Business Setup in Saudi Arabia from Hong Kong

Saudi Arabia is the preferred expansion destination for Hong Kong firms, surpassing Mainland China, according to a recent HSBC survey

Saudi Arabia is named as the preferred international expansion destination for Hong Kong firms, surpassing even Mainland China, according to a recent HSBC survey, reflecting the Kingdom's growing appeal for headquartering operations and attracting foreign investments.

With the Kingdom's Vision 2030 advancing rapidly, Hong Kong businesses are increasingly viewing the Kingdom as a priority expansion destination, with opportunities abounding in multiple sectors such as fintech, technology, real estate, and logistics.

In this guide, we explore the top investment opportunities for Hong Kong companies in the Kingdom and outline the essential steps to set up a business in Saudi Arabia.

Financial Services: A Key Draw for Hong Kong Firms

Financial services, particularly fintech, are emerging as a key area of interest for Hong Kong businesses. Saudi Arabia is already pursuing aggressive targets to boost financial inclusion under Vision 2030 and the Financial Sector Development Program (FSDP).

This trend is further reinforced by the recent joint launch of a landmark $1 billion investment fund by the Public Investment Fund (PIF) and the Hong Kong Monetary Authority (HKMA) to facilitate the expansion of Hong Kong firms in Saudi and increase two-way investments in many sectors, with an emphasis on financial services.

The size of the fund speaks to untapped market demand in Saudi Arabia and its role as a facilitator of public-private partnerships.

Multiple macro trends point to the ongoing growth of the Saudi fintech sector. The number of fintech firms has grown from 14 in 2020 to 261 in 2025, with as much as $860 million invested in fintech during the first half of 2025 alone—accounting for 56% of all MENA venture capital.

Last year, GAW Capital, a Hong Kong-based multi-asset investment manager, announced it was looking at Saudi Arabia as a focus target in the region, demonstrating the continued attractiveness of the Kingdom’s financial sector.

This conducive environment has attracted significant foreign investment and talent, positioning Saudi Arabia as a global testbed for new fintech solutions. Hong Kong companies can find boundless opportunities in wealth tech, lending and embedded Finance, digital banking, financial infrastructure, insurtech, and cybersecurity.

Innovation and Technology Attract Hong Kong Investments

Backed by a strong national digital backbone, a thriving startup scene, and future-ready IT infrastructure, Saudi Arabia's digitization transforms every sector of economic activity, giving birth to new sectors, including gaming.

Hong Kong companies are taking notice, with metaverse and gaming venture capital firm Animoca Brands increasingly expanding its footprint in Saudi. The VC firm is partnering with King Abdulaziz City for Science and Technology (KACST) and NEOM to advance Saudi Arabia's Web3 space.

Of digital economy sectors, e-commerce and logistics are emerging as primary industries of interest for Hong Kong firms like Lalamove. The on-demand delivery platform said it has plans to set up a local entity in Saudi, as it recognizes the Kingdom's position as a logistics hub connecting Asia, Africa, and Europe.

With e-commerce growing at over 30% annually, there’s a robust market need for sophisticated logistics solutions and e-commerce fulfillment services, making Saudi an ideal location for Hong Kong tech companies.

The growing Hong Kong–Saudi tech collaboration was further reinforced by a Riyadh delegation led by Financial Secretary Paul Chan, which included 13 companies from Hong Kong Science and Technology Parks (HKSTP) exploring partnership opportunities in artificial intelligence, smart city technologies, and sustainable solutions.

Vision 2030-led projects continue to offer some of the most attractive avenues for investment for Hong Kong firms, enabling more companies to accelerate their foreign business setup and company formation in Saudi Arabia.

Real Estate and Property Development: Hong Kong Investors Eye Growth

Saudi Arabia recorded 106 million visits in 2024. Momentum has carried into 2025, with 32 million tourists visiting during the summer season alone, generating SAR 53.2 billion—a 15% annual increase.

Hospitality is a major beneficiary of tourism growth, creating significant opportunities for investors, developers, and global hotel brands. Hong Kong hoteliers are already on board.

Regal Hotels Group and Cosmopolitan International Group have announced plans to build approximately 30 hotels in the Kingdom, aligning with the country's goal to develop 550,000 hotel rooms by 2030.

With continued infrastructure upgrades and major events such as World Expo 2030 and the 2034 FIFA World Cup, Saudi Arabia's tourism—and particularly event tourism—is set for sustained expansion.

With Saudi Arabia's construction market valued at over $1.8 trillion in the project pipeline—the largest in the region—Hong Kong property developers and investors are finding strategic entry points across residential, hospitality, retail, and commercial segments.

Business Setup in Saudi Arabia from Hong Kong: A Three-Phase Process Explained

Hong Kong company formation in Saudi Arabia follows a structured approach divided into three distinct phases.

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 (General Organization for Social Insurance)
• 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 (residency permit)
• Register with Government Portals (including Etimad for government contracts)
• Open Corporate Bank Account

Hong Kong-Specific Consideration: Hong Kong companies should select banking partners familiar with cross-border operations between Hong Kong and Saudi Arabia. Several international banks operating in both jurisdictions can facilitate smoother setup and ongoing operations.

Post-Setup Compliance and Ongoing Requirements

Post-launch success requires ongoing adherence to compliance requirements, including:

• Saudization Program: Meeting minimum Saudi national employment quotas
• GOSI Reporting Obligations: Monthly social insurance contributions and reporting
• Tax Filing Schedules: VAT returns, corporate tax compliance, and withholding tax obligations
• License Renewal: Regular renewal of commercial registration and sector-specific licenses
• Government Portal Compliance: Maintaining active status on platforms like Qiwa, Muqeem, and Mudad

Saudi Arabian Economy: Strong Fundamentals

Saudi Arabia continues to stand out as the Middle East’s largest economy and one of its fastest-growing markets, with the non-oil sector exceeding 55% of GDP in 2025.

This momentum is underpinned by strong fundamentals driven by the Vision 2030 transformation agenda. Net FDI inflows averaged SAR 22.5 billion per quarter in the first half of 2025, while commercial registrations exceeded 1.7 million by Q3 2025.

Regional headquarters (RHQ) activity has also accelerated, with more than 660 licenses issued by 2025 and expectations to surpass 1,000 within the next few years.

Together, these factors create fertile ground for global investment. Saudi Arabia is increasingly attracting companies committed not only to short-term opportunities but also to long-term growth.