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While NEOM and Red Sea Project grab headlines, I've noticed something interesting happening in Saudi Arabia's emerging business districts. Last month alone, I guided three medium-sized UK companies into opportunities they hadn't even considered when they first looked at Saudi Arabia.
With every mega project, there's an entire ecosystem of smaller businesses needed to make it work. These aren't just construction opportunities - they're long-term business needs that someone needs to fill.
Take what's happening in Riyadh's new King Abdullah Financial District (KAFD). Everyone talks about the major financial institutions moving in, but here's what's really interesting: there's growing demand for everything from specialised facility management to corporate training services. One of our clients, a boutique UK training company, found more business opportunity here than in their established UK market.
In Madinah's Knowledge Economic City, we're seeing unexpected opportunities in education technology and research services. A small British research consultancy recently secured a significant contract there - precisely because they weren't a giant multinational and could offer specialized attention.
This is where it gets interesting. Saudi's new cities aren't just creating opportunities in obvious areas. They're opening up gaps in supply chains that many haven't noticed. A client in specialized industrial cleaning equipment discovered their niche when larger companies overlooked these essential services.
Being smaller can actually be an advantage in Saudi Arabia right now. Local partners often prefer working with companies that can move fast and be agile :
- Adapt quickly to market needs
- Offer personalized service
- Make fast decisions
- Provide specialized expertise
I saw this work beautifully when a medium-sized British technology company partnered with a Saudi service provider. Their ability to customise solutions and make quick decisions won them contracts over larger competitors.
A recent example stands out. A UK-based sustainable facilities management company entered Saudi thinking they'd bid on mega project contracts. Instead, they found their sweet spot providing specialized services to new business districts in Jeddah. They're now expanding across the Kingdom.
What excites me about Saudi's development is how it's creating opportunities at every level. Yes, the mega projects are impressive, but the real story is in the ecosystem developing around them.
For companies considering Saudi entry, my advice is simple: look beyond the obvious. The opportunities might not be where you expect, but they're often more accessible and sustainable than competing for the high profile projects.
Want to explore what opportunities might exist for your business? Let's talk about where you might fit in Saudi's evolving business landscape.
-Alistair
setup@peninsulacs.com
Alistair leads Peninsula's Business Setup Division, bringing over 15 years of experience in Saudi market entry. Alistair has helped thousands of international companies successfully establish and grow their presence in the Kingdom. Working closely with government entities and maintaining strong relationships with key stakeholders, Alistair and his team provide practical, solution-focused guidance for businesses entering the Saudi market.
