UAE Businesses See Saudi Arabia as Top Investment Destination: HSBC Report
A recent survey conducted by HSBC reveals that nine out of ten international business firms operating in the UAE are planning to invest in Saudi Arabia over the next five years, driven by the Kingdom's economic transformation.
Riyadh: Nine out of ten international business firms operating in the UAE are planning to invest in Saudi Arabia over the next five years, according to a survey conducted by HSBC.
The bank attributed this trend to Saudi Arabia's ongoing economic transformation and diversification efforts.The findings align with a report released by Kearney in April, which revealed that Saudi Arabia rose to 13th place in the 2025 Foreign Direct Investment Confidence Index, its highest-ever ranking, reflecting stronger investor sentiment amid economic reforms.
This indicates a growing confidence among investors towards the Kingdom's future.Mohamed Al-Marzooqi, CEO of HSBC Bank Middle East Limited, emphasized the UAE's role as Saudi Arabia's leading trading partner and its impact on strengthening trade and investment flows between both nations.
He highlighted that this trend reinforces the region's confidence in its economic future.The latest survey involved 4,000 business decision-makers with international operations generating revenues ranging from $50 million to $500 million annually.
Over 78 percent of these businesses plan to strengthen trade and investment ties with Saudi Arabia over the next six months.Economic stability was cited as a key factor by more than 59 percent of UAE businesses behind their decision to invest in Saudi Arabia, while economic growth and favorable position as a gateway to other Gulf markets were mentioned by 58 percent and 42 percent respectively.
In terms of expansion routes into the Kingdom, private equity and venture capital funds, mutual funds, and partnerships/joint ventures were named as top options.Saudi Arabia's technology and innovation sectors emerged as the most attractive for investment, with 47 percent of current and 46 percent of future investments targeting these industries.
Project finance and risk management solutions were identified as the most appealing channels for participation in the Kingdom's economy by 52 percent and 46 percent of survey participants respectively.The majority of UAE businesses (96 percent) acknowledged that Saudi Arabia's sustainability and environmental, social, and governance agenda encourages investment.
Additionally, 94 percent regarded the Kingdom as a reliable hub for trade and investment even during times of global uncertainty.
The bank attributed this trend to Saudi Arabia's ongoing economic transformation and diversification efforts.The findings align with a report released by Kearney in April, which revealed that Saudi Arabia rose to 13th place in the 2025 Foreign Direct Investment Confidence Index, its highest-ever ranking, reflecting stronger investor sentiment amid economic reforms.
This indicates a growing confidence among investors towards the Kingdom's future.Mohamed Al-Marzooqi, CEO of HSBC Bank Middle East Limited, emphasized the UAE's role as Saudi Arabia's leading trading partner and its impact on strengthening trade and investment flows between both nations.
He highlighted that this trend reinforces the region's confidence in its economic future.The latest survey involved 4,000 business decision-makers with international operations generating revenues ranging from $50 million to $500 million annually.
Over 78 percent of these businesses plan to strengthen trade and investment ties with Saudi Arabia over the next six months.Economic stability was cited as a key factor by more than 59 percent of UAE businesses behind their decision to invest in Saudi Arabia, while economic growth and favorable position as a gateway to other Gulf markets were mentioned by 58 percent and 42 percent respectively.
In terms of expansion routes into the Kingdom, private equity and venture capital funds, mutual funds, and partnerships/joint ventures were named as top options.Saudi Arabia's technology and innovation sectors emerged as the most attractive for investment, with 47 percent of current and 46 percent of future investments targeting these industries.
Project finance and risk management solutions were identified as the most appealing channels for participation in the Kingdom's economy by 52 percent and 46 percent of survey participants respectively.The majority of UAE businesses (96 percent) acknowledged that Saudi Arabia's sustainability and environmental, social, and governance agenda encourages investment.
Additionally, 94 percent regarded the Kingdom as a reliable hub for trade and investment even during times of global uncertainty.
