Can foreign investors start a business in Saudi Arabia? Yes, of course. Saudi opens its door for foreign investors in order to prepare the country for Saudi 2030. If you want to expand your IT business, starting an IT business in Saudi Arabia is an excellent business move.
The Prospect of Starting an IT Business in Saudi Arabia
The ease of doing business index of Saudi Arabia may not be as high as its neighboring country, UAE. However, doing business in Saudi is considered as an easy task. Therefore, if you have a plan to start an IT business in Saudi Arabia, you can go ahead with this plan.
In addition, Saudi IT business is considered a promising and profitable sector for several reasons.
- Saudi is the Biggest IT Market in MENA Region
The country is the biggest IT market in the Middle East and North Africa. It is predicted that the IT spending of Saudi Arabia will reach $46.6 billion by 2023.
Moreover, around 37% of households in Saudi are covered by fiber optics.
This number is expected to increase in the upcoming years. Therefore, the Saudi IT sector promises profitable opportunities for local and foreign investors.
- Saudi Government is Developing Digital Infrastructure
Currently, Saudi is developing digital infrastructure as a part of the preparation for Vision 2030. This development aims to attract more investors to invest in various non-oil sectors.
Moreover, the country is also developing SMART cities with SMART infrastructure.
To develop this infrastructure, the government collaborates with private companies and investors. In consequence, international IT companies and investors will have the opportunities to enter Saudi IT industry.
- The Government Aims to Become the Leader in E-Government
In order to become the leader in e-government, Saudi is actively expanding its government online services. It is expected that this service will cut delays in business practice and offer transparency for investors.
The government of Saudi Arabia will likely need assistance from IT private companies to reach this objective. Therefore, foreign investors will have a profitable opportunity to enter the IT industry of this country.
- The Government is Supporting Small and Medium-Size Enterprises
Saudi is trying to boost the development of non-oil sectors by supporting small and medium-size enterprises. One of the supports given to SMEs is assisting them in selling their products and services via e-commerce.
Tips in Starting an IT Business in Saudi Smoothly
Starting an IT business in Saudi allows you to reach high ROI if you have the right market strategy. You may find some challenges from your competitors when starting this business.
In consequence, you need Saudi competitive intelligence before planning any business strategies.
Competitive intelligence is about information on the competitions presented in the industry, such as the competitors’ weaknesses and strengths, their customers’ preference, and their products and services. You can collect this information on your own or hire a market and business consultant to do it.
IT business is one of the most promising non-oil sectors in Saudi Arabia. Setting up an IT business in this country is perfect for global investors and business owners who have vast experience in the IT industry.