Why Asian Businesses Are Expanding Their Presence in Saudi Arabia
Saudi Arabia is increasingly viewed as a favorite destination for expansion among Asian companies.
Saudi Arabia’s rising influence on the global economy map is driving Asian companies to expand to the country and leverage boundless business opportunities in the $1.1 trillion market.
The fulcrum of this is Saudi Vision 2030 and the country’s increased focus on strengthening cross-border collaborations as part of its strategy to diversify its revenues beyond hydrocarbons.
This has prompted governments, investors, and a growing influx of high-growth Asian firms to forge mutually beneficial partnerships with their Saudi counterparts and dent Saudi strategic industries.
This article shines a light on the increasing economic ties between Saudi Arabia and key Asian markets and provides examples of notable Asian companies operating in the Kingdom and contributing to the ongoing development of its key sectors.
China
China has consistently remained the largest trading partner for Saudi Arabia since 2001. In 2023, the bilateral trade volume between Saudi Arabia and China will reach $107.23 billion.
This has largely propelled companies on both ends of the corridor to intensify bilateral collaboration, with Chinese companies increasingly making significant inroads into Saudi Arabia to catalyze growth in sectors like construction.
Infrastructure and construction have emerged as the largest areas of collaboration. Between 2016 and 2024, China's investment in Saudi infrastructure projects reached $31.45 billion, while Chinese contractors have secured major roles across the Kingdom's giga projects.
Among them, China State Construction Engineering Corporation (CSCEC) won a contract worth more than $2 billion to develop a mixed-use district north of the Diriyah Gate giga project. Separately, CSCEC is partnering with the National Housing Company (NHC) to build 20,000 homes, supporting Saudi Arabia's $67 billion housing development program.
Financial cooperation has also accelerated. The PIF signed six memoranda of understanding with leading Chinese financial institutions worth up to $50 billion, aimed at increasing two-way capital flows through debt and equity investments.
Chinese fintech firms are also establishing a regional presence. Ant International, the digital payments arm of Ant Group, opened its first Middle East office in Riyadh in 2025. It also signed an agreement with Abdul Latif Jameel Finance to develop cross-border payment solutions for SMEs, including Alipay+ integration with Saudi merchants and WorldFirst treasury services.
Beyond digital industries, Chinese companies are playing an increasingly important role in Saudi Arabia's clean energy ambitions. Firms including JinkoSolar, TCL Zhonghuan, and Sungrow are contributing to the Kingdom's renewable energy supply chain through solar manufacturing, equipment production, and project development.
Japan
Japan has steadily expanded its economic presence in Saudi Arabia, with Japanese companies investing approximately SR23.6 billion ($6.28 billion) in the Kingdom.
Today, 82 Japanese firms operate in Riyadh, 36 are based in Jeddah, and 18 have established regional headquarters in Saudi Arabia.
Japanese companies are already playing an active role in several of Saudi Arabia's priority sectors. In energy, Marubeni signed an agreement with the Saudi Power Procurement Company to develop two major wind power projects, supporting the Kingdom's renewable energy ambitions.
Meanwhile, in technology, a cooperation agreement between the Saudi Data and Artificial Intelligence Authority (SDAIA) and NEC focuses on artificial intelligence, biometrics, and the Internet of Things, helping advance innovation in smart cities, healthcare, and logistics.
Beyond investment, Japan has reaffirmed its long-term commitment to Saudi Arabia's development agenda by confirming its participation in Expo Riyadh 2030 and expressing support for the Kingdom's hosting of the 2034 FIFA World Cup, drawing on its experience as a co-host of the 2002 tournament.
Singapore
Singapore has emerged as one of Saudi Arabia's closest economic partners in Southeast Asia, with the Kingdom serving as its largest trading partner in the Middle East. Bilateral trade grew by nearly 51% in 2022 compared with the previous year, reflecting expanding commercial ties and growing business activity.
That momentum is translating into collaboration across several strategic sectors. In aviation, Riyadh Air and Singapore Airlines signed a strategic partnership to explore interline connectivity, supporting Riyadh Air's ambition to connect Saudi Arabia to 100 global destinations during its first year of operations.
Singaporean firms are also strengthening Saudi Arabia's digital economy. PayerMax became the first Asian fintech company to establish a regional HQ in Saudi, providing localized payment infrastructure for the gaming sector through services such as in-app payments, game webshop top-ups, and micro-incentives.
Institutionally, the launch of the Saudi Arabia–Singapore Business Council has further strengthened bilateral cooperation, creating a platform to accelerate investment and business partnerships across high-growth sectors including fintech, logistics, transportation, renewable energy, and food security.
South Korea
The recent South Korean President Yoon Suk-yeol's visit to Riyadh culminated in the signing of 51 deals and MOUs, amounting to a total of $15.6 billion.
Key among them is PIF's cooperation agreement with Hyundai Motor Company to invest $400 million in constructing an assembly plant in Saudi Arabia.
Highlighting a shared commitment toward a clean energy transition, Korea Electric Power Corp., POSCO Holdings, and Lotte Chemical have signed agreements with Saudi Arabia's Aramco to produce blue ammonia at a total cost of $15.5 billion.
Construction remains another major area of collaboration. More than 330 South Korean companies have secured contracts across over 1,860 projects in Saudi Arabia, with a combined value of approximately $166 billion—representing 17.2% of all overseas construction projects undertaken by Korean firms. Among the most prominent participants is Samsung C&T, which is helping deliver modular housing within the NEOM giga project.
India
India is Saudi Arabia’s second-largest trading partner, while Saudi Arabia is the country's fourth-largest trading partner. The value of bilateral trade totaled around $52.75 billion in 2022-2023.
The relationship is increasingly reflected in the growing presence of Indian businesses in the Kingdom. The number of Indian companies operating in Saudi Arabia has surged from around 400 in 2019 to nearly 2,900 in 2023, spanning sectors such as infrastructure, technology, retail, tourism, renewable energy, housing, healthcare, and entertainment.
in infrastructure, Larsen & Toubro (L&T) has secured a major contract from the Royal Commission of Riyadh City for the extension of the Riyadh Metro's Red Line, as part of a consortium that also includes Webuild SpA, Nesma and Partners Contracting, Alstom, and IDOM. The scope covers the design and turnkey construction of an 8.4 km metro line comprising both elevated and underground sections, along with five metro stations.
Alongside infrastructure, Indian companies continue to expand across Saudi Arabia's digital and consumer economy. Firms including Tata Group, Wipro, Tata Consultancy Services (TCS), Telecommunications Consultants India Limited (TCIL), and Lenskart have all grown their presence in the Kingdom.
In particular, Lenskart has capitalized on Saudi Arabia's fast-growing e-commerce market while contributing to the modernization of the Kingdom's retail and eyewear sectors.
Hong Kong
Saudi Arabia has long maintained fruitful relationships with Hong Kong, opening the door for collaboration in areas such as tourism and financial services.
The Kingdom, accordingly, has been a target market for expansion for Hong Kong financial institutions and leading tech companies such as Animoca Brands.
The metaverse and gaming venture capital firm has maintained a leading market position by partnering up with key institutions such as King Abdulaziz City for Science and Technology (KACST) and NEOM to drive the advancement of the Saudi Web3 space.
On the tourism front, Regal Hotels Group and Cosmopolitan International Group, major hotel chains in Hong Kong, are set to build about 30 hotels in Saudi Arabia. It is worth noting that the PIF has invested $500 million in the Hong Kong Chaoshang Group.
The path towards economic progress is marked by increased collaborations between Saudi Arabia and Asian companies. Across diverse Saudi sectors, Asian companies strategically establish themselves as key integrations in the Saudi economic landscape and key participants in the Saudi Vision 2030-led transformation.
How to Set Up Your Business in Saudi Arabia from Asia: Understanding the Market Entry Process
The initial phase of the Saudi market entry process typically requires having all foundational company documents ready and attested. These include a certificate of incorporation, the memorandum of association (MoA), and articles of association (AoA), as well as an audited financial statement.
To complete the Saudi business setup process from Asia, companies must register with more than 10 ministries and governmental entities as part of the three-stage market entry roadmap. Obtaining a nationally registered office space to secure a national address is a mandatory requirement at this stage.
In the soft landing phase, companies must issue the general manager's Iqama and finalize registrations on key government portals, including Muqeem, Absher, Qiwa, and Mudad. Having an up-and-running bank account is mandatory to complete the entry process.
Lastly, businesses will need to hire staff in adherence with the Saudization (Nitaqat) quota, issue visas for non-Saudi employees, and complete their legal due diligence as part of the post-setup stage.
Utilizing third-party services may be essential to support companies with critical business functions such as accounting, HR, and payroll management.
With the right on-the-ground support, Asian companies can become fully operational in approximately three months.
