Why Saudi Arabia Is Becoming a Strategic Market for Spanish Companies
Learn how Spanish companies can expand into Saudi Arabia and capitalize on opportunities across key growth sectors.
Learn how Spanish companies can expand into Saudi Arabia and capitalize on opportunities across key growth sectors.
The Saudi-Spanish economic corridor continues to record strong progress, placing both countries among each other's top 10 trading partners, with Spanish investments exceeding $3 billion over the past decade.
Spanish enterprises are increasingly gaining ground in Saudi Arabia's growing real estate and infrastructure sectors, with the number of companies setting up a business in the Kingdom continuing to grow.
In just the past three years, Spanish corporate presence in Saudi Arabia has surged by 57%, and the number of licensed companies is doubling to 245 by early 2025.
The relationship is further bolstered by the Saudi-Spanish Business Council, a strategic objective that aims to bridge Spanish investors with opportunities in Saudi Arabia's giga projects and other prominent initiatives linked to major events like Riyadh Expo 2030 and the 2034 FIFA World Cup.
In this piece, we explore the top investment opportunities awaiting Spanish companies in the Kingdom and the essential steps to set up a foreign business in Saudi Arabia.
Real Estate Development Attracts Major Spanish Investors to Saudi Arabia
Around 40% of total Spanish investment in Saudi Arabia is channeled into real estate and property development. This aligns perfectly with the Kingdom's ambitious housing targets under Vision 2030, which aims to increase homeownership rates to 70% by 2030.
A standout example is the joint venture between the National Housing Company and Spain's Urbas Middle East Real Estate Company. This collaboration is set to develop nearly 600 housing units in the Al-Fursan suburb in Riyadh, directly contributing to the Kingdom's urban development initiatives and addressing the growing demand for varied housing choices.
Spanish expertise in real estate development is particularly pronounced in Saudi Arabia's ambitious urban transformation projects. The Kingdom's construction boom, featuring developments nationwide, provides Spanish real estate firms with powerful opportunities to accelerate time-to-market and establish long-term partnerships.
Beyond real estate and infrastructure, Spanish companies are finding compelling opportunities in Saudi Arabia's renewable energy transition and its thriving tourism sector.
Spanish developers and investors in construction, infrastructure, and telecommunications, as well as engineering and consulting services, will find open fields for operations, particularly those specializing in sustainable construction practices.
Infrastructure and Construction Emerge as High-Growth Sectors for Spanish Firms
Spanish companies have long been recognized for their engineering prowess, and Saudi Arabia's $1.7 trillion project pipeline offers strategic pathways for Spanish construction and infrastructure firms.
The latest Saudi-Spanish Business Forum, held in Riyadh, highlighted four key private-sector agreements covering water infrastructure, real estate, transport technology, and telecommunications, areas where Spanish expertise and niches are in high demand.
According to officials, over 200 Spanish companies are exploring investing in various sectors, including waste and water management, renewable energy, agriculture, and food processing.
Beyond real estate and infrastructure, Spanish companies are finding compelling opportunities in Saudi Arabia's renewable energy transition and its thriving tourism sector.
Spanish developers and investors in construction, infrastructure, and telecommunications, as well as engineering and consulting services, will find open fields for operations, particularly those specializing in sustainable construction practices.
Business Setup in Saudi Arabia from Spain: A Three-Phase Process Explained
Spanish company formation in Saudi Arabia follows a structured approach divided into three distinct phases, typically completed within six months.
Phase 1: Establish Your Legal Entity (1 Month)
The expansion journey begins with creating a solid legal foundation:
- Obtain a MISA Investor License
- Name Reservation
- Draft Local Articles of Association (AoA)
- Secure Commercial Registration (CR)
- Chamber of Commerce (CoC) Registration
Phase 2: Authorize Operations and Build Your Team (2 Months)
After establishing the legal entity, focus shifts to operational readiness:
- Obtain a company seal
- Register with the Ministry of Labor
- Register with GOSI
- Register a National Address
- Issue a GM Visa
- ZATCA and VAT Registration
Phase 3: Finalize Residency and Banking Setup (3 Months)
The final stage transforms your business into a fully operational entity:
- Activate Chamber of Commerce account:
- Obtain Health Insurance
- Complete Medical Checkups
- Issue GM's Iqama
- Register with Government Portals such as Qiwa, Mudad and Muqeem
- Open Corporate Bank Account
Post-launch success requires ongoing adherence to compliance requirements, including the Saudization program, GOSI reporting obligations, tax filing schedules, and regular license updating and renewals.
