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 gross domestic product per capita of Saudi Arabia is projected to reach 27,950.04 U.S. dollars in 2027. Due to the large reserves of petroleum, the domestic cost of energy is low. The Saudi government also plays a significant role in encouraging private investors to provide incentives and duty-free access. Hence, starting a business in Saudi Arabia is a wise decision for making money.
Here are the best profitable small business opportunities you can start with low investment in Saudi Arabia:
25 Business Ideas in Saudi Arabia
1. Construction Business
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 to get 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 Business
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 sources reducing fuel pollution. You can invest in the solar energy sector in production, sales of solar panels, solar installations, etc.
3. Education Business
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 programs 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.
4. Healthcare
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.
5. ICT
Saudi Arabia is the region’s largest IT market with strong growth in consumer and enterprise-end markets. Huge public investments in infrastructure, health, and education have paved the way for advanced technology and security systems in the country. The government planning for the industry to raise its contribution to the GDP by 20 per cent by 2022.
6. Processed Foods
Due to the lack of availability of fresh foods, processed foods are in high demand in this part of the world. 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 a professional background in finance, engineering, medicine, nursing, etc are always in demand in the country 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 and finding ways of using water much more efficiently and sustainably. The water industry is also a major energy user, creating a carbon impact that will need to be tackled. This offers huge opportunities for companies operating in the water and waste sector to invest in this part of the world.
10. Security and Defense
The defense and security sector is one of the important sectors in Saudi Arabia. This sector provides huge opportunities for investors. Security is a fast-growing sector that is currently estimated to be worth between SR 2.27 – 2.51 billion ($605 – $670 million.)
11. Become a Scrap Dealer
Buying and selling scraps is a profitable business in Saudi Arabia. If you looking for a metal-related business with low investment, consider starting a scrap dealership business.
12. Recycling Business
Saudi Arabia is a major market for scrap metal recycling. As a matter of fact, nearly 6% of the total exports in the country are aluminum scrap. If you have the required funds, start a recycling business in this part of the world.
13. Renewable Energy
Saudi Arabia presents ample opportunities in the renewable energy sector as the focus is increasing on reducing the dependence on fossil fuels. Entrepreneurs can venture into solar energy projects, wind farms, and other renewable energy initiatives supported by government incentives and favorable regulatory frameworks.
14. Fintech and Digital Payments
The rise of fintech and digital payments presents significant opportunities for entrepreneurs to innovate in Saudi Arabia’s financial services sector. Launching fintech startups focused on mobile banking, peer-to-peer lending, digital wallets, and blockchain-based solutions can address evolving consumer preferences and drive financial inclusion.
15. Logistics and Transportation
Saudi Arabia offers fertile ground for entrepreneurs in the transportation and logistics sector, because of its strategic location. You can launch logistics startups specializing in last-mile delivery, freight forwarding, cold chain logistics, and warehousing solutions and can address the growing demand for efficient supply chain management.
16. Entertainment and Leisure
Saudi Arabia continues to diversify its economy and enhance its entertainment offerings. Hence entrepreneurs can explore opportunities in the entertainment and leisure industry. You can invest in theme parks, entertainment complexes, cinemas, and recreational facilities and cater to the evolving leisure preferences of residents and tourists.
Home-Based Online Business Ideas in Saudi Arabia
17. Start a Blog
If you are looking for a legitimate home-based online business from the comfort of your home, starting a blog is a good option. There are millions of people all across the globe making huge money blogging. If you are interested, check out our guide on how to start a blog and make money easily.
18. Start an eCommerce Business
Nowadays, starting an eCommerce business is not at all costly. Several e-commerce website builders will help you start your e-commerce business online within a few minutes. If you are looking for e-commerce ideas, check the following article.
Read: Best Ecommerce Business Ideas
19. Online Tutoring
The business of tutoring online has grown exponentially in the last few years. The recent pandemic has also helped in the growth. If you are a subject expert, online tutoring can fetch you high returns.
20. Digital Marketing Agency
Starting a digital marketing agency in Saudi Arabia can be a lucrative venture due to the increasing demand for online marketing services. You can offer services like search engine optimization (SEO), social media marketing, content marketing, email marketing, pay-per-click (PPC) advertising, website design and development, and more to your clients.
New Business Ideas in Saudi Arabia
21. Virtual Events and Entertainment
There is a growing demand for innovative digital experiences in Saudi Arabia. You can capitalize on this trend by launching virtual event planning and management services, offering virtual reality (VR) entertainment experiences, or developing interactive online platforms for concerts, conferences, and exhibitions.
22. Health and Wellness Tech
The pandemic has accelerated the adoption of health and wellness technologies worldwide. And Saudi Arabia is no exception. You can explore opportunities to develop health and wellness apps, wearable devices, telemedicine platforms, and digital fitness solutions tailored to the needs of the Saudi market.
23. Sustainable Fashion and Beauty
In the last few years, there has been a rising demand for eco-friendly and ethically sourced fashion and beauty products in Saudi Arabia. Think of launching sustainable fashion brands using eco-friendly materials, implementing green practices in beauty salons and spas, or creating online platforms for buying and selling pre-owned fashion items.
24. Smart Home Solutions
The kingdom’s focus on smart city initiatives and digital transformation has been increasing for the last few years. There is a growing demand for smart home solutions that enhance convenience, security, and energy efficiency. You can develop and install smart home devices such as smart locks, thermostats, lighting systems, and security cameras.
25. AgriTech and Vertical Farming
Saudi Arabia is investing in Agritech solutions and vertical farming technologies to enhance food security and promote sustainable agriculture, You can capitalize on this trend by developing innovative AgriTech solutions such as precision agriculture tools, hydroponic systems, and vertical farming setups.
How to Start a Business in Saudi Arabia
Frequently Asked Questions
How to Start a Business in Saudi Arabia?
The process of opening a legally compliant business in Saudi Arabia depends on several factors. The two most important ones are the nature of business and the citizenship of the entrepreneur. The basic process to form a company in Saudi Arabia is mentioned below:
- Register a company name.
- Apply at General Investment Authority.
- Notarize required documents.
- Publication in Official Gazette.
- Open a business bank account.
- Setup an Office.
- Register in Commercial Registry.
- Apply for membership at the Chamber of Commerce.
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 comprises almost half of the GDP of the country.
The working class is largely sourced from other countries. More than 80% of employees in 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.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.
