Saudi Arabia’s ConTech Opportunity: How Global Firms Can Enter the Market

Learn how ConTech companies can enter Saudi Arabia, from market opportunities and licensing options to local entity setup and tender access.

This guide covers why Saudi Arabia's construction boom matters for global Contech firms, what's driving demand, and the practical steps you need to take to establish your business in the Kingdom.

1. Why Saudi Arabia Is a Top Market for Contech

Saudi Arabia is expected to become the world's largest construction market by 2028, backed by a $1 trillion infrastructure investment pipeline through 2030. The private sector is expected to finance roughly 40% of that total.

Active mega-projects span highways, airports, smart cities, power plants, water systems, and large-scale real estate developments, all of which are accelerating demand for construction technology solutions.

Mega-events, including Riyadh Expo 2030 and the FIFA World Cup 2034, are creating fixed-deadline demand for technology-driven construction. These fixed deadlines mean procurement timelines are accelerating. ConTech firms that delay market entry risk missing key tendering windows.

2. Key Demand Drivers for ConTech Solutions

Several factors are actively pulling international ConTech companies into the Saudi market:

Health, Safety, and Sustainability

Tens of thousands of workers are deployed across Saudi Arabia’s complex and fast-moving construction sites, increasing the need for advanced health and safety management tools, real-time workforce monitoring, and quality assurance technology.

Developers and public-sector entities are also adopting ConTech solutions to support sustainability and environmental compliance, including practices aligned with the Saudi Green Building Code.

As the number and scale of projects continue to grow, demand for technologies that improve safety, efficiency, and sustainable construction is expected to accelerate. This is already attracting international companies to establish a local presence.

Expansion Highlight: UK-based 36Zero expanded into Saudi Arabia to support the digitalization of giga-projects, bringing its AI- and IoT-enabled technology to improve worker safety, welfare, workforce management, and project performance across large-scale construction sites.

The company has worked across major developments including NEOM and New Murabba, illustrating how Saudi Arabia’s construction pipeline is creating a growing market for specialized international technology providers.

Digital Infrastructure Growth

Saudi hosts the region’s largest digital economy, valued at nearly $140 billion, creating a strong foundation for technology-enabled construction solutions.

As the Kingdom continues to localize digital infrastructure and accelerate digital transformation, it is becoming an increasingly attractive market for IT-enabled ConTech companies.

Companies delivering tailored digital solutions for the construction industry can build in-country capabilities and benefit from an on-the-ground presence in one of the region’s most dynamic markets.

Expansion Highlight: Saudi-based construction technology company BRKZ offers one example of the opportunity: the company raised a $17 million Series A round to scale its digital procurement platform, which connects contractors and suppliers while offering embedded financing solutions.

BRKZ has expanded its platform across Saudi Arabia and supports contractors and factories involved in major projects, demonstrating the growing role of locally developed digital solutions in supporting the Kingdom’s rapidly expanding construction ecosystem.

3. Why You Need a Local Entity

If you're considering setting up a business in Saudi Arabia, establishing a registered local entity is increasingly a strategic necessity for ConTech companies. If you plan to bid on government or semi-government construction contracts, you will likely need a local commercial registration (CR) in place before you can participate.

Here's why:

• Tender access: Many government and semi-government clients require a registered Saudi entity to participate in tenders. Without one, you are excluded from some of the most significant procurement opportunities in the market.
• Local hiring: A registered entity enables you to hire Saudi talent and contribute to the local economy through Saudization compliance.
• Market credibility: Being on the ground positions you as a genuine participant in the Kingdom's development, rather than a vendor operating from abroad.

4. Licensing and Setup Options for Contech Firms

The process to set up a business as a foreigner in Saudi Arabia varies depending on your business activity. Your license classification determines your permitted activities, Saudization requirements, and fee structure. Choosing the wrong category can delay your setup. Service and industrial licenses are the most commonly acquired licenses among construction and ConTech companies.

For early-stage firms, the Ministry of Investment's Entrepreneur License offers a more accessible and cost-effective entry point, with reduced renewal fees for the first five years.