Where Capital Is Flowing in Saudi: Top Sectors and Investor Strategies for 2026

For the first time in the Kingdom’s modern history, non-oil activities exceeded 55% of GDP in 2025, reaching approximately 55-57% by the end of the year. Quarterly non-oil activity expanded by approximately 4.2% in Q1, 4.6% in Q2, and 4.5% in Q3 of 2025.

This steady growth is sustainable rather than a temporary spike, driven by expanded market access, a surge in new foreign-invested enterprises, diversification of source markets, and strategic opportunities across multiple sectors, primarily construction, tourism, technology and financial services.

In this piece, we take a closer look at key developments affecting the country's most promising sectors and outline the strategic routes foreign companies should take to seize high-potential opportunities and maximize returns.

Sectoral Hotspots in 2026

Construction Sector Sees Unprecedented Scale with Strategic Delivery

While Saudi Arabia maintains a massive $1.7 trillion project pipeline, the narrative for 2026 has evolved beyond high-level announcements toward strategic delivery. This means growth is increasingly concentrated in priority urban developments, including residential projects to accommodate the growing population and commercial hubs designed to meet the unique needs of relocating companies and employees.

With the Kingdom opening property ownership to foreigners, both the residential and commercial real estate sectors are shifting from a functional necessity to high-yield investment assets.

Opportunities in 2026: Besides real estate, major areas of focus include large-scale infrastructure development and quality-of-life enhancements, making emerging regions more attractive for long-term residential settlement and commercial activity.

Accelerating Tourism Growth Drives Spending Surge and Hospitality Boom

Saudi Arabia’s tourism sector is built on 2024’s milestone of 106 million visitors—surpassing Vision 2030 targets six years early. In H1 2025 alone, the Kingdom welcomed 60.9 million visitors, generating SAR 161.4 billion ($43.0 billion) in tourism spending.

Hotel supply expansion is accelerating to meet the target of 362,000 keys by 2030, up from approximately 167,500 today. Notably, last year saw substantial growth in the registration of private accommodations and rural inns, highlighting robust market demand.

The launch of the PIF-backed TOURISE platform in 2025 further strengthened long-term sector development, with its inaugural summit facilitating $113 billion in global tourism investments. Importantly, tourism growth expanded beyond Riyadh, Jeddah, and the Eastern Province, with notable momentum in regions such as Al Ahsa and Abha.

Opportunities in 2026: With hospitality infrastructure accelerating ahead of Riyadh Expo 2030 and the FIFA World Cup 2034—and MICE tourism gaining prominence—businesses in hospitality tech, experience management, venue operations, and ancillary services are well-positioned to capitalize on rising international and domestic visitor expenditure throughout 2026.

Capital Markets and Fintech Drive Financial Sector Momentum

By the close of Q2 2025, Saudi Arabia ranked among the world's fastest-growing markets, with market capitalization reaching $2.4 trillion.

The financial sector's development is closely linked to policy support, innovation, and growing demand for financial and banking services at both consumer and corporate levels.

Institutional foreign investors are increasingly allocating capital to private markets, with rising interest in private assets such as retail real estate investment trusts (REITs) and other retail and institutional products. Reflecting this momentum, assets under management (AUM) reached $295 billion by Q1 2025 following 12% annual growth from 2015-2024, and the sector is on track to surpass $400 billion by 2026.

A major regulatory milestone in 2026 was the easing of foreign ownership restrictions, allowing individuals and companies to directly invest in the Saudi stock markets. For investors seeking higher returns on investment, establishing an expanded on-ground presence remains an effective strategy.

This growth occurs alongside the country's emergence as a hub for a growing pipeline of startups and unicorns, supported by its thriving IT sector. The sentiment is also reflected in fintech, with the Kingdom hosting over 260 licensed players so far.

This comprehensive transformation across asset management, capital markets, and fintech demonstrates the Kingdom's successful evolution toward a knowledge-based, financially inclusive economy offering global investors compelling opportunities backed by regulatory stability and market depth.

Opportunities in 2026: The growing fintech ecosystem creates additional opportunities for payment solutions, regulatory technology platforms, and financial infrastructure providers seeking to attract global institutional capital.

AI, Cloud, and Cybersecurity Drive IT Momentum

Hardly a day passed in 2025 without a significant development in the ICT sector. The ICT market size stands at $59.97 billion in 2025 and is forecast to reach $93.21 billion by 2030, reflecting a 9.22% CAGR.

The year kicked off with the launch of government-backed ventures like HUMAIN, exemplifying the country's evolution from technology adopter to leader in building localized AI solutions.

LEAP 2025 served as another platform that unveiled $14.9 billion in tech investments, cementing Saudi Arabia's role as a global AI and digital hub. Major deals included a $1.5 billion AI-powered cloud computing initiative alongside Google, launching a regional AI hub.

Enterprise demand for cloud adoption continues to rise as businesses seek scalable, secure, and compliant infrastructure to support digital transformation. This shift makes Saudi not just an adopter but a launchpad of advanced cloud technologies. For instance, Visa recently launched the world's first local cloud payment platform in Saudi Arabia, while Cloudera expanded its Middle East presence with a new Saudi entity.

The broader startup ecosystem is equally thriving, with VC funding hitting $1.72 billion in 2025, marking the highest total since at least 2018. Together, these factors have prompted startups and scaleups to have a physical, on-ground presence in Saudi. As a result, foreign startup registrations jumped 118%, with 550 licenses granted by mid-2025.

Opportunities in 2026: The IT industry offers an ideal entry point for companies seeking to establish a presence in the Kingdom, with particular opportunities in localized AI development, sector-specific cloud platforms, and advanced cybersecurity frameworks.

Looking Ahead: The Operational Playbook for 2026

Build Boots-on-the-Ground Presence

The continued evolution of Saudi Arabia’s regulatory and commercial environment makes local presence essential. Companies managing operations remotely are increasingly disadvantaged, and early in-market teams build trust, enable faster decision-making, and often determine competitive success.

Having supported over 1,000 companies through Saudi expansion, AstroLabs consistently observes that winners in 2026 will combine regulatory excellence, localization, and on-the-ground execution.

More than ever, the Kingdom rewards long-term commitment, actively attracting businesses that view it as a genuine growth market where they can establish themselves, expand, and compete globally.

Compliance Becomes Business-Critical

Maintaining updated records across platforms such as Qiwa, ZATCA, and GOSI is no longer administrative—it is mission-critical. Noncompliance can freeze bank accounts, block hiring, and disqualify companies from tenders.

Given the interconnected nature of government systems, lapses in one area can trigger cascading operational risks. Companies entering Saudi in 2026 must embed compliance from day one.

Localize Early and Strategically

Successful market entry increasingly depends on early localization—across both product offerings and talent. Saudization planning must inform hiring roadmaps from the outset, while product localization directly impacts market penetration and revenue growth.

According to AstroLabs’ 2025 Market Entry Report, 31.25% of businesses hiring Saudi professionals reported significantly improved stakeholder engagement, while 11.1% that initially skipped localization later pivoted to correct course.

Strategic product localization has become essential for businesses seeking to maximize market entry success, revenue growth, and competitive advantage. Organizations that deploy comprehensive localization frameworks consistently can surpass competitors using one-size-fits-all market entry strategies.

For companies willing to commit strategically, 2026 offers exceptional potential across infrastructure, tourism, finance, and technology as the Kingdom enters the final leg of its Vision 2030.