78cc5960-dc57-406b-b645-828da830ce0b

2023 SAUDI MARKET ENTRY REPORT
Table Of Contents
Foreword 3
Message from the CEO, Roland Daher 5
Introduction 7
Key Highlights
Companies Exploring Expansion to Saudi Arabia 12
Key Markets
Leading Industries
Key Sources of Information
Timeframe for Market Entry
Motivators Driving Expansion
Challenges and Support Partners
Operational Companies in Saudi Arabia 19
Company Size Information

Sector Breakdown
Knowledge about Special Economic Zones
Business Expansion Unlockers
Navigating Family Relocation
Expansion Readiness at Point of Entry
Hiring Saudi Nationals
Recommendations 27
Appendix 30
About the Report & Survey
Foreword
3
Foreword
As we stand at the midpoint of Saudi Vision

2030, the Kingdom has become a pivotal hub for
global and regional companies. While the main
elements behind this drive include extensive
support from the government, this report sheds
light on the other major contributors to the
accelerated Saudi expansion.
The 2023 Saudi Market Entry Report analyzes

insight from 660+ high-growth companies, from
a total 50+ countries around the globe that have
expanded to the Kingdom or are navigating their
entry into the market.
To diversify its economy, the Kingdom is poised to

boost the private sector's contribution from 40%
in 2016 to 65% by 2030. This objective is further
propelled by the influx of global and regional
companies entering the Saudi market, as the
Kingdom's business landscape offers a wealth of
untapped opportunities across various strategic
sectors.
The Saudi market presents an once-in-a-lifetime

opportunity for companies to engage in
transformative projects such as the Riyadh Metro,
Riyadh Expo 2030, and the 2034 Saudi FIFA
World Cup. These initiatives, alongside growing
sectors like tourism, sustainability, and
construction, are pivotal to the Kingdom's future.
Amidst rapid infrastructural advancements, the
demand for cutting-edge technologies is being
met by visionary companies entering the market,
contributing to the development of Saudi
Arabia's smart cities
Advancing on the innovation front, Saudi

Arabia's digital-first approach is evident in the
growing activity across sectors such as climate
tech, proptech, e-commerce, and insurtech. This
progress is steering the nation towards disrupting
traditional business practices and supporting
goals such as increasing non-cash transactions by
70% by 2030.
4
Message from
the CEO,
Roland Daher
5
Message from the CEO, Roland Daher
“
We are excited to present the 2023
Saudi Market Entry Report, which
provides a comprehensive outlook
on the business expansion journey
into the Kingdom.
At AstroLabs, we take immense pride in
being a driving force behind Gulf business
expansion, developing vital sectors in
Saudi Arabia and beyond. This report isn't
just data; it's a wealth of insights for global
decision-makers, navigating the vibrant
Saudi business landscape. This moment is
incredibly exciting for us; AstroLabs has
proudly facilitated the expansion of 600
high-growth companies into Saudi
Arabia. For over a decade, we've been on
the frontlines of innovation, leveraging
regional strengths to enable growth by
fostering collaborations with partners,
and adapting strategies that align with
regional dynamics and market demands.
The findings in this report are a testament

to Saudi Arabia's achievements—a
visionary leadership with exceptional
aspirations, and a dedicated population.
By analyzing data from 660 companies,
we have acquired crucial firsthand
knowledge that reinforces our
commitment to continually address key
challenges and capture opportunities.
”
Roland Daher
CEO, AstroLabs
6
Introduction
Key Highlights
7
Introduction
Key Highlights
48% of companies exploring the

Kingdom as a business expansion
destination intend to apply for a
commercial license within 3-6 months.
88% have little to no

understanding of the
Special Economic Zones
(SEZs) in Saudi Arabia
4x Accelerated Entry 2x Company Size

Faster decision-making Twofold increase in the
cycle for entry to Saudi company size entering
Arabia, decreasing the the Saudi market in
time taken from 8-12 2023, as compared to
months in 2018 to less 2022
than 2 months in 2024
8
Introduction
Key Highlights
91%
of companies hired Saudi
nationals within a
timeframe of 2-4 months
from entry to market
48%
hired local
Saudi nationals
in less than a
month
50% 18%
of foreign businesses are looking to move
operating in the Kingdom to a private office in
plan to have a private office the next 3-6 months
space in less than 1 year
9
Introduction
Key Highlights
41%
businesses selected ‘increase
in revenue’ as the key driver
of expansion into any market
as part of their expansion
strategies
Global Presence
companies expanding into Saudi Arabia have

an average of 4 global offices at the time of
expansion
29%
of the businesses looking to
enter the Saudi market,
voted the appeal of its
sizable market and
promising potential as the
most compelling magnet
10
Introduction
Key Highlights
Navigating the process of opening a

bank account is a significant challenge
for the majority of businesses
Incomplete understanding of the

business expansion process is another
major key factor affecting businesses
65%
of companies rated the
process of relocating
families as challenging,
highlighting the
on-going need for a
third-party to ensure a
smoother transition for
their teams' families
Finding residential real

estate for the team was
considered as a top priority
for unlocking business
expansion in the Kingdom
11
Companies
Exploring
Expansion
to Saudi Arabia
In this section, we provide a
detailed breakdown of the
companies that are exploring
entry into Saudi Arabia.
The findings highlight the
motivators that are driving
them to the Saudi market,
while shedding light on key
challenges faced at this stage.
12
Companies Exploring Expansion to Saudi Arabia
Key Markets 26.5%

Data from 157 companies UAE
12.6%
7.3% Egypt
UK 9.3%
2%
Netherlands Pakistan 15.9%
2% Other
Ireland 1.3%
Germany
2% 4.6%
2% India
Canada France 2%
Singapore
1.3% 1.3%
1.3% Oman
USA Andorra
0.7% 0.7% 0.7%
Portugal 1.3% 0.7% Bahrain
Italy South Korea
Spain 0.7% 2%
0.7% Kuwait
Greece Australia
0.7%
Nigeria
By region
2%
From our expansion Australia/Oceania
3.3%
network, 20% of Africa 2%
3.3% Other
companies have Americas
expanded from the 7.3%
US, while at least UK
10% have expanded 13.9% 49.7%

from the UK. Europe
MENA
18.5%
Asia
Insight
Highlighting Saudi Arabia's rise as a global capital for business and
innovation, the diverse origins of companies expanding into its high-growth
market underscore its role as a platform to address not only regional
challenges but also contribute to global solutions. 50.3% of the surveyed
businesses that are looking to expand are coming from outside MENA, while
49.7% are expanding from within the region.
13
Leading Industries
Data from 157 companies
The largest number of responses came from the technology sector,

followed by both consultancy, and construction. The three sectors
together made up half of the respondent.
Technology, IT, and Software Education and Training
27.6% 2.6%
Consulting
Agriculture & Forestry
15.4% 1.9%
Construction and Manufacturing

Engineering
9.6%
1.9%
Finance/Financial Services Retail and Consumer Goods
7.7%
1.9%
Digital Marketing and Advertising Trading, Importing, and Exporting
5.1%
1.9%
FMCG Transportation and Logistics
5.1% 1.9%
Health, Wellness, and Beauty Other
4.5% 10.3%
Insight
The findings reveal a surging interest among both local and global
companies in Saudi Arabia, particularly within the technology,
consulting, construction & manufacturing sectors, to bridge crucial
innovation gaps essential for fulfilling giga-projects and achieving Saudi
Vision 2030 objectives. This surge also underscores the Kingdom's
emergence as a global testbed for innovation, supported by substantial
investments and a strong commitment to fostering innovation and
creativity.
14
Key Sources of Business Information

The majority of businesses surveyed said they tend to obtain desired

information from the government of Saudi Arabia or local partners.
Other popular sources include media, and economic reports.
14.3% 14.1% 13.4%

12.8%
11.9% 11.5%
10.2%
7.2%
4.6%
Partners
Media
Government
Others
Economic
reports
research
reports
reports
VC
Market
Consulting
In-house
team
Insight
The reliance on people-driven sources of information, such as
government entities and local partners, underscores the persistent
challenge of accessing comprehensive industry and market data for
companies entering the Saudi market. Improving access to accurate and
timely data is paramount in enhancing the market's competitiveness and
facilitating informed decision-making processes for businesses.
15
Timeframe for Market Entry

A significant portion of companies are looking to expand in less than a

year, indicating a recent surge in interest. This aligns with the prelude to
major events like the Riyadh Expo 2030. In total, 62% of the companies
exploring are looking to register within less than a year. Of which 48%
are looking to license in the next 3-6 months. Interestingly, only 6% of
companies are not looking to license within the next 2 years, or at all.
Looking to file for commercial

license in the next 3-6 months

license in the next 2-3 years
Not looking to file for

commercial license at all

license within 1 year
Still exploring the

Saudi market
0 20 40 60 70
Compay phase in the decision-making process of

expanding to Saudi Arabia
Insight
Many businesses entering the Saudi Arabian market are driven
by a sense of urgency to seize the unprecedented
opportunities presented by Vision 2030. Since 2018, there has
been a significant decrease in decision cycles, resulting in a
fourfold increase in the rate of business entry in 2024
compared to 2018.
16
Motivators Behind Expansion

Key Drivers for Entering Any New Market
Surveyed businesses selected ‘increase in revenue’ as the key driver of

expansion into any market as part of their expansion strategies.
41% 30.1% 21.8% 7.1%
Increase in Gateway to Overall wider Launch a

adjacent markets market access new product
revenue
Key Drivers for Entering Saudi Arabia
Bidding on
government tenders
Looking for local
investment
When assessing companies'
motivations for entering
Saudi Arabia, the appeal of
its sizable market and 29.3%
promising potential Economic 11.4% Market size
stability & potential
emerged as the most 11.8%
compelling magnet drawing
these businesses. 12%
14.1%
Fully foreign
ownership 13.7%
Business
Product
environment
market fit
Insight
Companies looking at Saudi Arabia as their next leg of expansion
are motivated by the sheer size of the market, a supportive
business environment, and economic stability; more than half of
respondents cite at least one of the three factors as their main
reason behind their decision to enter the Saudi market.
17
Challenges and Support Partners

One of the most crucial challenges companies face when expanding

into the Saudi market is finding clients.
1 Securing Clients and Partners
2 Market Landscape Analysis
3 Budgeting for Expansion
4 Local Taxation Knowledge
As part of our research, we focused on identifying the areas where

companies need the most support when planning a move to Saudi Arabia.
Out of the 157 respondents, 78% identified finding a business setup partner
as their top priority when expanding into the Saudi market.
1 Setup partner
2 Funding partner
3 Legal partner
4 Tax solution providers
Insight
To navigate the market seamlessly and enter the market
smoothly, companies are resorting to collaborate with partners
that are well-equipped to help them set up, find clients and
manage taxation.
18
Established
Operations
in Saudi Arabia
In this section, we provide a
detailed breakdown of the
companies currently
operating in the Kingdom.
Data used for analysis was
collected from 2018 - 2023.
The findings highlight the key

opportunities, challenges and
market drivers unique to
Saudi Arabia.
19
Operational Companies in Saudi Arabia
Company
Sizes
Data from 503 companies 15%
75% 10%
of companies
expanding generate
75%
a yearly revenue of
less than $50M.
LEGEND
10% Companies expanding that
of the companies generate >$50M annually
generate an annual Companies that generate

revenue between $50M - $100M annually
$50M to $100M. High-growth businesses that

generate $100M - $1B+ annually
15%
of the high-growth 13 companies
businesses generate generate $1B+ annually
a yearly revenue
between
$100M to $1B+.
Insight
Of the 13 companies worth a 1B+, the majority expanded over the past
year, indicating an increase in the entrance of larger companies as the
Kingdom becomes the global hub for business expansion, accelerating
its economic appeal. Moreover, the time gap between the initiation
and implementation stages has dramatically reduced among large
corporations. This falls in line with the 2030 Vision which aims to grow
private sector contribution to the GDP to 65% by 2030.
20
Sector Breakdown
The data findings are based on insights from 503 companies from over 50
countries, spanning across 20 industries. The largest contribution came from
the IT and Software sector, accounting for 30.4% of the participating
companies. This was followed by the construction and manufacturing
industry at 12.8%, and the consulting industry at 10.7%.
Technology, IT, and Software Health, Wellness, and Beauty
30.4% 3.1%
Construction and Manufacturing Retail and Consumer Goods
12.8% 2.3%
Consulting Transportation and Logistics
10.7% 2.3%
Finance/Financial Services Media
7% 2.1%
Digital Marketing and Advertising Food and Beverage
6.9% 1.7%
Events and Entertainment Education and Training
3.2% 1.5%
Insight
Mirroring a trend among companies considering a move into the
Saudi market, top industries where companies have established a
presence in Saudi Arabia include the technology, construction, and
consulting sectors. The growing influx of companies in these
verticals signals the untapped opportunities in light of the
government's commitment to increase the digital economy
contribution to GDP to 19.2% by 2025.
21
Awareness of
Special Economic Zones (SEZ)
41.7% 12.6% 45.7%

Companies Companies Companies
possessed limited demonstrated lacked
knowledge about a strong awareness of
SEZs in Saudi understanding SEZs in Saudi
of SEZs in Saudi
Insight
The recently launched special economic zones in Saudi Arabia
o er attractive incentives for companies considering a presence in
the country. Nevertheless, our research highlights a noticeable
disparity between the o cial announcements of these SEZs and
the level of awareness among businesses regarding their
existence and the benefits they o er.
22
Business Expansion Unlockers

For Companies Operating in Saudi Arabia
Opening bank account tops the list of challenges facing companies

operating in the Kingdom. Coming in second is the limited
understanding of the expansion process.
1 Difficulty in opening a bank account
2 Understanding the business expansion process
3 Securing residential real estate for the team
4 Finding an office for the company
5 Taxation framework
Building a team and navigating the funding landscape are

named the top hurdle for companies in the post-setup phase.
1 Building a team locally
2 Gaining access to funding partners
3 Limited knowledge of funding landscape
4 Language and fast cultural integration
5 Finding clients
Insight
Companies in Saudi Arabia are facing di culties in opening a bank
account, having a clear understanding of the expansion steps and
finding residential real estate for the team. By enhancing banking
guidance services for companies and facilitating access to real estate
resources, the entry process for companies into the Kingdom can be
further streamlined. In addition to this, building a team and hiring
personnel remained a key unlocker for businesses in the post set-up
phase, highlighting the importance of having support and business 23
partners.
Navigating Family Relocation

25% of the total companies that are operating in the Kingdom are
yet to relocate their teams’ families. Out of those who relocated,
35% rated their overall satisfaction from the relocation process as 7,
while 65% rated it as challenging.
65%
rated the process of relocating
families as challenging,
highlighting the ongoing need for a
third-party partner to facilitate
seamless integration for companies
entering the Kingdom, ensuring a
smoother transition for both
businesses and their teams' families
35%
said the process of the relocation
as smooth, rating their overall
satisfaction on average at 7 on a
scale from 0 to ten
Insight
While 35% of the companies surveyed rated the relocation process as
a fairly smooth one, our network of expansion companies have cited
residential real estate, schooling, and other lifestyles as key
requirements to adapting to this high-growth market.
24
Expansion Readiness at Point of

Entry
The majority of companies operating in Saudi Arabia reported having a

basic understanding of the market at point of entry.
Conducted thorough
research
Possessed basic
understanding
Established leads & formed

partnerships
Conducted comprehensive
market analysis
Lacked clear understanding

of local market dynamics
0 25 50 75 100
Insight
Despite a limited grasp of the Saudi market, companies surveyed

expressed a strong motivation and excitement to enter and
contribute to the development of sectors shaping the future of
Saudi Arabia. However, this highlights the need to establish
well-structured business networks and knowledge platforms to
further boost overall awareness of the market and enable faster
entry.
25
Hiring Saudi Nationals

The majority of the companies operating in the Kingdom have hired Saudi
nationals, and nearly half of them reported that the hiring process itself
was completed in less than a month.
4.3%
8-10 months
4.3%
5-7 months
47.8%
hired Saudi nationals
in less a month
43.5%
hired Saudi nationals in
less than 2-4 months
Insight
The ability of 47.8% of companies to hire Saudi nationals in less
than a month highlights the abundance of readily available
talent in the local workforce. While companies are required to
remain compliant with the Saudization law, this data also
suggests a growing demand for skilled Saudi professionals who
are well-versed in the local market and its demands.
26
●
Recommendations
27
Recommendations
who identified finding a business setup

Recommendations
partner as their top priority when
In this section, we explore the key expanding into Saudi Arabia.
actionable insights that can further
streamline business expansion into
Saudi Arabia. Our recommendations
2 ECultural
NHANCE
Integration and
include establishing robust support
Family Relocation
networks, enhancing cultural
Streamlining the family relocation
integration and family relocation,
process is crucial for attracting
building knowledge references,
expanding businesses, with 65%
boosting funding accessibility, and
requiring third-party assistance.
increasing office space availability.
Prioritizing suitable living
arrangements, especially residential
real estate for teams, is key to
ESTABLISH
1 Business Support Networks
unlocking business expansion in the
Kingdom. The government's active
The consensus regarding key business focus on delivering 555,000
unlockers highlights the importance of residential units by 2030, including
establishing robust business and 200,000 in Riyadh alone, addresses
support networks that bridge local the housing demand. The evident
and international companies in Saudi surge in construction businesses
Arabia. These networks facilitate operating in Saudi and looking to
knowledge-sharing, easing the expand to this market indicates
navigation of the business landscape proactive efforts to meet this demand,
and addressing challenges like client showcasing the Kingdom's appeal to
acquisition and accessing the latest businesses crucial for fulfilling this
market insights. By connecting new need. To further deepen cultural
entrants with experienced integration, awareness about
professionals, industry experts, and schooling and cultural activities should
local partners, these networks can be enhanced to ensure a smoother
streamline entry into the Saudi transition into the Kingdom.
market. This aligns with the priorities
of 78% of respondents, 28
28
Recommendations
BUILD In 2023, Saudi Arabia ranked first in

3 Knowledge References venture capital funding in the MENA
region, securing a total of $1.38
The findings of this report reveal a
billion, for the first time. This
need for enhanced awareness among
achievement highlights the
businesses regarding the complexities
importance of strengthening the
of expanding into Saudi Arabia. To
network between businesses and
address this, avenues such as
investors to cultivate a more
workshops, seminars, and online
innovative business environment
resources can be utilized to provide
overall.
comprehensive insights into the legal,
economic, and cultural aspects of
INCREASE
conducting business in the Kingdom.
This knowledge deficit is particularly 5 Office Space Availability
crucial to address, as an incomplete
As business expansion in Saudi Arabia
understanding of the expansion
accelerates, it becomes increasingly
process hinders the progress of many
vital to address the availability of
businesses. Additionally, platforms
adequate office spaces, to cater to this
like setupinsaudi.com serve as unified
rising demand. Developing new
resources, delivering a comprehensive
commercial real estate facilities from
understanding of the process to
grade-A offices to accessible
companies from various sectors.
co-working spaces is essential to
enable the effective operation of
businesses in the country. This
BOOST
4 Funding Accessibility imperative arises from the need of a
substantial portion of foreign
Analyzing data from the surveyed businesses, with 50% intending to
reponses, the report highlighted the secure private office spaces in less
importance of offering companies than a year. Ensuring sufficient office
more diverse funding opportunities for infrastructure not only accommodates
businesses through avenues such as to the immediate needs of businesses
venture capital, banking loans, but also lays the foundation for
alternative investment opportunities sustained growth and investment,
alongside government grants. This will fostering a conducive environment for
lead to accelerated innovation and economic development in Saudi
encouraged expansion plans for Arabia.
regional and global pioneers. 29
29
Appendix
About the Report
30
Appendix
About The Report

The report sheds light on the current Together, these diverse threads
untapped opportunities for entering intricately weave a comprehensive
Saudi Arabia and gives insight into outlook, offering a nuanced
effective decision-making in future understanding of Saudi Arabia's
conversations around improving the enticing business landscape and
overall business landscape in the the enterprises poised to make
Kingdom. their mark within it.
Moreover, the report provides a

comprehensive outlook on the future
of Saudi Arabia by gauging the Data From
current drivers for expansion and 660 Companies
giving a glimpse into the potential
economic impact of the fast-tracked
are AstroLabs
movement of companies to the 430
high-growth businesses
Kingdom.
The data collection process spanned

In addition to
an extensive outreach strategy
encompassing our database in Saudi 230 Survey
Arabia, regionally and globally, as Responses
well as the analysis of our 600
high-growth businesses that we
expanded into the Kingdom since
2018.
To complement the data, we

launched the AstroLabs 2023 Market
Entry survey to our network, which
gathered 230 responses.
Disclaimer: Remaining data from the AstroLabs 600 companies is either not
available, confidential or undisclosed. Data collection from this particular source
was from our portfolio of 430 companies alone.
31
Appendix
About The Survey

We distributed the AstroLabs 2023
Market Entry survey to our network, Respondents mainly fall
and gathered 230 responses over a under four main categories.
period of 3 months. Additionally, we
reached out to 15 partners to further Companies that are:
tap into our network and diversify Exploring the opportunity to
responses, alongside engagement expand to the Saudi market
through social media, events, and
webinars that targeted global
Operational and licensed
expansion.
Operational and have begun

their licensing process
Survey gathered Operational with no license

230 Responses
of which 15 partners
contributed to outreach
Diverse sources of collection from

the AstroLabs database, events,
webinars, and our partner
network.
*A special thank you to our

primary survey distribution
partner HALA Ventures.
32
●
2023 SAUDI MARKET

ENTRY REPORT

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2023 SAUDI MARKET ENTRY REPORT

Message from the CEO, Roland Daher 5

Companies Exploring Expansion to Saudi Arabia 12

Operational Companies in Saudi Arabia 19

Company Size Information

As we stand at the midpoint of Saudi Vision

The 2023 Saudi Market Entry Report analyzes

To diversify its economy, the Kingdom is poised to

The Saudi market presents an once-in-a-lifetime

Advancing on the innovation front, Saudi

The ﬁndings in this report are a testament

48% of companies exploring the

88% have little to no

4x Accelerated Entry 2x Company Size

companies expanding into Saudi Arabia have

Navigating the process of opening a

Incomplete understanding of the

Finding residential real

Key Markets 26.5%

10% have expanded 13.9% 49.7%

The largest number of responses came from the technology sector,

Technology, IT, and Software Education and Training

Construction and Manufacturing

Finance/Financial Services Retail and Consumer Goods

Digital Marketing and Advertising Trading, Importing, and Exporting

FMCG Transportation and Logistics

Health, Wellness, and Beauty Other

Key Sources of Business Information

The majority of businesses surveyed said they tend to obtain desired

14.3% 14.1% 13.4%

Timeframe for Market Entry

A signiﬁcant portion of companies are looking to expand in less than a

Looking to ﬁle for commercial

Looking to ﬁle for commercial

Not looking to ﬁle for

Looking to ﬁle for commercial

Still exploring the

Compay phase in the decision-making process of

Motivators Behind Expansion

Key Drivers for Entering Any New Market

Surveyed businesses selected ‘increase in revenue’ as the key driver of

41% 30.1% 21.8% 7.1%

Increase in Gateway to Overall wider Launch a

Key Drivers for Entering Saudi Arabia

Challenges and Support Partners

One of the most crucial challenges companies face when expanding

1 Securing Clients and Partners

2 Market Landscape Analysis

3 Budgeting for Expansion

4 Local Taxation Knowledge

As part of our research, we focused on identifying the areas where

4 Tax solution providers

The ﬁndings highlight the key

generate an annual Companies that generate

$50M to $100M. High-growth businesses that

Technology, IT, and Software Health, Wellness, and Beauty

Construction and Manufacturing Retail and Consumer Goods

Consulting Transportation and Logistics

Finance/Financial Services Media