Dubai-based business expansion platform AstroLabs has released the second edition of its Saudi Market Entry Report with the addition of the first-ever Saudi success index for foreign companies showcasing the 5 factors that accelerate business growth in the Kingdom. The report is based on insights from more than 1,200 global businesses considering expansion into Saudi Arabia from over 23 countries in 2024.
Key highlights from the report include:
- 64 percent of businesses were actively seeking to enter Saudi Arabia immediately, within the first 1-3 months of 2024, indicating a growing urgency to expand into the market.
- 52 percent of international companies exploring expansion in Saudi Arabia originated from Asia, the Americas, and the U.K., respectively.
- The results from the first-ever Saudi success index for foreign businesses revealed that localization and market integration were the primary factors driving success in Saudi Arabia, emphasizing that long-term commitment is crucial for accelerated success in Saudi Arabia.
- 81 percent of over 1,000 companies considering expansion into Saudi Arabia pointed to the Kingdom’s substantial untapped market potential as their main motivator.
Saudi Arabia’s economy is on an accelerated path to setting global standards, attracting businesses from around the world eager to leverage the current momentum. This sentiment is evident in the report, which indicates that approximately 64 percent of businesses are actively looking to enter Saudi Arabia within 1-3 months in 2024, reflecting a 33 percent increase in urgency compared to 2023.
Growing international interest
The report also highlights a rising trend of international companies expanding into Saudi Arabia from outside the MENAT region, showing an 18 percent increase compared to 2023. Notably, the majority of these businesses (52 percent) exploring expansion into the Kingdom are from Asia, the Americas, and the U.K.
In conjunction with the report, the first-ever Saudi success index for foreign companies offers actionable insights and strategies to accelerate success in the Kingdom, based on learnings from over 50 companies that expedited their business growth. According to the index, deeper localization is essential for a successful market expansion strategy. Maintaining ongoing compliance with regulations and industry-specific frameworks is crucial for sustainable growth.
Long-term commitment and investment returns
The success index findings further illustrate that long-term commitment in the Saudi market ensures a better return on investment. The report highlights that IT, construction, and consulting are the top sectors attracting the highest number of global businesses to the Kingdom in 2024, indicating a continued influx of foreign capital to meet the economy’s current demands.
Additionally, 81 percent of over 1,000 companies considering expansion into Saudi Arabia cited significant untapped market potential as the primary motivating factor for establishing operations in the Kingdom. This surge reflects an increased urgency, prompting businesses to accelerate their expansion efforts in order to capitalize on the vast opportunities within this rapidly evolving market. This trend aligns with the country’s strategic initiatives to advance the national objectives outlined in Vision 2030 and the economic transformation roadmap.
