This article has been researched and written by Marharyta Skavronska and the team at Creation Business Consultants and has not used AI in generating this article.
The Kingdom has been working to develop its tourism industry and become a progressive nation by allowing foreigners to hold 100% of their companies as part of the 2030 vision. Currently, a significant intensification of the foreign investment flow to the Kingdom of Saudi Arabia (KSA) can be observed.
WHY SET UP A COMPANY IN SAUDI ARABIA?
There is no doubt that KSA is a market with a huge buying capacity and potential. The following are the factors that make the KSA stand out on the global landscape:
- Environmental safety: The World Bank reports that Saudi Arabia continues to have a high vaccination rate, reaching 68% of the population. Also, Saudi Arabia continues to play a crucial role globally in correcting oil market imbalances under the Organization of the Petroleum Exporting Countries (OPEC)+ arrangement.
- Market size: The rebound is mostly driven by increased oil production, which is anticipated to increase by 13% in 2023 after the end of the OPEC+ production curbs in December 2023. The non-oil sector is anticipated to maintain its current growth trajectory, with an estimated 4% in 2023.
- Intense economic development: Stronger private consumption is predicted, along with an increase in religious tourism and higher domestic capital spending—signaled through the PIF and other state agencies—despite headwinds from tighter fiscal and monetary policy in the medium term.