Registering a foreign business from Asia to Saudi Arabia offers a multitude of benefits, including access to the region’s largest consumer market and one of the fastest-growing economies globally.
Over the years, Saudi Arabia has become a favored expansion destination for high-growth companies originating from countries like India, South Korea, Singapore and Hong Kong.
In this article, we will explain the top sectors attracting the highest number of Asian businesses’ expansion, highlighting the necessary steps that foreign establishments can consider when registering a company in the Saudi market in 2025.
Indian Businesses Increase Presence in Saudi Construction and Industrial Sector
Over 3,000 Indian companies are currently operating in Saudi Arabia’s IT, energy and telecom sectors, the Diriyah’s CEO previously remarked. Making the $63.2 billion project backed by the PIF an investment opportunity, attracting more Indian businesses to expand to Saudi.
Among them are Tata Group and Oberoi Group. Both have entered several agreements to invest in strategic infrastructure projects across the Diriyah Gate Giga Project. Similarly, India-based Taj Hotels is gearing up to launch a 200-room property in Diriyah.
Other notable Indian entrants that formed a company in Saudi, include Lenskart, a global eyewear brand that is diversifying its growth strategy by tapping into the Saudi retail and e-commerce sector. Lenskart’s expansion into Saudi was supported by AstroLabs.
Meanwhile, in the industrial sector, a prominent firm like Vedanta, has been strengthening its presence in the domestic mining sector. The global mining entity was among the first global companies to be granted a mining exploration license targeting areas rich in base and precious metals such as copper, zinc, gold, and silver.
Carrying the momentum forward are strategic initiatives such as the “India-Saudi Arabia Investment Connect” forum, which encourages greater Indian private sector participation in Saudi’s key economic sectors.
Enhanced cooperation between the two nations is demonstrated by the fact that India stands as Saudi’s second-largest trading partner. This robust relationship forms the strong foundation upon which Indian firms expand their operations by registering a foreign company in Saudi Arabia.
Infrastructure and Energy Sector Trigger a Surge in South Korean Business Expansion in Saudi Arabia
South Korean firms are rapidly making their presence felt in different Saudi sectors, notably IT, energy, and automotive. Exemplifying this trend is Hyundai Motor Company’s JV agreement with PIF to construct a $500 million manufacturing assembly plant. The facility is slated to commence operations in 2026 and is expected to produce 50,000 vehicles.
The groundbreaking deal is one of a series of $15.6 billion worth of MOUs signed between the government and private sector entities in the Kingdom and Korea at the Saudi-Korean Investment Forum in 2023. During the forum, Korea Electric Power Corp., POSCO Holdings, and Lotte Chemical signed letters of intent with Aramco to produce blue ammonia, with investments totaling $15.5 billion.
Beyond the forum, a standout deal occurred in the IT sector back in December 2024, which saw Samsung C&T participating in tunneling projects across The Line in NEOM.
In fact, technology is a huge area of focus for strengthening this economic corridor. A joint $160 million startup fund was established in 2023 to invest in Saudi and South Korean startups. This fund is supported by Saudi Venture Investment and South Korea’s Ministry of SMEs and Startups.
IT and Aviation Pave the Way for Rising Singaporean Investment in Saudi Arabia
Singapore regards Saudi Arabia as its main trading partner in the Middle East, with trade volume increasing by nearly 50% in 2022 compared to the previous year.
This strategic relationship is a gateway to the Gulf region for Asian business expansion and company formation.
Singaporean entities are increasingly capitalizing on the infrastructure and urban development resurgence in Saudi. Giga projects are an obvious target for Singaporean investors and companies such as Swan & Maclaren Group.
The global firm has secured a $28 million tender for the illumination project of the Six Flags Qiddiya theme park in Riyadh.
Fintech companies like PayerMax, part of AstroLabs’ expansion network, have also set their sights on growing a robust footprint in Saudi Arabia, having recently established regional headquarters (RHQ) in the Kingdom.
Beyond that, the aviation sector has recorded significant partnerships between Riyadh Airlines and Singapore Airlines to explore interline connectivity, further enhancing air links between the two nations.
Notable initiatives such as the Saudi Arabia-Singapore Business Council play a crucial role in bridging Singaporean firms with opportunities in various sectors, prompting them to start the process of registering their foreign company from Asia in Saudi Arabia.
Hong Kong Businesses Expand Ties with Saudi Entites in Tourism and Finance
Encouraged by strengthening bilateral relations, Hong Kong firms are rapidly cementing their on-the-ground presence in Saudi Arabia through joint ventures and large-scale projects.
The expertise and solutions of Hong Kong-based firms are particularly needed in the sectors of finance, real estate, IT and logistics. These sectors pose as key areas driving foreign business incorporation and Asian business expansion in Saudi Arabia.
For example, metaverse and gaming venture capital firm Animoca Brands is partnering with King Abdulaziz City for Science and Technology (KACST) and NEOM to advance Saudi Arabia’s Web3 space.
Shifting the focus from IT to tourism, Regal Hotels Group and Cosmopolitan International Group announced plans to build approximately 30 hotels in the Kingdom, aligning with the country’s goals to develop hotel rooms to 550,000 by 2030.
Typically, Vision 2030-led projects continue to offer one of the most attractive avenues for investing to all Hong Kong firms, enabling more firms to accelerate their business setup and company formation in Saudi Arabia.
Registering a Foreign Company From Asia in Saudi Arabia: What You Need to Know?
The early stages of Saudi market expansion typically start with compiling all the company’s foundational documents. These include a certificate of incorporation, the memorandum of association (MoA), and articles of association (AoA), as well as an audited financial statement.
As part of the second stage of business setup, companies have to complete registrations with more than 10 ministries and governmental entities. At this point, maintaining a local office address is one of the prerequisites that must be met.
In the soft landing phase, Asian companies must issue the general manager’s Iqama and finalize registrations on key government portals, including Muqeem, Absher, Qiwa, and Mudad. The subsequent move is to get an active bank account.
Following successful incorporation, businesses will need to appoint members of the staff in compliance with the Saudization (Nitaqat) quota, issue visas for non-Saudi employees, and complete their legal due diligence as part of the post-setup stage.
To establish a robust base for your new business endeavor, enlisting third-party services might be essential to improve efficiency in business functions such as accounting, HR and payroll management.
Frequently Asked Questions About Setting Up a Foreign Business from Asia in Saudi Arabia
- What industries offer the best opportunities for Asian companies in Saudi Arabia?
The most promising sectors for Asian businesses looking to set up and expand to Saudi Arabia include infrastructure, aviation, construction and energy
- Are there government incentives for Asian investors in Saudi Arabia?
Saudi Arabia permits 100% ownership for foreign companies, with tax breaks and schemes available for investors across a myriad of sectors. Besides, incentives abound at special economic zones (SEZs) aimed at attracting foreign talent.
- What are the key regulatory considerations for setting up a business from Asia to Saudi?
Foreign companies expanding to Saudi must have their MISA license to lay the legal foundation for their businesses. Other mandatory steps include acquiring commercial registration (CR) and registering with 10 ministries and key governmental portals such as Muqeem, Mudad and Qiwa. With AstroLabs, companies can get fully operational within 3 months. Companies must appoint a general manager for the new Saudi entity, who also must be a resident of the Kingdom.
A detailed overview of the business setup process in Saudi Arabia can be found here.
- Which Asian countries have the strongest economic ties with Saudi Arabia?
China takes the lead with $107 billion in trade. It is followed by countries like India, Japan, and South Korea, Singapore and Hong Kong.
5- How does Saudi Arabia compare to other expansion markets in the Gulf?
Saudi Arabia boasts the region’s largest economy ($1.1 trillion GDP), buoyed by non-oil sector growth. The resilience of the Saudi economy attracts global multinationals and high-return companies from across the world. According to AstroLabs’ 2025 Market Entry Report, half of the foreign companies exploring Saudi market entry were from Asia, the Americas region, and the UK.
Currently, Saudi is home to the regional headquarters of 600 multinational corporations (MNCs), demonstrating sustained global appeal and expanding market opportunities.