UAE Companies Bet Big on Saudi Arabia’s Booming Economy

RIYADH: A new HSBC survey shows that nine out of ten international companies operating in the UAE plan to invest in Saudi Arabia within the next five years, driven by the Kingdom’s fast-moving economic transformation.

HSBC noted that many UAE businesses see Saudi Arabia as a key partner for their regional and international growth strategies. This confidence aligns with a recent Kearney report that ranked Saudi Arabia 13th in the 2025 Foreign Direct Investment Confidence Index, the Kingdom’s highest position to date, reflecting strong investor sentiment supported by economic reforms and diversification efforts.

Mohamed Al-Marzooqi, CEO of HSBC Bank Middle East Limited, said that the UAE remains one of Saudi Arabia’s most important trading partners, reinforcing economic ties and regional momentum.

The survey sampled 4,000 global business leaders with annual revenues between $50 million and $500 million. More than 78 percent of UAE companies said they plan to deepen trade and investment activity in Saudi Arabia within the next six months.

Among the top reasons for investing in the Kingdom were economic stability, sustained economic growth and its strategic position as a gateway to wider Gulf markets.

Private equity, venture capital, mutual funds and joint ventures were highlighted as preferred entry routes. Technology and innovation emerged as the most attractive sectors, drawing nearly half of current and future planned investments.

Project finance and risk management solutions were identified as key channels for participation in the Saudi market, while an overwhelming majority of businesses — more than 95 percent — said that the Kingdom’s sustainability agenda strengthens its appeal as a trusted long-term investment hub.

‍