What are the top business opportunities in Saudi Arabia?
The transformation of Saudi Arabia in recent years has sparked quite a discussion worldwide. The kingdom has come a long way, introducing many innovative initiatives and creating business opportunities for investors. What is the best business to do in Saudi Arabia? Well, it’s difficult to pick a particular one. Saudi Arabia is transforming into an economic hub by implementing various strategies and supporting foreign investments. The Saudi government’s ‘Vision 2030’ is one such initiative launched to build a sustainable future with the help of the private sector.
In this article, we will be discussing the top business opportunities in Saudi Arabia that make the nation the best destination for businesses.
Why Saudi Arabia for investment?
Well, the main reason could be MISA (Ministry of Investment). The ministry, which was earlier known as the Saudi Arabian General Investment Authority (SAGIA), is constantly researching and making changes in the business culture to invite foreign investments. The ministry has even adopted the commercial activity system categorization, the International Standard Industrial Classification of All Economic Activities (ISIC), of the UN Economic and Social Council. Saudi Arabia’s stable political landscape and digitized business culture also contribute to the reasons why most entrepreneurs prefer the kingdom for their business investments. Once you decide to explore one of the top Business Opportunities in Saudi, we can assist you in setting up your business by forming a Company in Saudi Arabia.
Types of licenses for a foreign investor
Before explaining the top businesses in Saudi Arabia, you must understand the licenses given. For a foreign investor, the Kingdom of Saudi Arabia provides basically four types of licenses. You must understand that you can also start a business in Saudi Arabia through an agent or a distributor.
Below are the major entity types you must be aware of as a business investor:
- Single Member Limited Liability Company (SMLLC)
This kind of business entity allows the owner to completely own all the company shares. Owning an SMLLC brings many advantages, but a person cannot establish more than one company.
- Joint Stock Company (JSC)
As the name suggests, in this kind of business entity, the capital is divided into shares of equal value that are owned by shareholders. Here, the company’s very existence won’t be affected even if the shareholders can buy, transfer, and sell these shares.
- Foreign Company Branch
This type of business entity employs a branch, agency, office, or other commercial structure to carry out operations within the jurisdiction. The foreign company that has a branch in KSA is able to do business if it complies with local law. But all the company documents must be in Arabic.
- Limited Liability Company (LLC)
This is the most in-demand business entity that is used in Saudi Arabia. A limited liability company should not have more than 50 shareholders. But if the business requires more than one auditor, then more than one can be appointed.
The best businesses in KSA
Which is the best business to do in Saudi Arabia? Even though Saudi Arabia is fueled by oil and gas, the nation has been boosting various other industries in recent years. The government has been supporting foreign investors by relaxing existing laws and regulations.
Below are some of the most profitable and top business opportunities in Saudi Arabia that you can start as a foreign investor:
- Food and Beverage
The food and beverage sector is one of the best business opportunities in KSA and attracts significant foreign investment. Over the years, the investment rate in cafes, restaurants, and fast food chains has increased to meet the population’s needs.
- Tourism and Hospitality
Another top business in Saudi Arabia is the tourism and hospitality industry. Saudi Arabia’s rich cultural heritage attracts tourists all over the world to visit the beautiful nation. This has also increased the number of foreign businessmen investing in resorts and travel agencies. Saudi Arabia is also planning to boost sports tourism by hosting major sports events in the future.
- Healthcare and medical services
Due to the growing population, the demand for healthcare and medical services has risen, making it another of the best businesses in KSA. The government also supports the opening of pharmacies and wellness centers in order to improve the healthcare infrastructure. Moreover, Saudi Arabia can be considered the largest market for medical equipment and healthcare products in the GCC.
- Technology and innovation
When considering some of the top business opportunities in Saudi Arabia, technology and innovation can be added to the list. To become a global leader among data-driven economies, the Saudi government has been focusing on technology and innovation lately. Initiatives such as the National Strategy for Data and Artificial Intelligence have been launched as a part of this. So entrepreneurs are provided with opportunities to open startups in AI innovation, cybersecurity, e-commerce platforms, and smart city technologies.
- Real estate and construction
Real estate was always a top business in Saudi Arabia. There is a growing demand for energy-efficient buildings, which is based on the concept of sustainability. The increasing urbanization demands more and more residential, commercial, and industrial projects, which create great opportunities for foreign investors.
- Education and EdTech
Pursuing knowledge is a part of Arabian culture, and Saudi Arabia is one of the greatest education spenders in the world. The government also invites foreign investments to provide quality education by opening schools, universities, and vocational training centers. With the integration of technology in the education sector, such as e-learning platforms, EdTech has become the best business in KSA.
The list of the most profitable and top business opportunities in Saudi Arabia goes on. The Saudi market embraces investors from all niches, and any entrepreneur or businessman can also invest in areas like:
- Gaming and eSports
- Renewable Energy
- Entertainment and leisure
- Sports business
- Event Management
- Financial Technology (FinTech)
- Agribusiness and Food Security
- Logistics and Supply Chain Management
- Manufacturing and industrial ventures
- Fashion and retail brands
- Waste Management and Recycling
- Consulting and business services
- Maid recruitment
- Luxury goods
- Language service
- Building materials
Activities excluded from foreign investments
When there’s a list of the best businesses to do in Saudi Arabia, there’s also a negative list that is not open to foreign investments in order to maintain national security. They are:
- Oil exploration
- Military sector
- Security and detective services
- Real estate investments in Makkah and Madinah
- Tourism services related to Hajj and Umrah
- Commission agents
- Fishing and hunting marine resources
- Poison centers, blood banks, and quarantines
As professionals in providing Business Setup in KSA and GCC, we can assist you in starting a business in Saudi Arabia.
We have been focusing on quality business services that maintain our existing clients and attract new clients who are consulting us through word of mouth. We are confident enough to say that we can help you open the best business in Saudi Arabia. To know more about the various services that we offer, you can contact us, and we will get back to you.
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