• Introduction
• Building the Right Team
• Utilizing Competitive Advantages
• Expanding Market Reach
• Focusing on Sustainable Growth
• Embracing Technological Innovation
• Start, Scale and Grow Your Business in Saudi Arabia

Introduction

Launching a business in Saudi Arabia involves significant challenges, but business growth requires a blend of insight, strategy, and resourcefulness. Success depends on using the right approaches, tools, and resources to stand out in a competitive market.

Entrepreneurs must harness strategic methods to tap into their enterprise’s full potential, ensuring they leverage the latest technologies and resources to maximize their success. Strategic investments can elevate a business to significant heights, bolstering the local economy through job creation and innovative business practices.

In this blog, we will explore several effective strategies to help scale your business, ensuring you are well-prepared to thrive in Saudi Arabia’s dynamic entrepreneurial landscape.

Building the Right Team

The strength of a business often lies in its team. Seek skilled team members who embody humility, creativity, and the capacity for rapid learning. The workplace culture, vital in local and international contexts, depends significantly on hiring decisions. Equally important is the ability to make tough decisions about letting go of staff who do not align with the company’s growth or culture. Encourage a culture where continuous learning and resilience are valued, supporting team members who show dedication and adaptability. Creative Zone Saudi Arabia offers expert employee management services in Saudi Arabia.

Utilizing Competitive Advantages

Your business’s unique selling proposition (USP) is key to differentiating it from competitors. This advantage might stem from innovative products, superior service, faster delivery times, or technology usage. To capitalize on this, cultivate strong relationships with your customers to understand and meet their needs effectively. Ensure your infrastructure, technology, and compliance protocols are robust enough to support your competitive edge. Engaging closely with your client base and consistently exceeding their expectations can establish your business as a leader in its field.

Expanding Market Reach

Understanding the economic factors driving your business, including a deep dive into unit economics and growth mechanisms, is crucial. Adaptability has become even more important in the post-COVID landscape, where businesses must be prepared to pivot quickly in response to new challenges. Develop a comprehensive business model that allows for flexibility in strategy and operations, enabling your team to respond effectively to changes without sacrificing service quality or operational stability.

Focusing on Sustainable Growth 

Rapid growth focusing solely on short-term profits can lead to long-term problems. Instead, aim for sustainable development that considers the well-being of your employees and the broader impact on the community. This includes fostering an inclusive and supportive work environment that encourages innovation and job satisfaction. Embrace practices that promote long-term stability and profitability, such as investing in employee development, community engagement, and environmentally sustainable methods.

By focusing on these refined strategies, your business can effectively scale in Saudi Arabia’s dynamic economic environment, achieving financial success and positively impacting society.

Embracing Technological Innovation

In the digital age, technological advancement is a cornerstone of business growth. For businesses in Saudi Arabia, staying ahead of tech trends is not just an option but a necessity. Invest in research and development to foster innovation within your products or services. This could mean adopting new software, exploring AI capabilities, or integrating IoT solutions to enhance operational efficiency and customer interaction.

Technology can also open up new markets and customer segments. For example, data analytics can help you gain insights into customer behaviour, preferences, and untapped opportunities. This data-driven approach can help you tailor your offerings to meet market demands better and anticipate future trends.

Additionally, cybersecurity must be a top priority. Protecting your company’s and customers’ data builds trust and reliability, which is essential for any business, especially in tech-savvy markets like Saudi Arabia. Investing in secure platforms and training your team on cybersecurity best practices can safeguard your business against digital threats and enhance your reputation as a secure partner.

By prioritizing technological innovation, your business will not only keep pace with industry changes but also lead the way in creating new solutions that resonate with consumers and drive growth.

Start, Scale and Grow Your Business in Saudi Arabia

For foreign entrepreneurs aiming to establish a business in Saudi Arabia, registering your business with the Ministry of Investment of Saudi Arabia (MISA) is a mandatory step. Creative Zone Saudi Arabia is your reliable business partner, assisting you in obtaining the necessary MISA license and managing the commercial registration process. We also provide support for registration with various government departments, ensuring a smooth setup for your enterprise. Once your business registration is complete, it’s crucial to have a solid operational plan in place.

Entering the Saudi market offers immense potential, filled with opportunities to expand and thrive. However, it also presents distinct challenges, especially in human resources and employee management. At Creative Zone Saudi Arabia, we are dedicated to ensuring that your business setup in Saudi Arabia is not only smooth but also efficient. From obtaining your MISA license to managing registrations with essential government departments, we handle every detail. Moreover, our extended services are designed to streamline your operations, freeing you to concentrate on the core activities that drive your business forward and accelerate growth.

Why Focus on Employee Management?

The cornerstone of any successful business is its employees. This statement holds even more weight in Saudi Arabia due to the specific regulatory and cultural environment. The Kingdom’s Saudization policy mandates the employment of Saudi nationals in a significant percentage of your workforce, which can be a daunting requirement for new and expanding businesses. Here’s how Creative Zone Saudi Arabia makes a difference:

• Regulatory Compliance: We help you navigate the complexities of Saudization to ensure you meet all legal requirements while maintaining your Nitaqat status, thus avoiding legal issues and potential fines.
• Talented Local Hiring: Our extensive network and expertise allow us to recruit talented Saudi nationals who perfectly fit your business needs, supporting not only compliance but also your company’s growth and local integration.
• Diverse Staffing Solutions: Beyond local hiring, we assist in recruiting a diverse team worldwide, ensuring your workforce is well-rounded and equipped to tackle the global market.

Comprehensive Employee Management Services

At Creative Zone Saudi Arabia, we offer a broad range of services designed to simplify your HR operations and help you manage your workforce effectively:

1. Hiring Saudi and Expat Employees Finding the right talent is crucial, and our recruitment solutions are tailored to find the best fit for your company’s culture and business goals, whether they are local or expatriate candidates.

Saudization: Saudization is a policy by the Saudi Arabian government aimed at increasing the employment of Saudi nationals in the private sector to reduce dependency on foreign labour and lower unemployment rates among Saudis. Companies are categorized under the Nitaqat program based on their Saudi-to-non-Saudi employee ratio, affecting their operational privileges and restrictions. This initiative is part of Saudi Arabia’s broader Vision 2030 to diversify its economy and develop its local workforce.

2. WPS Payroll Management Our Wage Protection System (WPS) payroll services ensure timely and accurate salary disbursement, comply with Saudi labour laws, and enhance employee satisfaction and operational efficiency.
3. Social Insurance Navigate the complexities of social insurance for your employees with our expert assistance, ensuring both compliance and employee security.

GOSI: The General Organization for Social Insurance (GOSI) is Saudi Arabia’s responsible authority for social insurance. GOSI administers and manages social insurance plans for workers in the private and public sectors, covering benefits such as pensions, disability, survivor benefits, and work-related injury insurance. This organization is crucial in providing financial security and support to Saudi Arabian employees and their families.

4. Attestation Services We handle all aspects of document attestation, which is vital for document validation and smooth business operations in Saudi Arabia.
5. Medical Insurance Ensure your employees have the best medical insurance plans that comply with Saudi regulations, contributing to a healthier, more motivated workforce.
6. Immigration-related Services From visa processing to renewals and cancellations, our team ensures that all your immigration-related needs are handled professionally and without delays.
7. Iqama Renewal Timely renewal of Iqama (residence permit) is crucial for your expatriate employees, and our team ensures this process is seamless and hassle-free.

Iqama: It is a term used in Saudi Arabia to refer to a residence permit issued to expatriates who arrive in Saudi Arabia on an employment visa. This permit is crucial as it legalizes the expat’s residency and employment in the country for a specific period, usually one or two years, after which it needs to be renewed. It also serves as a general identification document within Saudi Arabia, required for various daily activities and transactions, such as opening bank accounts, registering for utilities, and accessing healthcare services.

8. Visa Renewal, Amendment, and Cancellation Manage all your visa-related services through us to ensure your company and its employees comply with all immigration laws.

Partner with Creative Zone Saudi Arabia for Employee Management Solutions

Choosing Creative Zone Saudi Arabia as your employee management partner in Saudi Arabia means choosing peace of mind. Our expertise in local regulations and comprehensive HR services allow you to focus on what you do best — growing your business.

Contact us today for detailed discussions on how we can assist you with your specific needs. Let us help you turn the challenges of operating in Saudi Arabia into opportunities for growth and success.

• Introduction
• Industry Overview
• Relevant Authorities
• Incentives for Industrial Sector
• Government Initiatives for Industrial Sector
• Upgraded Industrial License in Saudi Arabia
• Process of Acquiring an Industrial License
• Obtain Your Industrial License in Saudi Arabia

Introduction

Saudi Arabia is rapidly emerging as a global hub for manufacturing, driven by ambitious economic diversification goals under Vision 2030. The Kingdom’s strategic initiatives aim to transform its industrial landscape, attract foreign investment, and foster technological innovation. Saudi Arabia’s industrial sector is poised for significant growth, driven by strategic planning, international collaborations, and technological advancements. The government’s commitment to creating a conducive environment for manufacturing businesses, coupled with robust incentives and support makes the Kingdom an attractive destination for industrial investment. By understanding the process and leveraging available resources, businesses can successfully navigate the journey of setting up manufacturing operations in Saudi Arabia. The future of the Kingdom’s industrial sector holds immense promise, with opportunities for innovation, economic diversification, and sustainable growth.

This article gives you an overview of industrial and manufacturing sector in Saudi Arabia, detailing the relevant authorities, incentives, processes, and how Creative Zone Saudi Arabia can assist in acquiring an industrial license.

Industry Overview

Saudi Arabia’s manufacturing sector is experiencing robust growth, averaging 7.5% annually. It has become the third-largest non-oil contributor to the national economy, supported by government initiatives, modern infrastructure, and favorable regulations. In 2023 alone, the sector saw the issuance of 1,379 industrial licenses, bringing the total number of factories to 11,549 with an investment of SAR 1.55 trillion ($413 billion).

Vision 2030 aims to triple the industrial GDP to SAR 895 billion by 2030, double job opportunities to 2.1 million, and achieve industrial exports worth SAR 557 billion. The sector’s transformation is fueled by advanced technologies such as artificial intelligence, 3D printing, IoT, and smart robotics, positioning Saudi Arabia at the forefront of global manufacturing.

Saudi Arabia’s industrial landscape is characterized by significant investment deals and the establishment of new factories. The Kingdom aims to increase the number of factories to 36,000 by 2035, including 4,000 fully automated facilities. This ambitious plan strengthens the government’s commitment to fostering innovation, optimizing domestic products, and promoting global partnerships.

Relevant Authorities

Several key authorities oversee the industrial sector in Saudi Arabia:

1. Ministry of Industry and Mineral Resources: Responsible for issuing industrial licenses and regulating the sector. The ministry plays a pivotal role in shaping policies and ensuring the sector’s alignment with Vision 2030 goals.
2. Saudi Authority for Industrial Cities and Technology Zones (MODON): Manages industrial cities and provides essential infrastructure. MODON oversees 36 industrial zones across the Kingdom, offering more than 200 million square meters of developed industrial land and supporting over 7,900 industrial, investment, and logistical contracts.
3. Saudi Industrial Development Fund (SIDF): Established in 1974, SIDF provides financial and advisory support to enhance industrial investment. It aims to contribute to the formation of competitive industrial sectors, support strategic initiatives, and foster local production and exports.

Incentives for Industrial Sector

The Saudi government offers numerous incentives to attract foreign investment and stimulate industrial growth:

1. Financial Support: SIDF finances up to 75% of industrial projects and offers multi-purpose loans. These financial incentives are crucial for fostering industrial development and ensuring the sector’s competitiveness.
2. Tax Credits: Up to 50% tax credit on Saudi national payroll and training costs for 10 years. This incentive aims to enhance the participation of Saudi talent in the industrial sector and reduce operational costs for businesses.
3. Land and Infrastructure: MODON provides industrial land and ready-made factories at reduced prices with extended grace periods and expedited approval processes. The authority’s efforts to develop industrial zones and provide essential utilities are vital for the sector’s growth.
4. Investment Initiatives: Special Economic Zones in Riyadh, King Abdullah Economic City, Jazan, and Ras Al-Khair offer additional benefits for investors. These zones are designed to attract foreign direct investment (FDI) by providing tailored incentives and world-class infrastructure.

Government Initiatives for Industrial Sector

To stimulate industrial growth, the Saudi government has launched several investment initiatives:

1. National Industrial Development and Logistics Program (NIDLP): Launched in 2019, NIDLP aims to transform Saudi Arabia into a leading industrial and logistics hub. The program focuses on energy, mining, industry, and logistics sectors, promoting economic diversification and job creation.
2. Operation 300bn: This initiative aims to increase the contribution of the industrial sector to the GDP by SAR 300 billion by 2030. It emphasizes digital transformation and the adoption of advanced manufacturing technologies.
3. Special Economic Zones (SEZs): Established to attract foreign investment, SEZs offer specialized incentives and infrastructure tailored to the needs of various industries. These zones are designed to foster innovation and enhance global competitiveness.
4. Advanced Manufacturing Hub Strategy: Identifies over 800 investment opportunities worth $273 billion, aiming to diversify the industrial sector and create high-value jobs. This strategy underscores the government’s commitment to technological advancement and industrial growth.

Upgraded Industrial License in Saudi Arabia

The Minister of Industry and Mineral Resources announced an enhanced industrial license during LEAP 24. Governed by the Unified Industrial Regulatory Law of the GCC, the new license streamlines industrial activities through three stages: establishment, construction, and production.

The ministry’s spokesperson noted this upgrade follows a Cabinet decision to regulate factories outside designated industrial zones. The process includes:

Establishment Phase: Securing permits and allocations, valid for one year and renewable, without starting production.

Construction Phase: Customs exemptions on machinery and equipment, with a one-year renewal option.

Production Phase: Full operational rights and customs exemptions on inputs.

All phases can be managed via an industrial platform. This initiative aligns with Saudi Arabia’s National Industrial Strategy, aiming to boost investment, diversify the economy, and enhance non-oil exports in line with Vision 2030.

Process of Acquiring an Industrial License

Starting a manufacturing business in Saudi Arabia involves several steps and approvals from various government entities:

1. Legalization and Attestation: Foreign businesses must legalize their documents through the Saudi Arabian Embassy. This step ensures that all company documents are authenticated and recognized by Saudi authorities.
2. Manufacturing License: Creative Zone Saudi Arabia helps you obtain it from the Ministry of Investment Saudi Arabia (MISA). This license is essential for foreign businesses to operate legally in the manufacturing sector.
3. Commercial Registration (CR): Register the business with the Ministry of Commerce. The CR certificate is a prerequisite for conducting business activities in the Kingdom.
4. Land Contract and Building Permits: Secure necessary permits from the municipality. These permits include land contracts for the manufacturing facility and building permits to commence construction.
5. Final Industrial License: Issued by the Ministry of Industry and Mineral Resources. This license allows businesses to start manufacturing operations officially.
6. Environmental Permits: Ensure compliance with environmental standards set by the General Presidency of Meteorology and Environmental Protection. These permits ensure that manufacturing activities do not harm the environment.
7. Additional Registrations: Obtain labor file opening, tax registration, and other required registrations. These registrations are necessary for the company to hire employees, manage payroll, and comply with tax obligations.

Obtain Your Industrial License in Saudi Arabia

Creative Zone Saudi Arabia provides comprehensive support to businesses seeking to establish manufacturing operations in Saudi Arabia. Our services include free consultation, offering expert advice on legal requirements and compliance to help businesses navigate the complex regulatory landscape and ensure they meet all necessary criteria. We assist with document preparation, ensuring all documentation is accurate, complete, and submitted on time. Additionally, we streamline the process for obtaining manufacturing and industrial licenses, facilitating the entire licensing process from initial application to final approval. Furthermore, we provide extended support to help your business grow quickly and efficiently.

• Overview of Saudi Economic Landscape
• The Leading Saudi Business Sectors
• Construction Business in Saudi Arabia
• Tourism Business in Saudi Arabia
• ICT Business in Saudi Arabia
• Sports Business in Saudi Arabia
• Food and Beverage Business in Saudi Arabia
• Launch Your Business in Saudi Arabia

Overview of Saudi Economic Landscape

Saudi Arabia has recently achieved a significant economic landmark by surpassing a Gross Domestic Product (GDP) of $1 trillion for the first time since its foundation 91 years ago. This achievement places it among the top 20 economies worldwide. The Kingdom’s economy is on an upward trajectory with an expected growth rate of 4.1% in 2024, primarily fueled by industries beyond the oil sector. In the venture capital scene, Saudi Arabia is setting the pace in the Middle East and North Africa, with its startups securing $1.4 billion in 2023 alone. This represents a significant 33% increase from the year before, capturing more than half of the region’s venture capital investments.

The country’s recent inclusion in the BRICS group signals exciting economic prospects and avenues for diversification. Moreover, the India Middle East Europe Economic Corridor (IMEC) launch aligns with Saudi Arabia’s ambition to broaden its trade networks and establish new commercial relationships globally. This approach is a crucial element of a broader strategy to develop a robust and diversified economy, moving beyond traditional oil revenues.

The Leading Business Sectors in Saudi Arabia

As Saudi Arabia embarks on its ambitious Vision 2030 plan, the Kingdom is diversifying its economy by focusing on key sectors that promise growth and innovation. This strategic plan aims to lessen the Kingdom’s oil dependency and pivot towards diversified economic activities while investing in the enhancement of infrastructure, healthcare, and education systems by the end of this decade.

Construction, sports, information and communication technology (ICT), tourism, and the food and beverage industry are among the leading areas receiving significant attention and investment. These sectors represent the forefront of Saudi Arabia’s efforts to transform its oil-dependent economy into a more diversified and sustainable one. Through strategic initiatives and investments, the Kingdom aims to enhance its economic resilience and position itself as a global leader in these industries.

Construction Business in Saudi Arabia

Saudi Arabia’s construction sector is experiencing a surge in growth, marked by cutting-edge trends and ambitious projects, making it one of the world’s rapidly expanding construction markets. By 2024, the market value is anticipated to hit USD 70.33 billion, and it is expected to climb to USD 91.36 billion by 2029. This signifies an annual growth rate of 5.37% from 2024 to 2029, spurred by Riyadh’s Vision 2030 objectives. The vision’s goal to diversify and privatize the nation’s expansive economy is manifested in massive undertakings such as Neom Future Cities, Qiddiya Entertainment City, and the Red Sea Project.

With the region’s highest number of construction opportunities, Saudi Arabia’s booming market presents a golden opportunity for international firms to participate and contribute to shaping the Kingdom’s future landscape. A notable initiative is The Line, a futuristic smart city project launched in 2020 near Riyadh, forming a part of NEOM. Situated in Saudi Arabia’s northwestern part, NEOM encompasses smart cities and towns, ports, commercial hubs, research facilities, sports, entertainment, and tourist destinations, showcasing the scale and ambition of Saudi Arabia’s construction endeavours.

Construction Market Segments

The construction market in Saudi Arabia is diverse, catering to a wide range of needs and ambitions:

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

Tourism Business in Saudi Arabia

Travel, tourism, and entertainment are at the heart of Saudi Arabia’s Vision 2030, showcasing remarkable progress in recent years. The Kingdom has issued over 3,500 tourism investment licenses in just three years, marking a significant leap in the growth of its tourism industry. The tourism sector is poised for substantial expansion with the government’s efforts to enhance the business environment and simplify travel processes. Initially set to draw 100 million visitors by 2030, Saudi Arabia has ambitiously adjusted its goal to 150 million, motivated by a booming tourism influx. In the first nine months of 2023 alone, the Kingdom led the G20 nations in tourism growth, with record-breaking spending by international visitors and securing a spot as the world’s second-fastest-growing tourist destination.

To facilitate this surge, Saudi Arabia introduced an Instant E-Visa system for tourists from 49 countries, offering up to 90 days of continuous stay. New policies like the “Visiting Investor” visa further support the tourism industry’s uplift, which streamlines entry for potential investors. Vision 2030 aims to elevate the tourism and leisure sectors by developing world-class attractions, improving visa accessibility, and reviving historical and cultural sites.

The forthcoming World Expo 2030 in Riyadh is expected to be a major draw for international visitors. In addition, Saudi Arabia is gearing up to host several significant global sporting events, including the Federation for Equestrian Sports World Cup Finals in 2024, the 2025 Asian Indoor & Martial Arts Games, the Asian Football Confederation’s Asian Cup in 2027, the Asian Summer Games in 2034, and the 2034 FIFA World Cup. These events are crucial in establishing Saudi Arabia as a premier destination on the global tourism map, strengthening the Kingdom’s strategic push to become a leading player in the international tourism and entertainment sectors.

Information and Communication Technologies (ICT) Business in Saudi Arabia

Saudi Arabia’s Information and Communications Technology (ICT) sector is a powerhouse in the Middle East and North Africa, valued at over $40.9 billion and contributing 4.1% to the nation’s GDP. Positioned as the region’s largest and fastest-growing ICT market, the Kingdom is on a strategic path to become a key hub for technology services and cloud computing. Its advantageous geographical location, bridging the Red Sea and the Gulf, makes it an ideal centre to serve European, Asian, and African markets.

Aligned with Vision 2030, the Ministry of Communications and Information Technology (MCIT) aims to build cutting-edge digital infrastructure. This ambition seeks to push forward digital transformation in various fields, including e-commerce, digital education, health technologies, smart city developments, national data management, and electronic government services. The 2023 ICT Strategy outlines ambitious goals to generate over 25,000 ICT jobs, boost the IT market and emerging technologies by 50%, and increase the sector’s contribution to the GDP by $13.3 billion. Key to this strategy is drawing in foreign investment and supporting women’s participation in the ICT sector.

A noteworthy initiative by the Economic Cities and Special Zones Authority is the establishment of a Cloud Computing Special Economic Zone. This unique proposition in the region allows cloud service providers to set up data centres and offer various cloud services throughout Saudi Arabia, signifying a major step towards achieving global leadership in the ICT domain.

Key areas of focus within the ICT sector include:

• Cybersecurity: Enhancing the security of digital systems and networks.
• Internet of Things (IoT) & Smart Cities: Integrating digital and physical worlds to create more efficient and sustainable urban environments.
• Cloud Computing: Providing scalable and flexible IT resources over the Internet.
• Artificial Intelligence (AI): Developing intelligent machines capable of performing tasks that typically require human intelligence.
• 5G: Implementing the fifth generation of mobile networks for faster and more reliable internet connectivity.
• E-Commerce: Growing the online marketplace for buying and selling goods and services.

These sub-sectors are pivotal to Saudi Arabia’s vision of establishing a modern, diversified economy and underline the Kingdom’s commitment to embracing the digital revolution.

Sports Business in Saudi Arabia

Saudi Arabia is quickly establishing itself as a central venue for significant sporting events, tapping into the growing enthusiasm for sports among its people. The Kingdom has already made headlines by hosting high-profile boxing matches, ATP tennis tournaments, and Formula 1 races since 2021. This trend is set to continue with a promising lineup of major events on the horizon, including the Asian Indoor and Martial Arts Games in 2025, the AFC Asian Cup in 2027, the Asian Winter Games in 2029, the Asian Games in 2034, and the eagerly awaited FIFA World Cup in 2034.

The business side of Saudi Arabia’s sports sector is poised for remarkable expansion, especially with the upcoming FIFA World Cup in 2034 acting as a significant growth catalyst. This expansion is driven not only by the anticipation of future events but also by deliberate strategic investments. The Kingdom’s football industry, mainly, has seen significant attention, with the Public Investment Fund acquiring substantial shares in four major football clubs. By 2030, the sports sector in Saudi Arabia is projected to grow by 5 to 7 times its current size, propelled by these investments and the vast commercial potential yet to be fully explored in the market.

This booming sports sector opens up a myriad of business opportunities, including:

Sports academies and coaching centres: Offering training and development programs for athletes.

Sports event management: Organizing and managing sports events and tournaments.

Fitness centres and gyms: Catering to the increasing demand for personal fitness and wellness.

Sports retail stores: Providing sports equipment, apparel, and accessories to a growing market of sports enthusiasts.

These opportunities highlight the dynamic nature of Saudi Arabia’s sports industry and its potential to become a leading global sports destination, reflecting the Kingdom’s broader economic and social ambitions under Vision 2030.

Food and Beverage Business in Saudi Arabia

Saudi Arabia is experiencing a significant uptick in the demand for diverse and high-quality food and beverage options, thanks to its varied population and a booming tourism industry. The Kingdom is set for substantial investment in its food sector, aiming for $20 billion by 2035. This investment is expected to significantly enhance industries such as poultry, dairy, bakery, confectionery, and the production of beverages and juices. With the Saudi food and beverage market projected to rise from USD 23.48 billion in 2024 to USD 27.83 billion by 2029, it’s looking at a growth rate of 3.44% annually during this period.

The flourishing food and dairy sector and a spike in the consumption of milk and dairy products power this growth. In response, companies are introducing healthier choices like organic, locally produced, and halal-certified items, in line with government efforts to encourage healthy eating habits among the population. The appetite for international cuisine is another trend reshaping Saudi Arabia’s food scene. The Kingdom’s diverse residents and increasing tourist arrivals drive the demand for a wide range of global foods, from Asian and Mediterranean to American dishes. This has led to a nationwide surge in international dining establishments and food chains.

The expansive scope of the market includes a variety of product types and distribution channels, covering sectors such as dairy and alternatives, confectionery, beverages, bakery goods, snacks, meat and poultry, seafood and meat substitutes, breakfast cereals, and ready-to-eat meals. The dairy category is split into traditional products and alternatives. Confectionery includes chocolates, sugary treats, and snack bars like cereal and energy bars. Beverages are categorized into alcoholic and non-alcoholic options. The bakery sector features a range of products from cakes and pastries to biscuits, bread, morning goods, and frozen baked items.

Launch Your Business in Saudi Arabia with Creative Zone

Starting a profitable business in the Kingdom is easy with Creative Zone Saudi Arabia. Our tailored services are designed to simplify the process, from understanding regulatory requirements to securing the necessary licenses and beyond. We offer a range of services, including market analysis, legal and compliance assistance, financial advisory, and on-the-ground support to ensure your business starts on the right foot and continues to grow.