RIYADH: Egyptian companies are increasingly choosing Saudi Arabia as their first destination for international expansion, as the Kingdom’s economic transformation, industrial scale, and investment momentum create new opportunities across manufacturing, hospitality, technology, and consumer sectors.
The shift comes as Saudi Arabia accelerates its Vision 2030 diversification agenda, backed by giga-projects, industrial localization programs, and major investments across energy, tourism, manufacturing, and infrastructure.
Among the clearest examples is Elsewedy Electric, one of Egypt’s largest industrial companies, which has rapidly expanded its Saudi operations as demand rises across the Kingdom’s energy and infrastructure sectors.
Speaking to Arab News, Ahmed Fathy Elsewedy, CEO of Elsewedy Electric KSA, Qatar, and Egypt Cables Accessories, said Saudi Arabia’s economic stability and industrial momentum have made it one of the region’s most attractive markets.
“Saudi Arabia stands out as one of the most attractive growth markets due to its unique combination of economic stability, strong government support, and a rapidly expanding industrial base,” Elsewedy said.
The company has invested more than SR1 billion ($266 million) in the Kingdom, alongside an additional SR560 million in industrial funding, while its Saudi project portfolio has reached SR17 billion.
Its industrial footprint is expected to expand to nine facilities by 2027, reinforcing Saudi Arabia’s growing importance within the company’s regional operations.
In a major milestone, Elsewedy Electric was selected as the first contractor in the Middle East to design and construct synchronous condenser stations — including all associated systems — across Al-Ghat, Al-Rass, and Al-Kahfah.
Elsewedy said the Kingdom’s regulatory stability, abundant energy resources, efficient movement of capital and labor, and expanding consumer market have created a favorable environment for industrial firms.
“The clear preference for local manufacturing and content localization further enhances opportunities for companies willing to invest and produce within the Kingdom,” he told Arab News.
The expansion trend is also becoming increasingly visible beyond industrial sectors, particularly in hospitality, lifestyle, and consumer-facing businesses seeking long-term growth in Saudi Arabia’s evolving market.
Egyptian luxury craftsmanship brand Kahhal 1871 recently collaborated on the Fanaya Hotel project in Saudi Arabia, marking one of its most visible hospitality developments in the Kingdom to date.
Speaking to Arab News, Managing Director Mohamed El-Kahhal said the project reflected Saudi Arabia’s growing focus on creating hospitality experiences that combine cultural authenticity with global standards.
“What is happening in Saudi Arabia today is very exciting because there is a real effort to create hospitality experiences that feel culturally rooted while still being globally relevant,” El-Kahhal said.
“It felt like an opportunity to contribute part of our design language and craftsmanship to the Kingdom’s evolving hospitality scene,” he said.
While Kahhal 1871 has previously worked on residential and commercial projects in Saudi Arabia, the company is now exploring deeper expansion opportunities in the Kingdom, including partnerships, hospitality collaborations, and potential showroom openings.
The company is also working on additional hospitality projects in Jeddah expected to be completed by 2027.
The broader expansion trend was also reflected in an HSBC report published in November 2025, which found that 86 percent of Egyptian businesses expected to significantly increase trade with Saudi Arabia over the following five years — the highest among all surveyed markets.
The report also found that 62 percent of Egyptian companies are more likely to invest in and trade with the Kingdom despite ongoing global trade disruptions.
At the time, Todd Wilcox, deputy chairperson and CEO of HSBC Bank Egypt, said more than 7,000 investment licenses had been granted to Egyptian companies operating across Saudi Arabia in sectors including infrastructure, food production, and technology.
Egyptian business leaders identified technology and renewable energy as two of the sectors with the strongest potential in Saudi Arabia, reflecting the Kingdom’s broader push to diversify its economy away from oil.
Consumer brands grow
The expansion trend is also becoming increasingly visible among younger Egyptian consumer brands, particularly in the beauty and lifestyle sectors, where Saudi Arabia’s young and digitally connected consumer base is driving demand for emerging labels. Farah Nofal, founder and CEO of FEHE Beauty, said changing consumer behavior across the Middle East has created greater openness toward newer brands built around authenticity, identity, and emotional connection.
“Consumers today connect with brands through the product, the experience, and the emotional connection they create — not simply where they come from,” Nofal told Arab News.
She added that Saudi Arabia’s beauty market has become especially dynamic, with consumers placing growing importance on storytelling, community, and brand identity.
“Consumers there are highly connected to beauty culture and genuinely value brands that feel personal, emotionally authentic, and community-driven,” she said.
Nofal said FEHE was built from the beginning with an international mindset rather than as a single-market Egyptian brand.
“We wanted to create a brand with an international mindset — one that could resonate with women across different cultures and backgrounds through emotion, identity, and experience rather than geography alone,” she said.
According to Nofal, Saudi consumers are increasingly discovering brands based on innovation, quality, and emotional resonance rather than legacy positioning or country of origin alone.
“That openness creates space for emerging brands like FEHE to build genuine relationships with consumers rather than simply sell products,” she added.
As Saudi Arabia positions itself as the region’s primary engine for investment and diversification, Egyptian companies are increasingly viewing the Kingdom not simply as an export market, but as a long-term operational base for expansion.
The shift reflects broader changes in Middle East business dynamics, with companies aligning themselves with markets offering industrial scale, policy stability, and sustained investment momentum.
For Egyptian firms, Saudi Arabia’s transformation under Vision 2030 is creating opportunities that extend beyond short-term commercial gains, opening the door to deeper integration across manufacturing, services, technology, hospitality, and consumer industries.
