Top Five Businesses to Start in Saudi Arabia in 2023
Al Taasis brings market insights to help you identify the sectors driving growth and make well-informed decisions. Here are our top picks for business opportunities in Saudi Arabia in 2023.
Saudi Arabia is generating business opportunities for foreign companies and rapidly transforming into an investment hub. The Kingdom’s Vision 2030 is a roadmap to build a sustainable and thriving future, diversifying the economy and boosting the private sector.
The Kingdom has introduced and implemented various strategies to accelerate its goal for a diversified economy. The Kingdom’s Public Investment Fund fully supports businesses and backs foreign investments. The Saudi entrepreneurial landscape and compelling venture capital opportunities have made it a destination of choice for businesses. The Saudi government has implemented proactive policies to support the private sector.
Read the full blog to understand what makes these businesses the top options in 2023 and how Al Taasis can support you.
Food and Beverage Business in Saudi Arabia
The Food Sector of Saudi Arabia is the largest and most attractive market in the Middle East. The Food and Beverage Sector has become a significant attraction for investors in the Kingdom as modern cafes, trendy food trucks, luxury restaurants and fast food chains are opening across the Kingdom. The Kingdom is hopeful for 4.78% annual growth as Food Sector is a rapidly growing market. (CAGR 2022-2027).
Nestle, the world’s largest food & beverage company, has entered the Saudi market with an investment plan of seven billion SAR. One of its aims is to establish a business incubator for small and medium-sized companies (SMEs) and start-ups.
Till December 2022, the volume of investment in the Saudi food industry is more than SR94 billion. The investment rate is continually increasing in Food Sector to achieve food security and meet the needs of the 36 million population. Bread, pies and cake factories are the top food-producing factories in the Kingdom. The investments in the thriving food industry will shoot up as Saudi Food Expo is upcoming in 2023.
Gaming and Esports Business in Saudi Arabia
The Saudi gaming market is the dominating market in the region and the 19th most significant market in the world. Saudi Gaming Industry is estimated to grow more than threefold by 2030. E-sports will lead the growth as about 29% of Saudi Arabia’s population, estimated at 36 million, is interested in e-sports.
Saudi Public Investment Fund has invested over $3 billion in 2022 to develop the Gaming sector. The Saudi Gaming Market hit $1 billion in 2021 and is expected to reach $6.8 billion by 2030. The largest segment is Mobile Games, with a market volume of US$957.50m in 2022.
The Kingdom launched National Gaming and Esports Strategy, outlining a comprehensive investment programme for the industry, with the ultimate goal of making the Kingdom a global gaming centre by 2030. Saudi Arabia will be hosting the 2023 Global Esports Games.
Travel and Tourism Business in Saudi Arabia
The Kingdom aims to attract 100 million visitors and ensure the tourism sector contributes 10% of the GDP by 2030. The Saudi government is working to transform the Kingdom into a leading travel destination. The government has taken a commendable initiative by introducing an E-Visa for citizens from 49 eligible countries. The Kingdom is developing several tourism projects, including Neom, Red Sea, and Qiddiya.
With a new tourism law in 2022, the Kingdom has accelerated tourism sector development and attracted global investments. The tourism law aims to enhance the economic contribution of the tourism sector from 3% of the gross domestic product to 10% by 2030. The Kingdom is looking forward to hosting major sports events in upcoming years and expecting a boost in sports tourism.
Healthcare Business in Saudi Arabia
The Kingdom launched Health Sector Transformation Programme in 2022. This programme aims at providing inclusive healthcare services to 88% of the population by 2025. Private sector participation will increase from 40% to 65% by 2030. The Saudi pharmaceutical market is the largest in the Middle East, estimated to touch $11 billion in 2026. The Saudi population is expected to grow by approximately 36 million to 40 million by 2030.
The Kingdom reflects its focus on Healthcare Sector by holding Eastern Health Cluster Conference in March 2023 and Global Health Exhibition in October 2023. Foreign Investors have ample opportunities in Saudi healthcare.
Sports Business in Saudi Arabia
The sports industry in Saudi Arabia is growing at a rapid pace as the government is making mass investments. Sports Cities and local sports clubs are located across all cities and towns of the Kingdom. Saudi sports events industry will have an estimated market value of US$3.3 billion by 2024.
Saudi citizens take a keen interest in sporting events; that’s why the Kingdom encourages popular spectator sports. The Kingdom has hosted various sporting events. Saudi Arabia eyes hosting the Asian Football Confederation (AFC) Women’s Asian Cup in 2026, FIFA World Cup in 2030 and Asian Winter Games in 2029.
Saudi Arabia will have a direct economic impact by hosting sporting events: spectator revenues like ticketing, food and beverages, accommodation, athlete spending and sponsorships. The private sector can benefit from the organisation of sports events, providing sports infrastructure and running sports marketing agencies or managing events.
Al Taasis Stays ahead of the Curve for Supporting Businesses in Saudi Arabia
We have the market knowledge and expertise to set up businesses across all Saudi sectors. Our dedicated local team goes the extra mile to build your business smoothly and compliantly.