Top Cities for Business Setup in Saudi Arabia in 2025
Explore the top cities for business setup in Saudi Arabia in 2025, including Riyadh, Jeddah, and the Eastern Province, including its incentives and more.
If you are considering setting up a business in Saudi Arabia, here’s the list of top cities and the most popular cities in which you can establish an operational base.
Selecting the right location for your business significantly determines your chances of expanding further due to access to specific raw materials, skilled labor, and certain benefits that each commercial region offers.
Riyadh, Jeddah, and Eastern Province Serve as an Ideal Base for Business Setup
Companies in the business setup process in Saudi Arabia should consider the strategic incentives offered by the country’s major business hubs based on the needs of the business and its employees.
Riyadh: the Saudi economic powerhouse and the region’s leading business, finance, and entertainment center, making it a primary global destination for business expansion.
In the last year alone, due to the “Riyadh headquarters program,” the capital city has become a home to the regional headquarters (RHQ) of 540 global companies, exceeding Saudi Arabia's 2030 target of 500.
Business districts in Riyadh include:
- King Abdullah Financial District (KAFD): Its premium office facilities house financial institutions and multinational corporations like Alstom, Roland Berger, and JLL (Jones Lang LaSalle.
- Olaya District: This district is a mix of high-rises and traditional office buildings catering to various businesses, from Ernst & Young (EY) to Huawei.
- Al-Malqa District: The central hub for startups and global companies alike, including AstroLabs’ modern office spaces.
- Riyadh Business Gate: A sought-after location for modern offices and state-of-the-art conference facilities. Global companies like Pfizer have HQs here.
- Al-Nakheel District: Upscale and versatile, catering to startups and established businesses like Siemens and Cisco.
Jeddah: Located along the Red Sea, Jeddah is Saudi Arabia’s primary port city and the center of trade and logistics.
Beyond its strategic maritime and trade importance, the city is also home to key infrastructure and construction projects. Chief among these is the Jeddah Tower, expected to be the highest building in the world once complete with a height of over 1 kilometer.
Eastern Province: It encompasses major cities like Dammam and Al Khobar and serves as a key industrial and energy hub in the Kingdom. State-owned Aramco, the world's most valuable company, is among the global conglomerates incorporated in the region along with BASF and Halliburton.
The Kingdom’s 5 Special Economic Zones Attract Global MNCs
Within these cities, special economic zones play a pivotal role in attracting high-growth multinationals (MNCs) to set up a business in Saudi Arabia.
These SEZs offer benefits such as corporate income tax rates as low as 5% for 20 years, 0% withholding tax on profit repatriation, and customs duties deferral for goods within the SEZ, or zero customs duties on capital equipment and inputs within SEZs.
Notable SEZs in Saudi Arabia include:
1. King Abdullah Economic City (KAEC) - Jeddah: KAEC focuses on enhancing industrial diversification and promoting the development of manufacturing, trade, and logistics.
A lot of MNCs have been drawn to the KAEC, including US-based Lucid Motors, to set up operations. The entire city has so far attracted a volume of foreign investments amounting to SR18 billion.
Focus sectors: advanced manufacturing and logistics.
2. Jazan Special Economic Zone - Jazan: Jazan is located in Jazan Province in the southern part of Saudi Arabia, along the Red Sea coast, at the heart of key trade routes between Asia, the Middle East, and Africa.
Focus Sectors: automobile supply chain and assembly, consumer goods, ICT (electric light manufacturing), pharmaceuticals, medtech, logistics.
3. Ras Al-Khair Special Economic Zone - Eastern Province: a major hub for the shipbuilding and maritime industries. Its strategic position in the Gulf allows it to support critical sectors such as oil & gas, energy transportation, and shipmanufacturing.
Focus Sectors: Shipbuilding and MRO, rig platforms and MRO.
4. Cloud Computing Special Economic Zone - Riyadh: The Cloud Computing SEZ leverages Saudi Arabia's ambition to reinforce Saudi Arabia’s position as a global hub for innovation and attract $13 billion in investments across the data and AI sectors by 2030.
Focus sectors: cloud computing services.
5. Riyadh Special Integrated Logistics Zone (SILZ) - Riyadh: The SILZ is optimized for efficiency in managing imports and exports, with large-scale facilities dedicated to warehouse distribution, cold storage, and fulfillment centers.
Lately, it has become a target market for logistics players such as Unipart, which is part of AstroLabs’ network. The UK-based global leader set up an operational base in the SILZ, in hopes of being a part of the Kingdom’s push to be a global logistics hub.
Focus sectors: consumer products, computer parts, pharmaceuticals, nutritional and medical supplies, aerospace spare parts, luxury goods, jewelry, and precious metals.
Related read: Special Economic Zones in Saudi Arabia: Comprehensive Overview and Key Benefits
Reasons Why MNCs Should Set up a Business in Saudi Arabia in 2025
Given its resilient economy, advanced infrastructure, and pro-enterprise landscape, Saudi Arabia presents investment opportunities for companies spanning various sectors, facilitated by the ability to retain 100% of foreign ownership.
It is expected that the country will become the world’s second-fastest growing economy, trailing only India.
This is primarily credited to its welcoming business environment, regulatory transparency, the efficiency of its digital infrastructure, and other crucial parameters for expanding and growing a company.
By strategically selecting the right commercial region and leveraging its unique advantages, companies can unlock immense potential and contribute to Saudi Arabia's growth trajectory in 2025 and beyond.
AstroLabs’ offices in Al Malqa, located in the heart of Riyadh, offer an ideal launchpad for making a foray into the Saudi market, paving the way for international businesses that are looking to gain a foothold in one of the world’s most dynamic economies.
