Prime Highlight
- A new HSBC report reveals that nine out of ten UAE-based international businesses plan to invest in Saudi Arabia.
- Companies view Saudi Arabia as central to regional and international growth, with a particular focus on technology, innovation, and sustainability sectors.
Key Facts
- The survey covered 4,000 businesses across major markets, with UAE respondents showing optimism due to Saudi Arabia’s stability, economic growth, and strategic location.
- Nearly half of UAE firms prefer private equity, venture capital, or joint ventures as their main entry strategies into the Saudi market.
Background
A new HSBC report has found that nine out of ten international businesses operating in the UAE plan to invest in Saudi Arabia over the next five years, reflecting growing confidence in the kingdom’s strong economic momentum.
According to the study titled New Networks of Capital: Saudi Arabia, more than 75% of surveyed businesses see the kingdom as central to their regional and international growth strategies. Many firms aim to deepen their trade and investment links with the Arab world’s largest economy in the coming six months.
The survey, which covered 4,000 businesses across major markets including the US, UK, China, India, Germany, Egypt, and the UAE, found that UAE-based respondents were particularly optimistic about Saudi Arabia’s stability, economic growth, and strategic location.
“As Saudi Arabia’s leading trading partner in the GCC and its third largest globally, the UAE continues to play a key role in strengthening regional trade and investment,” said Mohamed Al Marzooqi, CEO of HSBC Bank Middle East.
The IMF recently upgraded Saudi Arabia’s 2025 GDP forecast to 4%, citing faster economic recovery and diversification efforts under Vision 2030.
Almost half of the UAE-based companies surveyed chose private equity, venture capital funds, and joint ventures as their preferred ways to enter the Saudi market. The technology and innovation sectors were identified as the top areas for both current and future investments.
In addition, 96% of UAE firms said Saudi Arabia’s focus on sustainability makes it an attractive place to invest, while 94% called the kingdom a reliable hub, even during global uncertainty.
The findings underscore the growing synergy between the UAE and Saudi Arabia, two key drivers of the Middle East’s economic transformation.
