This article is part of a series that explores the entry of companies from various countries around the world to the Kingdom.

This article is part of a series that explores the entry of companies from various countries around the world to the Kingdom.

The upward trajectory of Saudi Arabia as a global business hub is attracting a growing list of leading Turkish corporations and holding groups, seeking to ramp up their foothold in the Kingdom’s key sectors of the economy, notably infrastructure, tourism, energy, and technology, among others.

Examples include ONUR Group and TAV Airports, Vestel and Havelsan and Aselsan, all of which are already operating in Saudi Arabia and have capitalized on their first-mover advantage.

Driving this forward momentum is a wealth of value-creation opportunities brought on by the Saudi Vision 2030 and its strategic programs and initiatives, which play a fundamental role in fostering a conducive economic environment for business growth and laying the groundwork for more collaborative partnerships focused on long-term prosperity.

Saudi-Turkish Increased Economic Cooperation Drives Business Expansion

The continued pragmatic cooperation between Saudi Arabia and Turkey provides a reference point for a renewed commitment to deepening economic relationships and cooperation centered around mutual benefits and win-win outcomes.

This has profound implications for both countries, as evidenced by the continued growth of trading volume, which reached $6.8 billion in 2023, a remarkable increase of 50% in two years. Looking ahead, the country aims to increase its trade volume with Saudi Arabia to $30 billion in the medium term.

Complementing this upbeat outlook is the fact that Turkish exports to Saudi Arabia saw a 100% year-on-year (YoY) increase last year, further facilitating the greater entry of value-added Turkish goods and services into the market and stimulating an astronomical rise in Turkish investments in Saudi Arabia.

The benefits derived therefrom create mutually rewarding opportunities for companies from both countries, with Saudi Arabia increasingly being an expansion target for Turkish businesses looking to participate in its ongoing development.

This positive sentiment was emphasized at the Saudi-Turkish Business Forum, held earlier this year, which saw 27 agreements signed. Of these, six agreements were official, and the rest were commercial deals and partnerships, with industries like construction and tourism lying at the heart of such cooperation agreements.

Construction and Tourism Catalyze Growth for Turkish Companies Entering Saudi Arabia

Tourism and construction are two key areas that hold great promise, opening doors for myriad opportunities for cooperation between companies from both countries.

Turning to tourism, the number of Turkish nationals visiting Saudi Arabia last year reached 670,000, marking a 3.5-fold increase. The surge closely follows the Kingdom’s recent decision to grant e-visas to visitors from six additional countries, including Turkey, making Saudi Arabia a growing destination of choice for Turkish travelers and businesses alike.

The rise in tourist arrivals in the Kingdom ultimately translates to the beginning of a new wave of multi-sector partnerships spanning infrastructure and mobility, including airports, roads and railways. One stark example of this is Riyadh Air’s recent signing of a memorandum of understanding (MoU) with Turkey’s flag carrier, Turkish Airlines.

This partnership contributes to Saudi Arabia's wider $1 trillion investment strategy to strengthen its tourism sector as a crucial component of its Vision 2030.

Infrastructure is another key space where business activities are intensifying at a rapid clip, as evidenced by the growing number of Turkish construction companies operating in the Kingdom.

The entry of ONUR Group in the Saudi market demonstrates the growing market appeal and strong potential. Since its expansion to the Kingdom, the Group has made significant strides in manufacturing and infrastructure development of roads, bridges,

and airports.

TAV Airports, another Turkish fellow, has been making an indelible mark on the aviation sector, exemplified by its recent development of the build-operate-transfer project of Prince Mohammad Bin Abdulaziz International Airport (Madinah Airport).

In the last year alone, Turkish contractors undertook 16 projects in the Kingdom with a total value of $2.7 billion, which represents 10.4% of the total value of all construction projects undertaken globally.

Utilizing its extensive experience in its home market, Enka İnşaat is spearheading the Al Medinah Housing project, designing and constructing 2,084 villas that seamlessly blend traditional home elements with modern-day conveniences.

Within construction, smart cities rose as a key area that is ripe for cross-border linkages as the Kingdom aspires to become a global leader in emerging technologies that support the digital transformation of smart cities.

Leveraging the Kingdom's digital capabilities and an accelerating shift towards sustainable and smart cities, Turkish companies are set to redefine operational standards and benefit from a sustained period of industrial expansion in the local contracting space.

Turkey’s Significant Role in Saudi Arabia's Technology and IT Transformation

Technology is emerging as a new pillar of Turkish-Saudi economic cooperation, as evidenced by Saudi Arabia's acquisition of Turkish drones, further stimulating partnerships and fostering innovation.

With a technology sector worth $44.2 billion, the largest in the region, Saudi Arabia is set to be a prime destination for expansion among Turkish companies looking to take advantage of a strong talent base and robust digital infrastructure.

Ever since the rollout of Vision 2030, Saudi Arabia has been attracting global tech companies and tech powerhouses as it pursues the establishment of a globally competitive IT sector.

Key among them are Havelsan and Aselsan, which remain at the vanguard of innovation and digital transformation in Saudi Arabia, offering a wide range of advanced defense and IT solutions.

As the Kingdom intensifies its efforts to expand its non-oil sectors and spur sector-specific innovation to increase the share of private investments in the economy to 65% by 2030. Last year, the Saudi non-oil economy contributed 50% of its GDP, partly fueled by a rise in foreign direct investments (FDI).

The ripple effects of the growth of the country's private sector fizzle across several industrial sectors, driving the actualization of Vision 2030’s diversification objectives and making the country the largest contributor to the Gulf region's GDP and its non-oil economy.

Are you ready to take the leap? Get in touch with AstroLabs for more details on how to navigate a streamlined market expansion process.

Tune in tomorrow for the second part of this series which sheds light on how Saudi Vision 2030 is driving opportunities for Turkish companies, along with a step-by-step guide to setting up in Saudi Arabia.