Google Cloud also has middle east locations. As does Azure, Oracle and Alibaba. Afaik, IBM Cloud does not. I think those five and AWS are the top 6 global public access clouds.

No, they are more aware of the customer demand for compute in the region.

Yes of course. But they also have to know that concentrated compute is an attractive target for marauding countries that decide on a whim to bomb you from outside.

I think you mean when the US and Israel decide to start an unprovoked war “on a whim”.

And demand for data sovereignty.

Public cloud or cloud run by external organisations can never provide data sovereignty, by definition.

Absolutely, especially in the KSA.