February 21, 2025/
The healthcare sector in Saudi Arabia offers investors many attractive opportunities. Although already the Middle East’s largest healthcare market, it…
The healthcare sector in Saudi Arabia offers investors many attractive opportunities. Although already the Middle East’s largest healthcare market, it is far from mature and will continue to grow at a significant pace.
The healthcare sector is undergoing a profound transformation, moving beyond traditional care models to embrace the future. As global trends shift toward longevity, life enhancement, and personalized medicine, healthcare systems must evolve to meet new demands. The future lies in integrated spaces where advanced medical care merges with wellness, and cutting-edge technologies such as genetic engineering, artificial intelligence (AI), and regenerative medicine redefine patient outcomes.
Saudi Arabia is poised to lead this change. A key focus of its healthcare transformation is longevity technologies, including genetic engineering and regenerative medicine. These innovations are paving the way for life-extension treatments and organ regeneration—building on groundbreaking advancements like the creation of artificial hearts and lungs. This aligns with Saudi Arabia’s Vision 2030, which prioritizes improving life expectancy and overall health outcomes.
AI and smart city technologies will also play a crucial role in enhancing healthcare delivery and operational efficiency. AI will optimize diagnostics, personalize patient care, and streamline administrative processes, while sustainability remains a core principle in developing future healthcare ecosystems.
Vision 2030 and the Healthcare Sector in Saudi Arabia
Saudi Arabia’s Vision 2030 is an ambitious blueprint aimed at diversifying the economy and reducing dependency on oil revenues. A significant component of this vision is the transformation of the healthcare sector, which aims to provide a world-class healthcare system.
Since its launch in 2016, Vision 2030 has been a catalyst for monumental transformation in healthcare. As part of this initiative, the Saudi government is committed to building a ‘Vibrant Society’ by fostering Public-Private Partnerships (PPPs). These partnerships are a cornerstone of the Health Sector Transformation Program, driving innovation, investment, and improved access to high-quality medical services.
With a clear vision and strategic investments, Saudi Arabia is shaping the future of healthcare—not only as a sector of treatment but as a hub for life enhancement and longevity.
The Healthcare Sector Transformation Program
The Healthcare Sector Transformation Program was launched in 2021. The program is reshaping Saudi Arabia’s healthcare system into a more comprehensive, efficient, and integrated model. This enhanced framework prioritizes innovation, financial sustainability, and disease prevention while expanding access to high-quality medical services. A key focus is the adoption of e-health services and digital solutions. This focus is ensuring care meets international standards and improving overall patient outcomes.
The Program’s strong collaboration with government entities enabled Saudi Arabia to respond swiftly and effectively to the COVID-19 pandemic.The Kingdom leveraged mobile applications, streamlined vaccine protocols, and expanded medical services. Thus, the Kingdom set a global benchmark in managing the crisis with precision and efficiency.
Technology continues to drive the transformation of healthcare delivery. From remote surgeries led by top specialists to virtual consultations that seamlessly generate prescriptions, Saudi Arabia is at the forefront of digital health innovation. A prime example is the SEHA Virtual Hospital. The hospital was launched in 2022. It is the world’s largest of its kind. The virtual hospital is connecting over 150 hospitals and offering more than 30 specialized healthcare services.
Beyond treatment, the Program is strengthening public health initiatives and disease prevention efforts. Investing in preventive care not only enhances individual and community well-being but also reduces long-term healthcare costs, making it a key priority for sustainable health development.
The private sector plays a crucial role in supporting these national healthcare goals. Through strategic investments and partnerships, Saudi Arabia is ensuring that high-quality healthcare remains accessible to all. Thus, the Kingdom is reinforcing its position as a global leader in healthcare innovation and transformation.
NEOM & Healthcare
NEOM is transforming healthcare with a data-driven system focused on personalized, predictive, proactive, and preventive care. Digital twins, built on real-time data from genome sequencing, wearables, and AI, enable continuous health monitoring and disease prevention. This approach reduces reliance on traditional healthcare interventions, ensuring high efficiency and accessibility.
Investment opportunities in NEOM’s healthcare sector span infrastructure, AI-driven diagnostics, and precision medicine. The project integrates specialty hospitals, streamlined insurance, and health tourism, creating a strong investment ecosystem. Emerging technologies and longevity-focused initiatives offer investors a chance to shape the future of healthcare.
Investment Opportunities in the Healthcare Sector in Saudi Arabia
Saudi Arabia plans to invest over $65 billion to develop healthcare infrastructure, reorganize health services, and expand e-health solutions. The government aims to privatize 290 hospitals and 2,300 primary health centers, increasing private sector involvement from 40% to 65% by 2030. These reforms create major opportunities for U.S. companies in Saudi Arabia’s evolving healthcare sector.
To improve access and preventive care, the Ministry of Health (MOH) will launch 21 integrated health clusters. Each cluster will serve one million people. Two clusters—Riyadh First and Riyadh Second—are already operational. Other MOH priorities include increasing internationally accredited hospitals and improving preventive and therapeutic healthcare services. The ministry also plans to double primary healthcare visits per capita from two to four.
Public-Private Partnerships
Non-communicable diseases cause 68% of deaths in Saudi Arabia. Nearly 18% of adults have diabetes, and over 40% are obese. The government will continue investing in prevention and treatment. In 2021, 25-35% of Saudi Arabia’s healthcare budget went to diabetes, obesity, and cardiovascular diseases. Screening and early intervention will drive more visits to primary healthcare centers.
Saudi Arabia is prioritizing pharmaceutical localization under Vision 2030. The country improved intellectual property (IP) protections, leading to its removal from the U.S. Trade Representative’s Priority Watch List in 2022.
The Health Holding Company (HHC) plans to expand private sector participation (PSP) through public-private partnerships (PPP). Nine priority areas include primary care, hospitals, medical cities, labs, radiology, pharmacies, rehabilitation, long-term care, and home care. Over the next five years, Saudi Arabia expects 100+ PPP projects, attracting $12.8 billion in private investment. Currently, 19 PPP projects are in progress, totaling $2.9 billion.
Moreover, a 2019 law allows foreign investors to own and manage hospitals and health centers in Saudi Arabia. The healthcare sector is open to fully foreign-owned businesses. Multinational companies establishing headquarters in Saudi Arabia can receive government incentives.
Leading Sub-Sectors
Dental Services
The dental sector is growing due to higher healthcare spending, insurance expansion, and rising incomes. Demand exists for advanced treatments, cosmetic procedures, and specialized equipment in prosthodontics, implantology, orthodontics, and periodontics.
Digital Health
Saudi Arabia is one of the fastest-growing digital health markets in the GCC. The government allocated $1.5 billion for healthcare IT and digital transformation. The MOH launched an e-health strategy to expand telemedicine and remote healthcare. Saudi Arabia’s telehealth adoption rate is 70%, and 34% of young physicians use AI for diagnoses. Seha Virtual Hospital, the largest in the Middle East, remotely supports 130 hospitals and offers 30+ specialized services.
Health Insurance
The insured population is growing due to mandatory coverage for expatriates, private sector workers, and tourists. Also, the government is enforcing stricter compliance to expand coverage. In 2023, Cigna Worldwide Insurance Co. became the first foreign insurer licensed in Saudi Arabia.
Medical Devices
Saudi Arabia’s medical equipment market is valued at $2 billion and grows at 10% annually. Increased healthcare consumption is driving demand for high-value medical products. The country is transitioning from manufacturing low-cost items to producing advanced medical technologies. Best opportunities include patient monitoring devices, diagnostic equipment, implants, prosthetics, and emergency room tools. Saudi Arabia recognizes U.S. FDA, EU, and Japanese certifications, streamlining international market entry.
Pharma and Biosciences
Saudi Arabia holds 60% of pharmaceutical purchases in the GCC. The market was valued at $11.72 billion in 2022 and is expected to reach $15.09 billion by 2027. Demand for patented and generic drugs is rising due to healthcare expansion. High-potential segments include antibiotics and treatments for cancer, cardiovascular disease, and diabetes. The government is prioritizing local production, technology transfer, and clinical trials. In June 2023, the Public Investment Fund (PIF) launched Lifera, a pharmaceutical company accelerating Saudi Arabia’s biotech sector.
Specialty Clinics and Ambulatory Care Centers
Saudi Arabia lacks specialty clinics in gynecology, oncology, and cosmetology. Furthermore, The government will use PPP models to expand capacity in these areas. Increased focus on wellness and preventive care will boost demand for non-hospital healthcare facilities.
Doing Business in the Saudi Healthcare Sector
Partnering with a local company is highly recommended. A local partner can monitor business opportunities, navigate import regulations, and identify public sector contracts.
Although Saudi Arabia is advancing privatization, the government still funds over 60% of healthcare expenditures. NUPCO manages centralized procurement for public healthcare providers. It collects sector-wide requirements and issues tenders to meet demand. These tenders often have short deadlines, making strong local partnerships essential.
NUPCO aims to create a comprehensive inventory of medical products for public providers. Only prequalified companies can submit bids. To prequalify, foreign firms must register with NUPCO and the Saudi Food and Drug Authority (SFDA). Registration covers both pharmaceuticals and medical devices.
Saudi Arabia Market Entry
In conclusion, the healthcare sector in Saudi Arabia is growing rapidly across all industries. It remains young, and developing, and offers vast growth potential. The government prioritizes this sector, expecting further regulatory changes to boost private sector involvement and investment.
Injaz Company offers full-service support for investors entering Saudi Arabia. We help businesses establish operations, navigate regulations, and expand investments.
Through tailored advisory services, we simplify market entry and business setup. Our team assists with licensing, compliance, and strategic planning. We ensure investors can focus on growth while we handle local complexities.
At Injaz Company, we are committed to making your business journey seamless. With deep market expertise, we connect investors to key opportunities in Saudi Arabia’s healthcare sector. Our goal is to provide exceptional support so you can thrive in this dynamic market.
Investment in Kurdistan presents great opportunities. The region offers a favorable investment environment due to its distinct 2006 investment law, which provides foreign investors full property ownership, capital repatriation, and tax holidays.
The Kurdistan Region of Iraq (KRI) is an autonomous territory in northern Iraq, strategically located at the intersection of Europe, Asia, and the Middle East. Governed by the Kurdistan Regional Government (KRG), the region has its own legislative authority. It is recognized for abundant oil and gas reserves, fertile lands, and an investor-friendly climate. Additionally, it presents numerous investment opportunities across various sectors, including agriculture, industry, tourism, infrastructure, and services. With a population of 6.2 million, KRI’s growth potential is substantial, bolstered by its natural and human resources. Moreover, the KRG focuses on economic growth, security, and political stability, further enhancing its appeal to investors eyeing Iraq and the broader MENA region.
Why Investment in the Kurdistan Region?
Several factors make the Kurdistan Region a prime investment location. These factors include stability, rich natural resources, favorable investment laws, and a skilled workforce. Additionally, its strategic positioning, diverse sectors, and burgeoning local and regional demand are vital. Over the past two decades, the region’s economy has expanded significantly, with a GDP per capita of around $7,038 in 2022. Since 2006, investments totaling over $66 billion have flowed into KRI from both local and international investors. Consequently, the Kurdistan government actively seeks to attract further investment, providing dedicated support to facilitate the investment process.
Investment in Kurdistan
Agrifood Sector
Kurdistan’s fertile lands, temperate climate, and ample water resources create ideal conditions for producing various food crops and livestock. The regional demand for food is booming, making KRI a prime location for agricultural and food processing investments. Notably, Iraq imports over $1 billion in dairy products, 600,000 tons of meat, 3 billion eggs, and $700 million in fresh and processed fruits annually, despite favorable conditions for domestic production. Thus, investors with efficient production techniques can secure strong market positions due to the high import dependency.
Key Agrifood Investment Opportunities
- Livestock and Dairy: Iraq imports more than $2 billion in meat, eggs, and dairy products annually, with an 8% annual growth in demand. KRI is ideal for cattle, sheep, goat, poultry, and fish farming investments.
- Crop Cultivation: Key crops include grains like wheat, barley, and corn, along with fruits and vegetables such as pomegranates, apples, grapes, olives, and tomatoes. The government encourages investments in modern farming techniques and large-scale cultivation.
- Food Processing: With significant amounts of processed foods imported into Iraq, there are opportunities to establish local processing and packaging facilities for meat, dairy, and vegetables. Other opportunities include logistics, animal feed manufacturing, and seed production.
Industry Sector
The development of the industrial sector has become a key focus for the Kurdistan Region. With abundant natural resources, particularly oil and gas, Kurdistan is well-positioned to expand its petrochemical industry and establish a strong foundation for other industries.
Fueled by oil and gas revenues and rising household incomes, demand for manufactured goods in Iraq is rapidly increasing. With abundant energy sources, local raw materials, and a favorable business environment, KRI is ideal for manufacturing operations aimed at the regional market.
With favorable conditions, natural resources, and a growing workforce, Kurdistan offers enormous potential for industrial growth. Now is the time for forward-thinking business leaders to explore these opportunities.
Key Industry Investment Opportunities
- Petrochemicals and Fertilizers: With Iraq importing over $2.5 billion in chemicals annually, KRI’s oil and gas reserves make it a prime location for petrochemical production.
- Manufacturing: High demand exists for construction materials, vehicles, electronics, and consumer goods. Additionally, post-war reconstruction requires significant investments in infrastructure, further boosting demand for construction and manufacturing materials.
Investment in the Kurdistan Tourism Sector
The tourism sector in Kurdistan presents significant opportunities for investment and development. With its breathtaking landscapes, rich cultural heritage, and historical sites dating back thousands of years, the region has immense potential to become a top destination in the Middle East. Kurdistan offers diverse attractions, from the stunning mountains of Rawanduz and the scenic beauty of Lake Dukan to ancient sites like Erbil Citadel, a UNESCO World Heritage site. The Kurdistan Regional Government (KRG) is actively working to enhance tourism infrastructure by investing in new hotels, resorts, eco-tourism projects, and adventure tourism. With a growing number of visitors and increasing interest from international travelers, Kurdistan’s tourism sector is ripe for investment, offering opportunities in hospitality, tour operations, and cultural tourism experiences.
Key Tourism Investment Opportunities
- Resort Development: The government has earmarked around 40 high-potential sites for tourism development, with land and project plans already in place.
- Hospitality Infrastructure: Investments in hotels, restaurants, and other tourist facilities are encouraged to cater to the growing number of visitors.
Service Sector
Kurdistan’s services sector has flourished over the last 15 years, now representing the largest segment of economic activity. The region is home to numerous banks, universities, telecom providers, and retail chains, attracting significant investment.
Key Service Sector Investment Opportunities
- ICT: The rapidly growing ICT sector, supported by government initiatives and a tech-savvy population, offers opportunities in infrastructure development, software companies, and tech hubs.
- Financial Services and FinTech: With the region’s financial services still underdeveloped, there are opportunities in banking, digital payment services, insurance, mortgage lending, and wealth management.
Infrastructure Sector
The KRG is committed to developing industrial zones, special economic zones (SEZs), and renewable energy projects to support economic growth. With a growing gap between electricity demand and supply, there is significant potential for renewable energy investments.
Key Infrastructure Investment in Kurdistan
- Industrial Zones and SEZs: The government is seeking investors to develop proposed industrial zones across the region.
- Renewable Energy: Opportunities exist in solar, wind, hydro, geothermal, and waste-to-energy projects, with attractive returns due to high demand and government support.
Transportation Sector
Significant improvements in transportation infrastructure have been made, but there is still a need for expansion to meet the demands of a growing economy. Investment opportunities include public transport systems, roads, railways, and air services.
Key Transportation Investment in Kurdistan
- Public Transport: Projects include tramways, bus networks, and modern transport terminals.
- Roads and Railways: Construction of highways and railways to connect major cities and neighboring countries.
Water System
KRI’s abundant water resources offer investment opportunities in dams, irrigation systems, and water supply schemes. Despite these resources, inefficient usage necessitates new investments to meet growing demand.
Key Water System Investment Opportunities
- Water Projects: The government has plans for numerous ponds, dams, and irrigation schemes. This is why, the government is actively seeking investors to develop these projects under Public-Private Partnerships.
In conclusion, the Kurdistan Region of Iraq offers a wealth of investment opportunities across various sectors, driven by its rich natural resources, strategic location, and supportive government policies. Whether in agrifood, industry, tourism, services, infrastructure, or water systems, KRI stands as a promising destination for investors seeking growth and expansion.
Investing in the Kurdistan Region offers numerous advantages. The region’s stability and strategic location are key benefits. The Kurdistan Regional Government provides strong support and incentives for investors. The potential for growth in various sectors is immense. The local workforce is skilled and ready to contribute. These factors make the Kurdistan Region a prime destination for investment.
Injaz Company provides comprehensive consulting services in business and investment in Kurdistan. With a deep understanding of the local market and regulatory landscape, Injaz Company assists investors in navigating the complexities of establishing and growing their businesses. Our expert team is dedicated to delivering tailored solutions that help clients capitalize on the unique opportunities in the Kurdistan Region.
Luxury Tourism in Saudi Arabia offers unique opportunities to invest as Saudi Arabia is the fastest-growing tourism destination in the world.
Saudi Arabia’s Tourism Boom: A New Era of Luxury and Cultural Exploration
Saudi Arabia is undergoing a tourism transformation unlike any other, shifting from a destination primarily known for religious pilgrimage to a global hub for luxury travel, culture, and adventure. With Vision 2030 leading the way, the Kingdom is investing heavily in its hospitality and entertainment sectors. The Kingdom is aiming to attract 150 million domestic and international visitors annually by 2030. This ambitious shift has caught the attention of high-end travel service providers and tech platforms. Many of them are rapidly expanding their presence to cater to the growing demand for ultra-luxury experiences.
Luxury Tourism in Saudi Arabia
Many high-end consumer-benefit tech platforms and travel service providers are gearing up for major expansion in Saudi Arabia. They are curating ultra-luxury services and amenities for affluent travelers. The Kingdom transitions from a traditional pilgrimage destination to an emerging global luxury tourism hub. This is why, these companies are striking partnerships with premium organizations and top-tier hospitality majors. Many investors are looking for a way to be a part of the luxury tourism in Saudi Arabia.
The influx of investment in this sector comes as Saudi Arabia reportedly plans to spend more than $3.2 trillion by the end of the decade to develop its luxury tourism infrastructure. The country is set to add 320,000 new hotel rooms. Also, the country aims to build ultra-luxury destinations along its vast 2,640-kilometer coastline. Moreover, developing private islands like Sindalah is in scope. Sindalah is an idyllic and exclusive retreat five kilometers off the NEOM coastline .The island will host three luxury hotels, a golf course, a sports club, a beach club, a spa facility, an 86-berth marina, and dozens of restaurants and shops.
Luxury Travel Services on the Rise
Leading travel service providers are introducing curated rewards, benefits, and loyalty programs tailored for affluent travelers. Thriwe, for instance, provides access to premium clubs, fitness centers, and luxury airport assistance, ensuring a seamless experience from arrival to departure.
Similarly, Pastor & Co., a niche supplier of exclusive luxury items to high-net-worth individuals, has seen growing demand for its services in Saudi Arabia.
VIP Travel Assistance in Saudi Arabia
For cash-rich tourists, luxury travel assistance services at airports across the Kingdom have become increasingly popular. Industry insiders note that travelers are seeking VIP treatment at every step of their journey.
These VIP travel companies provide luxurious and comfortable travel to and from the airport, handle luggage, expedite immigration, escort travelers to their transportation or lounge facilities, and offer valet parking services with dedicated airport concierge teams.
Elite Travel Agencies Enter the Market
Online travel agencies (OTAs) are also moving fast to capture the opportunities presented by Saudi Arabia’s luxury tourism boom. EaseMyTrip, a leading OTA, has curated bespoke itineraries designed for high-end travelers.
To meet this rising demand, travel agencies have meticulously curated exclusive itineraries and offerings, including luxury hotel stays, bespoke holiday packages, and personalized travel experiences designed to provide the utmost comfort and indulgence.
The Future of Luxury Tourism in Saudi Arabia
The Kingdom is developing hundreds of islands and islets in its waters, with projects like the Red Sea Global initiative and NEOM’s Sindalah Island poised to redefine ultra-luxury tourism in the Middle East. Saudi Arabia has commitment to sustainability, cultural preservation, and high-end hospitality. Saudi Arabia is setting new standards for global tourism.
As Vision 2030 continues to unfold, the Kingdom is rapidly emerging as a premier luxury tourism destination, blending world-class opulence with its rich cultural heritage. From exclusive travel experiences to ultra-luxury resorts and VIP services, Saudi Arabia’s tourism boom is only just beginning.
Quantum economy in Saudi Arabia is actively embracing the exciting field of quantum technology. While Saudi Arabia is still building its quantum economy, it has already shown a strong commitment to its development.
Quantum Economy in Saudi Arabia: Path to Quantum Leadership
Saudi Arabia is strategically positioning itself at the forefront of the quantum revolution, aiming to leverage quantum technologies for economic growth, national security, and societal advancements. Also, as part of Vision 2030, the Kingdom is actively fostering a national quantum ecosystem, developing talent, enhancing research capabilities, and attracting global partnerships to drive quantum innovation.
Laying the Foundations of Quantum Economy in Saudi Arabia
The Centre for the Fourth Industrial Revolution (C4IR) Saudi Arabia has taken a pivotal role in shaping the Kingdom’s quantum future. Its Quantum Economy project serves as a blueprint for developing a national quantum strategy. It is ensuring Saudi Arabia remains competitive in this transformative technological domain. Recently, C4IR Saudi Arabia released the Quantum Economy Landscape in Saudi Arabia report. The report is providing a comprehensive analysis of the Kingdom’s current quantum capabilities and charting the path forward.
This milestone report results from collaboration among government entities, academic institutions, and private-sector leaders. By adopting a cross-sector approach, Saudi Arabia is ensuring that its quantum initiatives align with broader technological advancements and economic diversification goals.
Harnessing Quantum Technologies for Economic and Industrial Advancement
Quantum technology, rooted in the principles of quantum mechanics, offers revolutionary advancements in computation, communication, and sensing. These breakthroughs can significantly impact various industries, including energy, cybersecurity, healthcare, and finance.
Recognizing quantum’s immense potential, Saudi Arabia is actively implementing the World Economic Forum’s Quantum Economy Blueprint. The Kingdom is positioning itself as a global leader in quantum technology adoption. The Kingdom’s quantum priorities span several key areas:
Talent Development: Establishing educational programs and research initiatives to nurture a quantum-skilled workforce.
Research & Development: Investing in cutting-edge research to push the boundaries of quantum computing, cryptography, and sensing.
Industry Innovation: Encouraging collaboration between businesses and research institutions to commercialize quantum applications.
Public Awareness: Hosting events and initiatives to foster understanding and engagement with quantum technologies.
Developing a Quantum-Ready Workforce
Saudi Arabia is taking proactive steps to build a robust quantum workforce. Leading universities, such as King Fahd University of Petroleum and Minerals, are offering specialized courses in quantum computing, quantum sensing, and quantum communications. Additionally, research institutions are expanding their focus on quantum disciplines, equipping the next generation of scientists and engineers with the expertise needed to drive quantum innovation.
Beyond academia, initiatives like quantum hackathons and partnerships with organizations such as Tuwaiq Academy provide practical learning experiences. Also, these initiatives are fostering a community of quantum enthusiasts. However, scaling these efforts through professional training programs, industry certifications, and international collaborations will be crucial to maintaining momentum and meeting the rising demand for quantum expertise.
Saudi Arabia’s Quantum Research and Industry Collaborations
The Kingdom is forging strategic partnerships to accelerate quantum research and industrial applications. Recent milestones include:
Saudi Aramco & Pasqal: In May 2024, Saudi Aramco partnered with Pasqal to deploy the first quantum computer in Saudi Arabia, marking a significant step toward integrating quantum computing into the energy sector.
Saudi Aramco & IBM: Establishing an innovation hub focused on exploring quantum applications in the energy industry and beyond.
NEOM & Arqit: Collaborating to develop a quantum-based cybersecurity platform to protect NEOM’s futuristic cognitive cities from advanced cyber threats.
These collaborations highlight Saudi Arabia’s commitment to advancing quantum research while ensuring its practical integration into critical industries. Additionally, the call for a dedicated quantum foundry underscores the need for a central hub. A central hub that facilitates quantum research, device fabrication, and commercialization.
Integrating Quantum Technologies into Society
Saudi Arabia is actively fostering public engagement and awareness of quantum technologies. Events such as World Quantum Day 2024 received widespread attention, showcasing the Kingdom’s quantum ambitions and progress. Public initiatives aim to:
Simplify quantum concepts for broader understanding.
Inspire young talent to pursue careers in quantum sciences.
Encourage discussions on the societal impact of quantum technologies.
Furthermore, through C4IR Saudi Arabia’s Quantum for Society Challenge, startups, researchers, and entrepreneurs are encouraged to develop quantum-driven solutions addressing pressing global challenges. This initiative reinforces the Kingdom’s commitment to harnessing quantum technologies for sustainable development and social progress.
Quantum Economy in Saudi Arabia: Roadmap for the Future
As Saudi Arabia continues to build its quantum ecosystem, a well-defined national program is essential for maximizing opportunities while mitigating risks. C4IR Saudi Arabia is leading efforts to establish a comprehensive roadmap, which includes:
Defining key quantum research and application areas.
Developing strategic policies for quantum commercialization.
Addressing ethical and security considerations.
Promoting public-private partnerships.
By fostering a governance structure that unites government, industry, and academia, Saudi Arabia is creating a resilient framework to ensure long-term success in the quantum domain.
Business and Investment
The quantum economy in Saudi Arabia is still in its infancy, with few commercial applications, making it difficult to attract investment and create a thriving ecosystem. A collaborative approach, combined with significant public and private sector investments, is shaping the future of quantum technologies in Saudi Arabia.
Saudi Arabia’s proactive approach to quantum technologies aligns with its broader vision of technological leadership and economic diversification. Through strategic investments, international collaborations, and a focus on education and research, the Kingdom is positioning itself as a key player in the global quantum revolution.
As quantum technology continues to evolve, Saudi Arabia’s commitment to fostering innovation, talent, and industry applications will drive economic growth. Also drive solidifies its role as a global leader in emerging technologies. Furthermore, at Injaz Company, we help international companies to expand their business into Saudi Arabia. We help our clients find investment opportunities and engage with the public and private stakeholders in the Kingdom.
Iraq has faced longstanding challenges in attracting foreign direct investment (FDI). Persistent security issues, weak institutions, and governance gaps have kept FDI inflows negative since 2013. In 2022, UNCTAD’s World Investment Report recorded a -USD 2 billion inflow, slightly improved from -USD 2.6 billion in 2021. Yet, recent data from fDi Markets reveals a potential turning point. During the first nine months of the last year, Iraq attracted an unprecedented USD 24 billion in FDI. This figure more than doubles the previous record set in 2008, highlighting renewed investor interest.
Hydrocarbons remain a key driver of foreign investment in Iraq, with most FDI directed toward the oil sector. Oil exports serve as the foundation of Iraq’s GDP. Beyond oil, Iraq’s cement production and construction sectors present promising opportunities. According to the World Bank, Iraq needs around USD 57 billion for reconstruction. To meet this demand, authorities are working to attract international oil companies while also promoting investment in non-oil sectors. Key areas include construction, renewables, clean energy, and banking, all of which offer growing potential for foreign investors.
In Iraq, much of the non-state, non-oil economy is informal, cash-based, and vibrant. Iraq remains one of the most under-banked countries in the Middle East, cash transactions are prevalent, and much of the economy is dollarized. The Iraqi government is aware of the challenges this imposes for business and is taking some initial corrective actions.
Investors will find opportunities from one extreme to the other: massive energy deals with ministries and importing brands to Iraqi kitchens.
Foreign Direct Investment in Iraq
Iraq administers foreign direct investments under its National Investment Law. Under Iraqi law, foreign investors are granted the same investment terms as Iraqi investors, with no cap on foreign ownership. However, Iraq’s National Investment Law restricts foreign ownership in natural resources, specifically in extraction and processing. Additional limits apply to foreign ownership in banks and insurance companies. The government also retains the right to screen foreign direct investments. Although Iraq is working to enact the necessary laws and build institutions, progress remains slow in establishing the frameworks needed for effective economic policy implementation.
Under the Iraqi Investment Law, foreign investors can enjoy various exemptions for qualified investments. These include a 10-year tax exemption, exemptions from import duties on essential equipment and materials, and waivers for taxes and fees on primary materials. Additionally, investors are permitted to repatriate capital and profits generated in Iraq. Foreign investors can also trade on the Iraqi Stock Exchange.
Hotels, tourist facilities, hospitals, educational institutions, and colleges benefit from extra exemptions on duties and taxes for importing furniture, tools, equipment, machinery, and transportation means. However, foreign companies selling goods or services in Iraq may still be subject to Iraqi taxes.
Generally, companies are taxed at 15% on profits, while those engaged in “petroleum activities,” which can be open to interpretation, face a 35% tax on profits.
Investing in Kurdistan
The Iraqi constitution grants semi-autonomous rights to the Kurdistan Region (IKR), making it a popular entry point for foreign businesses in Iraq. The region’s economy has grown significantly over the past two decades; the GDP per capita is about $7,038 in 2022.
The Kurdistan Region operates under a distinct 2006 investment law that offers foreign investors several incentives, including full property ownership, capital repatriation, and 10-year tax holidays.
The Kurdistan Board of Investment (KBOI) oversees licensing and promotes investment in key sectors like agriculture, manufacturing, and tourism. Additionally, the KBOI’s Foreign Direct Investment Unit supports foreign investors in navigating the Kurdistan Regional Government’s (KRG) bureaucracy and resolving any challenges that arise.
A key advantage in Kurdistan is that foreign companies can maintain 100% ownership, unlike in federal Iraq, where foreign ownership is capped at 49%. This autonomy and ownership freedom make the Kurdistan Region an attractive destination for foreign investment.
The Kurdistan government actively seeks to attract further investment, providing dedicated support to facilitate the investment process.
Challenges in Iraqi Investment Landscape
Investing in Iraq comes with a range of challenges. Common issues for both local and foreign companies include corruption, complicated business registration, customs and tax hurdles, selective regulation enforcement, dispute resolution difficulties, electricity shortages, and limited financing options. Iraq has slowly worked on enacting laws and developing institutions, but progress remains limited. Furthermore, political reforms are needed to help ease investor concerns about Iraq’s uncertain business environment.
Investors in Iraq should conduct thorough due diligence on local partners before making commitments. In Iraq’s honor-based culture, relationships are crucial, yet courts are often ill-equipped to handle commercial disputes that may arise. In a positive step forward, Iraq signed the UN Singapore Convention on commercial mediation in 2024.
The government is eager to attract more foreign direct investment in Iraq, yet persistent issues in security and political stability continue to deter investors. Security risks, including the potential resurgence of extremist groups, still disrupt business operations and trade routes, hindering economic growth. Despite Iraq’s abundant oil resources, energy shortages remain severe, with many regions facing blackouts up to 12 hours daily. Heavy reliance on oil—99% of exports and 85% of the national budget—leaves Iraq highly vulnerable to energy price fluctuations, according to the World Bank.
Key factors hindering FDI in Iraq include:
- Heavy dependence on the oil sector, leading to vulnerability in energy markets
- Slow, complex processes for resolving commercial disputes and securing timely payments
- An opaque regulatory environment that complicates operations
- Widespread issues in government contracts, licensing, and tendering processes
- Limited, underdeveloped banking sector and financing constraints
- Persistent security concerns, violence, and instability across various regions
Company Registration in Iraq
Foreign investors interested in establishing an office in Iraq or bidding on a public tender are required to register as foreign businesses with the Ministry of Trade.
For foreign investors looking to enter the Iraqi market, three main vehicles can be used:
- Private limited liability company (LLC);
- Branch office of a foreign entity; and
- Representative office of a foreign entity.
There are also mixed and joint stock companies, but the above corporate structures are most appropriate for establishing a corporate presence in Iraq for foreign investors.
In conclusion, the commercial opportunities are huge in Iraq. Because the country rebuilds its infrastructure and main institutions. This brings unique investment opportunities for foreign investors. Moreover, the Iraqi Investment Law offers significant tax exemptions, including a 10-year tax holiday and import duty waivers on essential materials. In addition, the Kurdistan Region provides favorable conditions such as full property ownership and capital repatriation. However, investors should remain aware of challenges, including regulatory complexities and the security environment.
At Injaz Company, we specialize in company formation in Kurdistan and Iraq. We guide foreign investors through each step of the process—ensuring smooth market entry into the Iraqi and Kurdish markets. the
Saudi Arabia’s Capital Market Authority (CMA) recently announced a groundbreaking reform, allowing foreigners to invest in companies owning real estate in Makkah and Madinah. This decision is a strategic move to attract foreign capital, enhance market efficiency, and provide liquidity for current and future projects in these holy cities.
Previously, non-Saudis were prohibited from purchasing property in Makkah and Madinah. They could only lease property for a maximum of 99 years. The new legislation now enables foreigners to hold up to 49% of shares in real estate companies listed on the Tadawul stock exchange. However, this right excludes strategic investors.
Makkah and Madinah Real Estate
The CMA’s reform aligns with Saudi Vision 2030’s goals to diversify the economy and attract global investors. The new change in the law makes it easier for non-Saudis to invest in the real estate market of the two holy cities. It also responds to growing demand from international high-net-worth individuals seeking to invest in Makkah and Madinah. A Knight Frank survey revealed that 82% of wealthy Muslims are interested in buying property in Saudi Arabia, with nearly half favoring Makkah.
Furthermore, opening up the two cities to foreign investment would have a big impact on the market. Real estate companies focusing on these cities have already seen significant market reactions. Markets reacted positively to the news. Firms like Makkah Construction and Development Co. and Jabal Omar Development Co. recorded share price increases of up to 10% following the CMA announcement. Real estate investment trusts (REITs), such as Jadwa REIT Al Haramein, also experienced gains, reflecting investor confidence in the sector.
Major Projects Driving Growth in Makkah and Madinah Real Estate
The Royal Commission for Makkah City recently launched a $2.91 billion fund to develop the Al Kidwa area near the Holy Masjid. This project will include 2,614 properties and span 686,056 square meters. It aims to support Vision 2030’s objective of hosting 30 million Umrah performers. Also, it supports the objective of six million pilgrims annually.
This initiative is part of a larger trend, with Saudi Arabia investing heavily in infrastructure and real estate to accommodate growing religious tourism. Expansions to the Haram in Makkah and Madinah have boosted hotel occupancy rates and revenues. The average daily rate for rooms in Makkah rose by 41% in the second quarter of 2023 compared to 2019.
As Saudi Arabia opens its real estate market to foreign investors, Makkah and Madinah are poised for transformative growth. These changes create opportunities for international investors while aligning with the Kingdom’s Vision 2030.
As opening up the new markets, Saudi real estate market presents great investment opportunities. Injaz Company offers tailored business expansion services for companies seeking to explore Saudi Arabia’s booming real estate sector. Let us guide you in navigating these exciting investment opportunities.
Davos 2025 was yet another milestone for Injaz Company as we actively participated in one of the most influential gatherings of global leaders, business executives, and policymakers. The World Economic Forum (WEF) provided an unparalleled platform to engage with key stakeholders, foster business partnerships, and highlight investment opportunities in the Middle East. Our presence at Davos reaffirmed our commitment to bridging international markets and facilitating high-impact business ventures.
Driving Investment into the Middle East
At Injaz, we recognize that the Middle East is at the forefront of economic transformation, with Saudi Arabia’s Vision 2030 leading the charge. Throughout our engagements in Davos, we showcased the vast potential of the region to investors and executives looking for strategic expansion. From mega infrastructure projects to emerging sectors such as fintech, renewable energy, and artificial intelligence, the conversations we had underscored the untapped potential waiting to be explored.
We engaged with business leaders who are keen on entering the Middle Eastern market but are seeking trusted partners to navigate its complexities. Injaz provided valuable insights on regulatory frameworks, investment incentives, and market-entry strategies tailored to each sector. By leveraging our expertise, we helped investors identify opportunities that align with their growth ambitions.
Facilitating High-Level Business Connections
One of the highlights of our participation in Davos was the numerous high-level meetings we arranged between international investors and Middle Eastern business leaders. These strategic discussions were instrumental in fostering cross-border collaborations and unlocking new economic opportunities.
Our managing partners Ugur Injaz and Sherwan Ozeran participated in several private roundtables where key decision-makers discussed investment trends, geopolitical developments, and emerging technologies. The ability to engage in direct conversations with top executives and government officials allowed us to deepen our network and position Injaz Company as a trusted partner in facilitating foreign direct investment (FDI) in the region.
Technology, AI, and the Future of Business
As the world accelerates its adoption of artificial intelligence and advanced technologies, Injaz made it a priority to engage with tech leaders and policymakers in Davos. AI is reshaping industries, from finance and healthcare to logistics and real estate, and Middle Eastern governments are investing heavily in AI-driven initiatives.
We participated in discussions on how AI can drive economic diversification, enhance efficiency, and create new business opportunities. Our team explored partnerships with global tech firms interested in expanding their footprint in the Middle East. By connecting these companies with the right stakeholders, we are ensuring that the region remains a hub for innovation and digital transformation.
Strategic Insights on Geopolitics and Investment Climate
Davos is not just about business—it’s also about understanding the evolving geopolitical landscape that shapes global investment decisions. Throughout the event, Injaz Company closely followed discussions on the shifting dynamics of global trade, economic policies, and regional security.
We provided strategic insights to our partners on how geopolitical developments impact investment flows and business strategies. The Middle East remains a dynamic and complex region, and our expertise allows investors to make informed decisions that mitigate risks while maximizing opportunities.
Strengthening Injaz Company’s Global Presence
Beyond fostering new partnerships, our presence at Davos reinforced Injaz Company’s reputation as a leading advisory firm specializing in business expansion and investment facilitation. We engaged with stakeholders from Europe, Asia, and North America, further expanding our global network.
Our participation in Davos is part of our broader strategy to position Injaz Company as a key player in international business advisory. By continuously engaging with top executives, government representatives, and thought leaders, we remain at the forefront of global business trends.
Injaz Company at Davos
As we reflect on our achievements at Davos 2025, we are more committed than ever to driving impactful business and investment relations. Injaz Company will continue to play a vital role in connecting international investors with opportunities in the Middle East, ensuring sustainable and profitable ventures for all stakeholders involved.
The future is bright, and the Middle East remains a land of opportunity. With Injaz Company as your trusted partner, businesses can navigate this exciting landscape with confidence and clarity.
GenAI in Saudi Arabia and UAE is rising.
The technology landscape is quickly evolving, and the cost of entry is rising just as rapidly. In this environment, understanding the full Generative AI landscape will be critical.
Generative AI (GenAI) is transforming industries and reshaping global dynamics, becoming a critical factor in innovation and geopolitics. As “GenAI superpowers” like the US and China dominate, businesses must adapt to navigate shifting regulations and competition. This article explores how organizations can thrive in this evolving landscape.
We see that the US and China are currently at pace with controlling the supply of Generative AI. But while all eyes are on the US-China rivalry, something is happening in parallel. A small group of countries—the “middle powers”—is emerging. Each of them has its own distinct strengths that may enable it to compete on a regional and even global scale as a supplier of the technology.
“Two Superpowers” Narrative
The superpowers in GenAI are the US and China, and these two countries control sizeable portions of the whole GenAI value chain. Just to show what we mean by superpower, we’re going to give some details about the US and China’s GenAI ecosystems.
Nearly 70% of the world’s outstanding AI models have been developed by or in partnership with US-based companies or academic institutions since 1950. US-based GenAI startups have received a total of $65 billion in investment since 2019. In addition, giant firms like Alphabet, Amazon, Meta, and Microsoft are expected to exceed $200 billion in their capital expenditures for AI technologies.
Two Chinese companies, Alibaba and the GenAI startup 01.AI, contribute over one-quarter of the world’s top open-source models. China filed more than 76,000 AI patents with the World Intellectual Property Organization between 2019 and 2023. This number is about four times as many as the US.
China also has ample data center infrastructure. And its public R&D budget has averaged $50 billion/per annum between 2016 and 2023. Government VCs have invested nearly a quarter of their total funds in AI firms. This means more than $180 billion in total since 2000.
Middle Powers in Generative AI
There is momentum in other parts of the world. The European Union, Saudi Arabia, the United Arab Emirates, South Korea, and Japan are the powers on the rise in this sector.
The EU has a combined GDP OF $18 trillion and this advantage makes it a massive market. The EU has an extensive and growing pool of AI specialists. While European AI companies are modest in size and funding compared to their US and Chinese counterparts, they have a strong foundation of talent. Compared with the US, GenAI startups in the EU have only received $3.5 billion in investments since 2019.
But the challenge is to balance innovation with safety where regulation takes much longer to catch up with actual innovation. The EU is grappling with regulation as artificial intelligence becomes a cornerstone of economic and social development. We often hear that “the US Invents and the EU Regulates” In fact, its regulations such as the General Data Protection Regulation (GDPR) and the EU AI Act will create demand for EU-developed and -hosted intelligence. This way may be viewed as more trustworthy and protective of European user data.
South Korea and Japan have capabilities across critical GenAI enablers but lack scale. For these two countries investing to achieve this scale can create greater competitiveness. South Korea and Japan also have sizeable capital pools to provide the investment required for the technology.
The annual R&D spending of South Korea and Japan’s tech companies is greater than that of other GenAI middle powers. South Korea spent $28 while Japan spent $26 billion. South Korea and Japan have ranked first and third among GenAI middle powers in AI patents since 2013. Ease of access to the chip is another key enabler. In this context, South Korea and Japan also benefit from their important positions along the hardware value chain.
GenAI in Saudi Arabia and UAE
GenAI in Saudi Arabia and UAE is rising. Saudi Arabia and the UAE are positioning themselves as regional leaders in generative AI (GenAI), leveraging their strategic investments, regulatory agility, and tech-driven ambitions to attract global players. Saudi Arabia and the UAE have abundant land, straightforward approval procedures, pools of capital, and exceptionally low-cost renewables. These factors make these two countries an excellent place to build electricity-gobbling data centers that use AI’s thinking. UAE and Saudi Arabia, have been aggressively investing in advanced AI capabilities.
While Saudi Arabia focuses on integrating AI into its Vision 2030 transformation goals, the UAE emphasizes flexibility and public-private partnerships to foster innovation. Both countries aim to capitalize on AI’s potential to transform industries and strengthen their global influence.
GenAI in the UAE
The UAE has committed $10 billion to its AI venture capital fund, significantly outpacing funding for comparable initiatives globally. This aligns with its broader goal of accelerating technological advancement and diversifying its economy. Its sovereign wealth funds, managing nearly $2 trillion in assets, provide a solid financial backbone for such initiatives.
The UAE has made remarkable progress in AI model development. Notable achievements include the Falcon LLMs by the Technology Innovation Institute and the Jais model family by G42, both recognized for their high performance and focus on Arabic-language capabilities. Additionally, the UAE’s G42 is targeting global markets with models like Nanda LLM, catering to India’s Hindi-speaking population.
The UAE’s AI talent pool has grown by 36% since 2022, with around 7,000 AI specialists now residing in the country. While small compared to Western nations, this growth is complemented by advancements in data center capacity, bolstered by low energy costs and eased chip export restrictions. These developments are essential for building a self-sustaining GenAI ecosystem.
GenAI Regulations in the UAE
The UAE has adopted a flexible and agile regulatory framework to establish itself as a global hub for artificial intelligence (AI). By emphasizing a pro-business approach, the country aims to foster rapid innovation and position itself at the forefront of AI advancements. Its policies focus on encouraging public-private partnerships and facilitating the swift deployment of cutting-edge technologies. Instead of enacting a singular, overarching AI law, the UAE employs a “patchwork of decrees and guidelines” developed over time, reflecting its commitment to becoming a leader in the AI space. This strategy enables the UAE to adapt quickly to technological advancements while creating an environment conducive to innovation, according to a report by law firm White & Case.
In the free zones, no specific AI regulations have been introduced, but updates to existing laws, such as data protection rules, have been implemented to address the evolving challenges brought by AI. This approach seeks to balance innovation with risk mitigation by relying on industry-led guidelines rather than broad regulatory measures. By prioritizing flexibility and collaboration, the UAE positions itself as a dynamic center for technological progress while ensuring that ethical and security considerations are addressed through tailored adjustments to its regulatory landscape.
GenAI in Saudi Arabia
Saudi Arabia is channeling unprecedented funds into AI, with plans to invest $40 billion in AI development and an additional $100 billion in data center expansion under Project Transcendence. The Kingdom’s earlier $100 billion tech fund (Project Alat) underscores its commitment to becoming a GenAI leader. These investments are part of a broader strategy to diversify its economy in line with Vision 2030.
Saudi Arabia is making strides in Arabic-language AI. Aramco developed the world’s largest industrial GenAI model, while the Saudi Data and AI Authority released ALLaM, a leading Arabic large language model (LLM) family. These advancements demonstrate Saudi Arabia’s focus on leveraging its linguistic and cultural strengths in the AI domain.
Despite notable growth in its AI talent pool—up 17% since 2022—Saudi Arabia’s 5,000 AI specialists are still far fewer than in Western nations like Germany. Additionally, the Kingdom needs to expand its technology export markets to sustain the high costs of GenAI model development and secure long-term profitability.
In conclusion, both Saudi Arabia and the UAE are making significant strides in establishing themselves as key players in the global generative AI landscape. With strategic investments in AI research, infrastructure, and talent, these Gulf nations are laying the foundation for a future powered by cutting-edge technology. However, sustaining growth in talent and expanding into profitable international markets will be crucial for their long-term success. As both countries continue to leverage their financial resources and regional advantages, their efforts will undoubtedly shape the future of AI development in the Middle East and beyond.
This article is based on data and insights from Boston Consulting Group’s (BCG) research. The report highlights how generative AI is transforming industries globally and becoming a pivotal factor in geopolitics, requiring governments and businesses to stay agile and adapt to rapidly evolving dynamics.
In a rapidly evolving global business landscape, companies are rethinking their strategies to remain competitive. Challenges like cost pressures, sustainability demands, and market shifts are pushing businesses, particularly in the technology sector, to explore new opportunities. Among the options, Saudi Arabia stands out as a compelling choice, offering a vibrant ecosystem for growth and innovation backed by a rapidly diversifying economy.
A Transformative Technology Ecosystem
Saudi Arabia has become a magnet for technology leaders and innovators, cementing its global reputation by hosting landmark events like LEAP 2025. The event, hailed as the world’s largest technology gathering, is set to attract over 172,000 attendees and showcase innovations from more than 1,800 global tech companies, including industry giants such as Microsoft, Oracle, and Google. Investments during LEAP are expected to soar to $11.9 billion, further solidifying the Kingdom’s position as a global tech hub.
Recent success stories highlight Saudi Arabia’s appeal. Tech giant Apple has announced a further expansion into the country, combining retail operations, developer training, and digital payment infrastructure investments. Apple will launch its first online retail store in Saudi Arabia in the summer of 2025, as the company aims to strengthen its presence in the Middle East’s technology sector.
These milestones underscore the Kingdom’s ability to attract diverse players, from global firms to homegrown startups.
Vision 2030: A Roadmap for Growth
At the core of Saudi Arabia’s transformation is Vision 2030. This ambitious plan aims to diversify the economy and increase SME contributions to GDP from 20% to 35%. Additionally, it seeks to boost foreign direct investment from 3.8% to 5.7%.
The digital economy plays a pivotal role in this vision. Currently contributing 14% of GDP, it is on track to reach the 19.2% target by 2030. Continued investment in technology and innovation is driving this growth.
Deep Technology: Leading the Way
Saudi Arabia is emerging as a hub for deep technologies. Half of the nation’s deep tech startups focus on AI and IoT. Collectively, they have attracted nearly $1 billion in funding. These startups support the National Strategy for Data and AI, which aims to position Saudi Arabia as a leader in this field.
The strategy focuses on attracting investment and strengthening research. Since 2015, the number of researchers has increased by 75%. By 2030, the researcher base is expected to grow sevenfold, creating a robust foundation for innovation.
Growing Venture Capital Activity
The Kingdom is experiencing a surge in venture capital (VC) funding. In 2023, startups raised $1.8 billion, representing over half of MENA’s total funding. Fintech led the way, attracting 51% of total investment. Companies like Tamara and Tabby achieved unicorn status, while e-commerce platforms also secured significant funding.
Meanwhile, emerging sectors like health tech, renewable energy, and climate technology are gaining traction. These align with Vision 2030’s focus on sustainability and innovation.
Government Support for Entrepreneurs
Saudi Arabia’s government is committed to fostering entrepreneurship. Programs like the Saudi Unicorns initiative and the National Technology Development Program (NTDP) provide critical support. Over 100 startup investors were active in 2023—a 41% increase from 2018.
Public funding and simplified regulations further encourage startups to thrive. Accelerators and funding initiatives also support high-growth businesses. These efforts create a vibrant ecosystem for innovation.
A Promising Future for Technology
Saudi Arabia is transforming into a global technology leader. Through Vision 2030, the Kingdom is building a knowledge-based economy. By investing in deep tech, supporting entrepreneurs, and fostering venture capital, it offers unmatched opportunities for growth.
For businesses seeking innovation and expansion, Saudi Arabia is the place to be.
Injaz Company is proud to support technology companies entering the Saudi market. We provide tailored services, including market entry strategies, local partnerships, and on-ground support. By leveraging our expertise and network, we help businesses thrive in this dynamic and fast-growing economy.
The 2034 FIFA World Cup and investment go hand in hand, as the event will act as a catalyst for economic growth across Saudi Arabia.
Saudi Arabia is gearing up to host the FIFA World Cup in 2034, a milestone event that is reshaping its economic and development landscape. This global sporting event is not just about football—it’s a gateway to lucrative investment opportunities across multiple sectors. With Vision 2030 as a guiding framework, the Kingdom is aligning its ambitious infrastructure and urban development projects to create a lasting legacy for investors.
The 2034 FIFA World Cup and investment go hand in hand, as the event will act as a catalyst for economic growth across Saudi Arabia. Preparations are driving investments into real estate, tourism, transportation, and entertainment. Businesses worldwide are eyeing the Kingdom as a hub of opportunity, with billions being poured into projects that will serve visitors and locals alike. The synergy between the World Cup and investment ensures benefits long after the final whistle, setting the stage for sustained development.
The World Cup and Investment in Real Estate
The real estate sector is at the forefront of this transformation. Preparations for the World Cup include the construction of eight state-of-the-art stadiums and upgrades to iconic venues like King Fahd International Stadium. Cities such as Riyadh, NEOM, and Jeddah are experiencing unprecedented growth, with new mixed-use developments combining residential, commercial, and recreational spaces.
These projects not only support the tournament but also pave the way for sustainable urban expansion. Investors can tap into high-demand areas, especially near venues, where property values are surging. Short-term rentals, luxury residences, and hospitality ventures are becoming prime opportunities for global and local stakeholders alike.
World-Class Infrastructure for FIFA World Cup
Saudi Arabia is investing heavily in transportation networks to enhance connectivity. High-speed rail systems, metro expansions, and upgraded airports are key highlights. These projects make travel seamless for millions of expected visitors while boosting economic activity in surrounding regions. For businesses, this translates into long-term benefits, including improved logistics and access to new markets.
World Cup and Investment Hospitality and Tourism
Saudi Arabia is emerging as a global leader in tourism, driven by innovative strategies and significant investments that present unmatched opportunities for investors. Saudi Arabia has embarked on a transformative journey under its Vision 2030 framework. The Kingdom’s approach to tourism is multifaceted, focusing on both immediate recovery and long-term sustainability. Tourism is set to thrive, with landmark destinations like AlUla, The Red Sea Project, and Diriyah Gate attracting millions. During and after the World Cup, demand for hotels, restaurants, and entertainment facilities will skyrocket. Investors can explore opportunities in building world-class accommodations or developing vibrant cultural hubs to cater to this growing influx.
Green and Smart Innovations
The World Cup is also fueling the rise of green and smart cities. NEOM, a futuristic city powered by renewable energy, embodies sustainability and innovation. Stadiums designed with eco-friendly features, such as solar power and water conservation systems, will set new benchmarks for environmental responsibility. These projects align with Vision 2030, which prioritizes sustainability and smart solutions across industries.
How Injaz Company Can Support You
As Saudi Arabia unlocks vast investment opportunities in Saudi Arabia, Injaz Company helps businesses enter this dynamic market. We specialize in connecting construction companies with key stakeholders, guiding them through regulatory frameworks, and identifying strategic projects. Whether you’re looking to establish a presence or expand operations, Injaz ensures a smooth, informed, and successful market entry.
Company establishment in Iraq presents unique opportunities, especially for foreign investors.
Iraq is the fourth most populous country in the Middle East and has the world’s fifth largest proven oil reserves. Iraq, widely known with its rich heritage as the “Cradle of Civilisation”, is predominantly a desert. This desert is made fertile by the Euphrates and Tigris rivers. The official languages of Iraq are Kurdish and Arabic.
Iraq is highly dependent on oil and gas sectors. Oil accounted for 43% of the GDP, 92% of the government budget revenues, and 96% of the country’s exports in 2019. Iraq is highly dependent on oil. In 2021, this constituted 37% of Iraq’s GDP, 84% of government revenue and 96% of exports.
The political and security situation remains fragile in Iraq. Despite this, commercial opportunities are huge as the country rebuilds its infrastructure and main institutions.
Furthermore, company establishment in Iraq presents unique opportunities, especially for foreign investors. Our article is intended to provide an introduction to company establishment and legal aspects of doing business in Iraq, particularly from the perspective of the items an inbound investor will have in mind.
Types of Companies Available for Foreign Investors
Iraq’s company law, as outlined in Law No. 21 of 1997, amended by Law No. 17 of 2019, governs the formation of legal entities. Foreign companies may establish a presence in Iraq in the following forms:
1. Limited Liability Company (LLC) – Foreign ownership restrictions apply.
2. Branch Office of a Foreign Company – No foreign ownership restrictions.
3. Joint Stock Company (JSC) – Foreign ownership restrictions apply.
4. Holding Companies – Foreign ownership restrictions apply.
It’s important to note that joint ventures are not recognized as separate legal entities under Iraqi company law.
In practice, the most common form of entities for foreign investors are the limited liability company (LLC) and branch office. A limited liability company (LLC) can be established with a minimum capital of $860 and just one director and shareholder, both of whom can be foreign nationals. The entire process can take up to eight months. However, branches are the preferred entity type for most foreign firms, and they can be registered within five months or as quickly as three months with expedited fees.
Limited Liability Company Establishment in Iraq
Amendment No. 17 of 2019 to Iraq’s company law removed the previous allowance for foreigners to own 100% of shares in Iraqi companies. Now, it is mandatory to have at least 51% of shares owned by an Iraqi shareholder. This shift often necessitates a corporate restructuring to address management rights, signing authorities, and other governance matters. Foreign shareholders are strongly advised to consult a local law firm to ensure that their interests are protected. This will also help them to properly navigate the restructuring process.
An LLC in Iraq can be formed with up to 25 shareholders and requires a minimum share capital deposit of IQD 1,000,000 in an Iraqi bank before registration. It can have one director, who may be a non-resident foreign national. Foreign shareholders must undergo security clearance from the Ministry of Interior. This process typically lasts about six weeks but potentially longer. Required documents for registration include the company name, intended business activities, founder details, share capital, office address, memorandum of association, and the appointment of both an auditor and a manager.
Branch Office Establishment in Iraq
Foreign companies are allowed to open branch offices in Iraq. Although a branch office’s activities are restricted to the scope defined by the parent company, it can still perform essential business functions like invoicing local customers, signing sales contracts, and receiving income within Iraq, providing significant operational flexibility.
Further to the issue of new foreign branches regulation No.2 of 2017, it is now possible for entities that do not have contracts with the government to register a branch in Iraq. It is difficult to predict the time taken to register a legal entity in Iraq, but a time frame of 6 to 12 months would be typical. It is generally faster and more straightforward to register a branch of a foreign company than an LLC in Iraq.
General Manager Appointment
Each entity must appoint a manager or director who is resident in Iraq. If required, and until our Client has secured a work and residence permit in Iraq, Injaz Company will be happy to supply our Client with a professional, passive nominee Iraqi branch manager for 12 months.
Company Registration in Kurdistan Region of Iraq
In the Kurdistan Region of Iraq (KRI), the Federal Companies Law No. 21 of 1997, as amended, applies. Additionally, Regulation No. 5 of 1985 governs the registration of branches and representation offices of foreign companies. The registration process begins at the General Directorate of Company Registration under the Ministry of Trade, with branches located in Erbil, Dohuk, or Sulaymaniyah, depending on the area of operation. If a company operates in multiple governorates, registration must be completed in each relevant location. Moreover, we will provide more detailed information about company registration in Kurdistan in a separate article.
Advantages of Company Establishment in Iraq
Taxes
- There is no VAT, withholding tax on dividends or royalties, and corporate tax exemptions for dividends between Iraqi companies. Free zone companies benefit from 100% tax exemptions and unrestricted currency transfers. Moreover, Iraq has bilateral investment agreements with countries such as the USA, UK, and Japan. Also it has free trade agreements with countries including Egypt, Lebanon, Qatar, and UAE.
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National Investment Commission (NIC) Benefits
- NIC projects with investments over $250,000 benefit from a 10-year tax exemption, which can be extended for 15 more years if Iraqi participation increases to 50%.
- NIC projects are exempt from customs duties for asset imports, and foreign workers can be directly hired without advertising for local labor first.
These incentives, combined with Iraq’s export-oriented economy, make Iraq an attractive destination for businesses in sectors such as petroleum, gold, agriculture, and more. However, legal and procedural complexities require careful planning and expert consultation.
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At Injaz Company, we specialize in helping businesses establish themselves in Kurdistan and Iraq. With our comprehensive company formation services, we guide you through each step of the process—ensuring smooth, hassle-free entry into the Iraqi and Kurdish markets. Injaz Company is here to make your expansion a success. Let us help you unlock the full potential of Iraq’s growing economy.
Establishing a company in Saudi Arabia offers immense business opportunities, driven by the country’s ambitious economic transformation under Saudi Vision 2030. This initiative aims to diversify the economy beyond oil, opening up sectors such as technology, healthcare, infrastructure, and tourism to foreign investors. With its strategic location, growing infrastructure, and government-backed incentives, Saudi Arabia is becoming a global business hub. However, understanding the local business landscape, regulations, and licensing requirements is crucial for success in this rapidly evolving market. By setting up a business in Saudi Arabia, companies can tap into the region’s dynamic growth and play a part in its bold future vision.
Establishing a Company in Saudi arabia: A Step-by-Step Guide
When forming a business in Saudi Arabia, it’s essential to follow a few key steps, from obtaining the necessary licences to officially incorporating the company. This process can be complicated, especially for those unfamiliar with the Saudi market. Even local businesspeople sometimes struggle with the details, and one mistake can be costly. That’s why we recommend working with a knowledgeable lawyer or setup partner to guide you through the process. Below, we break down the key steps foreign investors need to take to successfully set up a business in Saudi Arabia.
Part 1: The Investment Licence (MISA Licence)
What is the Investment/MISA Licence?
The first and most crucial step for any foreign investor looking to start a business in Saudi Arabia is obtaining an investment licence, commonly known as the MISA licence. This licence is mandatory for any business where the shareholders are non-GCC nationals. However, if all owners of the company are GCC nationals, this step is not required.
Once you have your investment licence, you are officially allowed to conduct business in Saudi Arabia. Keep in mind, however, that there are different types of investment licences depending on the nature of your business. It’s vital to understand which licence applies to your specific industry.
What are Business Activities?
As part of the company formation process, you’ll need to select your business activities. Saudi Arabia follows the International Standard Industrial Classification (ISIC 4) for business activities, which is a global standard. It’s important to ensure that your selected activities align with your chosen licence type. You can search the full list of business activities here.
Be aware that not all business activities are allowed for foreign investors. Some industries, such as healthcare and FinTech, require special licences. These licences may come with additional costs and bureaucratic steps, so it’s advisable to consult a lawyer to navigate the complexities. For further details, visit the MISA website.
Part 2: Choosing a Trade Name
What is a Trade Name?
A trade name is the official legal name of your company. It’s important to differentiate between a trade name and a trademark. While the trade name is used for legal identification, the trademark is how your business is recognized commercially.
Guidelines for Saudi Trade Names
When selecting a trade name, you must follow certain guidelines:
- Shariah Compliance: Your trade name must adhere to Islamic principles.
- Appropriateness: Inappropriate or offensive names are prohibited.
- Uniqueness: The name cannot be identical to any existing business. For instance, names like “Aramco” or “NEOM” would be rejected.
- Language: You may use either Arabic or English, and you can retain your company’s original name if it is in English.
Banned Trade Names
It’s also crucial to be aware that certain words are banned from use in trade names. These include religious terms like “Quran” or “Allah,” historical landmarks such as “Hira,” and city names like “Riyadh” or “Jeddah.”
Part 3: Establishing a Company in Saudi arabia and General Manager Authorities
Once your investment licence and trade name have been approved, you can move on to the actual company incorporation process. While most of the process is done online, you or your lawyer will need to visit a Saudi authority once to verify the identities of the business owners. This physical visit ensures that all submitted documents are legitimate.
What is the Articles of Association (AoA)?
To legally operate your business, you need to submit your company’s Articles of Association (AoA). This document outlines the key structures and governance of your business. The AoA contains information such as:
- Company owners’ names and details
- Passport information
- Stakeholder percentages
- Capital amount (as predefined in your MISA licence)
- Headquarters location
- Customised articles based on specific authorities
Authorities of the General Manager (GM)
One of the most important parts of the AoA is defining the authorities of your General Manager (GM). This section outlines the GM’s roles and responsibilities, including governance, representation, and decision-making powers. There are more than 300 GM authorities to choose from, ranging from assigning shareholders to signing contracts on behalf of the company.
Final Thoughts on Establishing a Company in Saudi Arabia
Successfully navigating the process of starting a business in Saudi Arabia requires careful attention to detail. From obtaining the right licenses, selecting the appropriate business activities, and choosing a compliant trade name, to completing the incorporation process, each step is critical to your company’s success. To avoid costly mistakes, partnering with experienced professionals is key.
At Injaz Company, we specialize in helping businesses establish themselves in Saudi Arabia. With our comprehensive company formation services, we guide you through each step of the process—ensuring smooth, hassle-free entry into the Saudi market. Whether it’s handling complex regulatory requirements or providing expert advice on local business practices, Injaz is here to make your expansion a success. Let us help you unlock the full potential of Saudi Arabia’s growing economy.
Saudi Arabia Property Investment is getting more attention. As Saudi Arabia attracts more international investment, the property sector is becoming increasingly important. Related industries like construction and building materials are also growing. Real estate investment in Saudi Arabia is a promising opportunity for investors. The country has a growing economy and a stable political atmosphere, making it an attractive area for real estate investment. With the expanding real estate market, foreign investors must understand their legal rights and obligations.
Land ownership in Saudi Arabia has a rich historical context influenced by various factors such as Sharia, Royal Decrees, and legal residency status. In general, the regulations in the Kingdom clarify the terms of property ownership and investment for non-Saudis, along with the permits and documents that must be submitted to complete transactions.
Saudi property transfer regulations have also ensured that these transactions, for both Saudis and non-Saudis, take place in a modern and technologically advanced way, thus saving time without sacrificing quality or efficiency.
Foreign investors who wish to own land in Saudi Arabia must adhere to certain regulations and obtain the necessary licenses Non-Saudis can own property for private residence under the Real Estate Ownership Law. However, this requires approval from the Ministry of Interior. The following subsections provide more information on the regulations for foreign investors.
Who can own a Property in Saudi Arabia?
Premium Residency and Saudi Arabia Property Investment
The Premium Residency Center was founded in January 2019, per the Council of Ministers’ resolution, to draw in highly skilled individuals and investors to contribute to Saudi progress by offering them flexible options for housing, settlement, and work. The center’s mission is to cater to the needs of the premium residency holders and focus on retaining them while continuously striving to develop premium residency products that attract distinguished individuals and encourage more investments in Saudi.
General Benefits of the Premium Residency
- Reside in Saudi with family members, including parents, spouses, and children under 25.
- Flexibility to move from one establishment to another.
- Exemption from the fees imposed on expats and their dependents and companions.
- Exit and return to Saudi for the premium residency holder and their family members without requiring a visa.
- The entitlement to obtain visit visas for relatives.
- Use tracks dedicated to citizens and GCC nationals at airports.
- The entitlement to work in the private sector and move between establishments applies to the husband, wife, and dependents.
- Conducting business under the guidelines of The Investment Law.
- Own and Usufruct real estate.
Special Economic Zones
A Special Economic Zone is a geographically delimited area that facilitates specific economic activities. It provides competitive advantages and legislative frameworks that differ from the base economy, while complying with the Kingdom’s obligations under international treaties.
Saudi Arabia is taking a bold step forward in its pursuit of becoming a global investment destination with the announcement of the establishment of four new special economic zones (SEZs) in 2023. The SEZs will be located in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City.
ECZA is the umbrella regulator and trusted national reference for Economic Cities and Special Economic Zones with global standards. As the enabler and umbrella regulator, ECZA creates the regulatory framework and facilitates the Relevant Entity to build and operate the SEZs. Regulations have been issued by the Economic Cities Authority for the registration of all foreign companies established in the economic cities. Also, the Authority is responsible of the registration of all land title deeds in the name of foreign entities established in the economic cities and the issuance of licences. Moreover, other approvals to service providers such as district cooling, warehousing, logistics, etc in the economic cities are regulate the Economic Cities Authority.
Property Lease in Holy Sites: Makkah and Madinah
The Privatization Law, approved by the Council of Ministers in 2021, allows foreign investors to rent real estate within the borders of the holy cities of Makkah and Madinah.
These leases are tied to the duration of the contract between the investor and an executive authority and are specifically for implementing privatization projects. The law emphasizes that the property must be used solely for this purpose, with all instructions outlined in the contract being followed. If the investor fails to comply with any conditions, the executive authority will notify them, giving time to correct the violation. If no action is taken, the lease contract will be terminated.
Additionally, the law prohibits private establishments that have signed a privatization contract from transferring or assigning their partnership contract to another party without written approval from the executive authority. Subcontracting for certain aspects of the public-private partnership (PPP) project is allowed, as long as the obligations of the main contract are upheld. Importantly, private sector activities under the contract are not classified as monopolistic, even if they restrict competition, as long as they fulfill the terms of the agreement.
Historically, non-Saudis could not own real estate in Makkah and Madinah, and leases were limited to six years. However, since late 2019, Premium Residency holders can lease household property in these cities for up to 99 years, marking a significant shift in property laws.
The Real Estate General Authority
The Real Estate General Authority was established by Council of Ministers Decision No. 239 on 25/4/1438. Its main goals are to increase transparency, promote investment, and ensure consumer protection in the real estate industry.
To boost transparency, the Authority has developed price indicators for both selling and rental markets. It has also introduced indicators for monitoring construction progress. Additionally, the Authority is working on improving regulations to reduce property disputes and shorten processing times.
In its efforts to attract investment, the Authority has conducted local and international comparisons. It aims to implement best practices from countries like Australia, the United States, Hong Kong, Singapore, and the UAE. Moreover, the Authority plans to organize training programs and accredited courses to enhance skills and improve the quality of real estate stakeholders.
Conclusion
In summary, the Vision 2030 is set to create numerous opportunities in the real estate sector, driving the development of new regulations and guidelines. These efforts aim to adopt international best practices and position Saudi Arabia as a preferred global real estate destination.
The purpose of this article was to provide developers, investors and other stakeholders with an overview of the main laws and regulations affecting the real estate practice in the Kingdom of Saudi Arabia, as well as the practical issues to consider. Overall, the regulations for foreign land ownership in Saudi Arabia are complex and subject to change. Foreign investors should consult with legal experts and obtain the necessary licenses and approvals before investing in real estate in the Kingdom.
In recent years, Saudi Arabia’s fintech sector has emerged as a key player in the Middle East, signaling a profound shift in the financial services landscape. With the sector’s assets projected to exceed $64 billion in 2024, it is clear that the Kingdom is becoming a hub for financial innovation. This growth is fueled by several factors, including government initiatives, venture capital investment, and an increasingly tech-savvy population. As fintech companies continue to expand, their impact on Saudi Arabia’s economy, regulatory framework, and financial inclusivity cannot be overstated.
Rapid Growth in Saudi Arabia’s Fintech Sector
The pace of growth in the fintech sector has been remarkable. In 2023, venture capital investments surged sixfold, with Saudi fintech firms raising $666 million across 10 funding rounds. This exponential increase highlights the sector’s growing importance in the national economy. The rise of innovative business models has not only captured the attention of local investors but also attracted international players. Regulatory bodies, like the Capital Market Authority (CMA) and the Saudi Central Bank (SAMA), have played pivotal roles in nurturing this environment by balancing innovation and market stability.
Since the launch of the regulatory sandbox in 2018, SAMA has fostered a testing ground for fintech innovation. More than 500 companies have applied to participate in the sandbox, which allows firms to experiment in a controlled setting. This initiative has encouraged the growth of emerging models such as robo-advisory services, social trading, and equity crowdfunding, all of which contribute to the expanding financial ecosystem in Saudi Arabia.
Government Initiatives and Vision 2030
Saudi Arabia’s fintech development is closely aligned with the nation’s broader economic goals under Vision 2030. This strategic framework, launched by the government, emphasizes diversification away from oil and positions fintech as a key enabler of economic transformation. The Financial Sector Development Program and the National Fintech Strategy have been instrumental in shaping a clear roadmap for the sector’s future. Both initiatives are designed to increase financial inclusion, boost job creation, and attract foreign investment.
By the end of 2023, the number of fintech companies in Saudi Arabia had grown to more than 230, far surpassing initial targets. Fintech is not just transforming the financial services industry but is also leading to significant job creation. Over 6,500 jobs have been generated by the sector, and this number is expected to rise as the number of fintech companies is projected to grow to 525 by 2030.
Saudi Arabia’s Fintech and Collaboration with Traditional Financial Institutions
An interesting aspect of Saudi Arabia’s fintech growth is the collaboration between fintech companies and traditional financial institutions. Instead of viewing fintech as a threat, many banks and financial entities have embraced these innovations to enhance their own services. Partnerships are flourishing as established institutions work with fintech firms to deliver more efficient, user-friendly digital solutions. This collaborative approach is transforming the financial landscape, accelerating digitalization, and making financial services more accessible to the Saudi population.
For instance, the adoption of Buy Now, Pay Later (BNPL) services and Open Banking solutions is growing. These innovations have created more convenient payment methods, increasing customer satisfaction and loyalty. The fintech sector’s momentum shows no signs of slowing down, especially given the Kingdom’s young, digitally literate population. As more citizens embrace mobile banking and digital financial products, fintech companies are increasingly catering to their needs.
Regulatory Support and Challenges for Saudi Arabia’s Fintech
While the future of Saudi Arabia’s fintech sector looks promising, there are still challenges to overcome. One of the primary challenges lies in ensuring that the sector remains diversified and competitive. Initially, fintech innovation in Saudi Arabia was focused predominantly on payment services, which led to the country achieving a 70% electronic transaction ratio, well ahead of its target. However, as fintech continues to evolve, there is a growing need for diversification into areas like crowdfunding, robo-advisory, and insurtech.
Regulators such as SAMA and the CMA are keenly aware of these challenges. SAMA has made clear that its goal is not to create a risk-free environment for fintech but rather to enable innovation in a controlled and safe manner. By fostering a regulatory environment that encourages responsible growth, SAMA ensures that fintech firms can coexist with traditional financial institutions without disrupting the broader financial system. Moreover, initiatives like the Makken Program, launched by Fintech Saudi in collaboration with SAMA, provide fintech entrepreneurs with critical support in areas like cloud computing, cybersecurity, and technology infrastructure.
Financial Inclusivity and Global Recognition
Saudi Arabia’s fintech sector is not only contributing to economic diversification but is also driving financial inclusion across the Kingdom. With millions of customers now accessing digital financial services, the sector is improving access to banking, particularly for underserved populations. Fintech has the potential to play a crucial role in addressing inequalities and promoting financial access, especially for women and small businesses.
The Kingdom’s fintech ambitions extend beyond its borders. Saudi Arabia is increasingly seen as a leading fintech hub in the Middle East, and it has begun to carve out a prominent role in the global fintech landscape. With its advanced digital infrastructure, strong regulatory framework, and government support, the Kingdom is well-positioned to attract even more international fintech players. As these companies enter the Saudi market, they will bring with them additional expertise, investment, and innovation, further strengthening the sector.
Injaz Role at the Saudi Arabia’s Fintech
For international fintech companies looking to expand into Saudi Arabia, Injaz Company plays a crucial role in navigating the complexities of market entry. With extensive experience in the Saudi business landscape, Injaz Company assists foreign fintech firms by providing market insights, helping them comply with regulatory requirements, and connecting them with local distributors and partners. By offering tailored business expansion strategies, Injaz enables foreign fintech companies to tap into the growing Saudi market. Furthermore, Injaz Company enables them to take advantage of the Kingdom’s thriving fintech ecosystem.
A Bright Future for Saudi Arabia’s Fintech
The future of Saudi Arabia’s fintech sector is bright. With strong government support, increasing venture capital investment, and a rapidly growing number of innovative companies, the Kingdom is poised to lead the fintech revolution in the Middle East. Furthermore, the sector’s contribution to economic diversification, job creation, and financial inclusion aligns perfectly with Saudi Arabia’s Vision 2030 goals. However, maintaining momentum will require continued focus on regulatory support, market diversification, and collaboration between fintech companies and traditional financial institutions.
In the years to come, fintech will not only reshape the financial landscape of Saudi Arabia but also position the Kingdom as a global fintech leader.
The logistics sector in Saudi Arabia is booming. Global logistics companies are increasingly focusing on Saudi Arabia. The country’s socio-economic transformation is boosting demand for industrial and e-commerce facilities.
Previously, regional and local players, like Aramex and SMSA, dominated the market. However, Crown Prince Mohammed bin Salman’s Vision 2030 has reshaped the landscape. Chinese logistics firms have also entered the market through joint ventures, such as J&T Express and AJEX. This has increased competition and lowered prices.
Currently, traditional players, new Chinese entrants, and local startups like Salasa and CloudShelf are all competing for market share. Overseas powerhouses are also joining the fray. Abhishek Mittal, head of industrial advisory at JLL, noted significant investment from PIF-backed assets and other regional players, such as Agility from Kuwait. Gulf Islamic Investments, based in Dubai, recently partnered with LogiPoint to establish Grade A facilities in Riyadh and Jeddah.
Furthermore, more international players from Europe and the US are eyeing the market. Industrial rents in Riyadh, Jeddah, and Dammam have surged in recent months. CBRE reported an 8 percent increase in Riyadh, 3 percent in Jeddah, and 4.6 percent in Dammam during the first quarter of this year. Occupancy rates have hit record highs.
Logistic Sector in Saudi Arabia
Aramex’s general manager in Saudi Arabia, Al Nowaiser, projects 6 percent annual growth in logistics sector in Saudi Arabia over the next five years. Aramex plans to expand its domestic services, focusing on freight, warehousing, and express delivery. He noted a rising demand for dangerous goods warehousing and temperature-controlled storage, especially for perfumes and cosmetics. However, the market is oversaturated with general cargo dry warehouses that only meet basic requirements. There’s a clear lack of specialized warehouses, particularly those with pharmaceutical or cold chain capabilities.
As Saudi consumers increasingly shop online, especially for groceries, the demand for Grade A logistics buildings is rising. New investments in the logistics sector in Saudi Arabia are focused on expanding the supply of these high-quality facilities. Al Nowaiser pointed out that incremental rental costs are significantly impacting logistics service providers, becoming a growing concern. While Amazon is increasing its warehouse space in Saudi Arabia, Aramex relies on build-to-suit warehouses tailored to specific client needs.
Expansion of Ports and Logistics Business
In December 2023, the Saudi Ports Authority (Mawani) signed four contracts with private companies for maritime services at eight ports, with investments exceeding SAR1 billion ($267 million).
The contracts were signed with Zamil Marine Services and Naghi Marine Company. Zamil Marine Services will provide services at the Jeddah Islamic Port, Jazan Port, Ras Al Khair Port, King Fahd Industrial Port in Jubail, and Jubail Commercial Port. Naghi Marine will offer services at King Abdulaziz Port in Dammam, Yanbu Commercial Port and King Fahd Industrial Port in Yanbu.
These contracts will expand the partnership with the private sector, improve the operational efficiency of maritime services in ports, and renew the fleet through investment in 44 new maritime units,
Last May, Dubai logistics company DP World commenced work on a SAR900 million ($250 million) logistics park in Saudi Arabia’s Jeddah Islamic Port.
The new storage and distribution facilities, being developed along with state-backed Saudi Ports Authority (Mawani), will boost trade in the kingdom and the wider region.
The 415,000 sq m “greenfield” facility will provide 185,000 sq m of warehousing space and a multi-purpose storage yard, making it the “largest integrated logistics park in the kingdom.
Port Capacity of Saudi Arabia
In 2022, King Fahad Industrial Port (Yanbu) in Saudi Arabia had the highest capacity, valuing to 210 million tons. The total capacity of ports across the country had a capacity of 681 million tons, as of 2022.
The development of the maritime transport and logistics sector is a crucial pillar of Saudi Arabia’s transport strategy within the country’s development plan, Saudi Vision 2030. This is why Saudi Arabia is planning to increase port capacity to more than 40 million standard containers and its share of the trans-shipment market to 45 percent as part of its economic development plans. Investment in port facilities and new liner services contributed to a solid increase in seaport throughput.
The Red Sea coastal region features heavily in the giga-projects at the heart of the plan to diversify the Saudi economy, including Neom in north-west Saudi Arabia, luxury resort Amaala, Jeddah Central, and entertainment and tourism centers in Jizan and Abha.
Furthermore, improvements to date are reflected in the steady rise in Saudi Arabia’s score in the quarterly Liner Shipping Connectivity Index (LSCI). The LSCI index is produced by the UN Conference on Trade and Development. The kingdom has closed the connectivity gap with the UAE. The UAE was the top performer among Gulf Arab states in the LSCI, since the first quarter of 2019.
In conclusion, Saudi Arabia’s transformation is driving demand across various sectors. The logistics sector, in particular, is seeing rapid growth as international and regional players invest in high-quality real estate. This demand extends beyond logistics, affecting the residential and office markets, especially in Riyadh.
