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.

In recent years, the bilateral ties between Saudi Arabia and Singapore have become stronger than ever. Towards the end of 2023, at the Saudi-Singapore Business Forum, it was announced that trade volumes between the two countries stand at an impressive $12 billion annually.

A prime example of collaboration between the countries 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 regulatory frameworks, both countries are setting the stage for a stronger business landscape, as they offer global companies opportunities to tap into the transformative projects under Saudi Arabia's Vision 2030.

Opportunities for Construction Singaporean Companies in Saudi

The giga-project in Saudi Arabia unlocked many 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 for businesses to apply their knowledge and expand their global presence.

In a recent high-profile deal, Singapore-based architectural firm Swan & Maclaren Group (SMG) secured a US$28 million contract to design the lighting for the upcoming Six Flags Qiddiya theme park in Riyadh, which is already 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 is calling for global expertise to help bring these developments to life.

Opportunities for Manufacturing Singaporean Companies in Saudi

The manufacturing industry is another sector that’s rapidly evolving and providing exciting opportunities for Singaporean companies.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.

Opportunities for Technology Singaporean Companies in Saudi

Saudi Arabia’s efforts to become a technological hub are leading to exciting partnerships with Singaporean businesses.

One example is Saudi’s recent visit to Singapore and China, which aimed to localize advanced automotive technologies, including electric and autonomous vehicles, through high-quality investments and sustainable development.

During this visit, Saudi Arabia’s Minister of Industry revealed that the country is also actively pursuing AI collaborations with East Asian companies.

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.

Opportunities for Fintech Singaporean Companies in Saudi

Global fintech players are also taking notice of Saudi Arabia's lucrative business incentives. Payermax, a Singapore-based payment solutions company, is the first Asian fintech to have already seized the opportunity to set up its regional headquarters in the Kingdom.

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.

In the future, as the fintech sector continues expanding, Singaporean companies can explore opportunities in Islamic fintech, digital payments, regtech, insurtech, and financial inclusion.

Opportunities for Logistics Singaporean Companies in Saudi

The recent signing of seven deals between Saudi Arabia and Singapore, including MoUs in ports, transportation, and logistics services, illustrates Saudi’s potential for firms working in these sectors.

For instance, the Kingdom is investing heavily in the development of its ports to enhance its trade connectivity and position itself as a regional logistics hub. Companies with expertise in port design, construction, and management can participate in Saudi Arabia’s upcoming projects.

Additionally, there is a growing demand for efficient and effective port operations, leading to opportunities for companies offering services such as stevedoring, cargo handling, and terminal management.

Finally, the country's growing e-commerce market also creates demand for efficient delivery services. As online shopping becomes more popular, there will be a greater need for reliable and timely delivery solutions, which Singaporean companies can leverage.

Opportunities for Aviation Singaporean Companies in Saudi

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 revealed that it designated $100 billion in investments for the aviation sector, hoping to accommodate 330 million passengers by 2030.

This was a clear call to Singaporean companies and investors to seize the opportunity to partner with Saudi Arabian entities and contribute to the Kingdom's ambitious aviation expansion plans.

The Saudi market provides ample opportunities across diverse sectors, and Singaporean companies are increasingly utilizing their first-mover advantage to expand their business and set up in the Kingdom. 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.