There are moments when a market changes gradually, and there are moments when the direction of travel becomes impossible to ignore. For anyone who has spent time doing business across the Middle East, Riyadh is now firmly in the second category. The Saudi capital has moved beyond being the political and administrative centre of the Kingdom. It is becoming one of the most consequential business cities in the world, a centre for capital, technology, infrastructure, professional services, talent and international expansion. In my view, Riyadh has become the Middle East’s most significant growth story.
This Is Bigger Than Vision 2030
It is tempting to describe everything happening in Riyadh as a consequence of Saudi Arabia’s Vision 2030 programme. That would, however, underestimate what is taking place.
Vision 2030 has provided the strategic framework. But the more important development is that an increasingly sophisticated private-sector economy is emerging around it.
Saudi Arabia's non-oil economy has expanded substantially, with non-oil activity now accounting for more than half of GDP. Private-sector participation has also increased, while investment is being directed into technology, advanced manufacturing, tourism, infrastructure, entertainment, logistics, financial services and other sectors that would have been far less prominent in the Kingdom a decade ago.
That matters because sustainable economic transformation is ultimately not about the amount of money being spent. It is about what that investment creates.
And Riyadh is creating an ecosystem.
The Regional Headquarters Effect
Perhaps one of the clearest indicators of Riyadh's growing importance is the number of international businesses establishing a meaningful presence in Saudi Arabia.
Saudi Arabia's Regional Headquarters programme was designed to encourage multinational companies to establish their regional operations in the Kingdom.
The Saudi government's 2025 reporting indicates that more than 700 regional headquarters had been licensed by the end of 2025, with approximately 90% located in Riyadh. The programme had therefore exceeded its 2030 target ahead of schedule.
When global companies establish regional headquarters, they bring senior executives, finance functions, HR teams, legal departments, technology operations, sales organisations and significant professional-services requirements with them.
They also bring people, and people create ecosystems.
The headquarters effect therefore has a multiplier impact on the wider economy.
Riyadh Is Competing for Global Talent
Capital will move quickly; however, talent is more difficult.
One of the most interesting aspects of Riyadh's transformation is the growing internationalisation of its workforce.
Global companies need executives, engineers, lawyers, accountants, technology specialists, project managers, consultants, construction professionals, healthcare workers and highly specialised technical personnel.
From my perspective in the immigration and corporate services sector, this is one of the clearest signals that Riyadh's economic transformation is becoming structural rather than temporary.
Companies are no longer simply asking:
“How do we send employees to Saudi Arabia for a project?”
Increasingly, the question is:
“How do we build our organisation in Saudi Arabia?”
It requires decisions around corporate structure, regional headquarters, subsidiaries, branches, employment, immigration, Saudization, compliance, tax, accommodation, relocation and long-term workforce planning.
For international businesses, Saudi Arabia is becoming an operating market rather than simply a project market.
The Capital Is Following the Opportunity
Investment is another reason Riyadh deserves attention.
Saudi Arabia attracted approximately US$31.7 billion in foreign direct investment in 2024, representing a 24% increase from the previous year.
The Kingdom is also increasingly regarded by CEOs as one of the world's leading destinations for international investment.
The broader Middle East investment picture is equally significant. Middle Eastern M&A activity increased by 33% in 2025, reaching 635 completed transactions. In the first half of 2026, Saudi Arabia remained one of the region's leading deal markets, with approximately 74 transactions recorded.
Capital is increasingly being deployed to build businesses, acquire capabilities and establish long-term positions.
Riyadh sits at the centre of much of that activity, and the city itself is being transformed.
New commercial districts, hospitality developments, transport infrastructure, residential communities, entertainment destinations and major projects are changing the physical character of Riyadh.
But the more important transformation is perhaps less visible.
Riyadh is becoming more connected to the global business community.
International conferences, investment forums, technology events and major corporate gatherings are bringing global decision-makers into the city.
The result is a virtuous cycle:
Investment attracts companies. Companies attract talent. Talent attracts further investment. Investment creates infrastructure. Infrastructure attracts more companies.
That is how global cities are built.
Riyadh and Dubai Are Not the Same Proposition
There is sometimes an unnecessary tendency to frame Riyadh's growth as a threat to Dubai. I don't see it that way.
Dubai has built an extraordinary position as a global business, financial, logistics, tourism and lifestyle hub. Its international connectivity, mature infrastructure and established business ecosystem remain significant competitive advantages.
Riyadh is different.
It is the economic and political centre of the largest economy in the Gulf, with a population and domestic market that provide enormous scale. It is also at the centre of one of the world's most ambitious economic transformation programmes.
For businesses operating across the region, the more sensible question is not:
“Dubai or Riyadh?”
It is:
“How should we use Dubai and Riyadh together?”
For many international companies, the answer will increasingly involve a presence in both.
The Next Challenge Is Execution
However, I believe there is an important distinction between opportunity and execution.
Saudi Arabia has created extraordinary opportunities. But companies still need to navigate a regulatory and operational environment that is different from the markets in which many international businesses traditionally operate.
Setting up an entity is one decision. Making it operational is another.
Hiring people is one decision. Building a compliant workforce is another.
Obtaining visas is one step. Managing immigration, employment, Saudization and ongoing compliance is a much broader responsibility.
This is where businesses need to move away from a transactional mindset.
Saudi Arabia should not be approached simply as another jurisdiction in which to obtain a licence and send employees. It requires a proper market-entry strategy.
The Businesses That Will Win Will Think Long Term
I believe the biggest opportunities in Saudi Arabia will ultimately go to companies that are prepared to commit to the market.
The Kingdom is increasingly looking for businesses that bring technology, expertise, investment, jobs and capability.
That creates an opportunity for international companies, but it also creates expectations.
Companies entering Saudi Arabia need to understand the local regulatory environment, invest in relationships, develop local talent and build structures that can scale.
The companies that succeed will not simply ask:
“What can we sell in Saudi Arabia?”
They will ask:
“What can we build in Saudi Arabia?”
Riyadh's Opportunity Is Still in Its Early Stages
Perhaps the most compelling reason to watch Riyadh is that this transformation is far from finished.
Saudi Arabia has now entered the third phase of its Vision 2030 journey, with greater emphasis on sustaining delivery, strengthening economic returns and building resilience.
The first phase was about establishing the ambition.
The second was about accelerating transformation.
The next phase will be about turning that transformation into sustainable economic value.
That will require greater private-sector participation, productivity, innovation and international investment.
And that is precisely where Riyadh's opportunity becomes particularly interesting.
My View
Having worked across the UK, UAE and Saudi Arabia, I have seen first-hand how quickly the regional business landscape can change.
My view is straightforward: Riyadh is no longer simply a market businesses should consider entering. It is becoming a market that serious international businesses need to understand.
The question for CEOs is no longer whether Saudi Arabia presents an opportunity.
It does.
The question is whether their organisation is structured, resourced and prepared to capture it.
Riyadh is building something considerably larger than a new business district or another regional financial centre. It is building a new economic centre of gravity for the Middle East.
And for international businesses willing to take a long-term view, the opportunity is potentially enormous.
For businesses considering entry or expansion into the Kingdom, contact Hudson McKenzie to discuss immigration, corporate services and workforce requirements.
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