Bridging Innovation and Opportunity: How UK Businesses Are Entering Saudi Arabia’s Growth Markets?

Saudi Arabia’s economic evolution, guided by the Vision 2030 strategy, has positioned the Kingdom as one of the most attractive destinations for international investment.

This bold national transformation plan aims to reduce dependence on oil by diversifying the economy, opening its markets, and building partnerships with global business communities.

For UK-based companies, this shift has created a wealth of expansion opportunities across high-growth sectors such as infrastructure, tourism, and innovation-led industries.

Bilateral relations between the UK and Saudi Arabia are stronger than ever, and this momentum is driving a new chapter of commercial collaboration. Between 2018 and 2023, trade between the two countries exceeded £79 billion ($102.7 billion), making Saudi Arabia the UK’s top trading partner in the Middle East.

In 2022 alone, UK investors contributed over £4.3 billion ($5.59 billion) to the Saudi economy. More than 60 collaborative ventures across 13 sectors are currently in progress, highlighting the increasing strategic alignment between both nations.

This post explores where UK businesses are finding the most success in Saudi Arabia today, and why entering the Kingdom’s market now offers substantial long-term advantages.

UK Firms Entry in the KSA – Business Setup Opportunities

1. Infrastructure and Construction: Giga Projects Driving Demand

Saudi Arabia’s rapid urbanization and infrastructure boom present a unique opportunity for UK companies in construction, engineering, and design. Major initiatives like NEOM, Qiddiya, and The Red Sea Project are reshaping the national landscape and demanding world-class expertise in planning and execution.

UK firms are actively involved in shaping this transformation. One high-profile example is Foster + Partners, the British architecture firm chosen to masterplan the King Salman International Airport in Riyadh. Spanning 57 square kilometers, the project will be among the world’s largest aviation hubs and will create downstream opportunities for UK-based subcontractors and tech providers.

The 2024 UK-Saudi Sustainable Infrastructure Forum in London emphasized the shared commitment to green building and smart city development, bringing together experts from both countries to foster greater cooperation.

Over 1,100 active licenses have already been issued to UK investors in Saudi Arabia’s real estate and construction sectors, and the demand continues to rise as the Kingdom builds for a post-oil future.

2. Research, Innovation, and Talent Development

Saudi Arabia is not only constructing physical infrastructure—it’s also building intellectual capital. The country is investing heavily in R&D, knowledge-based industries, and high-tech collaboration. This focus has opened doors for UK institutions and private sector firms with strengths in research, design, and emerging technologies.

In 2024, the UK’s Royal College of Art signed a strategic memorandum with Saudi Arabia’s Architecture and Design Commission, establishing programs to nurture Saudi talent and support entrepreneurial ventures in design and innovation.

Meanwhile, in the aviation and aerospace sectors, Cranfield University partnered with Prince Sultan University and the General Authority of Civil Aviation (GACA) to develop programs for pilot training, aviation consulting, and research.

These partnerships not only enhance the Kingdom’s technical capabilities but also cement the UK’s role as a key knowledge partner. For UK firms working in clean tech, aviation, education, and AI, Saudi Arabia is offering fertile ground for collaborative development and market entry.

3. Tourism and Hospitality: A Sector on the Rise

Saudi Arabia’s ambitions in tourism are no less ambitious than its construction efforts. Aiming to welcome 150 million visitors annually by 2030, the Kingdom is developing its tourism and hospitality sectors at an accelerated pace.

Projects such as Diriyah Gate and the Red Sea resort cluster reflect the country’s aim to become a global tourism destination. UK businesses are playing a growing role in this transformation.

The 2024 Declaration of Intent signed between Visit Britain and the Saudi Tourism Authority signals a shared commitment to cross-border tourism development and knowledge exchange.

The UK Creative Industries Trade Mission, held in 2024, brought British expertise in hospitality design, entertainment venue planning, and interior fit-outs to the forefront of Saudi’s tourism push.

As new hotels, museums, and entertainment hubs emerge, UK consultants and creatives are helping shape experiences that appeal to both local and global visitors.

4. What UK Companies Should Know Business Setup in Saudi Arabia?

Saudi Arabia has made significant strides in making the market more accessible to foreign investors. Whether you're planning to open a regional office, launch a joint venture, or set up a wholly foreign-owned entity, the regulatory framework has become increasingly favorable. Key improvements include:

• Simplified licensing procedures via the Ministry of Investment (MISA)

• Broader foreign ownership rights in key sectors

• New residency pathways for investors and entrepreneurs

• Accelerated company registration timelines

• Tax incentives and special economic zones for strategic industries

These reforms are part of a wider effort to ensure the country ranks among the most attractive global destinations for business incorporation and growth.

5. Why It’s the Right Time for UK Investors for Business Setup in the KSA?

The momentum behind Saudi Arabia’s economic transformation is undeniable. For UK companies looking to expand into the Middle East or diversify their global presence, Saudi Arabia offers a unique combination of large-scale opportunities, government support, and a clear roadmap for growth.

Whether it’s designing future-forward cities, pioneering sustainable construction, contributing to aviation research, or building world-class tourism infrastructure, UK businesses have the chance to be part of a historic economic evolution.

Establishing a presence in the Kingdom now allows British companies to secure early market share, form long-term partnerships, and help shape the future of one of the world’s fastest-changing economies.

Ready to Expand in Saudi Arabia?

With trade ties stronger than ever and cross-sector collaboration growing, UK companies have every reason to explore the Saudi opportunity. By leveraging expertise in construction, innovation, and creative industries, British firms can thrive in the Kingdom’s flourishing business environment.