New business success index identifies key factors for thriving in Saudi Arabia amid 33 percent expansion urgency

AstroLabs, a Dubai-based business expansion platform, has released the second edition of its Saudi Arabia Market Entry Report, which introduces the first-ever Saudi Success Index for foreign companies, revealing five key factors that accelerate business growth in the Kingdom of Saudi Arabia. The report is based on insights from over 1,200 global companies across more than 23 countries considering entering the Saudi market in 2024.

Key highlights of the report include: 64% of businesses are actively seeking immediate entry into the Saudi market, within the first 1-3 months of 2024, indicating a growing urgency for companies to expand into the market. Concurrently, 52% of international companies considering expansion in Saudi Arabia originate from Asia, the Americas, and the United Kingdom.

The first Saudi Success Index for foreign companies reveals that localization and market integration are the primary drivers of success in Saudi Arabia, emphasizing that long-term commitment is crucial for accelerating achievements in the Kingdom. Furthermore, among over 1,000 companies considering expansion in Saudi Arabia, 81% cite the country's vast untapped market potential as their main motivation.

The Saudi economy is accelerating its development, aiming to set global standards and attracting businesses from around the world eager to capitalize on the current momentum. The report indicates that approximately 64% of businesses are actively seeking to enter the Saudi market within 1-3 months of 2024, representing a 33% increase in urgency compared to 2023. The trend of international companies expanding into Saudi Arabia from outside the MENAT region is also on the rise, showing an 18% increase compared to 2023.

The report also emphasizes that deeper localization is crucial for successful market expansion strategies. Consistent adherence to regulations and industry-specific frameworks is essential for sustainable growth. Findings from the Success Index further suggest that a long-term commitment to the Saudi market ensures a better return on investment. IT, construction, and consulting are the top industries attracting the most global businesses to the Kingdom of Saudi Arabia in 2024, indicating a continued influx of foreign capital to meet the country's current economic needs. This trend aligns with Saudi Arabia's national strategic objectives aimed at advancing "Vision 2030" and its economic transformation roadmap.