New HSBC research shows Egyptian businesses are turning to Saudi Arabia as their next growth priority; almost 90% set to significantly increase trade in the next 5 years.
According to a new HSBC report, Egyptian business leaders plan to rapidly increase trade and investment with Saudi Arabia, as the Kingdom’s Vision 2030 plan builds a resilient, stable economy with attractive growth prospects.
Egypt-Saudi Arabia: a key regional corridor set for expansion
HSBC’s New Networks of Capital: Saudi Arabia reveals that 86% of Egyptian businesses expect to significantly increase their trade with Saudi Arabia in the next 5 years, the highest among all markets surveyed. Furthermore, global trade uncertainty is driving the two economies closer together, with 62% of Egyptian businesses saying they are significantly more likely to invest in and trade with Saudi Arabia despite trade disruption.
Consistent with Vision 2030’s plans to diversify the Saudi Arabian economy, Egyptian businesses identified technology (41%) and energy and renewables (35%) as the two sectors with the biggest growth potential among business leaders considering investment.
Egyptian businesses already investing in the Kingdom rank foreign ownership restrictions (31%) and market competition (31%) as the top barriers to increasing their investments.
Commenting on the report, Todd Wilcox, HSBC Bank Egypt Deputy Chairperson and CEO, said: “Egypt continues to strengthen its strategic economic partnership with Saudi Arabia, as more than 7,0001 investment licenses have now been granted to Egyptian companies operating across the Kingdom in high-growth sectors such as infrastructure, technology and food production.
The recent Saudi-Egyptian Investment and Promotion Agreement marks a critical milestone, offering investors from both countries enhanced legal safeguards, improved capital mobility and greater certainty as they expand their footprints. This presents a new phase of collaboration that is clearly reflected in the report insights.”
Global findings
The report surveyed 4,000 business decision makers with international operations generating revenues of US$50 million to $500 million annually, to gather insights into how the Kingdom’s trade and investment links with eight major global markets are evolving. Surveyed markets include the UK, Hong Kong, Mainland China, the USA, India, Germany, theUAE, and Egypt. Responses were also drawn in-market, from Saudi Arabia.
Globally, eight out of 10 international businesses plan to increase trade and investment with the Kingdom over the next five years. More than 60% are eager to do the same over the next six months.
More broadly, survey respondents highlight Saudi Arabia’s growing economy (53%), economic stability (48%), and business-friendly policies (37%) as top reasons to do business in the Kingdom.
The findings come as the Kingdom considers implementing measures to increase the flow of inward foreign direct investment, including amendments to laws governing foreign ownership of Saudi Arabian companies.
Commenting on the survey’s global findings, Selim Kervanci, Chief Executive Officer, Middle East North Africa and Türkiye (MENAT), HSBC Bank Middle East, said: “HSBC sees incredible potential in the Middle East, and Saudi Arabia is central to that view. Our research indicates increased confidence from international businesses in Saudi Arabia’s economic transformation and highlights the Kingdom’s unique ability to combine heightened growth prospects with economic stability.
“Vision 2030 is generating momentum right across the Saudi Arabian economy, from design and construction to retail and housing, and the export of renewable energy. For business leaders, these developments underpin the confidence which will drive deepened engagement with the Kingdom’s economy.”
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