Saudi Arabia, the largest country in the Middle East, has a population of about 35 million (2024 census). It is the world’s largest oil exporter, deeply influencing its culture, economy, and politics.
With a high GDP per capita of approximately $32,000 USD in 2025, Saudi Arabia’s economy is heavily dependent on oil, which accounts for most of its export earnings and government revenues. The country is diversifying its economy, with significant investments in sectors like tourism, entertainment, and technology.
The Kingdom of Saudi Arabia is the largest economy in the Arab world. It accounts for 25% of the Arab world’s Gross Domestic Product (GDP). Saudi Arabia has an oil based economy with strong government controls over major economic activities.
Saudi Arabia market opportunities
Strengths of the Saudi market include:
- No taxation on personal income
- Proximity to other Gulf markets
- Key member of the Gulf Cooperation Council (GCC)
- Largest economy and population in the Gulf region
Challenges include:
- Identifying suitable sponsors for initial entry into the market
- Finding an appropriate Saudi partner for joint ventures
- Lead time to establish legal entities and obtain licenses from appropriate ministries
You must apply through the relevant government ministries for licenses to do business in Saudi Arabia.
Look for a business partner in Saudi Arabia
You must have a physical presence in Saudi Arabia to be directly involved in the buying and selling of goods. Under Saudi investment law the establishment of a physical presence requires a joint venture with a Saudi partner. You should evaluate your business partner thoroughly. You should take local legal advice and consult.
Here are some practical guidelines:
- Prospective partner has the necessary legal entity in Saudi Arabia
- Prospective partner works in the same field that you are working in
- Choose the partner who will have an added value for your business
- Be professional. Do not base your partnership on friendship or personal relationship
- Have all legal contracts and MOUs reviewed by a local lawyer and an experienced consultant working in the same industry as yours
- Do all necessary due diligence prior to signing a contract
- Define clearly the roles and responsibilities of each party
- Always include an exit strategy in your contract
- Invest in finding the right partner. Visit them and meet them in person before making any commitment

