Market entry strategy for exports to Saudi Arabia

If Saudi Arabia is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Oppportunities for international business in Saudi Arabia

Saudi Arabia, the largest country in the Middle East, has a population of about 35 million as of 2023. It is the world’s largest oil exporter, deeply influencing its culture, economy, and politics.

With a high GDP per capita of approximately $23,000 USD in 2023, 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.

Major cities include Riyadh, the capital and financial hub; Jeddah, a major port city and gateway to Mecca; Mecca, the holiest city in Islam; Medina, another key religious city; and Dammam, important for its oil and natural gas industry.

Five ways into a market

Your entry model decides your cost, your speed and how much control you keep: sell directly from home, work with an agent, appoint a distributor or importer, sell online, or open a local office.

Control and investment move together. Direct and online selling are cheap to start and easy to stop. A local office gives full control, but needs staff, registration and often a local company.

Most companies start light, prove that there is demand, and only then invest.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Get your HS code VAlidation Report for only € 39

Entering the market in Saudi Arabia in three steps

Step 1

Validate the demand

Check market size, competitors and price levels, then speak with five to ten potential buyers. Their reaction tells you more than a general market report.

Step 2

Choose channel and price

Pick the entry model that fits your margin and your capacity, and calculate your landed cost: transport, duties, VAT and the margin the channel will take.

Step 3

Pilot, then scale

Start in one region or with one partner, agree what success looks like after six to twelve months, and expand the country plan only on those results.