You might not know this but conquering Saudi Arabia’s economy can be a very good business strategy if you still don’t have one. Not everyone knows this but the country is actually filled with countless opportunities for someone open to investing in the energy, retail, and logistics sectors. This article will tell you what you need to know and what opportunities are waiting for you.
Saudi Arabia consists of 13 provinces and this is probably why there is a need for large infrastructures. Due to its huge population, it has become the largest base in the Middle East. It is also the largest economy in the Middle East and presents a high potential in consumerism.
The Kingdom of Saudi Arabia is one of the leading countries in providing oil and gas.
- The country holds a quarter of the world’s crude oil reserves.
- It produces 3.5 billion barrels of crude oil annually and 9.5 million barrels of crude oil daily.
- Saudi Arabia is the sixth country in the world with the biggest gas reserves.
- It also produces gas 3.9 trillion standard cubic feet yearly and 10.7 billion daily.
These figures are expected to grow even more.
Opportunities in the energy sector
- Upstream energy sector
- Manufacturing manifolds
- Manufacturing christmas trees
- FPSO conversion
- Offshore drilling platforms
- Separation of oil and gas
- Midstream energy sector
- Tugs and barges
- Transmission pipeline systems
- Crew utility boats
- Downstream energy sector
- Refinery: Plant Civil Engineering
- EPCM: Compressor packages
- EPCM: Heat exchangers
- Distribution & amp; Storage
- Tank storage
- Storage tank services
In the downstream energy sector, opportunities in the refinery sector presents itself in the form of engineering, procurement, and construction management (EPCM) arrangements. These are arrangements involving large projects within these kinds of industries wherein clients employ contractors to manage the whole project.
According to several sources, the consumption and the GDP expenditure of Saudi Arabia are the highest in the Gulf Cooperation Council.
Consumption is mainly driven by:
- A young and growing population
- Sources reveal that population has grown throughout the years.
- Half of this population consists of a young age group from 0-24 years of age.
- Increasing household wealth
- The gross income per household has increased and the disposable income
- Increasing number of small family sizes and an increasing number of households
- Statistics show that the number of households are increasing and most of these households are small in number with a significant increasing consumption expenditure.
Economy growth is also driven by projects under industries not associated with oil production:
Considerations for businesses
- Factor time for business processes.
- Building relationships as key.
- Engage further in technology and skills in order to establish the presence of your business.
To further your career in business, it is a highly recommended you form a business strategy centered on the opportunities the Kingdom of Saudi Arabia has to offer. It has already been laid out for you. All you need to do is choose.