When you consider the Middle East for establishing your business venture or expanding your existing business, Saudi Arabia will be at the top of the list for all the good reasons. Saudi Arabia boasts the fastest-growing economy in the Middle East. Investing in Saudi is a great idea considering its thriving economy, numerous market opportunities, and huge development potential.
Key features of Saudi Arabia
Saudi Arabia is undergoing a profound transformation as it strives to become a global hub for tourism and business. The kingdom has several noteworthy projects in the pipeline to lure businesses and tourists from across the globe. Let’s discuss the key factors that differentiate Saudi from other countries in the Middle East and make it the go-to destination for entrepreneurs.
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Strategic location and market access
Saudi Arabia’s unique location at the confluence of the three continents, Asia, Africa, and Europe, makes it a global hub. It serves as a gateway to the GCC countries giving businesses access to around 50 million customers.
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Robust and thriving economy
Their endeavours to increase the non-oil revenue has resulted in a significant leap in the country’s GDP in the first quarter of 2023. Starting your business setup in Saudi is wise as the stable economy ensures a fruitful future.
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Special economic zones
As a welcome gesture for foreign businessmen, the Kingdom of Saudi Arabia has introduced four special economic zones (SEZs) across various regions. These economic zones will focus on specific industries and offer special incentives to businesses. They plan to provide several benefits for SEZ companies, including tax exemptions.
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Ambitious development projects
Saudi Arabia has an exciting lineup of projects that have grabbed global attention. Neom is one of those projects that offers many investment and business opportunities. It is a part of Vision 2030 that aims at creating a more diverse and sustainable economy. Neom, the smart city, will be powered by clean energy and convey the idea of coexistence with nature. It throws light on multiple investment opportunities across various sectors.
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Growing logistics sector
While the logistics sector in Saudi Arabia contributes 6% of the country’s GDP, they are aiming to make it 10% by 2030. They also plan to launch 59 logistics zones by 2030 to strengthen its supply chain. All these are part of the strategy to make the country a global logistics hub.
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Vision 2030
Saudi Vision 2030 is a government program that will fuel economic and social reform in the country for stable economic growth. It strives to create a market that offers business opportunities and build a skilled labour force. In a nutshell, Vision 2030 has three primary themes: a vibrant society, a thriving economy and a vibrant nation. Its primary focus is on opening Saudi to the world with a wealth of opportunities.
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Infrastructure
The country has numerous infrastructure projects which offer opportunities for investments. These projects focus on areas like smart cities, tourism and clean energy. The upcoming projects like Neom, Riyadh Metro and Jabal Omar are also beckoning businesses from different parts of the world.
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Privatization
To boost private-sector investment, Saudi Arabia has implemented the privatization strategy. It will bring further employment opportunities for the population as new economic opportunities for entrepreneurs and businesses are presented to establish and expand their operations.
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Tax benefits
Saudi Arabia attracts businesses with several tax incentives, especially for foreign investors. Depending on your niche, you could get 100% personal and corporate tax levies.
Set up your business in Saudi Arabia
Saudi Arabia is one of the most popular choices for businesses worldwide due to its thriving economy, world-class infrastructure and remarkable development strategies. If you plan to set up your business in Saudi Arabia or expand the existing one to this region, you must be aware of the rules and regulations. While the country provides several benefits for entrepreneurs, starting a business here could be challenging for newbies. However, with the support of a credible business setup consultancy, the process can be much easier and hassle-free.
BusinessLink is a leading business consultancy in the UAE and KSA that has helped several entrepreneurs start their businesses in the UAE and Saudi Arabia. With twenty years of experience in the market, our expert consultants are adept at the laws and jurisdictions in the Middle East.