Five Leading Sectors in Saudi Arabia with Growth Opportunities

In the first quarter of 2024, Saudi Arabia topped the G20 in GDP growth, with the non-oil sector, especially activities related to wholesale and retail trade, restaurants, and hotels, contributing significantly.

At the same time, the country climbed to 16th place in the World Competitiveness Index, ranking first in employment and labor force long-term growth, social cohesion, and the percentage of the population with internet access.

All these achievements highlight the Kingdom’s success in diversifying its economy, a continuing trend that has opened many lucrative opportunities that companies can leverage in key sectors of the economy such as mining, IT, construction, logistics, and tourism.

Key Highlights

• Since 2021, the mining sector has seen a 138% increase in exploitation licenses.
• ICT spending in the Kingdom is projected to reach $37.5 billion.
• Saudi hospitality revenues are forecast to grow by 7.5% from 2023 to 2028.
• Public spending on the cloud in the Kingdom is expected to reach $2.4 billion in 2024 and $4.7 billion in 2027.

The Construction Sector is Poised for Sustained Growth

The boom in Saudi Arabia’s construction sector is largely driven by the rapidly expanding tourism sector, ambitious Giga projects, and substantial investments in strengthening infrastructure as demand for residential and commercial properties increases.

The most prominent of the giga projects are Diriyah Gate, Amaala, the Red Sea, Qiddyah and ROSHN, and NEOM, all of which are attracting both domestic and international investments and fueling most of the construction surge.

In addition to these mega-projects, the Kingdom has heavily targeted efficiency in its infrastructure projects in recent years, which has been crucial in sustaining the sector's growth. Efforts include streamlining processes, adopting advanced technologies, and implementing stringent project management practices to ensure the timely and cost-effective completion of projects.

The combination of these efforts positions the Saudi market to be the largest worldwide by 2028, with an output value worth $181.5 billion, providing companies with compelling growth opportunities and resounding success.

The fast-changing dynamics in the construction scene have attracted global attention, particularly from international players who seek to gain a first-mover advantage by entering the Kingdom.