Key Takeaways

• Capitalize on Saudi Arabia’s updated foreign investment rules allowing full ownership in key sectors for a competitive advantage.
• Follow the streamlined processes for business setup, including simplified licensing and options like Premium Residency or SEZs.
• Appreciate Saudi Arabia’s investment in education and infrastructure, improving quality of life and creating a skilled local workforce.
• Discover how Saudi Arabia’s central location and major projects create exciting opportunities for international business growth.

This article will dive deeper into six of the factors that contribute to Saudi Arabia becoming a leading business hub:

Adapted Rules For Foreign Investors

As part of the Saudi Vision 2030 program, the government changed some rules and regulations for foreigners wanting to establish a company in the country. Here are some of the changes:

• Foreign investors were previously required to partner with nationals to operate businesses, but Saudi Vision 2030 now permits 100% foreign ownership in specific industries such as technology, real estate, healthcare, retail, education, and entertainment.

• The government has streamlined licensing processes for foreign entities.

• The Premium Residency program allows expatriates to live and work in Saudi Arabia without a local sponsor.

• Saudi Arabia has established several Special Economic Zones (SEZs) which offer various incentives for foreign investors, such as value-added tax (VAT) and special tax exemptions.

Further Economic Growth

Saudi Arabia already has a stable economy with a strong GDP (gross domestic product) of $1.068 trillion. However, the Saudi Vision 2030 aims to grow the economy by reducing their reliance on oil money and instead investing in technology, renewable energy, tourism, entertainment, and healthcare.

For example, some of the projects that are part of the Saudi Vision 2030 program include the adventure tourism destination The Rig, the mountain tourism destination Soudah Peaks, and the world’s largest driverless train network Riyadh Metro.

The influx of tourists into Saudi Arabia will significantly boost the country’s appeal as a business destination, with increased footfall and a diverse economic environment.

Strategic Location

Saudi Arabia is strategically located between the continents of Europe, Asia, and Africa, positioning the Kingdom as a natural bridge for international trade and commerce.

Saudi Arabia has more than 11 major ports, with access to major shipping routes through the Red Sea and Arabian Gulf. This facilitates the seamless movement of supplies, making the Kingdom an attractive location for US businesses who want to reduce transit times.

In addition, the Kingdom’s 13 international airports give tourists and foreign investors excellent access to the country. This level of connectivity will boost tourism and attract foreign investors.

Growing Talent Pool

Saudi Arabia invests heavily in its education and training programs with the aim of developing a highly skilled workforce that can meet the demands of the competitive business landscape. This gives US businesses access to a pool of talented professionals from the Kingdom.

If US businesses don’t want to set up an entity in Saudi Arabia, they can still hire top talent from the Kingdom, using an Employer of Record (EoR) provider like Remote People. This third-party service acts as the official employer for workers, managing all the legal and administrative tasks of employment such as payroll, taxes, and benefits.

By using an EoR provider, US businesses can hire top talent from Saudi Arabia quickly, without navigating complex local employment laws.

Improved Quality of Life

Saudi Arabia is rapidly improving its infrastructure, healthcare facilities, and educational institutions, enhancing the quality of life for residents and expatriates.

As part of Saudi Vision 2030, the government aims to deal with the country’s rising number of lifestyle-related diseases. Cardiovascular diseases are one of the leading causes of death in Saudi Arabia, and the country also has one of the highest rates of diabetes in the world.

In addition, Saudi Arabia’s education system has seen marked progress, with 100% enrollment at intermediate and secondary levels, new subjects, and digital tools that showcase the Kingdom’s commitment to technology.

Is Saudi Arabia Soon To Be A Leading Business Hub?

Saudi Arabia’s rise as a business hub is not a coincidence but a result of strategic investments and forward-thinking initiatives from the government as part of the Saudi Vision 2030 program, which was first introduced in 2016.

While Saudi Arabia has this program and its initiatives in place to welcome more tourists and accept foreign investors, some challenges still remain in the Kingdom, with strict gender roles, dress codes, and public displays of affection still being an issue.