Ventures grew in 2025, 2.5 times the number of firms in 2020: EnterpriseSG

Key Concepts

• Diversification of Saudi Arabian Economy: Moving away from oil dependence towards infrastructure, tourism, and urban development.
• Kadia City: A large-scale entertainment and urban development project in Saudi Arabia, comparable in size to half of Singapore.
• Singapore-Middle East Collaboration: Increased efforts by Singaporean firms to expand into the Middle East, facilitated by Enterprise Singapore.
• Remanufacturing & E-commerce Growth: The rise of refurbished goods and the expanding e-commerce market in the region.
• Logistics & Infrastructure Development: Expansion of logistics capabilities (SATS) and urban solutions provided by Singaporean companies.

Saudi Arabia’s Economic Diversification & Singaporean Involvement

Saudi Arabia is actively pursuing economic diversification to reduce its reliance on oil revenue. This shift is manifesting in significant investment in infrastructure projects and urban zones. In the past year alone, project contracts worth approximately 248 billion Singapore dollars were awarded. This presents substantial opportunities for international firms, including those from Singapore. A key example is the awarding of a contract to a Singaporean design firm for a theme park within Kadia City, a massive new development project. The firm successfully secured the contract by offering an “integrated solution from end to end,” differentiating themselves from six other competitors.

Kadia City: A New Urban Hub

Kadia City, envisioned as a major entertainment and urban center, is approximately half the size of Singapore. The ambitious project aims to attract tourists and foster new ventures, encompassing theme parks, entertainment venues, and production houses. The projected completion date is 2050. Singaporean firms are already contributing urban solutions to the project, laying the groundwork for further collaboration in infrastructure development. Enterprise Singapore anticipates that these projects will create employment opportunities for Singaporeans, allowing them to develop new skill sets through managing local talent.

Logistics & Expertise Transfer: The SATS Example

SATS, a Singaporean logistics firm, has established a presence in Riyadh, Saudi Arabia. They are actively transferring expertise by bringing Singaporean employees to train and collaborate with their Saudi counterparts. The Riyadh terminal is modeled after its Singaporean counterpart but has been adapted to the region’s harsher climate – hotter, drier, and sandier conditions. Furthermore, the terminal has been modified to accommodate the growing volume of e-commerce shipments. Cargo volume increased by 12% in the last year (compared to 2023), driven by strong e-commerce growth. SATS plans to further expand its regional presence with a new terminal in Jeddah. The increasing purchasing power of the growing middle class in Saudi Arabia is expected to further fuel the growth of e-commerce, consumables, and perishable cargo. As stated, “With the growing middle class here in Saudi Arabia, we are going to see their purchasing power uh becoming more and more stronger, right? And that will drive the growth of e-commerce, the consumables, you know, perishable cargo.”

UAE & the Remanufacturing Sector

In the United Arab Emirates, strong consumer demand is driving expansion in sectors like remanufacturing. A Singaporean firm specializing in refurbishing used mobile phones has expanded into a free trade zone near the airport, facilitating faster and more efficient goods flow. This new facility will enable the company to refurbish up to 6 million devices annually, serving a potential customer base of around 2 billion across the Middle East, Europe, and Africa. The facility is intended to “scale uh to our customers across the Middle East, Europe and Africa.”

Challenges & Enterprise Singapore’s Role

As the Middle East undergoes rapid transformation, navigating bureaucratic processes and “red tape” may present challenges for businesses. Enterprise Singapore is proactively addressing this by facilitating connections between Singaporean firms and local partners. This support aims to help companies overcome regulatory hurdles and capitalize on emerging opportunities in sectors like tourism and technology.

Ultimately, Singapore is strategically positioning itself to benefit from the Middle East’s economic diversification and growth, fostering collaboration and creating opportunities for both Singaporean businesses and its workforce.