As Saudi Vision 2030 reaches its midpoint, the Kingdom is becoming an increasingly attractive destination for global and regional businesses eager to capitalise on the early mover advantage in the market.

A comprehensive report, drawing insights from 660 high-growth firms across over 50 countries, sheds light on the intricacies of business expansion, post-setup support needs, local talent recruitment, and the escalating demand for office space to accommodate new market entrants.

This report, featuring insights from the AstroLabs expansion network and data gathered through an online survey distributed among our company network, reflects the perspectives of 230 industry leaders from 37 sectors collected over a three-month period. The survey distinguishes between firms considering entering the Saudi market and those already established, highlighting a significant interest in the IT and software, construction, and business consultancy sectors. This interest is driven by the demand for innovative solutions to support large-scale infrastructure projects, aligning with the goals of Saudi Vision 2030.

Remarkably, 48% of companies looking to enter the Saudi market plan to do so within the next three to six months, a stark reduction from the 8–12 months timeframe observed in 2018 to less than two months in 2024. This marks a significant acceleration in the pace of market entry, demonstrating a fourfold increase in speed from 2018 to 2024.

With Saudi Arabia emerging as a key business hub, half of the firms exploring market expansion are from outside the MENA region, with Asia, Europe, and the US making up 43% of these. The primary motivator for entering the Saudi market is its substantial size, offering a unique opportunity for sector transformation.

Companies venturing into Saudi Arabia typically had four global offices at the point of market entry. Among those already operating in the market, 91% employed Saudi nationals within two to four months of entry, with 48% hiring local talent in under a month. Additionally, half of the companies present in the Kingdom anticipate acquiring their own office space within a year.

For businesses already operational in Saudi, navigating the banking process emerged as a critical challenge, whereas finding clients was a primary concern for newcomers. This distinction underscores the diverse hurdles companies face at different stages of their Saudi market journey.

Reflecting on the report, Chief Executive Officer of AstroLabs, Roland Daher, said: “The findings in this report are a testament to Saudi Arabia's achievements. As a business expansion platform, our mission is to help thousands of high-growth companies not just enter the Saudi market, but settle in, operate, grow, and seamlessly connect to the fabric of the Saudi economy. We do that in partnership with the government and the private sector to maximize the integration of these businesses in building new strategic sectors and transforming existing ones, through our various programs from soft landing, to fast pilots to accelerators and innovation programs.”

For more detailed information, refer to the full report.