital transformation, the reliance on online platforms and cloud systems is growing significantly. This expansion exposes organizations to greater risks, including phishing, ransomware, data breaches, and denial-of-service attacks. With financial losses, operational disruptions, and reputational damage becoming more common, businesses are recognizing the need for comprehensive protection. Cyber insurance offers a financial safeguard by covering expenses related to data recovery, legal liabilities, and business interruption. As attacks are becoming more frequent and damaging, cyber insurance adoption is expected to grow steadily across industries in Saudi Arabia.

To get more information on this market, Request Sample

Increasing Adoption in Banking and Financial Services

The thriving banking and financial services sector in Saudi Arabia are positively influencing the market, driven by the rising threat of fraud, phishing, and data theft. With financial institutions being prime targets for hackers, the potential impact of breaches is enormous, ranging from monetary losses to compromised consumer trust. Regulatory authorities also mandate stronger cybersecurity measures for banks, making insurance an integral part of their risk management framework. Cyber insurance helps financial organizations cover costs related to fraud, identity theft, and regulatory penalties. According to the report published by Kaspersky’s Digital Footprint Intelligence (DFI) team at GITEX Global 2024, nearly 10 Million stolen user account records were examined in the first half of 2024, predominantly occurring in Egypt, Saudi Arabia, and the UAE. Additionally, insurers often provide specialized coverage tailored to financial institutions, including liability protection against customer claims.

Expanding Digital Transformation Initiatives

The government’s Vision 2030 strategy is emphasizing digitization across key sectors, ranging from finance and education to healthcare and manufacturing. While these initiatives are boosting efficiency and innovations, they are also heightening exposure to cyber threats, making cyber insurance critical. Increasing utilization of artificial intelligence (AI), big data, and cloud computing in Saudi organizations is introducing new risk landscapes that traditional insurance cannot address. As per the IMARC Group, the Saudi Arabia AI market size was valued at USD 1,073 Million in 2024. Cyber insurance fills this gap by covering both direct financial damages and regulatory compliance costs associated with breaches. Moreover, the increasing adoption of e-government services and smart city projects is creating broader digital ecosystems that require strong security and insurance frameworks.

Key Growth Drivers of Saudi Arabia Cyber Insurance Market:

Regulatory Pressure and Compliance Requirements

The introduction of stringent data protection and cybersecurity laws in Saudi Arabia is significantly driving the adoption of cyber insurance. Regulations from prominent government bodies mandate organizations to enhance cyber risk management practices, including liability coverage for data breaches. Companies in sectors like banking, telecommunications, and healthcare face penalties for non-compliance, making insurance an essential component of their compliance strategies. Cyber insurance policies help organizations meet these legal requirements while also providing financial protection against potential fines and lawsuits. Additionally, compliance-driven insurance adoption ensures greater transparency and accountability in managing sensitive user and corporate data. With global best practices influencing local regulations, more companies are recognizing the necessity of cyber insurance to align with legal expectations.

Growing Financial and Reputational Risks

Cyber incidents in Saudi Arabia are resulting in significant financial losses and reputational damage, encouraging companies to seek insurance as a safety net. Data breaches, ransomware attacks, and fraudulent cyber activities can cause direct monetary losses, legal fees, and long-term brand harm. For customer-facing businesses, reputational damage often translates to lost trust and reduced market competitiveness. Cyber insurance plays a vital role by covering these risks, ensuring business continuity, and supporting organizations in managing crisis communication. Insurers often provide additional services, such as risk assessments and cybersecurity consulting, to help clients mitigate risks proactively. The rising cost of handling cyber incidents without insurance has become unsustainable for many businesses. As boardrooms are placing greater emphasis on protecting both financial stability and reputation, cyber insurance adoption is becoming a strategic priority across Saudi Arabia’s corporate sector.

Rising Awareness Among Small and Medium Enterprises (SMEs)

While larger corporations have traditionally been early adopters of cyber insurance, small and medium-sized enterprises (SMEs) in Saudi Arabia are recognizing its importance. SMEs, which form the backbone of the Kingdom’s economy, often lack the advanced cybersecurity infrastructure of larger firms, making them more vulnerable to attacks. Cyber incidents can cripple SMEs by draining financial resources and disrupting operations. Affordable and tailored cyber insurance policies are becoming attractive solutions for these businesses to safeguard themselves against unexpected risks. Insurance providers are also raising awareness through workshops and educational campaigns targeted at SMEs, highlighting both risk exposure and cost-effective protection plans. As SMEs continue to digitize operations, ranging from e-commerce to cloud-based systems, their reliance on cyber insurance is growing.

Saudi Arabia Cyber Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional level for 2025-2033. Our report has categorized the market based on component, insurance type, organization size, and end-use industry.

Component Insights:

• Solution
• Services

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Insurance Type Insights:

• Packaged
• Stand-alone

The report has provided a detailed breakup and analysis of the market based on the insurance type. This includes packaged and stand-alone.

Organization Size Insights:

• Small and Medium Enterprises
• Large Enterprises

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes small and medium enterprises and large enterprises.

End-Use Industry Insights:

• BFSI
• Healthcare
• IT and Telecom
• Retail
• Others

The report has provided a detailed breakup and analysis of the market based on the end-use industry. This includes BFSI, healthcare, IT and telecom, retail, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Cyber Insurance Market News:

• May 2025: Mastercard launched its first Middle East Cyber Resilience Centre in Saudi Arabia with Riyadh Bank as a partner. The center enhanced cybersecurity readiness through training and risk assessments, supporting cyber insurance market development by strengthening risk frameworks and improving insurability for high-risk sectors.
• October 2024: WTW secured an insurance broking license in Saudi Arabia and appointed Talal Omar Bahafi to lead operations. This expansion supported cyber insurance market development by enhancing brokerage capabilities, enabling tailored risk solutions, and improving access to cyber coverage aligned with Vision 2030 goals.

Saudi Arabia Cyber Insurance Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia cyber insurance market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia cyber insurance market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia cyber insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.