Setting Up Your Singaporean Company in Saudi Arabia: Emerging Sectors to Capitalize On
Explore opportunities in construction, tech, fintech, logistics, manufacturing, and aviation sectors in Saudi for your Singaporean company.
Trade volumes between Saudi Arabia and Singapore stood at an impressive $12 billion annually. The growing relationship between both countries lays a solid foundation for Singapore-Saudi business expansion, actively contributing to Vision 2030's objective of establishing Saudi Arabia as a global business hub.
A prime example is the recent Memorandum of Understanding (MoU) signed between the two countries. It aims to strengthen legal and judicial cooperation, including developing a conducive legal environment to better support businesses.
By aligning visions for sustainable development, both countries are creating a solid economic corridor that sets the stage for stronger collaborations and more impactful Singapore-to-Saudi Arabia investments.
Urban Development and Logistics Sectors Attract Singaporean Companies
The giga-projects in Saudi Arabia unlock many cross-border business opportunities for companies involved in urban development and infrastructure. The Kingdom, seeking to modernize its cities with sustainable designs and innovative technologies, is awarding contracts to global businesses, including Singaporean firms.
In a recent high-profile deal, Singapore-based architectural firm Swan & Maclaren Group (SMG) secured a $28 million contract to design the lighting for the upcoming Six Flags Qiddiya theme park in Riyadh, which is known to become the world’s largest theme park.
The contract represents SMG’s first illumination engineering work for a mega theme park in the Middle East and is expected to be completed before 2025.
This project, among many others, highlights the increasing opportunities for companies with expertise in urban infrastructure and technology-driven solutions. From smart city projects to large-scale entertainment complexes, Saudi Arabia keeps targeting global expertise to help bring these developments to life.
The recent signing of seven deals between Saudi Arabia and Singapore, including MoUs targeting the fields of ports, transportation, and logistics services, makes the Saudi market a key draw for Singaporean firms working in these sectors.
Additionally, there is a growing demand for efficient and effective port operations, leading to opportunities for Singaporean firms offering services such as stevedoring, cargo handling, and terminal management.
As the Saudi logistics sector develops, the demand for efficient delivery and shipping services is set to intensify. From there, the Kingdom is poised to be a preferred destination for international business expansion among Singaporean logistics companies and a launchpad for the latest technologies in supply chain management.
Defense & Auto Tech Manufacturing are Focus Areas of Cooperation for Singaporean Companies
The manufacturing industry is another sector that’s rapidly evolving and providing exciting opportunities for Singaporean companies.
With the goal to strengthening the sector, at the beginning of the year, Saudi Arabia and TRD Singapore signed an agreement to manufacture the Orion-H9 radio frequency jammer locally. Announced at the World Defense Show (WDS) in Riyadh, the joint venture between TRD Singapore and Rakaa Holding will produce this advanced system within Saudi Arabia, which marks a big milestone in local defense manufacturing.
TRD Singapore has also revealed plans to expand manufacturing capabilities to include other advanced handheld systems and mobile solutions. This not only opens doors for foreign manufacturers but also positions Saudi Arabia as a growing hub for high-tech manufacturing, particularly in the defense and technology sectors.
Besides defense technology, the automotive industry is another field of close collaboration at the state level. Automotive technologies were considered a key topic of discussion during the Saudi delegation’s recent visit to Singapore and China, led by Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef.
The visit aimed to explore partnership and investment opportunities between the two countries in the automotive sector, with a focus on electric and autonomous vehicles.
The outcomes of the visit play into the Kingdom’s initiative "Future Factories," which aims to automate 4,000 factories by transitioning from labor-intensive processes to automated practices. That way, the country can enhance the competitiveness of its industrial sector and increase its non-oil products.
During this visit, Saudi Arabia’s Minister of Industry revealed that the country is also actively pursuing AI collaborations with East Asian companies, including Singaporean tech companies.
Singaporean Fintech Companies Like PayerMax Seize Growing Market Opportunity in Saudi Arabia
Saudi Arabia’s efforts to become a technological hub are leading to exciting partnerships with Singaporean businesses.
These moves reinforce Saudi Arabia’s commitment to the sector, as both countries signed an agreement to collaborate on emerging technologies like AI, cloud computing, and cybersecurity at the beginning of the year. The goal of these partnerships is to develop a robust digital infrastructure that unlocks opportunities for companies in these sectors.
Global fintech players are also taking notice of Saudi Arabia's lucrative business incentives. Payermax, a Singapore-based payment solutions company, is one company that has already seized the opportunity to set up its regional headquarters in the Kingdom. Payermax is the first Asian fintech to ever benefit from the Regional Headquarters (RHQ) program and has fully established its presence in Saudi Arabia with the support of AstroLabs, the Gulf’s leading business expansion platform.
Specializing in in-app purchases and game-related payment services, Payermax’s role has become especially prominent during the e-sports World Cup in Riyadh. With a focus on gamers and digital services, Payermax managed to capitalize on Saudi Arabia’s fast-growing digital economy.
As the Saudi fintech sector continues to expand, Singaporean companies can explore opportunities in Islamic fintech, digital payments, and insurtech, contributing to the broader national financial inclusion goals.
Air Travel Industry Promotes Strategic Partnerships Between Saudi Arabia and Singapore
As trade volumes between Saudi Arabia and Singapore continue to grow, improving connectivity, especially in air travel, becomes crucial to sustaining this momentum. Investing in efficient aviation services can play a key role in facilitating smoother business and trade exchanges.
Recognizing this, Saudi Arabia made big steps at the Changi Aviation Summit 2024 to foster cooperation with Singapore in aviation infrastructure, technology, and operations.
Alongside the country’s participation in the event, Saudi Arabia earmarked $100 billion in investments for the aviation sector, hoping to accommodate 330 million passengers by 2030.
Other notable partnerships in aviation include a recently signed agreement between Riyadh Airlines and Singapore Airlines as both airlines explore interline connectivity in each other's services.
This collaboration represents a key step towards enabling Riyadh Airlines to fulfill its mission of connecting Saudi Arabia to 100 destinations around the globe during its first year of operations.
With the recent launch of the Saudi Arabia-Singapore Business Council, more Singaporean companies and investors will be making their presence felt in strategic sectors like technology, construction, manufacturing, and aviation. As the Saudi economy grows at a light speed, opportunities for growth and investments remain substantial.
AstroLabs has expanded innovative companies from Singapore to Saudi, including PayerMax and Apar Technologies, learn more about how their team can help your business in Singapore expand to Saudi Arabia.
