Cloud computing is one of the most important current trends in the field of information and communications technology. This technology allows more efficient computing by centralizing data storage and processing. Due to its tremendous advantages this technology is maturing rapidly and is being adopted in many sectors including government, business, hospitals, and educational sectors. When using the cloud for e-health and security and privacy issues are most important, these areas should be addressed before cloud computing could be adopted successfully by all quarters. Patients, healthcare providers and other associated organization concern about the privacy of customers’ information and would like to see proper measures to protect privacy. In this paper, the researchers will discuss privacy and security challenges in using cloud computing e-health and available legislations, possible solutions to address challenges related to security and privacy issues in the use of cloud in Kingdom of Saudi Arabia.