June 24, 2024

Industries to consider as an investor in Saudi Arabia

Tech industries to consider as an investor in Saudi Arabia

Tech industries to consider as an investor in Saudi Arabia

Last Updated on June 2, 2024 by newseditor

As of 2022, Saudi Arabian industries are considered one of the world’s fastest growing. This is due to significant investments in energy and non-energy sectors, high energy prices, and a rise in oil and gas production. Its regulatory reforms help to improve its business environment. It further attracts foreign investors to its investment sectors. Therefore, investor interest in Saudi Arabian industries is only natural, given how swiftly the country’s economy is growing.

Why should Investors consider Saudi Arabia as an investment destination?

The Saudi Arabian economy has expanded quickly as a result of its oil sector strengths. Saudi Arabia is known for its petroleum industry, which has significantly generated wealth. However, it has undertaken efforts to diversify its economy by establishing more Saudi Arabian industries and reducing its dependence on oil.

With its economic boom, Saudi Arabia represents a desirable investment destination. Investors in Saudi Arabia stand to benefit from its bountiful natural resources and substantial account surpluses. This is thanks to its crude oil revenue. In turn, this enables economic development and the ability to privatize industries of interest. Also, Saudi Arabia boasts of having strategic locations at the heart of significant trade routes crossing three continents. When leveraged, this aids businesses, economic growth, and investment sectors.

Saudi Arabian industries to consider as an investor

In 2015, the Saudi stock market opened up its economy to foreign institutional investors to diversify the economy from oil and attain more economic prosperity. Although the Saudi Arabian economy remains dominated by its petroleum sector, several other industries have emerged. A number of them are real estate, financial services, energy, transport, tourism and entertainment, ICT, and pharmaceutical and biotech. As an investor in Saudi Arabia, here are industries to consider;

1. Pharmaceutical and Biotech industry:

Saudi Arabia’s $8.5 billion pharmaceutical industry represents around 37% of the MENA market. Also, it may expand at a CAGR of 5.7% through 2029. This industry intends to facilitate the provision of innovative, high-quality healthcare products and services. Given Saudi Arabia’s strategic location and advantageous trade arrangements, investors may expand their regional presence and meet a substantial, unmet local need.

2. Petroleum industry:

Investors are most familiar with Saudi Arabia because of its enormous oil sector and its estimated 266.5 billion barrels of oil reserves. The country produces roughly 11 million barrels of oil daily, accounting for 11% of the world’s total production. With such dominance, this industry should be of interest to investors.

3. Information communication and technology:

The tech industry is one of the fastest-growing markets globally, especially in the MENA region. The ICT sector is crucial in driving growth, innovation, and economic diversification in Saudi Arabia. Investment opportunities exist in the telecommunications network’s expansion, the nation’s digitization, gaming, and the production of digital content and media


Given its dependence on crude oil, investors in Saudi Arabia may ask about the country’s economy’s long-term viability. However, considering the wealth the oil sector produces, it’s still being determined if the government’s diversification into other Saudi Arabian industries will be adequate.

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