There are several attractive investment industries in Saudi Arabia that foreigners and ex-pats can choose to invest in. After all, thanks to the country´s constant law changes, foreigners and ex-pats can immigrate and set up a business here to rack profit. Nevertheless, many do not know what industry to choose from.
In this article, we will answer questions you may be asking yourself regarding these industries. “Why should I move to Saudi Arabia?” “Is Saudi Arabia safe?” “What industries should I invest in?” We will cover:
- Why should you move to Saudi Arabia?
- Why should you invest in Saudi Arabia?
- Principal investment sectors in Saudi Arabia
- How can we help you invest in diverse sectors in Saudi Arabia?
Why should you move to Saudi Arabia?
Before taking advantage of the several attractive investment industries in Saudi Arabia, many foreigners do not know whether or not to immigrate. Nevertheless, there are diverse reasons why foreigners and ex-pats want to immigrate to Saudi Arabia.
The main 6 reasons why foreigners immigrate to the country to take advantage of local industries in Saudi Arabia are:
One of the main reasons people immigrate to Saudi Arabia is its landscape diversity. The country stretches over 2 km² and borders the Red Sea and the Persian Gulf. Even if individuals see Saudi Arabia as a desert climate country, there still are several things to see. Museums, monuments, historical sites, and the list go on. Furthermore, there are several outdoor activities such as mountain hiking, theme parks, beautiful beaches, etc.
Since the country is so big, you will not fail to find job opportunities as well as invest in other profitable industries in Saudi Arabia.
Saudi Arabia also boasts their great cultural heritage as its cultural festivals evidence without mentioning local values and customs. Furthermore, contrary to popular belief, Saudis are usually friendly and helpful to ex-pats. Simply put, ex-pats and other visitors are pretty well received as long as they follow and respect the country´s culture and values.
This is good concerning investing in local industries since locals do not have a problem with it. In other words, as long as you follow the rules and cultures of the county, not only you will be well received but you will also be able to take advantage of attractive investment industries in Saudi Arabia.
Contrary to popular belief, Saudi Arabia is a relatively safe country in comparison to other Middle East countries. Several ex-pats claim they feel safe, which allows them to benefit from the profitable industries in Saudi Arabia. In addition to this, the Saudi government makes significant changes every year to ensure the country is safe. Even though the police presence almost everywhere seems intimidating, it is done to ensure safety.
Affordable cost of living
In comparison to other Middle East countries, life is quite affordable in Saudi Arabia for foreigners. Even though imported products are equally expensive as in Europe, Saudi Arabia offers high-quality local products at a much cheaper rate. Furthermore, thanks to low import taxes, electronics such as DVD players, cameras, TVs, etc. are affordable.
In addition to this, even though rent prices increase with time in major cities, services such as water, gas, and electricity are subsided at regional levels. Simply put, an ex-pat can live comfortably in Saudi Arabia. Consequently, this allows them to benefit from attractive investment industries in Saudi Arabia.
There is zero income tax
Before early 2018, Saudi Arabia was a tax haven before the government introduced the 5% VAT on most goods. Nevertheless, even with that, there still is no income tax in the country. This is one of the main reasons why foreigners decide to immigrate to Saudi Arabia. This allows them to avoid spending much in the long run and further benefit from opportunities in Saudi Arabia.
Furthermore, there are several other taxes that Saudi Arabia does not have. This includes property tax, vehicle transfer tax, and inheritance tax.
Plenty of opportunities in Saudi Arabia
Since the country is rich in natural resources such as gas and oil, the country is more and more attractive to foreign professionals. Foreigners can set up a business, start a company branch, or even benefit from several investment industries.
Saudi Arabia is becoming one of the biggest and most stable economic powerhouses in the Middle East. The country can also boast of a robust budget and low public debt. Furthermore, while oil is the main promising field for foreign workers, there are several opportunities in other profitable industries in Saudi Arabia. For instance, some of them include construction, logistics, energy, healthcare, etc.
Moreover, it is important to take into consideration that Saudi Arabia is also famous for its attractive salaries. In addition to this, the country does not deduct anything from gross salaries since the country does not have social security.
Why should you invest in Saudi Arabia?
Saudi Arabia cares greatly about its economy and the prosperity of those living in it. The country´s main objective regarding its economy is to be an attractive investment destination. It wants foreigners and locals to benefit from attractive investment industries in Saudi Arabia. Furthermore, it seeks to be a destination for continuation and expansion. Not only does the country want investors to take an interest, but it also offers several opportunities.
In addition to this, according to the “Doing Business 2020” report, Saudi Arabia advanced 29 ranks. The World Bank issues this report every year, meaning it became a great destination for investment. Furthermore, the country increased the number of SMEs (Small and medium-sized enterprises) to more than 626.000. In addition to this, they also reduced the time required to open a business to 30 minutes from 15 days.
Moreover, as we mentioned, the country also allows foreigners to benefit from local industries in Saudi Arabia. In this case, there is an exciting potential regarding profitable industries and other opportunities. Mainly, a G20 economy with an educated and young population further increases the country´s appeal to investors.
There is more
Saudi Arabia can also boast of being in a strategic location, being at the heart of major trade routes, and crossing 3 continents. The main vision the country has for 2030 is to have a wide range of economic reforms as well as to create new business opportunities in Saudi Arabia. Simply put, reform is the main step taken to open new economic opportunities in Saudi Arabia to the world.
Keep in mind that to move into this country and invest, you need to obtain a suitable visa. For instance, there is the investor visa and the residency visa. You can learn more about your options by asking our visa consultants for more information.
Principal investment sectors in Saudi Arabia
This is one of the main attractive investment industries in Saudi Arabia. The chemicals industry is essential for the country to diversify economically. By 2030, the country sees itself doubling GDP contributions for this sector. Furthermore, Saudi Arabia already embarked on a transformational program. This generated significant industrial growth. Thanks to these opportunities, the country has already seen a change:
- 5th highest chemical production market in the world.
- The country has a 10% share of total global chemicals output and production.
Other profitable industries in Saudi Arabia include information technology. By 2030, the country aims to transform itself into a global ICT hub. They plan to get transformed this being supported by world-class digital infrastructure as well as modern technologies. The main objective is to empower Saudi citizens and provide sustainable employment. As of today, the country has:
- 88% coverage of 4G as a percentage of the population.
- 71% digital maturity level percentage of eGovernment services.
- An e-commerce market size of SAR 28.5 billion.
Energy and water
Although it is not considered one of the main profitable industries in Saudi Arabia, the energy and water sectors are rapidly growing. It has grown to the point of becoming one of Saudi Arabia´s most important strategic sectors. The development of a renewable energy source is one of the country´s key objectives.
Currently, Saudi Arabia has the largest desalination market in the world. This means that the country is prioritizing water treatment and reuse to achieve greater sustainability. In this sector, Saudi Arabia has achieved:
- 20% of global desalination capacity. This makes Saudi Arabia the country with the highest desalination capacity in the world.
- The ability to add 3Mn of daily additional desalination by 2027.
- 5Mn daily additional sewage treatment capacity added by 2030.
- Elimination of 82% of total landfill waste by 2035.
- 6th worldwide solar energy potential.
- 13th worldwide for onshore wind energy potential.
Industrial and manufacturing
Another one of the main attractive investment industries in Saudi Arabia is the industrial and manufacturing sectors. Another key objective of Saudi Arabia is to grow and diversify the economy through collaboration and partnership. Particularly, the industrial and manufacturing sectors are the main key for Saudi Arabia to successfully achieve this diversification.
This development and growth of the manufacturing and industrial capacities of the country are being catalyzed by an attractive ecosystem. This ecosystem consists of industrial cities, high-quality utility supplies, a well-established logistics network, and a well-developed infrastructure. Industrially speaking, the country has:
- 60% Saudi market share of total GCC market consumption.
- More than SAR 183 billion growth of the KSA F&B market.
- A 6% expected growth of the KSA F&B market per year over the next few years.
Healthcare and life sciences
Several Saudi citizens widely consider this sector to be one of the most important investment industries in Saudi Arabia. The healthcare and life sciences sectors are largely publicly financed in Saudi Arabia. Furthermore, Saudi Arabia has made significant strides recently in improving its healthcare.
Saudi Arabia plans to develop this sector with the main objective of privatizing service provision & PPP. Furthermore, they also seek an elevation in the quality of care, enhancement of the health service, and applying virtual healthcare platforms.
Mining and metals
Many foreigners and investors do not consider this sector as one of the most important ones. Nevertheless, it still is considered one of the several profitable industries in Saudi Arabia. Through the years, this sector has widely grown, especially in recent years. In this sector, Saudi Arabia has:
- More than SAR 63 billion contributions to GDP.
- Around SAR 26 billion gross exports.
- 15 commercially viable minerals were identified in the country.
Transport and logistics
As we previously mentioned, Saudi Arabia is located at the heart of essential trade routes as well as connecting with 3 different continents. This makes the transport and logistics sectors one of the main attractive investment industries in Saudi Arabia. By 2030, the country aims to maximize the benefit of this unique and strategically beneficial location. They plan to do this by developing the country into a world-leading hub for transport & logistics. The country has:
- 6 total container ports.
- 27 total airports.
Tourism, culture, and entertainment
As we also mentioned previously, Saudi Arabia is osterine for sale home to several tourist attractions including museums, monuments, historical sites, etc. Consequently, this makes this sector one of the best opportunities in Saudi Arabia. By 2030, the country seeks to open Saudi Arabia to the rest of the world, giving access to new cultural and creative opportunities.
Furthermore, the country aims to grow from a 2.9% GDP to 6.0%, creating a SAR 30 billion market. Moreover, the country wants to create new attractions, world-class events, and cutting-edge entertainment experiences in the coming year. The country has more than SAR 7 billion in total investment in entertainment projects.
Last but not least, the real estate sector is one of the best attractive investment industries in Saudi Arabia. Saudi Arabia recognizes that its ambitious and youthful population requires a good housing market. Consequently, it has taken a holistic approach to developing sustainable housing solutions for the country.
Some initiatives that the country has taken include:
- Adopting new technologies. For instance, 3D printing.
- Using more pre-fabricated buildings.
- Providing incentives for private-sector partnerships.
- And leveraging robots for construction.
As of now, the country seeks:
- A target of 70% homeownership by 2030.
- 5 Million Units built by 2030.
How can we help you invest in diverse sectors in Saudi Arabia?
Even with the information you receive from this article, you still might have several questions regarding investment opportunities in Saudi Arabia. That is where Saudi Company Formation comes in; we can guide you and answer all of your questions. With us, you will be able to further benefit from the most attractive investment industries in this country.
Furthermore, Saudi Company Formation can help you become an ex-pat and immigrate to Saudi Arabia. Moreover, we also offer business set-up services as well as constant client attention to answer all of your questions. Simply put, with our help and guidance, you will be able to stay in compliance with the law and even benefit from it. We are your legal advisors!
Would you like to know more about investment opportunities and other profitable industries in Saudi Arabia? You can contact us at +971 58 515 8876 or email us at email@example.com. In that way, you will be able to get an answer to every question you have regarding local industries in Saudi Arabia and other opportunities.