Saudi Arabia has emerged as a prime business location in the Middle East over the past few decades. The kingdom offers many advantages for entrepreneurs looking to establish new ventures or expand existing operations. Here are some of the top reasons to consider setting up a business in Saudi Arabia:
Strategic Location and Infrastructure
Saudi Arabia occupies a strategic location connecting three continents – Asia, Europe and Africa. The country has invested heavily in roads, airports, seaports and telecommunications infrastructure. Saudi Arabia has an extensive railway network planned over the next few years as well. The combination of location and transport links makes it easy to export products to neighbouring markets or import raw materials for production.
Growing Economy and Market
With a population of over 36 million and a GDP of nearly $1,100 billion, Saudi Arabia features a large domestic market. The economy is forecast to grow at around 4% over the medium term. Apart from oil, the country is expanding key non-oil sectors like tourism, renewables, mining and manufacturing. This diversification provides opportunities in many industries to cater to local demand. Saudi Arabia also serves as a launching pad for the wider MENA region.
Government Support
The Saudi government is actively trying to boost private sector participation and foreign investment flows as part of its Vision 2030 program. It has eased regulations for starting new companies and introduced initiatives to improve the business environment. Government agencies provide assistance for company registration and business setup Saudi, licencing, business visa KSA, and other formalities. There are also agencies that can assist with a Business Visa in Saudi Arabia – AEI Saudi. There are also financial incentives like subsidised industrial land and exemptions from corporate taxes.
Access to Funding
Saudi Arabia has a thriving financial sector centred around major cities like Riyadh and Jeddah. Local banks and international firms offer business loans, project finance and other credit facilities for entrepreneurs. The government has also established special funds to support SMEs and emerging industries. Equity financing options are also expanding through the Saudi Stock Exchange and private institutional investors.
Low Cost of Operations
Operating costs in Saudi Arabia compare favourably to other Middle East hubs like the UAE. Real estate prices are affordable outside of major metro areas. Logistic expenses are lower thanks to domestic suppliers and economies of scale. The country also offers competitive rates for utilities like electricity and telecom services. This allows businesses to be more cost efficient.
Young and Educated Population
Over half of the Saudi population is under 35 years old. This means no shortage of local talent to recruit from, especially since education levels have risen substantially. Saudi universities graduate thousands of students in technical and business fields every year. With appropriate training, Saudi youth can become productive employees in various industries and functions.
Saudi Arabia’s location, market size, government backing, funding sources and demographics make it an attractive place to operate. Businesses that tailor offerings to domestic demand while leveraging export potential are most likely to thrive in the kingdom. Careful research and planning are advisable before committing funds and resources.
