When most people think of Saudi Arabia, they think of the vast wealth from lucrative oil mines. While this is true, Saudi Arabia is looking to diversify its economy away from relying solely on the oil industry.
In 2024, we saw an economic growth of 1.3%, which is all thanks to the expansion in non-oil sectors. According to the Saudi Ministry of Economy, revenue increased by 30% in recent years, due to the real estate, tourism, and technology sectors. There is even more to come from the Kingdom, enticing new investors to invest in Saudi Arabia. The economy will be transformed through the Vision 2030 initiative. This is great news for those looking to invest, as various opportunities for both local and international investors will be available. Does this sound like your cup of tea? Understanding economic transformations can guide you to the best way to invest money in Saudi Arabia. Let’s have a look at some of the best ways to invest money in Saudi Arabia.
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Why Should You Consider Investing in Saudi Arabia?
Location, Location, Location! Saudi Arabia is sitting in the geographic sweet spot, between Europe, Asia, and Africa. with government reforms and a growing economy, we see a rise in non-oil sectors such as real estate, technology, and tourism. Access for international investment has increased with the government initiative Vision 2030, making Saudi Arabia “ripe for the investment picking.”
Legal Frameworks: Understanding the Best Way to Invest Money in Saudi Arabia.
An understanding of the legal frameworks is paramount to success when investing in Saudi Arabia. Local and foreign investors will need to follow different channels, with differing licences and permissions depending on the investment type. Foreign investment is facilitated by the Saudi Arabian General Investment Authority (SAGIA), now known as MISA, through the issuing of licences. If you are qualified, the Tadawul stock exchange is open to foreign investors too through Qualified Foreign Investors (QFI) programs. Recent changes have made the whole investment process more transparent with better protection. Please ensure that when investing money in Saudi Arabia, if you plan to work with brokers or on platforms, they comply with Saudi regulations. Determine the best way to invest money in Saudi Arabia by exploring legal frameworks and regulations.
Exploring the Best Way to Invest Money in Saudi Arabia by Sector
Real Estate
You want to own property but don’t want the hassle of managing it; not a problem these days. Why not invest in the real estate sector through tokenized fractional ownership? Tokenized fractional ownership allows an investor, investing money in Saudi Arabia, to participate with lower capital. Residential and commercial properties in special economic zones with mega-projects such as NEOM, the Red Sea project, or Diriyah Gate, offer unique opportunities for all willing investors.
Owning property in the traditional sense can be a little more tricky as laws govern the areas in which foreigners can or cannot buy property. General ownership is subject to government approval, and ownership in holy cities is prohibited by non-Saudis altogether. This leaves investment-based ownership, which we have discussed for real estate developments in growth hubs such as Riyadh or Jeddah, as the best real estate investment option in Saudi Arabia. Similar to Dubai’s freehold property zones, Saudi Arabia is expected to permit direct ownership in the foreseeable future.
Cryptocurrency and Tokenized Assets
New opportunities for investing money in Saudi Arabia may arise through the tokenization of real-world assets, while regulations around blockchain are constantly evolving. Tokenized platforms like Gamma Assets allow investors with limited capital to invest in the real estate sector through blockchain-based fractional ownership. If the idea of real estate tokenization is a little foreign to you, not to worry. Imagine a large pizza, we usually slice and share so everyone gets a piece, and we can share the cost. The pizza in the example is the property, while the slices are tokens. So each slice of the pizza gives you a share of the whole. These slices are tracked using blockchain, making buying and selling more secure and transparent.
Stock Market (Tadawul)
Exchange-traded Funds (ETFs) and blue chip companies are provided access to the Tadawul stock exchange, with an expanding focus on Environmental, Social, and Governance (ESG) funding. The Saudi Tadawul group has shared its guidelines to help ensure transparency for the listed companies. The Kingdom is dedicated in its efforts to diversifying so that it can offer investors a host of opportunities to add unique options to their portfolio. Blue chip companies such as Saudi Aramco, SABIC are among some of the giants open for investment. Once again, it is worth spending a little time conducting research into the company you wish to invest in, to ensure that it meets your goals.
Startups and Venture Capital
Riyadh may be known for its cultural heritage and modern skyline, but it’s the startup scene that is causing a stir. These newly established companies are growing rapidly in various investment sectors such as Fintech, eCommerce, Edtech, and logistics, perfect for the budding venture capitalists. There are hundreds of successful investor stories in Saudi Arabia. Take a look at the fintech start-up Tamara or Jahez, a food delivery app, for proof. The Saudi government is supporting this trend by backing accelerators and launching initiatives designed to foster entrepreneurship and innovation. Government accelerators include projects like Monsha’at and the Misk Foundation, to name a few, offering grants and mentorship to ensure that the startups make it to launch. Equity crowdfunding platforms or angel investments allow anyone to invest their money in Saudi Arabian companies.
What Is the Best Way to Invest Money in Saudi Arabia with Low Capital?
Limited capital should not limit your potential to invest. Through real estate tokenization platforms such as Gamma assets, you can invest as little as $130 to own a piece of property in Saudi Arabia. Mutual funds or REITs (Real Estate Investment Trusts) are publicly listed and provide regular income. Or maybe you would prefer Micro-investing apps, imagine investing with just a few simple taps, well, local apps or regional Fintech solutions make that dream a reality. It is essential that you understand that there will always be a small amount of risk when investing, and that thorough research can not harm. The best way to invest money in Saudi Arabia with low capital will be through platforms with low entry, good security, transparency, and a great customer support team.
Risks and Things to Watch Out For
Currency fluctuation, which is important to note as a foreigner, regulatory shift around new sectors such as crypto, non-compliant platforms, and possible scammers all pose a risk for investors. The best way to invest in Saudi Arabia safely means having an understanding of risk. The investment landscape can feel tricky to navigate therefore, it is important to keep yourself well informed of the regulations and seek professional advice if needed, especially when investing money in Saudi Arabia or any foreign country. For first-time investors, finding the best way to invest money in Saudi Arabia involves careful planning and strategy.
Tips for First-Time Investors
First, and arguably most importantly, is to establish your financial goals and risk tolerance. This allows you to invest your money in Saudi Arabia in the best, most secure way possible.
These methods allow you to start small and begin building your portfolio and subsequent wealth gradually
- Research ensures that you are wise to scams and poor practices, ensuring that you only use reliable platforms and resources. Ensure you read up on and have an understanding of the Saudi market, use official sources such as MISA, Tadawul, or Argaam.
- Mitigate risk by diversifying your portfolio, ensuring your investments are spread across various sectors. Should one sector underperform, you are not at a loss.
- Only use services that are trusted, reliable, and compliant. This leads us to using transparent platforms, with real-time data, and having local insights, allowing you to make well-informed investment choices.
What Happens When You Invest Smart
Let us try a thought experiment, using a fractional real estate platform to invest money in Saudi Arabia. A thirty-something-year-old, Miriam, is tech-savvy and wants to diversify her portfolio. She invests $1000 in a Riyadh-based apartment. Over the following year, she has earned steady dividends, and her assets have appreciated. Illustrating how meaningful yields can result from a relatively small investment. Miriam doesn’t stop there; she is now planning to invest in tokenized hotel real estate along the Red Sea coast. There is no stopping Miriam once she has started showing that the best way to invest money in Saudi Arabia isn’t about having large capital, but rather making smart choices and gradually growing your investments.
Cases such as this show how potential investors can participate, through accessible investment opportunities, in the Kingdom’s evolving market, bolstering the country’s economic growth.
More topics can be read on the Gamma blog
Frequently Asked Questions
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How can I invest money in Saudi Arabia?
There are various opportunities to invest in Saudi Arabia, you could use a platform like Gamma Assets, which offers tokenized assets, or invest in the Tadawul stock exchange, real estate, or start-ups. The best way to invest money in Saudi Arabia depends on your goals and capital.
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How can I make extra money in Saudi Arabia?
While we are all looking for a good side hustle, the tried and true method of investment would be the most economically rewarding and fairly passive in terms of involvement, your money should work for you. Growing sectors for investment include technology, tourism, and renewable energy. It would be advisable to diversify your investments to ensure limited risk. When in doubt, always err on the side of caution, choosing a low-risk investment.
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Is Saudi Arabia a good place to invest?
Saudi Arabia is a very promising place to invest, with the government’s focus on Vision 2030, the strategic reforms mean a diversifying economy. The question should be, how much do I invest in Saudi Arabia?
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What is the most profitable business in Saudi Arabia?
There is no one sector that is most profitable, as profit is driven by government initiatives and market demand, but with that said, sectors such as real estate, technology, and renewable energy are among the more profitable. Remember to diversify to minimize risk.
While there is no single “Best” method for investing in Saudi Arabia, what the Kingdom does offer is diversity. Numerous sectors are receiving government attention through initiatives meaning that Saudi Arabia is an investor’s delight. By leveraging all available resources and opportunities, you can discover the best way to invest money in Saudi Arabia and start building a
