Saudi Arabia has become famous for its economic transformations in modern history, opening its doors to global investors and innovators under the banner of Vision 2030.
For UK-based businesses, the Kingdom offers a landscape filled with opportunity, marked by dynamic sectors like construction, tourism, and research and development (R&D). The economic relationship between the UK and Saudi Arabia has deepened significantly in recent years.
Between 2018 and 2023, bilateral trade between the two nations surpassed £79 billion ($102.7 billion), positioning Saudi Arabia as the UK’s largest trading partner in the Middle East. This foundation of economic trust and cooperation is now fueling a wave of UK business expansion into key areas of the Saudi economy.
In 2022 alone, UK investors contributed more than £4.3 billion ($5.59 billion) to the Saudi economy. Moreover, over 60 collaborative projects across 13 sectors have been initiated between the two countries, reinforcing the strategic alignment of their long-term goals.
This blog post explores the sectors where UK businesses are seeing rapid growth and outlines the opportunities that lie ahead and why it’s the right time for business setup in the KSA.
UK-Saudi Business Expansion Opportunities
Construction Sector
Saudi Arabia’s Vision 2030 includes a range of giga-projects that require world-class planning, execution, and innovation in construction and infrastructure development. This has created significant opportunities for UK firms with expertise in construction, architecture, and engineering.
The Red Sea Global Project, NEOM, and Qiddiya are just a few of the major initiatives transforming Saudi Arabia’s urban and environmental landscape. These projects have catalyzed interest from UK businesses, as reflected by the issuance of more than 1,100 active licenses to British investors in the Saudi real estate and construction market.
The UK-Saudi Sustainable Infrastructure Forum held in London in June 2024 provided a critical platform for discussing sustainable construction practices and urban development. The event brought together key stakeholders from both nations to explore avenues for cooperation, including green energy technologies and smart city design.
One of the standout collaborations is the King Salman International Airport project in Riyadh, where British architecture firm Foster + Partners was awarded the master planning contract.
Spanning 57 square kilometers, this airport is set to become one of the world’s largest, and it presents additional sub-contracting opportunities for UK suppliers in construction, interior design, and airport technology.
Research and Development Sector
Saudi Arabia is placing increased emphasis on building its research and innovation ecosystem. This creates a welcoming environment for UK firms focused on advanced technologies, science, and applied research.
One significant development is the partnership between the UK’s Royal College of Art and Saudi Arabia’s Architecture and Design Commission. Signed in May 2024, this MoU aims to foster entrepreneurship and innovation in the architecture and design fields, while also enhancing the skills of young Saudi professionals.
In the aviation sector, Cranfield University’s partnership with Prince Sultan University and Saudi Arabia’s General Authority of Civil Aviation (GACA) has opened new opportunities for UK firms in aerospace research, pilot training, and aviation consultancy. This partnership reflects the Kingdom’s intent to elevate its aviation capabilities and develop a talent pipeline through international cooperation.
Tourism Sector
Saudi Arabia’s tourism sector is undergoing rapid expansion, guided by the Kingdom’s strategy to attract 150 million annual visitors by 2030. With the goal of becoming a global tourism and entertainment hub, the country is heavily investing in hospitality, entertainment, and leisure infrastructure.
UK companies are already playing a significant role in shaping Saudi Arabia’s tourism narrative. From designing luxury hotels to consulting on visitor engagement strategies, British firms are contributing across the value chain.
A notable milestone was the Declaration of Intent signed between Visit Britain and the Saudi Tourism Authority. This agreement solidifies a long-term partnership between the two countries, promoting tourism collaboration and reciprocal investment in destination development.
The UK Creative Industries Trade Mission to Saudi Arabia in 2024 further reinforced this trajectory. Organized by the UK’s Department for Business and Trade (DBT) and Commercial Interiors UK (CIUK), the mission focused on promoting UK talent in interior design, hospitality fit-outs, and entertainment venue construction.
Key Takeaways for UK Firms for Company Formation in Saudi Arabia
- Saudi Arabia is actively courting foreign investors and UK businesses in particular. With over 60 collaborative projects already underway and billions in trade value exchanged, the Kingdom is proving to be a strategic partner.
- The construction sector offers multiple layers of opportunity. From giga-projects to urban regeneration, UK firms with experience in sustainable infrastructure, smart cities, and architecture are in high demand.
- Research and development are a rising priority. With UK institutions already collaborating on design, science, and aviation research, there is room for deeper partnerships in innovation, clean energy, and food technology.
- The tourism sector is growing rapidly. As Saudi Arabia builds its hospitality infrastructure, UK companies in interior design, branding, and tourism consultancy will find strong demand for their services.
- Business formation has never been easier. Saudi Arabia has streamlined its licensing frameworks, introduced new residency options for real estate investors, and improved foreign ownership laws, creating a welcoming ecosystem for UK business incorporation.
Why Now Is the Right Time?
Saudi Arabia’s transformation is well underway, and the window for early-mover advantage is open. UK businesses that act now can become integral contributors to some of the world’s most ambitious national projects while securing a foothold in a high-growth market.
By aligning with Vision 2030 goals and taking advantage of Saudi Arabia’s investor-friendly climate, UK firms can not only expand their international presence but also play a key role in shaping the Kingdom’s future across infrastructure, innovation, and tourism.
Whether you are a researcher, developer, or entrepreneur, Saudi Arabia offers a compelling landscape for long-term investment and meaningful impact. Now is the time to explore your next move.