Latest news with #Saudi-specific
Arab News
02-05-2025
- Business
- Arab News
Think local: How startups can successfully expand into Saudi Arabia's fast-growing market
RIYADH: Saudi Arabia's rapidly expanding market presents lucrative opportunities for startups, but successful entry requires careful planning and a deep understanding of the local landscape. Industry experts told Arab News that companies looking to expand into Saudi Arabia must focus on key factors such as securing regulatory approvals, ensuring financial stability, hiring the right talent, and adapting to the local culture. By prioritizing these elements, businesses can establish a strong foothold in one of the Middle East's most lucrative markets. Regulatory landscape Regulatory compliance is one of the primary hurdles for startups entering the Saudi market. While the country is actively fostering entrepreneurship and foreign investment, businesses must follow strict licensing and legal requirements. Mohammed Al-Zubi, managing partner and founder of Nama Ventures, emphasized the need for startups to thoroughly understand and prepare for regulatory processes. 'While Saudi Arabia is opening up to startups, businesses must secure the right MISA (Ministry of Investment) licensing, sector approvals, and legal structures. Many founders underestimate the process and should plan accordingly,' Al-Zubi said in an interview with Arab News. Failing to navigate these regulatory frameworks can lead to operational delays, legal complications, or financial penalties. Mohammed Al-Zubi, managing partner and founder of Nama Ventures. Supplied Paula Tavangar, chief investment officer of Injaz Capital, echoed this, noting that 'compliance with Saudi-specific regulations, including licensing, Saudization requirements, and sector-specific rules, is also essential from day one.' She emphasized that while Gulf Cooperation Council countries may appear similar, 'successfully entering the Saudi market has its own very unique economic landscape, regulatory environment, and consumer behavior.' The Ministry of Investment has streamlined processes to encourage foreign investment, but businesses must still comply with industry-specific guidelines and labor laws, including Saudization policies, which mandate hiring a certain percentage of nationals from the Kingdom. Beyond legal compliance, establishing local credibility is crucial. Saudi businesses often prefer working with entities that demonstrate a long-term commitment to the market. Tavangar stressed that 'building an on-the-ground presence in Saudi Arabia is not optional — it's central to gaining traction.' She added that 'Saudi stakeholders generally prefer working with companies that are physically present, engaged locally, and committed to contributing to the Kingdom's Vision 2030 goals.' The regulatory framework is evolving to attract foreign startups, with the Saudi government offering multiple incentives to support early-stage businesses. 'The Saudi government actively supports foreign startups through initiatives like the National Transformation and Development Program, which can assist with relocation logistics and business setup,' Tavangar said. This means startups should not view Saudi Arabia as a short-term expansion play but rather as a core component of their growth strategy. Paula Tavangar, chief investment officer of Injaz Capital. Supplied Financial preparedness Expanding into Saudi Arabia requires significant financial resources. From securing office space to investing in marketing and hiring local employees, the costs can add up quickly. Startups must assess their financial stability before making the move, ensuring they have the necessary capital to sustain operations during the initial stages of expansion. Tavangar pointed to the financial realities of entering the Kingdom. 'Financial readiness is key. Costs associated with setting up in Saudi — such as obtaining a foreign investment license through MISA, setting the entity, renting office space and hiring local talent — can add up quickly,' she said. Setting up operations in the Kingdom comes with significant financial obligations that startups must prepare for. These include licensing, incorporation costs, and office rental, which can be partially offset through available public initiatives. 'There are multiple low-cost co-working space options in addition to free spaces through accelerator programs,' Tavangar noted. She also highlighted the importance of leveraging public-private support schemes. 'Again, NTDP has a program that can sponsor 50 percent of employee salaries for the startups that require the support,' she said, underscoring the need for early-stage companies to budget carefully and align with available national resources. In an interview with Arab News, Ahmed Mahmoud, CEO of DXwand, a startup that has recently expanded to Saudi Arabia, stressed the importance of financial resilience. 'A startup should have strong financial stability, consistent revenue growth, and a proven market presence. It should be well-funded with enough capital to sustain operations for at least a year after expansion,' he explains. Mahmoud encourages startups to evaluate their expenses closely and tailor their pricing models to remain competitive within Saudi Arabia's evolving market landscape. 'To succeed in Saudi Arabia, startups must carefully assess their unit economics and cost structures. A strong balance between customer lifetime value and customer acquisition cost is crucial for long-term profitability,' Mahmoud said. Other financial considerations include managing operational expenses such as office leases, logistics, and employee salaries. Localization costs — such as translating marketing materials into Arabic, adapting services to cultural preferences, and ensuring compliance with local regulations — should also be factored into financial planning. Talent acquisition One of the challenges of expanding into Saudi Arabia is finding and retaining the right talent. Al-Zubi advises startups to take a strategic approach to talent acquisition. 'While Vision 2030 initiatives are fostering a skilled workforce, specialized tech and startup talent can still be limited. Startups should leverage local hiring programs, university partnerships, and experienced regional hires,' he said. Hiring Saudi nationals is not only a regulatory requirement in certain sectors but also a competitive advantage. Local employees bring market insights, cultural understanding, and access to networks that can help businesses establish stronger connections. 'Founders should hire local leadership, engage with stakeholders, and spend time in-market. Remote operations rarely succeed in Saudi Arabia,' he explains. Market localization Saudi Arabia is a relationship-driven market where trust and personal connections play a significant role in business success. Startups that fail to adapt to local consumer behavior and cultural expectations may struggle to gain traction. Al-Zubi highlights the importance of cultural adaptation. 'Startups must localize offerings, marketing, and operations to fit local consumer behavior. Strong local partnerships can accelerate trust and market entry,' he said. Mahmoud also underscored the importance of branding and culturally relevant marketing strategies. 'Localization isn't just about language — it includes pricing models, payment preferences, and customer experience. Businesses that invest in culturally adapted services enhance trust and engagement,' he noted. Tavangar emphasized that 'the local context is very important' adding: 'While in the UAE we observe very successful implementation of business models that worked in the west, Saudi Arabia has a different business environment, very tailored to the local demand and culture.' Strategic partnerships Establishing partnerships with local businesses, distributors, and investors can accelerate market entry and growth. Saudi companies prefer working with brands that demonstrate commitment and credibility, and forming strategic alliances can help startups gain that trust. 'Building local partnerships with investors and distributors isn't just helpful — it's a game-changer. It boosts credibility and makes market entry smoother,' Mahmoud said. Tavangar added: 'A local partner who has 'skin in the game' can significantly aid in navigating both the cultural and business landscapes.' Ahmed Mahmoud, CEO of DXwand. Supplied Leveraging digital transformation As Saudi Arabia accelerates its digital transformation, startups leveraging advanced technologies like artificial intelligence, automation, and cloud infrastructure are well-positioned to gain a market advantage. The Kingdom's investment in smart cities, fintech, and e-commerce presents opportunities for tech-driven companies to scale quickly. Mahmoud highlights the importance of embracing technology as part of a long-term strategy. 'With Saudi Arabia going through a rapid digital transformation, there's a huge opportunity in e-commerce and fintech, both of which align with Vision 2030's innovation goals,' he said. Additionally, businesses that set up a regional headquarters in the Kingdom can benefit from government incentives, including potential tax breaks and funding support. By taking a long-term approach and investing in local partnerships, cultural adaptation, and digital innovation, startups can position themselves for sustainable growth in one of the Middle East's most dynamic economies. As Al-Zubi said: 'Startups that immerse themselves in the market, build strategic partnerships, and adapt to Saudi dynamics will find the most success.'
Mid East Info
14-04-2025
- Business
- Mid East Info
Kanoo Machinery powers Saudi Arabia's F&B Sector with Advanced Industrial Solutions at SaudiFood Manufacturing 2025
Riyadh, Saudi Arabia, April 14th: Kanoo Machinery, a leading provider of industrial and construction equipment in the GCC, has announced its participation in SaudiFood Manufacturing 2025, a premier trade exhibition for the Kingdom's food and beverage (F&B) processing industry. Taking place between April 13 and 15, 2025, at the Riyadh Front Exhibition & Conference Centre, the exhibition returns for its second edition after a successful debut last year. As Saudi Arabia advances its food security initiatives under Saudi Vision 2030, several significant developments are set to transform the Kingdom's food and beverage (F&B) sector. Notably, the unveiling of the world's largest food park in Jeddah, which aims to attract $5.3 billion in investments, creating approximately 43,000 jobs by 2035. Ambitious projects such as these, underscore the Kingdom's commitment to evolving into a global hub for food production and distribution. Kanoo Machinery is firmly positioned to support these transformative initiatives with its future-ready engine & power, material handling, compressors and warehousing solutions – critical for streamlining food production and logistics. From state-of-the-art refrigeration and storage systems to advanced lifting and packaging equipment, Kanoo Machinery provides core solutions required for F&B facilities, ensuring efficient operations and compliance with food safety regulations. This year at SaudiFood Manufacturing, Kanoo Machinery will showcase its portfolio of specialized equipment alongside its key principals, including Combilift, Hyster, Snorkel, Perkins, and Kaishan focusing on innovation and collaboration within the F&B sector. The company's solutions cater to the entire food production value chain, aligning with Saudi Arabia's vision of a self-sufficient and resilient food manufacturing ecosystem. Ali Abdulla Kanoo, Deputy Chairman, Yusuf Bin Ahmed Kanoo and President of Kanoo Industrial & Energy, said, 'Kanoo Machinery has long supported Saudi Arabia's industrial evolution with dependable, high-performance machinery. Our presence at SaudiFood Manufacturing 2025 reaffirms our dedication to empowering the F&B sector with reliable equipment solutions that drive efficiency and growth. This is where our legacy of engineering excellence meets the future needs of a growing industry.' Fahad Kanoo, Deputy Chairman of Kanoo Industrial & Energy, added, 'SaudiFood Manufacturing 2025 offers a powerful platform to engage with sector stakeholders and spotlight how industrial machinery is reshaping the future of food production in the region. At this year's exhibition, Kanoo Machinery will showcase its capabilities to serve the sector with our portfolio of innovative solutions that bring tangible value and support Saudi Arabia's food security goals.' Manoj Tripathy, CEO of Kanoo Industrial & Energy, commented, 'Kanoo Machinery stands ready with world-class technologies, quality service, and Saudi-specific expertise to help businesses scale efficiently while maintaining the highest standards of productivity and industrial performance. Our participation highlights our strategic intent to be an end-to-end partner in operational success for food manufacturers across the Kingdom.' With a keen focus on customer service excellence, Kanoo Machinery provides comprehensive after-market support, technical assistance, and customized operational solutions to cater to various industrial sectors, including food processing and manufacturing. With over 550 exhibitors from 70+ countries, the Saudi Food Manufacturing Exhibition 2025 will allow visitors to explore the latest advancements in industrial equipment, engage with industry experts, and discover how Kanoo Machinery is shaping the food manufacturing sector with its future-ready offerings.
Arab News
12-04-2025
- Business
- Arab News
Kanoo Machinery powers Saudi Arabia's F&B sector
Kanoo Machinery, a provider of industrial and construction equipment in the GCC, is participating in SaudiFood Manufacturing 2025, a premier trade exhibition for the Kingdom's food and beverage processing industry. Taking place between April 13 and 15, at the Riyadh Front Exhibition and Conference Center, the exhibition is returning for its second edition after a successful debut last year. As Saudi Arabia advances its food security initiatives under Saudi Vision 2030, several significant developments are set to transform the Kingdom's F&B sector — notably, the unveiling of the world's largest food park in Jeddah, which aims to attract $5.3 billion in investments, creating approximately 43,000 jobs by 2035. Ambitious projects such as these, underscore the Kingdom's commitment to evolving into a global hub for food production and distribution. Kanoo Machinery is firmly positioned to support these transformative initiatives with its future-ready engine and power, material handling, compressors and warehousing solutions — critical for streamlining food production and logistics. From state-of-the-art refrigeration and storage systems to advanced lifting and packaging equipment, Kanoo Machinery provides core solutions required for F&B facilities, ensuring efficient operations and compliance with food safety regulations. This year at SaudiFood Manufacturing, Kanoo Machinery will showcase its portfolio of specialized equipment alongside its key principals, including Combilift, Hyster, Snorkel, Perkins, and Kaishan focusing on innovation and collaboration within the F&B sector. Ali Abdulla Kanoo, deputy chairman, Yusuf bin Ahmed Kanoo and president of Kanoo Industrial and Energy, said: 'Kanoo Machinery has long supported Saudi Arabia's industrial evolution with dependable, high-performance machinery. Our presence at SaudiFood Manufacturing 2025 reaffirms our dedication to empowering the F&B sector with reliable equipment solutions that drive efficiency and growth. This is where our legacy of engineering excellence meets the future needs of a growing industry.' Fahad Kanoo, deputy chairman of Kanoo Industrial and Energy, added: 'SaudiFood Manufacturing 2025 offers a powerful platform to engage with sector stakeholders and spotlight how industrial machinery is reshaping the future of food production in the region.' At this year's exhibition, Kanoo Machinery will showcase its capabilities to serve the sector with our portfolio of innovative solutions that bring tangible value and support Saudi Arabia's food security goals.' Manoj Tripathy, CEO of Kanoo Industrial and Energy, said: 'Kanoo Machinery stands ready with world-class technologies, quality service, and Saudi-specific expertise to help businesses scale efficiently while maintaining the highest standards of productivity and industrial performance. Our participation highlights our strategic intent to be an end-to-end partner in operational success for food manufacturers across the Kingdom.' With over 550 exhibitors from 70+ countries, the Saudi Food Manufacturing Exhibition 2025 will allow visitors to explore the latest advancements in industrial equipment shaping the food manufacturing sector.
FACT
21-02-2025
- Business
- FACT
The world's largest Balenciaga flagship store opens in Saudi Arabia
Saudi Arabia is upping the ante when it comes to establishing itself as a leader in luxury fashion. With Riyadh Fashion Week becoming a regular fixture, the Saudi capital is turning up the heat in the industry. And now the world's biggest Balenciaga flagship store has officially opened in Riyadh. Located in Solitaire Mall, the new Balenciaga store has found the perfect address. With its prime spot, the fashion house's expansion speaks volumes about the Kingdom's growing influence in the global fashion scene. Spanning 483 square meters, the Balenciaga store maintains its signature industrial edge. As soon as you step inside, you'll find yourself in a space with concrete walls, aluminium displays, and LED lighting. The colour palette dominated by grey adds to the theme as velvet curtains, leather seating, and metal tables add a contrast. The main floor features Balenciaga's exclusive VIC (Very Important Customer) room. This private area offers an intimate space for personal styling appointments and bespoke shopping experiences. The Balenciaga store houses a curated selection of ready-to-wear apparel, accessories, eyewear, jewellery, and even region-exclusive pieces, bringing the brand's history and classiness to the Kingdom. Expect to shop on limited-collection pieces and the Saudi-specific statement works. The luxury scene in Saudi Arabia is thriving, and with Riyadh quickly becoming a global fashion hotspot, the latest Balenciaga store opening makes a big statement. While this Balenciaga store is the biggest flagship in the world, it also marks the brand's third store in Saudi Arabia. Will other fashion houses follow suit? This has yet to be seen. But stay tuned at FACT for all the insights. GO: Visit for more information.
