Brexit has not been out of the news since the June referendum and you don’t have to look far to see the uncertainty that is being felt by companies across the UK and the rest of the EU. Very few know what is in store for the UK and what that means for the other EU companies that currently trade with the UK. Protecting your exports has never been more important that it is now.
The companies that are looking to export to other territories are still pushing on with their plans despite the EU uncertainty. We have seen more companies making inquiries into the Middle East than ever before.
Why Saudi Arabia?
Saudi Arabia is the largest economy in the Middle East, it has a stable government and currency which has seen no significant changes in its exchange value for the last three decades.
With its diversification away from oil, it is making itself increasingly attractive to outside investment including many opportunities coming from increasing government investment in infrastructure, housing, healthcare and education.
Key reasons for investing in Saudi Arabia include:
- It is one of the world’s 25 largest economies and the largest economy in the Middle East and North Africa.
- It has low setup cost and low corporate tax advantages.
- It provides duty-free access to other Middle Eastern economies with good transport and infrastructure which will soon be supported by a national rail system.
- The country’s population has an average annual increase of 2.54 percent with 72 percent ranging between 15-64 years of age.
- Saudi Arabia is a key member of the Gulf Cooperation Council (GCC)
There are several benefits for UK businesses exporting to Saudi Arabia including:
- It is the UK’s largest trading partner in the Middle East.
- Strong moves to diversify the Saudi economy.
- Government investment in transport, infrastructure, healthcare, education and energy.
- English language is commonly used and there is a good understanding of Western business practices.
What are the opportunities for European companies in Saudi Arabia
The Vision 2030 plan to diversify the economy away from oil has resulted in an increase in government spending on infrastructure and welfare. There have been announcements on major projects in;
- Power and renewable energy
- Water and waste management
- Oil, gas and petrochemicals
- Communications, data and IT
- Construction including affordable housing, healthcare and education centres
For UK companies ready to invest in Saudi Arabia, there are large numbers of opportunities already available with an increase in project announcements leading up to 2030. If you are looking to export your good or services to the UK and need some assistance then please contact our team.
Inquire today and see how Proven can take your business to Saudi Arabia.