Global businesses eye increased trade, investment with Saudi Arabia: HSBC report

International business leaders have demonstrated their intent to increase trade and investment with Saudi Arabia, as the Kingdom’s Vision 2030 plan builds a resilient, stable economy with attractive growth prospects. 

HSBC New Networks of Capital: Saudi Arabia reveals eight out of 10 international businesses plan to increase trade and investment with the Kingdom over the next five years. More than 60% are eager to do the same over the next six months.  

The report surveyed 4000 business decision makers with international operations generating revenues of US$50 million to $500 million annually, to gather insights into how the Kingdom’s trade and investment links with eight major global markets are evolving. 

Surveyed markets include the UK, Hong Kong, Mainland China, USA, India, Germany, UAE, and Egypt. Responses were also drawn in-market, from Saudi Arabia. 

Survey respondents highlight Saudi Arabia’s growing economy (53%), economic stability (48%), and business-friendly policies (37%) as top reasons to do business in the Kingdom. 

Consistent with Vision 2030’s plans to diversify the Saudi Arabian economy, the survey identified technology (58%) and infrastructure (38%) as the two sectors with the biggest growth potential among business leaders considering investment. 

Businesses already investing in the Kingdom rank foreign ownership restrictions (31%) and market competition (31%) as the top barriers to increasing their investments. The findings come as the Kingdom considers implementing measures to increase the flow of inward foreign direct investment, including amendments to laws governing foreign ownership of Saudi Arabian companies. 

Faris AlGhannam, Chief Executive Officer, HSBC Saudi Arabia, said: “HSBC sees incredible potential in the Middle East, and Saudi Arabia is central to that view. Our research indicates increased confidence from international businesses in Saudi Arabia’s economic transformation and highlights the Kingdom’s unique ability to combine heightened growth prospects with economic stability.

“Vision 2030 is generating momentum right across the Saudi Arabian economy, from conventional sectors such as infrastructure and tourism, to new and emerging sectors such as AI, e-gaming, and e-sports. For business leaders, these developments underpin the confidence which will drive deepened engagement with the Kingdom’s economy.”