Are you looking for the best small-scale business ideas to start a business in Saudi Arabia? If so, read this article to know more about the list of profitable businesses one can start in this country.
The Saudi Arabian economy is considered to be among the top 25 largest economies in the world. It is the largest economy in the Middle East and North Africa Region. The Saudi Arabian economy is one of the world’s fastest-growing economies worldwide. The per-capita income forecast is projected at USD $33,500 by 2020. Due to the large reserves of petroleum, the domestic cost of energy is very low. The Saudi government also plays a significant role in encouraging private investors providing incentives and duty-free access. Hence, starting a business in Saudi Arabia is a wise decision for making money.
List of Top 10 Small Business Ideas in Saudi Arabia
Saudi Arabia is one of the fastest growing construction markets in the world. The Government in Saudi Arabia is encouraging investors to invest in improving infrastructure, transport, education, and real estate. This creates big opportunities for entrepreneurs in getting involved in construction-related activities. It is estimated that there is a USD $100 billion planned investment over the next 10 years in transport projects.
2#. Solar Energy
The hot climate of Saudi Arabia is perfect for solar energy production. The Government is also encouraging investment in solar power creation for alternate power source reducing fuel pollution. You can invest in the solar energy sector in production, sales of solar panels, solar installations, etc.
Saudi Arabia is the world’s 8th highest education spender. The government encourages investment in building new educational institutes and funding overseas degrees and training programmes for Saudi students. With the increase in investment from foreign countries, Saudis are in urgent need of learning English to communicate better in English. English language tutoring is surely a profitable earning opportunity in the education sector in this Arabian country.
Saudi Arabia is the largest market for medical equipment and healthcare products in the Middle East. There are huge opportunities to meet the demand for healthcare solutions for the growing population of the country. You can invest in the healthcare value chain including medical education, research, facilities, provision, and reimbursement.
Saudi Arabia is the region’s largest IT market with strong growth in consumer and enterprise end markets. Huge public investments on infrastructure, health and education have paved the way for advanced technology and security systems in the country with the government planning for the industry to raise its contribution to the GDP by 20 percent by 2020. The IT market in the country was valued at USD $3.6 billion in 2011 and is expected to go up to USD $4.9 billion by 2014.
6#. Processed Foods
Due to the lack of availability of fresh foods, processed foods are of high demand in Saudi Arabia. You can start a quick service restaurant selling fresh food items or import fresh ones and process them as per demand.
7#. Consumer and luxury goods
Because of the high purchasing power of average Saudi citizens, consumer and luxury goods business is surely a profitable business sector in Saudi Arabia.
8#. Financial and professional services
People with the professional background of finance, engineering, medical, nursing, etc are always in demand in Saudi Arabia as there is a shortage of competent professionals from domestic sources.
9#. Water and Wastewater
The hot climate of this Arabian country encourages accessing new water sources, find ways of using water much more efficiently and sustainably. The water industry is also a major energy user, creating carbon impact which will need to be tackled. This offers huge opportunities for companies operating in the water and waste sector to invest in this p[art of the world.
10#. Security and Defense
Defense & Security sector is one of the important sectors in Saudi Arabia. This sector provides huge opportunities for investors. Security is a fast growing sector which is currently estimated to be worth between SR 2.27 – 2.51 billion (USD $605 – $670 million.)
Saudi Arabia is the only Arab country to be nominated as a member of the G20. The country is mostly dependent on its oil industry. It, in fact, comprises almost half of the GDP of the country. The working class is by and largely sourced from other countries. More than 80% of employees in the private sector companies are outsourced from foreign countries.
The Kingdom of Saudi Arabia has a very fast growing economy – GDP growth in 2012 reached over 6%. The booming economy is creating great opportunities for both exporters and investors. These are further boosted by moves to diversify the economy away from dependence on oil and gas, economic reform, market liberalization, and a growing private sector. If you are looking for a good return on your investment, Saudi Arabia is the country you must explore.