UAE Businesses Poised to Boost Investment in Saudi Arabia Amid Economic Transformation

Nine out of ten international business firms operating in the UAE plan to invest in Saudi Arabia over the next five years, according to a new survey by HSBC. The report highlights growing optimism among UAE-based companies about the Kingdom’s ongoing economic transformation and its expanding role as a regional investment hub.

HSBC noted that several leading UAE firms view Saudi Arabia as a key partner in their long-term regional and global growth strategies. The findings align with a recent Kearney report that placed Saudi Arabia 13th in the 2025 Foreign Direct Investment Confidence Index, its highest-ever ranking. The improvement reflects stronger investor sentiment fueled by Vision 2030 reforms and continued efforts to diversify the Saudi economy.

“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,” said Mohamed Al-Marzooqi, CEO of HSBC Bank Middle East Limited. “That strength underlines how intra-MENAT investment is reinforcing the region’s confidence in its own future.”

The HSBC study surveyed 4,000 senior business decision-makers from firms with international operations generating annual revenues between $50 million and $500 million. Results showed that 78 percent of UAE-based businesses plan to deepen trade and investment ties with Saudi Arabia within the next six months.

Economic stability emerged as the most important factor driving these investment plans, cited by 59 percent of respondents. Another 58 percent pointed to the Kingdom’s steady economic growth, while 42 percent highlighted Saudi Arabia’s strategic location as a gateway to Gulf and regional markets.

When asked about preferred methods for entering or expanding in the Saudi market, 48 percent of UAE businesses chose private equity and venture capital funds. Mutual funds were close behind at 46 percent, followed by partnerships and joint ventures at 45 percent.

Technology and innovation topped the list of priority sectors, attracting 47 percent of current and 46 percent of planned future investments. These areas are seen as central to Saudi Arabia’s diversification efforts, with major government initiatives already underway to support startups and digital infrastructure.

Project finance emerged as the most appealing investment channel, identified by 52 percent of firms, while 46 percent favored risk management solutions as a strategic entry point.

Sustainability is also playing a growing role in shaping investor confidence. About 96 percent of UAE businesses said Saudi Arabia’s focus on environmental, social, and governance (ESG) goals encourages investment, and 94 percent described the Kingdom as a stable and reliable hub for trade even during periods of global uncertainty.

With both nations strengthening economic cooperation, Saudi Arabia’s expanding reforms and infrastructure investments appear to be solidifying its position as one of the most attractive destinations for UAE investors in the coming decade.