By eSEO Solutions on August 12, 2025 in Business Setup Services
Saudi Arabia is experiencing one of the fastest economic shifts in its history, with Riyadh at the centre of transformation. Strategic reforms, mega-projects, and pro-investment policies are creating fresh growth areas beyond oil.
In recent years, foreign investment in Saudi Arabia has risen sharply, driven by infrastructure upgrades, digital innovation, and tourism expansion. This momentum is generating new business opportunities in Saudi Arabia, especially in Riyadh, across sectors ranging from logistics to artificial intelligence (AI).
From Vision to Reality
When Vision 2030 was launched, it set clear goals for diversification, global competitiveness, and employment growth. Almost a decade later, those goals are materialising.
- In 2023, foreign investment reached SAR 96 billion (£20.1 billion), a 50% increase from 2022.
- By Q1 2025, net FDI reached SAR 22.2 billion (£4.6 billion), up 44% year-on-year.
- Saudi Arabia ranked 13th in the FDI Confidence Index, its highest-ever position.
Capital is flowing into high-potential areas that align with the Kingdom’s diversification strategy.
Transport & Logistics
The logistics sector is central to Saudi Arabia’s investment plan. The government expects 80% of upcoming transport projects, worth up to SAR 240 billion (£50.4 billion), to be funded by private investors.
Riyadh’s location makes it a strategic logistics hub for the Middle East, Africa, and Asia. Investment opportunities include:
- Warehousing and distribution centres
- Cold storage and temperature-controlled facilities
- Last-mile delivery systems
- Technology-driven supply chain solutions
Manufacturing & Industry
Manufacturing is one of the fastest-growing sectors in Saudi Arabia.
- In May 2025, the Kingdom issued 155 new industrial licences worth SAR 3.25 billion (£682 million), creating 2,450 jobs.
- That same month, 122 new factories began operations, adding SAR 930 million (£195 million) in investment and 2,300 jobs.
- In June 2025, 83 licences worth SAR 950 million (£200 million) were granted, alongside 58 new factories worth SAR 1.9 billion (£398 million).
This surge highlights demand for industrial services including raw material supply, equipment maintenance, and workforce training. It is a key area for foreign investment in Saudi Arabia.
Tourism & Mega Projects
Tourism is now a strategic driver of growth, backed by multi-billion-dollar mega projects:
- Soudah Peaks – A $7.7 billion (£6.1 billion) investment, covering 627 km², expected to add $7.8 billion (£6.2 billion) to GDP and create thousands of jobs by 2033.
- Rua Al Madinah – A 1.5 km² urban development set to host 30 million Umrah visitors annually by 2030, featuring 47,000 hotel rooms and 93,000 new jobs.
These projects generate opportunities in hospitality, food and beverage, event management, cultural tourism, and urban retail.
AI & Technology Infrastructure
Saudi Arabia’s technology ambitions are reshaping its global standing.
- In May 2025, the Kingdom launched Humain, an AI firm under the Public Investment Fund, targeting 7% of global AI workloads by 2030.
- Major partnerships include:
- Nvidia supplying 18,000+ GPUs
- AMD investing $10 billion (£7.9 billion) in AI infrastructure
- AWS developing a $5 billion (£3.9 billion) AI Zone in Riyadh
- Qualcomm collaborating on advanced data centre design
This AI push is boosting startup companies in Riyadh, while expanding cloud computing and creating demand for AI-driven solutions in healthcare, finance, and manufacturing.
Why Investors Are Choosing Riyadh
Riyadh is not only growing—it is growing in the right direction.
Key factors include:
- Simplified company formation with fewer foreign ownership restrictions
- Tax incentives in special economic zones
- Strong execution of projects moving from plan to delivery
- Economic stability with unemployment down to 6.3%, non-oil GDP leading growth, and overall GDP projected to grow 3.5% in 2025
For investors looking to start a business in the Middle East, Riyadh offers the rare combination of demand, infrastructure, and policy support.
Innovation SA: Your Partner for Business Setup in Riyadh
At Innovation SA, we help investors and entrepreneurs turn ideas into successful ventures in Saudi Arabia. Whether you’re exploring startups in Riyadh, entering new industries, or joining mega projects, we streamline the process from planning to operation.
Our services include:
- Business setup and licensing
- PRO and immigration support
- Payroll and accounting solutions
- Compliance and legal translation
- Office space and operational support
With over a decade of experience, strong regulatory relationships, and hands-on support, we make business setup in Riyadh efficient, compliant, and future-ready.
Get in Touch
Ready to explore business opportunities in Saudi Arabia? Contact Innovation SA today. Our experts will guide you through licensing, compliance, and operational setup, ensuring your entry into Riyadh’s booming market is smooth, fast, and profitable.
