The average data breach cost in Saudi Arabia reached SAR 27 million in 2026, according to a new study by IBM.
This finding comes from the annual Cost of a Data Breach Report, which examined incidents between March 2025 and February 2026. Consequently, local organizations are facing increased pressure to secure their digital assets.
The research, conducted by the Ponemon Institute and analyzed by IBM, surveyed 602 organizations globally. Notably, the study focused on real-world incidents within the Kingdom. As a result, the data reflects the specific challenges faced by local businesses.
Analyzing the data breach cost
Furthermore, the study highlighted how different security practices affect the overall data breach cost. Organizations in Saudi Arabia faced higher expenses when they struggled to prioritize threats or lacked necessary cybersecurity skills.
However, adopting a DevSecOps approach and using endpoint detection tools helped reduce these expenses. These proactive measures allowed companies to mitigate risks before they escalated into major financial liabilities.
Impact of Artificial Intelligence and Automation
Among malicious incidents, 25% were enabled by artificial intelligence. Meanwhile, organizations that used security automation recorded lower average expenses of SAR 23.15 million, whereas those without these capabilities faced average expenses of SAR 32.08 million. Despite these clear financial benefits, 25% of organizations still do not use these tools in their operations.
Sector Analysis and Financial Impact
Specifically, the financial sector experienced the highest data breach cost among all surveyed industries. This sector recorded an average expense of SAR 38 million per incident. Following closely, the industrial sector faced SAR 35.4 million, while the technology sector recorded SAR 33 million. These figures show the significant financial impact on the digital economy of the Kingdom.
“As organizations across Saudi Arabia accelerate AI adoption and digital transformation, cybersecurity must evolve at the same pace,” said Ayman AlRashed, Regional VP, IBM Saudi Arabia. He stated that strengthening identity management and encryption is vital to support the Kingdom’s digital transformation ambitions.
Encryption Gaps and Attack Vectors
Moreover, the report identified significant gaps in encryption practices among the breached entities. Only 37% of organizations encrypted sensitive data both at rest and in transit, whereas 54% left their data unencrypted. This gap exposes critical vulnerabilities in local data protection strategies.
Finally, public-facing applications remained the costliest attack vector, averaging SAR 34.7 million per incident. Additionally, abusing valid accounts cost SAR 33.3 million, while phishing attacks averaged SAR 30.6 million. Notably, organizations taking over 200 days to contain breaches faced average costs of SAR 32 million.
