The announcement of President Donald Trump’s visit to Saudi Arabia in May 2025, part of his first overseas trip since taking office, has captured the attention of global business leaders. This high-profile visit underscores the strengthening of US-Saudi Arabia relations, creating a fertile ground for American companies eyeing expansion in the Kingdom. For executives considering business setup in Saudi Arabia, this moment highlights the Kingdom’s growing appeal as a strategic market, driven by Vision 2030 and a robust economic partnership with the United States. At Peninsula, with 15 years of experience guiding companies like Amazon and Best Western through company formation and tax structuring, we see Trump’s Saudi Arabia visit as a catalyst for new opportunities.
President Trump’s decision to include Saudi Arabia in his May 13-16, 2025, itinerary, alongside the UAE and Qatar, signals a deliberate focus on deepening economic ties. The White House has confirmed that this trip aims to build on the $1 trillion investment pledge Saudi Arabia made to U.S. companies over the next four years, echoing the $450 billion commitment from Trump’s first term. These investments span technology, defense, and infrastructure, aligning with Saudi Arabia’s Vision 2030 goal to diversify its economy beyond oil. For business leaders, this strengthening of US-Saudi Arabia relations translates into tangible opportunities, particularly in a market with a $1.1 trillion GDP and a non-oil sector growing at 4.8% annually.
The Kingdom’s strategic location, connecting Asia, Europe, and Africa, combined with its young, tech-savvy population, makes it an attractive hub. However, success requires understanding the local business environment. Peninsula, founded by Alistair Paine, has helped multinational corporations navigate these complexities, from securing commercial licenses to forming local partnerships, ensuring a smooth market entry.
The impact of strengthened US-Saudi Arabia relations is evident in the growing presence of American companies in the Kingdom, particularly through the Regional Headquarters (RHQ) program launched in 2021. This initiative encourages foreign firms to establish regional hubs in Saudi Arabia to access government contracts, offering incentives like 30-year corporate tax exemptions and relaxed employment regulations. The response has been significant, with over 600 foreign companies, many from the U.S., setting up headquarters in Riyadh by early 2025.
Major technology firms have led the charge. Amazon, for instance, secured an RHQ license to expand its e-commerce and cloud computing services (AWS), capitalizing on Saudi Arabia’s $2.4 billion cloud market. Google and Microsoft have followed suit, aligning with the Kingdom’s digital transformation goals and a projected $4.7 billion public cloud market by 2027. Financial giants like Goldman Sachs and Morgan Stanley, the latter approved for its RHQ in November 2024, are tapping into Saudi Arabia’s financial reforms, driven by the Public Investment Fund’s $7 billion in assets. Defense contractors such as Raytheon and Lockheed Martin support the Kingdom’s military modernization, while consumer brands like PepsiCo, with a new headquarters in Riyadh’s King Abdullah Financial District, cater to a growing middle class.
This influx reflects Saudi Arabia’s broader economic transformation. The Kingdom’s $800 billion infrastructure projects, including NEOM and Qiddiya, have attracted firms like Bechtel, while healthcare and pharmaceutical companies like Pfizer leverage opportunities in virtual hospitals and innovation.
For executives inspired by Trump’s Saudi Arabia visit to explore business setup in Saudi Arabia, understanding the local landscape is critical. The RHQ program offers significant advantages, but compliance with regulations and cultural nuances can be challenging. Saudi Arabia’s 20% corporate tax rate, the lowest among G20 nations, and exemptions for RHQ-compliant firms make it financially attractive. However, setting up a regional headquarters requires strategic planning, including choosing the right entity structure and meeting Saudization requirements for local hiring.Peninsula’s expertise lies in simplifying this process.
Peninsula’s role as a trusted partner stems from our deep understanding of Saudi Arabia’s regulatory and business environment. Founded by Alistair Paine, we’ve spent 15 years helping entrepreneurs, SMEs, and multinationals like Amazon and Best Western establish a presence in the Kingdom. Our services cover every aspect of business setup in Saudi Arabia, from commercial licensing and entity formation to tax advice and local partnerships. We combine regulatory knowledge with practical acumen, ensuring your expansion is efficient and compliant.
As Trump’s Saudi Arabia visit highlights the Kingdom’s openness to American businesses, Peninsula stands ready to guide you through this dynamic market.
President Trump’s visit to Saudi Arabia in May 2025 marks a pivotal moment for US-Saudi Arabia relations, reinforcing the Kingdom’s status as a global business hub. The growth of American companies, from tech giants like Microsoft to financial leaders like Goldman Sachs, underscores the opportunities in Saudi Arabia’s transforming economy. For business leaders, the key to success lies in strategic planning and local expertise. Peninsula, with our proven track record and commitment to simplifying company formation, is your partner in navigating this vibrant market. Whether you’re exploring your first venture or expanding an existing operation, we’re here to help you thrive.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
