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A new report by HSBC says that nine out of ten international companies in the UAE plan to invest in Saudi Arabia in the next five years. These companies believe that the kingdom offers strong growth and better chances for business expansion.
More than three-quarters of them said that Saudi Arabia is a key part of their future plans. Many want to increase trade and build stronger investment links with the Arab’s biggest economy.
The HSBC study surveyed 4,000 business leaders from companies earning between $50 million and $500 million a year. Most said they see Saudi Arabia as a safe and fast-growing market. The report highlights that economic stability, good growth, and a central location are the main reasons companies are choosing to invest there.
Saudi Vision 2030 is the main factor that has kept business interest alive. The strategy involves expansion in non-oil economies by prioritizing technology, tourism, clean energy, and real estate. Many companies see this as a great chance to enter new sectors and join in the country’s transformation.
Businesses are looking at different ways to invest. Almost half of the participants said they would use private equity or venture capital funds, while others prefer mutual funds or joint ventures. The top investment areas include technology and innovation, which attract nearly half of all current and planned investments.
About 52% of businesses are interested in finance projects, while 46% are exploring risk management solutions. These help companies take part in Saudi Arabia’s major projects and growing industries.
Almost every company in the survey trusts Saudi Arabia’s long-term plans. 96% said its green and sustainability goals encourage investment, while 94% think it is a reliable place for trade and growth, even during uncertain global times.
The International Monetary Fund (IMF) recently raised its growth forecast for Saudi Arabia to 4% in 2025, showing strong confidence in its economy.
Large-scale projects like NEOM and The Red Sea Project are attracting global investors. These projects are also creating jobs and supporting new industries.
For UAE-based international companies, Saudi Arabia has become more than just a nearby market. It is now seen as a major place for business growth and long-term success. While the UAE stays strong as a financial hub, Saudi Arabia is quickly becoming the region’s next big investment center.
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