By shifting its focus from the oil sector, Saudi Arabia has ensured a business environment filled with lucrative opportunities for business individuals globally. Entrepreneurs are drawn to Saudi Arabia for its booming economy, ensuring rich dividends in the long run. The government has introduced policies like Vision 2030 and the National Investment Strategy (NIS) to further ensure entrepreneurial growth whilst promoting investment within the country.

Reasons to invest in Saudi Arabia

Here are the five reasons that promise a successful investment in Saudi Arabia-

  1. Strategic Location

Saudi Arabia is at the crossroads of Asia, Europe, and Africa and has established strong trade relations with other countries. By accessing the large markets within the MENA region and exploring trade routes for import-export activities, you can establish a strong business presence worldwide.

  1. Access to good Infrastructure

Saudi Arabia focuses on providing its entrepreneurs with the best business infrastructure in the Middle East by redirecting the majority of its GDP to infrastructure development. Some of its pilot projects include NEOM, Red Sea Project and Qiddiya.

  1. Political Security and Pro Business Initiatives

Saudi Arabia has a stable political environment and rolls out business-supportive policies. This enables the creation of an ideal environment for business setup in Saudi Arabia.

  1. Young Population

Saudi Arabia comprises a massive young demographic population that supports the country’s economic development by promoting creativity and innovation. On the other hand, a young population offers you the opportunity to scale sales and diversify your goods and services.

  1. Evaluate Other Benefits

Along with access to good infrastructure, the government offers plenty of other perks for setting up a business in KSA. Some of the other benefits include tax favourable environment, land grants and many more.

Saudi Arabia holds enormous potential for an investor. Investing here will help in reducing your runway to the return on investment.

Top sectors to invest in Saudi Arabia

Thanks to Vision 2030, Saudi Arabia is no longer dependent on oil revenues alone for its economic development. This has ensured an environment filled with multiple business sectors offering you plenty of opportunities to grow. Here are the top four sectors you can consider:

  1. Tourism

The tourism sector accounts for around 11.5% of Saudi’s GDP. Under Vision 2030, it is expected to double its contribution to the total GDP. The government is leaving no stone unturned in developing this billion-dollar industry.

These are a few projects that will support the growth of the tourism sector in Saudi Arabia:

  • Qiddiya: Qiddiya is popular for its mega-sized theme parks and cultural events. According to experts, the tourist count is going to touch 17 Million by 2030.
  • Diriyah Gate Project: Diriyah is a historic site belonging to a royal Saudi family. It boasts of rich architectural creations dating back to 1446-47. The government’s efforts in preserving this cultural heritage have turned the Diriyah Gate into a popular tourist attraction.

This industry is directly related to the other major industries such as hospitality, event management and real estate. As the tourist count increases, a ripple effect is created in promoting investment and development within these sectors.     

  1. Real Estate

The real estate sector plays an integral part in the growth of an economy. Experts say Saudi’s real estate market will hit a trillion-dollar valuation by 2030.

Talking about a hidden opportunity in Saudi’s real estate sector is the development of smart cities. Under Vision 2030, Saudi Arabia is building several smart cities, like:

  • NEOM,
  • Qiddiya,
  • Red Sea,
  • Waad Alshamal.

Smart cities are growing at a remarkable pace considering the increased inflow of tourists. So, it is the right time to invest in KSA’s real estate sector.

  1. Technology

The technology sector accounts for 4.1% of the country’s GDP. Saudi Arabia’s ICT market is one of the largest in the Middle East and has received USD 24.8 Billion in the last six years. Some of the opportunities in the technology sector include:

  • Cloud computing.
  • Artificial Intelligence (AI) and Data.
  • Internet of Things (IoT) and development of smart cities.
  1. Energy

Saudi Arabia’s energy sector offers good growth potential to entrepreneurs. With the country’s focus shifting towards sustainability, the energy sector has been attracting a lot of investment. A few of the sectors that have attracted the investor’s attention are solar parks, and wind farms among others

What should you do next?

Now that you are aware of the opportunities when it comes to investing in Saudi Arabia, it is necessary to understand the legalities and regulations involved during business setup in Saudi Arabia. Business setup consultants from Commitbiz LLC can help you avoid major hurdles and streamline company formation in Saudi Arabia. They have a proven track record of helping entrepreneurs invest in Saudi Arabia. To clear your doubts and achieve your business dreams, book a free consultation with them today!