With bilateral trade volumes reaching $10.2 billion last year, the Saudi-Italy economic corridor is expanding at an unprecedented pace. In the year prior, Saudi exports to Italy totaled $4.9 billion (SAR 18.5 billion), underscoring the strength of this growing partnership. As Vision 2030 accelerates cross-border investment, business setup from Italy to Saudi Arabia is becoming a strategic priority for Italian companies looking to tap into the Kingdom’s rapidly diversifying economy.
The momentum remains robust with large-scale investments and high-level agreements. Italian businesses, as a result, continue to deepen their presence in Saudi Arabia, capitalizing on opportunities in strategic sectors like energy, infrastructure, and tourism, exponentially increasing their business setup rates in KSA.
Business Set Up in Saudi Arabia: Italian Energy Firms Eye Green Hydrogen Expansion
Energy remains a key area of interest for Italian firms expanding to Saudi Arabia, with renewables and hydrogen technology taking center stage.
Earlier this year, Saudi Arabia and Italy signed a five-year MoU to enhance energy cooperation. The agreement includes the possible supply of Saudi-made hydrogen to Europe.
In addition to reinforcing Saudi’s position as a hub for global hydrogen production, this partnership will encourage more global businesses, particularly Italian firms, to expand operations in the Kingdom and make use of its advanced industrial prowess and tech capabilities.
In fact, Italian investors consistently demonstrate a keen interest in participating in Saudi’s clean energy shift. Among these is the Italian multinational De Nora, which recently entered into two collaboration agreements with Saudi entities. One with ACWA Power aims to develop innovative technologies to improve water treatment efficiency, particularly in desalination processes.
The other, with the Saudi Water Authority, involves pilot projects focusing on water disinfection and the recovery of hydrogen from electrochlorination systems, contributing to energy efficiency and sustainability.
Saudi-Italy Economic Corridor Strengthens Cooperation in Tourism and Hospitality
Vision 2030’s goal of attracting 150 million visitors by 2030 has unlocked promising avenues of investment for Italian businesses in the tourism and hospitality sector, leading to an increase in company formation of Italian firms in Saudi.
In January 2025, Saudi and Italy signed 26 MoUs aimed at deepening bilateral cooperation across various key sectors, including tourism.
The agreements were formalized during a high-level Saudi-Italian roundtable in Al Ula, which saw attendance from ministers, CEOs, and industry leaders from both nations.
Heritage tourism remains a key area of focus among Italian firms with subject matter expertise, attracting significant private investments that can fuel job creation. This comes in close alignment with the Kingdom’s aim to generate 1.6 million tourism jobs by 2030.
Previously, the Public Investment Fund (PIF) acquired a 49% stake in Rocco Forte Hotels in 2023, paving the way for the establishment of new luxury hotels in Riyadh and along the Red Sea.
Such strategic initiatives offer the roadmap for Italian firms to seize once-in-a-lifetime opportunities within the wider tourism economy, a crucial driver of the country’s diversification push.
Italian Companies Increasing Business Expansion to Saudi’s Ongoing Infrastructure Boom
Saudi Arabia’s rapid urbanization and industrialization under Vision 2030 present lucrative opportunities for Italian firms.
In 2024, an Italian business federation representing 7,000 companies announced expansion plans in the Kingdom, targeting infrastructure, logistics, and digital technologies. Lombardy, Italy’s financial and industrial hub, played a key role in these talks.
The engagement of high-level profile entities, including the likes of Lombardy, highlights the rising competitiveness of the Saudi construction sector on the global stage and its growing allure as a major draw for Italian firms.
Broadly speaking, Saudi Arabia is emerging as a hotspot for major developments spearheaded by Italian businesses. These include Cipriani Group’s Casa Cipriani luxury real estate development in Riyadh.
Certainly, the Saudi giga projects are a key magnet for Italian investments. Earlier this year, SACE unveiled a $3 billion loan guarantee to support projects in the $500 billion NEOM project, reflecting Italy’s commitment to backing large-scale projects that align with both nations’ strategic interests.
A few weeks later, PIF and SACE signed an MoU for up to $3 billion to promote Italian companies’ engagement in Saudi Arabia. Under this partnership, Italian companies are set to establish themselves as suppliers for major Saudi projects.
The economic boost provided by the growing Italy-Saudi economic corridor has become a driving force in propelling Saudi Arabia toward diversified growth, a trend that is expected to catch on as Saudi Arabia solidifies its reputation as a global business hub.
FAQ for Italian Businesses Expanding to Saudi Arabia
1. How easy is it for an Italian company to set up a business in Saudi Arabia today?
Setting up in Saudi Arabia typically involves three key phases. First, you’ll establish a legal entity. Next, you’ll register with various ministries and official platforms. Finally, you’ll need to open a corporate bank account and issue the General Manager’s iqama (residency permit).
With AstroLabs as your local partner, Italian companies can become operational in as little as 3 months.
2. Which sectors in Saudi Arabia are most attractive for Italian investment in 2025?
High-potential sectors for Italian firms include infrastructure, energy, artificial intelligence, tourism, hospitality and many others. These areas align well with Italy’s industrial strengths and Saudi Arabia’s Vision 2030 initiatives.
3. Can Italian companies benefit from forming local partnerships in Saudi Arabia?
Yes. Strategic partnerships or joint ventures with local firms can significantly enhance your market entry and credibility. AstroLabs can connect Italian companies with key stakeholders in the Saudi ecosystem to fast-track opportunities and collaborations.
4. What incentives exist for digital-first or high-tech Italian businesses entering Saudi Arabia?
Saudi Arabia’s tech ecosystem is rapidly expanding, with the country accounting for 40% of the MENA region’s VC funding in recent years.
The government actively supports innovation through tax benefits, simplified registration processes, and favorable foreign ownership regulations, particularly in tech and knowledge-based sectors.
5. What support services are available to help Italian companies enter the Saudi market?
Italian companies can access a range of online and in-person services, from registering regional headquarters in Riyadh to reserving trade names and managing commercial registration procedures. AstroLabs offers tailored support to navigate licensing, compliance, and cultural adaptation for smoother market entry.