AstroLabs has released the second edition of its flagship Saudi Market Entry Report with the addition of the first-ever Saudi success index for foreign companies showcasing the 5 factors that accelerate business growth in the Kingdom. The report draws on insights from over 1,200 global businesses exploring expansion into Saudi Arabia from 23+ countries in 2024. Some of the primary highlights from the report include:

1. 64% of businesses were actively looking to venture into Saudi Arabia immediately, within the first 1-3 months in 2024 indicating the rise in urgency to expand to the market
2. 52% of international companies exploring Saudi expansion came from Asia, the Americas, and the UK, respectively
3. The results of the first-ever Saudi success index for foreign businesses in Saudi Arabia showed that localization & market integration were the top factors driving success in the Kingdom, highlighting long-term commitment as a key unlocker for accelerated success in Saudi
4. 81% of 1000+ companies eyeing expansion into Saudi Arabia cited the Kingdom’s vast untapped market potential as their primary motivator

Saudi Arabia’s economy remains on an accelerated path toward setting global standards, with businesses from across the globe rushing to the Kingdom to capitalize on the current momentum. This sentiment is reflected in the report, which showcases that approximately 64% of businesses were actively looking to venture into Saudi Arabia within 1-3 months in 2024, reflecting an increased urgency of 33% compared to 2023. The report also highlights a growing trend of international companies expanding to Saudi Arabia from outside the MENAT region, with a notable 18% increase compared to 2024. Evidently, the majority of these businesses (52%) exploring expansion to Saudi Arabia came from Asia, the Americas, and the UK.

Included in the report release, the first-ever Saudi success index for foreign companies provides actionable tips and tactics to accelerate success in the Kingdom based on learnings collected from 50+ companies that fast-tracked their business growth. Based on the findings of the index, deeper localization is cited as a key piece in a successful market expansion strategy. Crucially important is maintaining ongoing compliance with regulations and industry-specific frameworks as a precondition for sustainable business growth.

The findings of the success index showcase how long-term commitment in the Saudi market guarantees a better return on investment in the market. As highlighted in the report, IT, construction, and consulting were the top sectors attracting the highest number of global businesses to the Kingdom in 2024. This signals a sustained surge in foreign capital inflows into the market to respond to the current demands of the economy.

It also showed that 81% of 1000+ companies exploring expansion to Saudi Arabia identified significant untapped market potential as the top motivating factor for their decision to set up shop in the Kingdom. This surge reflects a heightened sense of urgency, prompting businesses to fast-track their expansion into Saudi Arabia to capitalize on the full potential of this fast-moving market. It also comes in view of the country’s concerted efforts to accelerate progress towards achieving the national objectives set out in Vision 2030 and the economic transformation roadmap.