Thriving Business Sectors in Saudi Arabia: 2024 Insights

Saudi Arabia’s economic landscape has achieved a monumental feat, surpassing the $1 trillion GDP milestone for the first time in its 91-year history. This accomplishment, coupled with a projected 4.1% GDP growth in 2024, signifies a substantial shift towards non-oil sectors. Saudi startups lead in venture capital fundraising in the MENA region, securing $1.4 billion in 2023, contributing over half of the total venture capital funding in the Middle East and North Africa.

Initiated in 2016, Vision 2030 aims to reshape Saudi Arabia’s economic trajectory by diversifying into new sectors and enhancing infrastructure, healthcare, and education. In this context, we delve into the top five business sectors propelling Saudi Arabia’s economic growth in 2024.

Construction: Shaping the Future

Saudi Arabia’s construction industry is on a trajectory of rapid growth, establishing itself as one of the world’s fastest-expanding markets. Projected to be worth USD 70.33 billion in 2024, with expectations to reach USD 91.36 billion by 2029, the construction sector plays a pivotal role in realizing Riyadh’s Vision 2030. Key projects like Neom Future Cities, Qiddiya Entertainment City, and the Red Sea Project present lucrative opportunities for foreign companies to contribute to Saudi Arabia’s future.

  • Commercial Construction
  • Industrial Construction
  • Infrastructure Construction
  • Energy and Utilities Construction
  • Institutional Construction
  • Residential Construction

Tourism: Unlocking Boundless Opportunities

Saudi Arabia’s Vision 2030 places a significant emphasis on travel, tourism, and entertainment. The issuance of over 3,500 tourism investment licenses in the past three years indicates robust expansion. With a target of attracting 150 million visitors by 2030, Saudi Arabia has implemented initiatives such as the Instant E-Visa system and the new “Visiting Investor” visa. Major events like the World Expo 2030 in Riyadh and hosting global sports events position Saudi Arabia as a key tourism destination.

Information and Communication Technologies (ICT): Tech Hub in the Making

The Information and Communications Technology (ICT) market in Saudi Arabia, valued at over $40.9 billion, significantly contributes to the Kingdom’s GDP. Positioned as the most substantial and rapidly growing ICT market in the Middle East and North Africa, Saudi Arabia aspires to become a central hub for technology services and cloud computing. Initiatives like the Cloud Computing Special Economic Zone and the 2023 ICT Strategy underscore the Kingdom’s commitment to digital transformation.

  • Cybersecurity
  • Internet of Things (IoT) & Smart Cities
  • Cloud Computing
  • Artificial Intelligence
  • 5G
  • E-Commerce

Sports: A Growing Passion

Saudi Arabia is evolving into a hub for major sporting events, reflecting its citizens’ growing interest in sports. Successful hosting of events like boxing matches, ATP tennis tournaments, and Formula 1 races has positioned the Kingdom as a sports destination. With upcoming events like the FIFA World Cup in 2034, the sports sector is expected to grow 5 to 7 times by 2030, presenting opportunities in areas like sports academies, event management, fitness centers, and sports retail stores.

Food and Beverage: Culinary Innovation

Driven by a diverse population and a thriving tourism sector, Saudi Arabia’s food and beverage market witness significant growth. With a target investment of $20 billion by 2035, the market, valued at USD 23.48 billion in 2024, is projected to reach USD 27.83 billion by 2029. The influx of funds is expected to benefit sectors like poultry, dairy, bakery, sweets, beverages, and juices, with a noticeable rise in international cuisine popularity.

  • Dairy & Dairy Alternatives
  • Confectionery
  • Beverages
  • Bakery
  • Snacks
  • Meat, Poultry, Seafood & Meat Substitutes
  • Breakfast Cereals
  • Ready Meals

Embark on Your Business Success with Accuraate

Embark on a successful business journey in Saudi Arabia with the guidance and support of Accuraate. With expertise in navigating the dynamic Saudi market, Accuraate provides comprehensive insights and customized strategies tailored to your business aspirations. Whether entering the booming food and beverage industry, exploring technology markets, or capitalizing on the growing tourism sector, Accuraate is your ideal partner to turn business aspirations into profitable realities in the dynamic Saudi Arabian market.

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