Saudi Arabia from global lender and capital allocator to inwards focus on domestic economic growth.
Saudi Arabia welcomes companies from around the world to contribute to their national building agenda and giga-projects. For new entrants, however, success depends on understanding a number of structural considerations early on.
Over the past 2 days took place the Private sector forum organised by the Public Investment Fund (Saudi sovereign wealth fund). A yearly event organized to align private sector actors with their transformative roadmap Vision 2030, get to know shifts, and update developments in their projects, attracting international investors and companies. 🌍
I followed several of the live-streamed sessions and, as someone focused on international cross-border transactions, market entry, and project development, I wanted to share a some observations. This shift materially changes how Saudi Arabia should be approached by international companies.
🏗️ Saudi Arabia welcomes companies from around the world to contribute to their national building agenda and giga-projects. For new entrants, however, success depends on understanding a number of structural considerations early on:
- 📑 Legal company registration and sector-specific licensing to operate
- ⚖️ Taxation rules (profits taxed with limited exceptions)
- 👥 Hiring and Saudization (required to hire nationals)
- 🛂 Compliance set up and customs considerations (buy locally first)
- 🧭 Governance questions: Saudi vs. foreign management?
In practice, most successful market entries involve a local partner or joint venture structure, often essential for credibility, speed, and access to PIF-linked opportunities.
The time to market can be from 2 to 3 months. The Public Investment Fund has even its own platform to get companies closer to their giga-projects, however understand that they expect you to already have foot on the ground before considering partnerships.
Something to keep an eye on: Saudi Arabia has stated that it targets to be the top exporter of AI tokens. That’s an ambitious goal! And it shows how far extends their strategy beyond hydrocarbons 🇸🇦
Are you following what is happening in Saudi Arabia, the United Arab Emirates, and the wider Gulf region? Is the region attractive to your company?
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