Saudi Arabia from global lender and capital allocator to inwards focus on domestic economic growth.

John Felipe Branch,•business
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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:

  1. 📑 Legal company registration and sector-specific licensing to operate
  2. ⚖️ Taxation rules (profits taxed with limited exceptions)
  3. 👥 Hiring and Saudization (required to hire nationals)
  4. 🛂 Compliance set up and customs considerations (buy locally first)
  5. 🧭 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?