Sector Spotlight: Setting Up a Construction, Tourism, or Tech Business in Saudi Arabia

Saudi Arabia’s Sectoral Boom Is Just Beginning

Saudi Arabia’s transformation under Vision 2030 is not limited to infrastructure — it’s creating entire new sectors. From luxury tourism along the Red Sea coast to tech clusters in Riyadh and mass construction across NEOM, Qiddiya, and Diriyah Gate, the government is actively recruiting foreign players to lead, deliver, and scale.

Each sector has its own licensing, regulatory framework, and incentive structure — and getting it right early is the key to market access and execution as part of the Kingdom’s Vision 2030 goals.

NH Management helps international investors and operators establish compliant, investor-ready structures in Saudi Arabia’s most promising sectors, supporting their journey towards contributing to Vision 2030’s ambitious goals.

1. Construction & Infrastructure: The Engine Behind Vision 2030

Market Snapshot:

• $1.3 trillion in announced construction projects

• Giga-projects underway: NEOM, Qiddiya, The Line, Red Sea Global, Diriyah Gate

• High demand for EPC contractors, design & build firms, engineers, and consultants

Licensing & Regulatory Body:

• Ministry of Municipal, Rural Affairs and Housing

• Saudi Contractors Authority (SCA) — classification certificate required for large-scale work

• NEOM and giga-projects have their own procurement and vetting portals

Setup Considerations:

• You’ll need a MISA license + sectoral license from SCA

• Classification based on capital, experience, and manpower

• Secure bank guarantees and local joint ventures for public contracts

• Must meet Saudization quotas for site labor and admin staff

NH Insight: Structuring through a dedicated Saudi entity with project-specific SPVs is common — and often required for eligibility in tendering.

2. Tourism & Hospitality: Red Sea and Riyadh Opportunities

Market Snapshot:

• 100 million annual visitors targeted by 2030

• Massive hospitality expansion: 500,000 new hotel rooms planned

• New entertainment & cultural zones across Riyadh, AlUla, Jeddah, Abha

Licensing & Regulatory Body:

• Ministry of Tourism (MT)

• General Entertainment Authority (GEA) for events and leisure

• Royal Commission for AlUla, Red Sea Global, and Diriyah Gate have standalone zones

Setup Considerations:

• Foreign investors can own 100% of tourism assets and operating companies

• NH Management handles licensing with the Ministry of Tourism and zone authorities

• Hotel and resort operators require facility inspections and operational pre-approvals

• Tour operators, DMCs, and event firms require activity-specific licensing

Incentives:

• Land grants, capital subsidies, and import duty exemptions on furnishings and construction

• Tourism Investment Enabler Program launched in 2024 to streamline investor entry

NH Insight: We structure tourism ventures to separate real estate assets, operations, and brand/IP licensing for optimal exit planning and VAT efficiency.

3. Technology & Innovation: KSA’s Fastest-Growing Sector

Market Snapshot:

• 10,000+ tech companies expected by 2030

• Cloud, AI, smart cities, fintech, and cybersecurity all targeted

• Google, Amazon, Oracle, and Microsoft building local data centers

Licensing & Regulatory Body:

• MISA for standard tech licenses

• Communications, Space & Technology Commission (CST) for regulated tech sectors

• Saudi Central Bank (SAMA) for fintech and payments

• Digital Government Authority (DGA) for govtech/SaaS partnerships

Setup Considerations:

• Eligible for CFC-style tax incentives if structured as RHQ + OpCo

• Some startups can enter via sandbox licenses (especially fintech and insurtech)

• Tech companies may be VAT-exempt on exports of digital services

• Data residency and cybersecurity compliance must be addressed early

NH Insight: Saudi is ideal for IP-holding, regional development hubs, and B2G tech platforms. But licensing is layered, and fast-scaling firms must comply across multiple agencies.

Structuring Advice by Sector

NH Management builds sector-aligned structures with tax, employment, and licensing precision — so your Saudi venture is ready to scale.

Final Thought: Every Sector Has a Play — But Not Every Play Is the Same

Saudi Arabia isn’t just welcoming foreign capital — it’s curating sector leadership. Getting licensed isn’t the same as being strategically positioned. That’s where our sectoral knowledge, regulatory access, and structuring expertise make the difference.

Planning to launch a construction, tourism, or tech venture in Saudi Arabia? NH Management provides end-to-end licensing, company formation, and sector-specific compliance advisory. Get in touch now!