Saudi Arabia is the largest economy in the Middle East and North Africa (MENA) region, which makes it a prime location for businesses looking to expand. Its strategic location and rich natural resources provide various opportunities for businesses to flourish, leading to economic growth and development. Despite the challenges faced by the global economy, Saudi Arabia’s business sector remains resilient and adaptable, thanks to the government’s support and efforts to promote a business-friendly environment. In this blog, we will discuss the business sector in Saudi Arabia, its potential, and how it attracts businesses from all over the world.
Economic Reforms to Improve the Business Climate
Saudi Arabia’s Vision 2030 has made significant strides in attracting foreign investment by implementing economic reforms to improve the business climate. The kingdom has eased the process of starting a business by simplifying the registration procedures, reducing the time it takes to obtain a business license, and introducing an e-government portal that allows entrepreneurs to register online. Additionally, the government has improved its infrastructure, including its transportation and energy systems, to incentivize businesses to set up shop there.
Growing Private Sector
As the government moves away from its dependency on oil revenue, it is encouraging the growth of the private sector to diversify the economy. The private sector is a key driver of economic growth in Saudi Arabia, as it accounts for 40% of the country’s GDP and employs more than 60% of the workforce. To further boost private sector growth, the government has launched initiatives, such as the National Transformation Program and the Vision Realization Programs, to create opportunities for small and medium-sized businesses, enhance the business environment, and improve the entrepreneurship ecosystem.
Tax Incentives and Subsidies
The government of Saudi Arabia offers generous tax incentives and subsidies to encourage businesses to invest in the kingdom. Foreign investors can benefit from a reduced corporate tax rate of 20%, and tax exemptions on profits and dividends. The government also provides subsidies for land, energy, water, and training services, which can significantly reduce the initial costs of setting up a business in Saudi Arabia.
Access to a Large and Diverse Market
Saudi Arabia has a population of over 34 million people, making it the largest market in the GCC (Gulf Cooperation Council) region. It is also a hub for trade with Europe, Asia, and Africa, providing businesses with easy access to a vast and diverse consumer market. The Saudi Arabian market is hungry for products and services, creating opportunities for businesses across industries.
Strategic Location
Saudi Arabia’s strategic location at the crossroads of Europe, Africa, and Asia makes it an attractive destination for businesses looking to expand globally. It has two of the world’s largest ports, which are major hubs for trade, and it is also home to one of the busiest airports in the region, connecting the country to numerous destinations around the world. Below 5 big company in Saudi Arabia.
SAUDI ARABIAN OIL CO.
Saudi Aramco is one of the largest and most valuable energy companies in the world. Saudi Aramco operates distribution, refining, production, and exploration of petrochemical and petroleum products.
The company plays a vital role in the global energy industry and has significant influence on global oil markets. With extensive oil reserves and advanced technologies, Saudi Aramco is at the forefront of oil and gas exploration and production, contributing to the economic growth and development of Saudi Arabia.
AL RAJHI BANK
Al Rajhi Bank offering a wide range of financial products and services to individuals, businesses, and institutions. Al Rajhi Bank operates based on Islamic principles, providing Sharia-compliant banking solutions that adhere to Islamic law.
The bank offers services such as retail banking, corporate banking, investment banking, treasury services, and asset management. With a strong focus on customer satisfaction and innovation, Al Rajhi Bank has earned a reputation for its excellence in banking services and its commitment to ethical practices. It plays a significant role in supporting the growth and development of the Saudi Arabian economy.
SAUDI BASIC INDUSTRIES CORP.
SABIC operates across various industry sectors, including petrochemicals, agri-nutrients, metals, and specialties. The company is known for its innovation, research, and development capabilities, and it supplies a wide range of products that are used in numerous applications globally.
SABIC plays a crucial role in the economic diversification and industrial development of Saudi Arabia, contributing to job creation and the advancement of the country’s manufacturing sector. With a commitment to sustainability and responsible business practices, SABIC aims to be a global leader in the chemical industry while contributing to the welfare of the communities it operates in.
THE SAUDI NATIONAL BANK
SNB offers a comprehensive range of banking and financial services to individuals, businesses, and institutions. The bank provides various products and services, including retail banking, corporate banking, investment banking, asset management, and treasury services.
The Saudi National Bank is committed to delivering exceptional customer service, innovative solutions, and cutting-edge technology to meet the evolving needs of its customers. With a strong presence in the Saudi Arabian banking sector, the bank plays a vital role in supporting economic growth, facilitating trade and investment, and contributing to the overall development of the Saudi Arabian economy.
SAUDI TELECOM CO.
Saudi Telecom Company (STC) is a state-owned company and the largest telecommunications operator in the Kingdom. STC offers a wide range of services, including mobile and fixed-line telephony, internet connectivity, digital solutions, and enterprise services.
The company has a strong network infrastructure and provides reliable and high-quality telecommunications services to millions of customers across the country. STC is focused on driving digital transformation and innovation in the telecommunications sector, bringing advanced technologies and solutions to meet the evolving needs of individuals, businesses, and government entities.
Here is another company in Saudi Arabia
- Multi-line Insurance : The Company For Cooperative Insurance, Saudi Reinsurance Co, Walaa Cooperative Insurance Co, Arabian Shield Cooperative Insurance Co, Aljazira Takaful Taawuni Co, The Mediterranean And Gulf Insurance And Reinsurance Co, Arabia Insurance Cooperative Co, Chubb Arabia Cooperative Insurance Co, Amana Cooperative Insurance Co, Gulf Union Alahlia Cooperative Insurance Co, Gulf General Cooperative Insurance Co, United Cooperative Assurance Co, Al Sagr Cooperative Insurance Co.
- Specialty Food And Candy : Wafrah For Industry And Development Co, Nofoth Food Products Co, Fesh Fash Snack Food Production Co, Abdulaziz And Mansour Ibrahim Albabtin Co.
- Hotels And Resorts And Cruise Lines : Jabal Omar Development Co, Dur Hospitality Co, Tourism Enterprise Co, Abdulmohsen Alhokair Group For Tourism And Development.
- Restaurants : Alamar Foods Co, Herfy Food Services Co, Development Works Food Co, Raydan Food Co, Shatirah House Restaurant Co, Ghida Alsultan For Fast Food Co, Foods Gate Trading Co.
- Industrial Specialties : Saudi Chemical Co, Obeikan Glass Co.
- Regional Banks : Saudi British Bank, Bank Albilad, Saudi Investment Bank.
- Gas Distributors : National Gas And Industrialization Co, Natural Gas Distribution Co.
- Finance And Rental And Leasing : Seera Group Holding, United Electronics Co, United International Transportation Co, Theeb Rent A Car Co, Nayifat Finance Co, Shl Finance Co.
- Insurance Brokers And Services : Al Alamiya For Cooperative Insurance Co, Saudi Arabian Cooperative Insurance Co.
- Investment Trusts And Mutual Funds : Yaqeen Petrochemical Etf, Yaqeen Saudi Equity Etf, Sab Invest Msci Tadawul 30 Saudi Etf, Albilad Saudi Sovereign Sukuk Etf.
- Engineering And Construction : Alkhorayef Water And Power Technologies Co, Waja Co.
- Containers And Packaging : The National Company For Glass Industries, Takween Advanced Industries Co, Zahrat Al Waha For Trading Co, Filing And Packing Materials Manufacturing Co.
- Trucking : Batic Investments And Logistics Co.
- Major Diversified Food : Tanmiah Food Co, Halwani Bros. Co.
- Building Products : Saudi Ceramic Co, Red Sea International Co, Sadr Logistics Co, Saudi Vitrified Clay Pipes Co, Mayar Holding Co.
- Integrated Oil : Saudi Arabian Oil Co, Saudi Aramco Base Oil Co.
- Oilfield Services And Equipment : Gas Arabian Services Co.
- Wholesale Distributors : Jarir Marketing Co, Aldrees Petroleum And Transport Services Co, National Building And Marketing Co, Thob Al Aseel Co, Al Hassan Ghazi Ibrahim Shaker Co, Fitaihi Holding Group, Al Kathiri Holding Co, Baazeem Trading Co, Saudi Industrial Export Co, National Environmental Recycling Co, Saudi Parts Center Co, Knowledge Tower Trading Co, Molan Steel Co.
- Information Technology Services : Elm Co, Arabian Internet And Communications Services Co, Al Moammar Information Systems Co, Perfect Presentation For Commercial Services Co, Advance International Company For Communication And Informat, Edarat Communication And Information Technology Co.
- Advertising And Marketing Services : Saudi Research And Media Group, Arabian Contracting Services Co, Tihama Advertising And Public Relations Co.
- Major Diversified Chemicals : Saudi Basic Industries Corp, Basic Chemical Industries Co, Aqaseem Factory For Chemicals And Plastics Co.
- Miscellaneous Manufacturing : Arabian Plastic Industrial Co, Alwasail Industrial Co.
- Metal Fabrication : Al Yamamah Steel Industries Co, United Wire Factories Co, Bena Steel Industries Co.
- Specialty Stores : Saudi Automotive Services Co, Saudi Company For Hardware, Abdullah Saad Mohammed Abo Moati For Bookstores Co.
- Other Transportation : Saudi Airlines Catering Co, Saudi Ground Services Co, Saudi Industrial Services Co, Saudi Public Transport Co.
- Other Consumer Specialties : Lazurde Company For Jewelry.
- Major Banks : Al Rajhi Bank, The Saudi National Bank, Riyad Bank, Alinma Bank, Banque Saudi Fransi, Arab National Bank, Bank Aljazira.
- Industrial Machinery : Zamil Industrial Investment Co, Al-omran Industrial Trading Co.
- Home Furnishings : Al Abdullatif Industrial Investment Co, Naseej International Trading Co, Saudi Industrial Development Co.
- Personnel Services : Maharah Human Resources Co, International Human Resources Co.
- Industrial Conglomerates : National Industrialization Co.
- Electronics Distributors : Arab Sea Information System Co, Alhasoob Co.
- Property And Casualty Insurance : Al-rajhi Company For Cooperative Insurance, Gulf Insurance Group, Malath Cooperative Insurance Co, Wataniya Insurance Co, Buruj Cooperative Insurance Co, Alinma Tokio Marine Co, Allied Cooperative Insurance Group.
- Managed Health Care : Saudi Enaya Cooperative Insurance Co.
- Electrical Products : Riyadh Cables Group Co, Electrical Industries Co, Al-babtain Power And Telecommunication Co, Middle East Specialized Cables Co.
- Other Metals And Minerals : Saudi Arabian Mining Co, Almasane Alkobra Mining Co, National Gypsum Co.
- Contract Drilling : Arabian Drilling Co.
- Packaged Software : Saudi Azm For Communication And Information Technology Co, Knowledge Net Co, Alqemam For Computer Systems Co, Sure Global Tech Co.
- Oil Refining And Marketing : Rabigh Refining And Petrochemical Co.
- Steel : East Pipes Integrated Company For Industry, Bawan Co, Saudi Steel Pipe Co, National Metal Manufacturing And Casting Co, Arabian Pipes Co, Group Five Pipe Saudi Co, Saudi Arabian Amiantit Co.
- Water Utilities : The Power And Water Utility Company For Jubail And Yanbu.
- Real Estate Development : Dar Alarkan Real Estate Development Co, Makkah Construction And Development Co, Emaar The Economic City, Arabian Centres Co, Knowledge Economic City, Retal Urban Development Co, Arriyadh Development Co, Sumou Real Estate Co, Alandalus Property Co, Ladun Investment Co, Al-baha Investment And Development Co.
- Specialty Insurance : Allianz Saudi Fransi Cooperative Insurance Co, Al-etihad Cooperative Insurance Co, Salama Cooperative Insurance Co.
- Life And Health Insurance : Bupa Arabia For Cooperative Insurance Co.
- Non-alcoholic Beverages : Naqi Water Co, Aljouf Mineral Water Bottling Co.
- Specialty Telecommunications : Saudi Telecom Co, Etihad Atheeb Telecommunication Co, Keir International Co, Rawasi Albina Investment Co.
- Apparel And Footwear Retail : Fawaz Abdulaziz Alhokair Co.
- Miscellaneous Commercial Services : Meyar Co.
- Construction Materials : Saudi Cement Co, Southern Province Cement Co, Yamama Cement Co, Qassim Cement Co, Yanbu Cement Co, Eastern Province Cement Co, Riyadh Cement Co, Arabian Cement Co, City Cement Co, Najran Cement Co, Northern Region Cement Co, Tabuk Cement Co, Al Jouf Cement Co, Hail Cement Co, Umm Al-qura Cement Co, Mohammed Hasan Alnaqool Sons Co, Saudi Lime Industries Co.
- Food Retail : Abdullah Al Othaim Markets Co, Bindawood Holding Co, Saudi Marketing Co.
- Precious Metals : Watani Iron Steel Co.
- Agricultural Commodities And Milling : Savola Group, Al-jouf Agricultural Development Co, Al Gassim Investment Holding Co, Jazan Energy And Development Co, Ash-sharqiyah Development Co, Balady Poultry Trading Co.
- Real Estate Investment Trusts : Amlak International Finance Co, Banan Real Estate Co.
- Specialty Chemicals : Sahara International Petrochemical Co, Yanbu National Petrochemical Co, Saudi Kayan Petrochemical Co, Saudi Industrial Investment Group, Advanced Petrochemical Co, Alujain Corp, Methanol Chemicals Co, Nama Chemicals Co, Saudi Top For Trading Co.
- Commercial Printing And Forms : Saudi Printing And Packaging Co.
- Other Consumer Services : Leejam Sports Co, National Company For Learning And Education, Ataa Educational Co, Alkhaleej Training And Education Co, Scientific And Medical Equipment House Co.
- Marine Shipping : National Shipping Company Of Saudi Arabia.
- Medical Distributors : Nahdi Medical Co, Aldawaa Medical Services Co, Ame Company For Medical Supplies.
- Major Pharmaceuticals : Astra Industrial Group, Saudi Pharmaceutical Industries And Medical Appliances Corp.
- Pulp And Paper : Middle East Paper Co, Saudi Paper Manufacturing Co.
- Wireless Telecommunications : Etihad Etisalat Co, Mobile Telecommunication Company Saudi Arabia.
- Homebuilding : Saudi Real Estate Co, Taiba Investments Co.
- Internet Software And Services : Jahez International Company For Information System Technolog, Academy Of Learning Co, Saudi Networkers Services Co.
- Food Distributors : Almunajem Foods Co, Anaam International Holding Group, National Agricultural Marketing Co, Leen Alkhair Trading Co.
- Medical Specialties : Arabian International Healthcare Holding Co.
- Meat And Fish And Dairy Food : Almarai Co, Saudia Dairy And Foodstuff Co, National Agricultural Development Co, Saudi Fisheries Co, Tabuk Agricultural Development Co, Horizon Food Co, Arabian Food And Dairy Factories Co.
- Agricultural Chemicals : Sabic Agri-nutrients Co.
- Financial Conglomerates : Kingdom Holding Co, Alsaif Stores For Development And Investment Co, Saudi Advanced Industries Co, Aseer Trading, Tourism And Manufacturing Co, Ayyan Investment Co, Saudi Arabia Refineries Co.
- Investment Banks And Brokers : Saudi Tadawul Group Holding Co.
- Hospital And Nursing Management : Dr. Sulaiman Al Habib Medical Services Group, Mouwasat Medical Services Co, Dallah Healthcare Co, Al Hammadi Holding, National Medical Care Co, Naba Alsaha Medical Services Co.
- Household And Personal Care : Mobi Industry Co.
- Medical And Nursing Services : Future Care Trading Co, Middle East Healthcare Co, Canadian Medical Center Co.
- Data Processing Services : Acwa Power Co, Saudi Electricity Co.
In conclusion, the business sector in Saudi Arabia is full of opportunities for both local and international businesses. The government’s Vision 2030 has helped to create a business-friendly environment that encourages private sector growth, while strategic economic policies have opened up new markets and incentivized investment. As a result, the country is attracting businesses from all over the world looking to capitalize on its growing economy. With its large and diverse consumer market, strategic location, and a business-friendly environment, Saudi Arabia is primed to unlock the potential of its business sector and become a leader in the global economy.