Top 5 Industries For New Businesses In Saudi Arabia 2023

Saudi Arabia is a country undergoing rapid transformation as it diversifies its economy and opens its doors to the global market. This creates significant business opportunities for both local and foreign investors.

In this blog post, we will explore the top five industries for new businesses to setup in Saudi Arabia in 2023. These industries are experiencing significant growth, and the market potential is vast. So, whether you are a Saudi national or an international entrepreneur, these industries are worth considering when planning your next venture.

1. Food & Beverage (F&B)

The Food Sector in Saudi Arabia anticipates an impressive 4.78% annual growth between 2022 and 2027. Investments in the Saudi food industry exceeded SR94 billion by December 2022, with a continuous increase to secure food supplies and cater to the needs of the growing population of 36 million.

Nestle, a global leader in food & beverage, has entered the Saudi market with an ambitious investment plan of seven billion SAR. One of its objectives is to create a business incubator for small and medium-sized enterprises (SMEs) and start-ups.

Business Opportunities In The KSA F&B Sector

• Specialty restaurants: There is a growing interest in diverse cuisines, and Saudi consumers are increasingly adventurous in their dining choices. Opening a restaurant offering unique culinary experiences can be a lucrative venture.
   
• Food delivery services: The rise of online food delivery platforms has fueled the demand for delivery services. Starting a food delivery business or partnering with existing platforms can be a profitable endeavor.
   
• Health-focused food outlets: As Saudi Arabia faces growing health challenges related to obesity and diabetes, there is a growing market for healthy food options. Opening a restaurant or café that focuses on nutritious, well-balanced meals can fill this niche.

1. Gaming & eSports

Saudi Arabia's gaming market leads the region and ranks as the 19th largest market worldwide. The gaming industry in the Kingdom is projected to expand more than threefold by 2030. E-sports will drive this growth, with approximately 29% of the Saudi population expressing interest in e-sports.

In 2022, the Saudi Public Investment Fund invested over $3 billion in the gaming sector. The Saudi Gaming Market reached $1 billion in 2021 and is expected to soar to $6.8 billion by 2030. Mobile Games dominate the market, with a volume of US$957.50m in 2022.

Business Opportunities In The KSA Gaming & Esports Industry

• Gaming centers and lounges: Establishing gaming centers and lounges that offer state-of-the-art equipment, comfortable seating, and social spaces can attract gaming enthusiasts.
   
• eSports event management: Organizing and managing eSports events, both local and international, is an exciting business prospect. This includes securing sponsorships, marketing, and managing event logistics.
   
• Game development: Developing and marketing games that cater to the local market can be a lucrative venture. Collaborating with local talent and creating culturally relevant content can help your game stand out in the market.

1. Travel & Tourism

The Kingdom has set a goal to attract 100 million visitors by 2030, with the tourism sector contributing 10% of the GDP. The Saudi government is actively transforming the Kingdom into a premier travel destination, introducing E-Visas for citizens of 49 eligible countries. Several tourism projects are under development, such as Neom, Red Sea, and Qiddiya.

A new tourism law introduced in 2022 has accelerated tourism sector development and attracted global investments. This law aims to increase the tourism sector's economic contribution from 3% of the GDP to 10% by 2030.

 Business Opportunities In The KSA Travel & Tourism Sector

• Tour operators: With a rich cultural heritage and numerous tourist attractions, starting a tour operator business can be profitable. Tailoring tour packages to different demographics, such as families, solo travelers, or adventure seekers, can help you target specific market segments.
   
• Accommodation services: Developing unique accommodation options, such as boutique hotels, eco-resorts, or themed lodgings, can cater to the growing demand for diverse lodging experiences.

• Travel agencies: Offering specialized travel services, such as adventure travel, cultural tours, or luxury travel packages, can help differentiate your business in a competitive market.

1. Healthcare

In 2022, Saudi Arabia launched the Health Sector Transformation Programme, aiming to provide comprehensive healthcare services to 88% of the population by 2025. The private sector's involvement is expected to rise from 40% to 65% by 2030. The Saudi pharmaceutical market, the largest in the Middle East, is forecasted to reach $11 billion in 2026. The population is projected to grow from 36 million to 50 million by 2030.

Business Opportunities In The KSA Healthcare Sector

• Healthcare facilities: Establishing specialized clinics or diagnostic centers can cater to the growing demand for quality healthcare services.
   
• Medical equipment and supplies: Starting a business that imports, distributes, or manufactures medical equipment and supplies can be a profitable venture, given the increasing demand for advanced medical technologies in the country.
   
• Telemedicine services: Telemedicine is an emerging trend in healthcare, allowing patients to access medical consultations remotely. Establishing a telemedicine platform or partnering with existing telemedicine providers can tap into this growing market.

1. Sports

The sports industry in Saudi Arabia is experiencing rapid growth due to substantial government investments. Sports Cities and local sports clubs are situated across all cities and towns in the Kingdom. The market value of the Saudi sports events industry is estimated to reach US$ $3.3 billion by 2024.

Saudi citizens show keen interest in sporting events, which is why the Kingdom encourages popular spectator sports. Saudi Arabia has hosted various sporting events and is looking forward to hosting the Asian Football Confederation (AFC) Women’s Asian Cup in 2026, the FIFA World Cup in 2030, and the Asian Winter Games in 2029.

Business Opportunities In The KSA Sports Industry

• Sports academies and coaching centers: Establishing sports academies or coaching centers for various sports can help nurture local talent and meet the demand for professional sports training.
   
• Sports event management: Organizing and managing sports events, from small-scale local tournaments to large international competitions, can be a rewarding business venture. This involves securing sponsorships, marketing, and managing event logistics.
   
• Fitness centers and gyms: The growing interest in health and fitness has led to an increased demand for fitness centers and gyms. Offering specialized training programs and state-of-the-art equipment can help differentiate your business in this competitive market.
   
• Sports retail stores: Starting a sports retail store that offers a wide range of sports equipment, apparel, and accessories can cater to the needs of sports enthusiasts.

Your Trusted GRO Services Partner

Saudi Arabia's ongoing economic transformation presents numerous opportunities for entrepreneurs to establish successful businesses in various sectors. However, Navigating the business setup process in Saudi Arabia can be challenging, particularly for foreign entrepreneurs who may not be proficient in Arabic and require assistance in dealing with the authorizing agency. Incomplete or incorrect documentation can lead to delays or even a rejected application. This is where TASC can help.

With over 15 years of experience, TASC is the leading GRO services partner in Saudi Arabia, guiding numerous organizations in their growth journey. Our success stories demonstrate the value and expertise TASC brings to the table. We are well-equipped to handle any GRO-related challenge and provide the support you need to set up your business smoothly and efficiently.

Don't let the complexities of the business setup process hold you back from seizing the opportunities in the thriving Saudi market.

Talk to our experts now to find out how we can help your business run better and succeed in the Kingdom.

Subscribe to our weekly newsletter to stay updated with the latest investment projects in KSA.