UAE businesses see Saudi Arabia as top investment destination: HSBC report

14/11/2025 03:18 AST

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, according to a HSBC survey.

The bank said that several key UAE firms are demonstrating strong confidence in the Kingdom, with a growing number viewing the Kingdom as a central partner in their regional and international growth strategies.

The findings by HSBC 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 ongoing economic reforms and diversification efforts.

Commenting on the latest report, Mohamed Al-Marzooqi, CEO of HSBC Bank Middle East Limited, said: "As Saudi Arabia's leading trading partner in the GCC and its third largest globally, the UAE continues to play a pivotal role in strengthening trade and investment flows between our two nations. That strength underlines how intra-MENAT investment is reinforcing the region's confidence in its own future."

This latest survey involved 4,000 business decision makers with international operations generating revenues of $50 million to $500 million annually.

HSBC further said that more than 78 percent of businesses in the UAE are planning to strengthen trade and investment ties with Saudi Arabia over the next six months.

Some 59 percent of the UAE businesses cited economic stability as a key factor behind their decision to invest in Saudi Arabia, while 58 percent mentioned economic growth and 42 percent valued the Kingdom's favorable position as a gateway to other markets in the Gulf region.

In terms of the best routes for expansion into the Kingdom, 48 percent of the UAE businesses named private equity and venture capital funds, followed by mutual funds at 46 percent and partnerships and joint ventures at 45 percent.

According to the survey, Saudi Arabia's technology and innovation industries were the top investment destinations, with 47 percent of current and 46 percent of future investments going into both sectors.

In terms of the most attractive channels for participation in the Kingdom's economy, 52 percent of survey participants named project finance, while 46 percent of businesses selected risk management solutions.

Some 96 percent of UAE businesses agreed that Saudi Arabia's sustainability and environmental, social and governance agenda encourages investment, while 94 percent called the Kingdom a reliable hub for trade and investment even during times of global uncertainty.

Arab News