Arid regions are susceptible to flash floods and severe drought periods, therefore there is a need for accurate and gap-free rainfall data for the design of flood mitigation measures and water resource management. Nevertheless, arid regions may suffer from a shortage of precipitation gauge data, whether due to improper gauge coverage or gaps in the recorded data. Several alternatives are available to compensate for deficiencies in terrestrial rain gauge records, such as satellite data or utilizing geostatistical interpolation. However, adequate assessment of these alternatives is mandatory to avoid the dramatic effect of using improper data in the design of flood protection works and water resource management. The current study covers 75% of the Kingdom of Saudi Arabia’s area and spans the period from 1967 to 2014. Seven satellite precipitation datasets with daily, 3-h, and 30-min temporal resolutions, along with 43 geostatistical interpolation techniques, are evaluated as supplementary data to address the gaps in terrestrial gauge records. The Normalized Root Mean Square Error by the mean value of observation (NRMSE) is selected as a ranking criterion for the evaluated datasets. The geostatistical techniques outperformed the satellite datasets with 0.69 and 0.8 NRMSE for the maximum and total annual records, respectively. The best performance was found in the areas with the highest gauge density. PERSIANN-CDR and GPM IMERG V7 satellite datasets performed better than other satellite datasets, with 0.8 and 0.82 NRMSE for the maximum and total annual records, respectively. The spatial distributions of maximum and total annual precipitation for every year from 1967 to 2014 are generated using geostatistical techniques. Eight Probability Density Functions (PDFs) belonging to the Gamma, Normal, and Extreme Value families are assessed to fit the gap-filled datasets. The PDFs are ranked according to the Chi-square test results and Akaike information criterion (AIC). The Gamma, Extreme Value, and Normal distribution families had the best fitting over 56%, 34%, and 10% of the study area gridded data, respectively. Finally, the selected PDF at each grid point is utilized to generate the maximum annual precipitation for 2, 5, 10, 25, 50, and 100-year rasters that can be used directly as a gridded precipitation input for hydrological studies.