There is a big push toward cloud computing in Saudi Arabia, according to Luka Mucic, chief financial officer at SAP.

"Companies both in the private sector as well as in the public sector are really looking for the agility that you can gain in the cloud, to quickly adopt new business processes, new applications," he told CNBC's "Capital Connection" on Monday.

"Therefore, our investment into a local data center right in the Kingdom absolutely was strategic, and we have a great growth plan behind this," he added.

The goal of that project is to help with Kingdom's digital goals, the company said.

The project will unfold over a period of four years and include the establishment of a public cloud data center in the country, an open platform for local developers, and a center to support Saudi start-ups and other companies.

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