Why UK Businesses Should Look to Saudi Arabia as Global Investment Shifts

The world is undergoing a major shift in investment trends. Saudi Arabia, through its Public Investment Fund (PIF), is making bold moves in global markets, increasing its stake in the U.S. while simultaneously positioning itself as a leading destination for investment and business expansion. Meanwhile, the UK is facing growing economic pressures, prompting businesses to look for new opportunities beyond domestic borders.

This raises an important question for UK companies: If Saudi Arabia sees the U.S. as a valuable investment destination, shouldn’t UK businesses be looking at Saudi Arabia in the same way?

Saudi Arabia’s Global Investment Strategy

At the FII Priority Summit in Miami, PIF Governor Yasir Al-Rumayyan reaffirmed the fund’s commitment to increasing investments in the U.S. Despite facing regulatory barriers, Saudi Arabia’s sovereign wealth fund has already allocated 40 percent of its international investments to American companies. The rationale is clear—Saudi Arabia seeks economic diversification, technological advancements, and strategic partnerships to drive long-term growth.

Examples of this strategy include:

• A $20 billion contract with Boeing for aircraft that will serve Saudi’s new airline, Riyadh Air.

• A $4.9 billion acquisition of gaming company Scopely through PIF’s subsidiary, Savvy Games Group.

• Heavy investment in Lucid Motors, positioning Saudi Arabia as a major player in the electric vehicle industry.

• Partnerships with Google and Meta, boosting Saudi’s artificial intelligence capabilities.

While Saudi Arabia is expanding internationally, it is also focusing heavily on domestic investment, with PIF injecting $40-50 billion annually into key industries to build new economic sectors. This means that the same strategic thinking that is driving PIF’s expansion into the U.S. could also guide UK businesses toward investing in Saudi Arabia.

The UK’s Growing Business Challenges

In contrast, the UK is experiencing economic stagnation. The combination of high corporate taxes, inflation, and energy costs is making it difficult for businesses to thrive.

Key concerns include:

• Rising taxation: National Insurance increases and the abolition of non-dom tax status have driven away investors and high-net-worth individuals.

• Slow growth: The UK’s economy is forecasted to grow by just 0.75 percent in 2025, compared to Saudi Arabia’s expected 4.4 percent expansion in its non-oil GDP.

• Energy costs: Electricity prices are three to four times higher than in the U.S., making sectors like AI and manufacturing less competitive.

• Capital flight: More businesses are relocating their operations to the Gulf region, taking advantage of lower taxes and investor-friendly policies.

The fundamental issue for UK businesses is that operating costs are rising while growth opportunities are shrinking. This makes it essential to look at emerging markets where governments actively support investment and expansion.

Why UK Businesses Should Consider Saudi Arabia and the UAE

While Saudi Arabia is investing billions into expanding its reach globally, it is also inviting foreign businesses to invest within the Kingdom. Vision 2030 is reshaping the Saudi economy, creating massive opportunities in industries such as technology, renewable energy, infrastructure, tourism, and manufacturing.

Key advantages include:

• Tax incentives: Saudi Arabia and the UAE offer business-friendly tax policies with lower corporate tax rates than the UK.

• Government-backed investments: The Saudi government actively supports businesses with funding and infrastructure development.

• Strategic location: Saudi Arabia is positioning itself as a global trade hub, connecting Asia, Africa, and Europe.

• High-growth markets: Unlike the UK’s stagnation, Saudi Arabia and the UAE are experiencing strong economic expansion, attracting international businesses and talent.

UK companies already have established trade ties with the GCC, and with a UK-GCC free trade agreement under discussion, the potential for even greater business engagement is increasing.

How R Consultancy Group Can Help

For UK businesses looking to expand into Saudi Arabia or the UAE, R Consultancy Group offers strategic guidance and market-entry support.

We assist companies in:

• Navigating regulatory frameworks to ensure a smooth market entry.

• Building the right local partnerships to accelerate business growth.

• Identifying high-value investment opportunities aligned with government priorities.

• Developing a long-term expansion strategy to maximize returns in the region.

Saudi Arabia is aggressively expanding its investments abroad, recognizing the value of global diversification. At the same time, it offers a wealth of opportunities for foreign businesses to grow within its borders. With economic challenges mounting in the UK, forward-thinking businesses should be looking at the Middle East as the next frontier for expansion.

The question is no longer whether UK businesses should explore Saudi Arabia and the UAE—it’s how soon they can take advantage of the opportunities.

For companies ready to seize these opportunities, now is the time to act. Contact R Consultancy Group today to learn how we can help you establish and grow your business in the Gulf.