The economy of Saudi Arabia is considered to be among the 25th largest economies in the world, giving you many ideas to explore and grow any business. It is established to be the largest economy in the Middle East and North African Region. And it is one of the fastest-growing economies worldwide.
The gross domestic product per capita of Saudi Arabia is projected to reach 27,950.04 U.S. dollars in the year 2027. Due to the large reserves of petroleum of petroleum, the domestic cost of living is very low. The Saudi Arabian government also plays an essential role in encouraging private investors to provide incentives and duty-free access. This makes starting a business in Saudi Arabia a wise and profitable decision.
Knowing the best product to sell to Arab customers is an added advantage when it comes to setting up a company in the Middle East.
Are you looking for the best and fastest growing business ideas to launch and scale in Saudi Arabia either as a foreigner or citizen? We are here to guide you as you set up as many lucrative business ideas as you can.
Here are the most profitable business opportunities you can start with low capital in Saudi Arabia:
10 Fastest Growing Business Ideas in Saudi Arabia
Table of Contents
1. Start an ICT Company
Saudi Arabia is the largest IT market in the Middle East and North Africa with strong growth in enterprise-end market and consumers. The ICT market in Saudi Arabia is valued at over $32.1 billion. They also boast of huge public investments in infrastructure, education, and health which have paved the way for advanced technology and tight security systems in the country.
The government developed a plan for the industry to raise its contribution to the GDP by 20% by 2022. In this vain, an ICT-based business developed in this country will thrive with proper planning and management.
Saudi Arabia has one of the fastest-growing construction markets in the globe. The government also encourages public and private investors to invest in sectors such as education, real estate, infrastructure, and transport. This creates more opportunities for entrepreneurs who desire to get involved in construction-related ventures.
There’s a rumour that over $100 billion has been planned for investment over the next ten years in transportation projects.
3. Defense and Security
The defense and security sector is one of the most important sectors in Saudi Arabia. The security sector provides great opportunities for entrepreneurs and investors. Security and defense is a fast-growing sector currently estimated to be worth between $605-$670 million.
You could start a bodyguarding agency, or a self-defense school or you can run a business that produces or sells security and defense tools and systems. There are many more security and defense-related business ideas you can explore in the oil-rich country. The returns are both profitable and rewarding as security is a must-have in Saudi Arabia.
It’s super easy to set up an e-commerce store for your products. With the use of Facebook ads and multi-channel marketing strategies, you will generate a lot of sales online.
4. Solar Energy Business
Due to the hot climate of the country, Saudi Arabia is a perfect place for solar energy production and sales. The government also encourages investment in the creation of solar power for alternate power sources reducing fuel pollution.
You can create a business through solar installations, sales of solar panels, production, and other aspects of solar power.
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5. Education Business
In the world, Saudi Arabia is the 8th highest education spender. Their government encourages investment in building new and innovative educational institutes. They also fund overseas degrees and programs for Saudi students.
With the steady rise of investment from foreign countries, Saudi Arabians are in great need of learning the English language to communicate better with foreigners. Being an English tutor or starting a language tutelage business in this country is a profitable earning opportunity in the educational sector.
6. Start a Healthcare-related Business
In the Middle East, Saudi Arabia is the largest market for healthcare products and medical equipment. There are great opportunities to meet the demand for healthcare solutions for the growing population of the country.
You can start a business by starting or investing in ventures focused on research, medical education, facilities, reimbursement, and provision.
7. Consumer and Luxury Goods
Because of the wealth, low cost of living, and high purchasing power of the average citizen in the Saudi country, owning a business that provides consumer and luxury goods is sure to be profitable with a mouthwatering return on investment.
8. Water and Wastewater
The hot climate of the country makes accessing new water sources and finding clean water resources a necessity. The country encourages finding ways of using water more sustainably and effectively to prevent waste and shortage.
The water industry is also a major user of energy, creating carbon impacts that would need to be handled. This is a good opportunity for investors and business owners looking to make money off the water and wastewater sector.
9. Professional and Financial Services
Entrepreneurs with a professional background in nursing, finance, medicine, engineering, etc are always in demand in the county. This is because there is a big shortage of competent and hands-on professionals from domestic sources.
10. Processed Foods
Owing to the lack of freshly grown food because of the quality of the soil, processed foods are in high demand in this part of the world. You can develop a quick service business that sells fresh food items, fruits, and vegetables or import fresh products and process them in the country.
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Why Saudi Arabia is a Great Place to Start a Profitable Business in the Middle East
Saudi Arabia is known best among entrepreneurs and investors for its flourishing oil industry, with at least 260 billion barrels of oil reserves comprising roughly one-fifth of the world’s crude oil supply.
While these oil reserves are off limits to investors and entrepreneurs, they can still benefit indirectly from other industries that relate to and benefit from the oil reserves.
Saudi Arabia is the largest free market economy in North Africa and the Middle East, holding a share of 25% of the total Arab GDP. The country’s geographic location grants easy access to export markets in Asia, Europe, and Africa.
It also has a continuously expanding domestic market (annual population growth of 3.5%). This adds to a young and consuming population with a strong buying power.
In addition to these facts, Saudi Arabia also boasts of:
According to research conducted by the World Bank, Saudi Arabia was rated 62nd (from 92nd) out of 190 countries in the ease of doing business index. The country’s investment environment reflects traditions of liberal, open-market private enterprise policies and its foreign investment law allows 100% foreign ownership of real estate and projects. That’s a sign of strong economic growth.
Low Energy Costs
Living in a country that has the largest oil reserves, very low energy costs and a good standard of living are sought-after factors for foreign investors. The country’s government has also taken measures to privatize certain industries, such as telecom, and electricity. They did this to open up Saudi Arabia to its market to further foreign investments. There is also very little crime in Saudi Arabia, making the country very suitable for the safe exchange and storage of money.
Also Read: 15 Best Business Ideas to Start in Kuwait
As long as you obey the rules of trade, Saudi Arabia is one of the best places to start and scale a business. If you learn how to sell in the Middle East and reach thousands of new buyers, it will be to your advantage. With the ever-growing and flourishing economic power of the country, you can start up a business with a little capital and blow it up in a few years. Which of these business ideas would you start or encourage someone in Saudi Arabia to start?