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on April 23, 2025
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There have long been many excellent reasons for businesses to consider expanding their presence into territories beyond their country of origin. As a business owner, you might have thought carefully about the opportunities international growth could bring you to tap into new markets, generate heightened revenue, and gain a competitive edge.
Until relatively recently, however, the notion of expanding into the Kingdom of Saudi Arabia (KSA) would have seemed a far from obvious prospect for many UK companies.
Below, then, our experts in UK immigration law at Cranbrook Legal have set out some of the reasons why, as of the mid-2020s, the West Asian state could be an excellent focal point for the growth and development of your business.
There has been much talk in recent years about the Saudi Government’s Saudi Vision 2030 plan. Also sometimes referred to as “Project 2030”, this comprehensive reform plan – first announced in 2016 – is geared towards diversifying the country’s economy beyond oil dependence.
Saudi Vision 2030 has broader components than this, however. In the words of the Saudi Embassy in Washington, DC, the plan is “built around three primary themes: a vibrant society, a thriving economy, and an ambitious nation.”
From the perspective of businesses in the UK that might consider expanding into KSA, this policy means an increased emphasis on such sectors as tourism, entertainment, technology, and renewable energy.
Projects like the futuristic city, NEOM – which is planned for the Red Sea coast of northwestern KSA – could present exciting opportunities for entrepreneurs from overseas, including in such fields as construction, tech innovation, and sustainable energy.
The demographics of modern Saudi Arabia certainly point to potential openings for businesses that expand to this part of the world from the UK.
A 2022 census, the first in 12 years, found that the median age of the total population – of 32.2 million people – was 29. It was also revealed at this time that foreign nationals accounted for four in 10 (42%) of the population.
Such a combination of characteristics means if your business establishes foundations in KSA, you can expect a receptive audience for products or services that are at the leading edge of technological sophistication and modernity.
Many people in KSA – whether or not they may have come to the country from abroad – are increasingly tech-savvy, ambitious, and open to global trends. It is no wonder, then, that the kingdom has already acquired a reputation as a testing ground for ecommerce, digital services, and lifestyle brands.
Of course, for you, the answer to this question will depend largely on your own ambitions and expertise. You will also need to take into account the incentives and support the Saudi Arabian authorities offer for your chosen sector.
Nonetheless, below are some of the industries in which it can be particularly advantageous to establish or expand a business in KSA:
The above is not an exhaustive list of the industries that can expect to thrive in Saudi Arabia over the years ahead.
In any case, your business’s expansion prospects in the kingdom will largely come down to your ability to tailor your brand’s products and/or services to the preferences and needs of the Saudi population.
By investing in Saudi-specific apps or halal-compliant solutions, for example, you could greatly strengthen your UK organisation’s chances of success in KSA.
As part of the Saudi Vision 2030 policy, the authorities in KSA have sought to make the territory a more alluring place for overseas investors.
One way in which the country has done this is by creating Special Economic Zones (SEZs). These areas offer a variety of incentives, such as preferential tax treatments, the option of full foreign ownership, and simplified customs processes to make international trade easier.
Saudi SEZs are especially attractive destinations for businesses in such industries as technology, logistics, and manufacturing.
The country’s Eastern Province, for instance, offers the Ras Al-Khair SEZ, which places a strong emphasis on the marine industries, shipbuilding, and logistics. Meanwhile, Mecca Province presents the King Abdullah Economic City, which supports advanced manufacturing and logistics, and Riyadh’s Cloud Computing SEZ targets cloud computing and information technology (IT) investments.
As recently as February 2025, KSA’s New Investment Law, and its Implementing Regulations, came into force. This legislation promotes equal treatment between local and foreign investors, further underscoring the kingdom’s dedication to drawing in entrepreneurs from around the world.
The powers-that-be in Saudi Arabia clearly understand that businesspeople are better placed to thrive when they are supported by the right infrastructure. Sure enough, investments in the built environment and the associated infrastructure have been a key focus for Saudi Vision 2030.
In fact, the kingdom is setting out to invest around $1 trillion in infrastructure by the end of the decade. This is expected to encompass the likes of transport, healthcare, digital, and social infrastructure, with large-scale initiatives such as the Red Sea Project and Diriyah helping to stimulate the economy and move it away from a reliance on oil.
There aren’t many parts of the world that can legitimately describe themselves as a crossroads of Asia, Africa, and Europe, and that are also as business-friendly as Saudi Arabia is.
The port facilities at Jeddah and King Abdullah Economic City allow for highly optimised logistics and trade across the Middle East. Indeed, even if your business “only” targets the Middle East and North Africa regions, this would still mean tapping into a vast market of more than 450 million consumers.
But of course, with the access to major shipping routes that the Red Sea and the Arabian Gulf afford, your business in KSA could also be easily transporting goods to customers across continents. With its modern ports, highways, and airports constantly gaining in sophistication, Saudi Arabia is becoming ever-more tightly integrated with the most lucrative global markets.
Compared to many other parts of the world that you may have considered for the expansion of your UK business, you are likely to be impressed by KSA’s competitive or low costs in various areas.
The real estate prices, for example, can be attractive, as can the tax incentives and exemptions for various sectors. Furthermore, Saudi Arabia’s abundant oil and gas resources have long meant low energy costs, which could be particularly advantageous if your business is an energy-intensive one.
The Government fees for administrative tasks – such as opening a company or changing shareholders – also tend to be low in KSA.
While many opportunities can arise from expanding or establishing a business in KSA, there are certain common hurdles that even skilled and experienced entrepreneurs may find difficult.
These can include, but are not necessarily limited to:
With KSA’s legal system being based on Sharia law, it is crucial for foreigners to be well-informed on what this means for contracts, labour regulations, and business practices.
Some of those implications – such as strict advertising rules and mandatory gender segregation in certain environments – may feel jarring if you are accustomed to Western cultural and corporate norms.
There is a tendency in Saudi Arabia for relationships to trump formal processes.
The conservative culture in this part of the Middle East can also heighten the risk of Western businesses making mistakes here (for example, a given UK business may be overly aggressive in its advertising).
Although Saudi Vision 2030 has already done much to lower the barriers for overseas entrepreneurs wishing to expand into KSA, certain “red tape” remains.
The slowness and complexity of licensing, permits, and approvals can be frustrating for foreign business owners who aren’t accustomed to it.
The policy known as “Saudization”, or “Nitaqat”, uses a quota system (varying across sectors) pushing companies to recruit Saudi citizens in preference to expats.
At the same time, however, there are persistent labour shortages in certain skilled disciplines, such as tech and engineering, which might heighten your business’s reliance on costlier foreign workers in KSA.
While the project of expanding a UK business into the Kingdom of Saudi Arabia tends to require a certain amount of adaptation compared to establishing a presence in another Western country, for many entrepreneurs, the rewards will be more than worthwhile.
There are simply few other parts of the world that offer such an enticing mix of cultural stimulation and financial rewards, as Saudi Arabia. Although we are largely known as specialists in UK immigration law here at Cranbrook Legal, we also possess a high level of expertise in helping businesses to put in place roots in the Middle East. So, to learn more about how we can assist you, please call 0208 215 0053 today. Alternatively, you are welcome to request a free consultation via our online contact form.
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