Business is booming in Saudi
Sovereign AEI reports a 50% increase in KSA market-entry in Q1 2021
Growth in the Kingdom is expected to be exponential as a result of the relaxing of COVID-19 restrictions and the country’s desire to attract increasing levels of foreign direct investment (FDI)
- Sovereign AEI enabled over 600 business visitors to explore the Saudi marketplace in 2019
- 50% were first time visitors with 70% achieving commercial success
- Despite the challenges of 2020, Sovereign AEI recorded a 300% increase in corporate services sales
- Expecting a 50% increase of MISA (Ministry of Investment of Saudi Arabia) registrations, compared to pre-pandemic levels
- Sovereign AEI is also expecting a 50% increase in the demand for HR and immigration services
- Growth also expected in broader support services including resourcing and recruitment, serviced accommodation, managed transportation and procurement
Sovereign AEI, the trusted experts in foreign direct investment and leaders of commercial success in Saudi Arabia, today reported a 50% increase in the Kingdom’s commercial activity. Sovereign AEI is a strategic partnership between two corporate service provider powerhouses. As a well-established and complimentary partnership between the UAE and KSA, the two businesses came together to provide a unique and reputable platform, aligned with international standards, enabling foreign businesses to achieve success in the Saudi marketplace.
The portfolio of services provided by Sovereign AEI enable clients to enter, establish and expand in the often-challenging business environment of Saudi Arabia. The opportunities of Vision 2030 for regional and global businesses are endless and unprecedented in respect of global business development. From market entry advice and entity registration, to recruitment and local outsourcing, Sovereign AEI’s professional services are designed to help mitigate risk, expedite establishment and accelerate achieving success in Kingdom. This exceptional partnership builds on Sovereign’s 20 years presence in the Middle East and AEI’s track-record of success in Saudi since 2012.
Since the establishment of the strategic partnership in 2019, Sovereign AEI have reported solid performances in its operations, enabling over 600 business visits to Saudi Arabia in 2019 alone. Of these, 50% were first time visitors and over 70% went on to achieve success in the Kingdom. AEI alone has enabled over 1,500 foreign businesses to enter, establish or expand in Saudi Arabia since the company commenced operations in 2012.
Sovereign AEI registered a 300% increase in corporate services in Saudi throughout 2020. The outlook for the coming year remains promising, with an expected uptick of 50% in MISA registrations, compared to pre-pandemic levels. In addition to this, the team are forecasting a 50% increase in HR and immigration services.
Sovereign AEI operate to the highest international standards of regulatory compliance and service clients with the integrity and professional standards expected.
The strong performance and promising outlook also come in the context of positive market forecasts for the Saudi economy, which is set to return to positive growth in 2021. As per the latest report from global rating agency S&P, higher oil prices caused by rising demand and a wider availability of vaccines worldwide will support the Kingdom’s real GDP growth, which is forecast at around 2.3 per cent between 2021 and 2024.
Commenting on the partnership and the Saudi market, Paul Arnold, Managing Director of Sovereign Saudi Arabia said: “As a global business, we were receiving an increasing number of enquiries from new and existing clients about how to successfully establish and operate a business in Saudi Arabia. Thanks to AEI’s capability and strong local knowledge, we are now able to complement Sovereign’s expertise in handling cross-border corporate and commercial matters.
He continues; “The Saudi market presents tremendous opportunities. Most companies are now aware of the potential of the market, the main pillars of Vision 2030 and the significant number of economic reforms carried out over the past 18 months. However, plotting a road map to success can be a challenge. Our principles are to educate, de-risk and enable the client’s ability to enter, establish or expand in the Kingdom. Our robust performance in Q1 is a testament to the attractive nature of the Saudi market and we continue to see a growing interest and increasing shift of client focus towards KSA, as the country continues to unveil new strategic initiatives.”
Stuart D’Souza, Co-Founder and CEO of Arabian Enterprise Incubators (AEI) adds: “The Sovereign AEI partnership is perfectly aligned with Vision 2030, representing a unique combination of local and international expertise to enable clients to capitalise on the unparalleled opportunities in the Kingdom.
He continues; “It is easy to spot the many opportunities in Saudi. But the market remains challenging, often opaque, and always shifting from a regulatory, compliance and process perspective. Seeking informed and credible local knowledge with transparent advice is crucial to achieving success. As the world begins to emerge from the pandemic, the future looks bright and together with Sovereign, we will continue to fly the flag for the Saudi market place internationally and connect the Kingdom to the world.”
Sovereign is also known for its ‘Sovereign Art Foundation’ (SAF), a charitable organisation founded in 2003 to recognise, support and promote contemporary art talent; and to bring the therapeutic benefits of art to disadvantaged children. To date, SAF has raised US$ 10 million for children’s charities in many locations.
About Sovereign & AEI (Arabian Enterprise Incubators)
Sovereign AEI are trusted experts in foreign direct investment and leaders of commercial success in the Kingdom of Saudi Arabia; a unique strategic partnership bringing together an experienced world-leading brand with a premium regional expert. As such, Sovereign AEI has been created for any corporate body looking to enter, establish or expand in Saudi Arabia. As a corporate service provider of choice, Sovereign AEI provides a distinct understanding of the perceived challenging and sometimes fluid marketplace to help clients operate a successful business and share in Saudi’s success.
Sovereign AEI is well positioned to support the government’s diversification efforts aiming to attract foreign direct investment and create jobs for millions of Saudis. Through the provision of best-in-class valuable advice, Sovereign AEI eases market-entry and accelerates the number of corporate entries being able to align with Saudi Arabia’s ambitious Vision 2030 reform plan and its journey to become a more viable location for foreign businesses. In that sense, Sovereign AEI plays a key role in strengthening Saudi’s economy and improving its ranking in the World Bank’s Doing Business Report.
Equipped with a collaborative team of multicultural experts, Sovereign AEI delivers professional, premium, quality services aligned to international standards. Clients benefit from a network of agents in all major international finance centres that provides local expertise with an international dimension, whilst enabling clients to access a global service from a local point of delivery. AEI are already the trusted partners to foreign governments including the United Kingdom and the United States. Sovereign AEI work with various businesses including SMEs, global multinational firms and like-minded professionals including law firms, accountants, capital companies, HR consultancies and many more, creating new business opportunities on both a regional and international scale.