AstroLabs specializes in European company expansions, enabling businesses from Germany, France, Italy, Spain, and Poland to establish Saudi operations, capitalizing on the Kingdom’s $1 trillion market value. Combining strategic location with a pro-business environment and attractive corporate taxes, Saudi Arabia presents exceptional opportunities for European enterprises with Vision 2030 supporting the Kingdom’s position as a leading global business destination.
German Companies Target Energy and Technology Sectors
Saudi Arabia remains highly attractive for German firms and investors, with many increasingly selecting Riyadh for regional headquarters (RHQ) locations. Earlier this year, healthcare and medical device leader B.Braun announced Riyadh RHQ establishment, joining compatriots including Wilo Group (global pump systems leader) and TÜV Rheinland (leading testing and inspection services provider).
These companies pursued strategic moves strengthening market positions, securing governmental contracts, and gaining access to generous incentives. Saudi Arabia’s diversification push and industrial localization strategy serve as key draws for German investors.
Siemens represents one of the top German investors in Saudi Arabia as a leading advanced technology energy provider. In March 2025, Siemens Energy secured a $1.6 billion contract supplying gas-fired power technology, contributing to energy transformation with new plants in western and central regions. This project builds on Siemens’ track record delivering transformative projects supporting energy transition and local renewable energy manufacturing and production.
German electrolyzer manufacturer Thyssenkrupp represents a key participant in the 2.2 GW Neom green hydrogen and ammonia project, significantly contributing to economic growth and environmental sustainability. In automotive, BMW ramped up investments expanding service networks and dealerships, ensuring comprehensive nationwide coverage and distribution. BMW recently received licensing as Ceer technology provider, Saudi Arabia’s first electric vehicle (EV) brand.
AstroLabs supports German companies through company setup in Saudi Arabia services, addressing specific requirements for energy, technology, and industrial sector establishment.
French Firms Establish Operations in Renewable Energy and Construction
Market reports indicate over 160 French companies currently operate in Saudi Arabia creating more than 13,500 jobs. Up to 30 French firms successfully established Saudi RHQs. French firm
ratios in Saudi Arabia grew a staggering 43% since 2020. Notable companies include Air Liquide, Airbus, Alstom, Crédit Agricole, L’Oréal, Sanofi Aventis, Thales, Total and Veolia.
Total Energies and EDF Renewables lead Saudi’s solar energy revolution. Total recently secured contracts to build 0.3 GW solar parks in Rabigh Industrial City. EDF Renewables, partnering with China’s State Power Investment Corporation, develops two solar parks totaling
1.4 GW. These projects align with broader goals of achieving 130 GW renewable energy capacity by 2030.
Beyond energy, French companies take crucial roles reshaping Saudi Arabia’s urban landscape participating in key large-scale projects including AlUla. The Giga Project receives spearheading from the Royal Commission for AlUla (RCU) and the French Agency for Development of AlUla (AFALULA). AlUla stands out as a global hub for French IT companies, including Thales Group, specializing in cybersecurity solutions. Once completed, AlUla expects to contribute $32 billion to national GDP creating over 38,000 jobs.
Construction represents a key industry where firms make significant strides. Hoffmann Green Cement Technologies signed a 22-year exclusive licensing agreement with Shurfah Group in 2024 aiming to support the Kingdom’s objectives of decarbonizing construction sectors. Up to 18 French companies specializing in green buildings unveiled plans to establish a Saudi presence through joint partnerships or RHQs.
Italian Companies Expand Across Infrastructure and Finance
Italian enterprise presence in Saudi Arabia significantly expanded in recent years. During the Saudi-Italian Business Forum held in 2024, the Italian business federation representing 7,000 companies unveiled ambitious plans to increase investments and expand to Saudi Arabia.
Italian financial institutions increasingly show interest in Saudi business. SACE, Italy’s state insurance and financial group, provided a substantial $3 billion loan guarantee supporting the Neom megacity project. The group recently signed an MoU with PIF accelerating cooperation on sharing information and business expertise. Collaboration includes SACE support provision for an additional $3 billion in financing for PIF-led projects and PIF portfolio companies.
This partnership serves as a catalyst, bringing more Italian investors to Saudi shores, potentially leading to increased business setup and company formation. The energy sector represents a particularly key interest area. Strategic collaboration between ACWA Power and Italy’s A2A supports the growth of green hydrogen sectors both in the Kingdom and globally.
Shifting focus to industrial spheres, an innovative partnership between Continuus-Properzi and Bahra Electric localizes aluminum and copper rod manufacturing within the Kingdom, effectively strengthening local supply chains. Construction giant Salini Impregilo (WeBuild) repeatedly
emerged, winning a series of contracts for major Neom infrastructure developments, including a 57-kilometer railway system.
Spanish Investment in Real Estate and Polish Firms in Digital Sectors
Spanish investments now exceed $3 billion with 40% channeled into real estate sectors. A standout highlight represents the partnership between Saudi Arabia’s National Housing Co. and Spain’s Urbas Middle East Real Estate Co. The joint venture is set to develop nearly 600 housing units in the Al-Fursan suburbs, directly contributing to broader urban development initiatives addressing growing demands for diverse housing options.
Up to 30 Polish firms chose Saudi Arabia as a permanent destination for branches, HQs and structures exploring competitive business opportunities. Polish businesses expanding to Saudi receive support from deepening relationships in mutual interest areas particularly IT, data centers, communications, and food security. Leading next innovation waves in the customer experience (CX) space, Flying Bisons, a global digital consulting and full-service design agency, recently ventured into Saudi Arabia via AstroLabs.
The Saudi-Polish Business Council established in 2024 serves as a promising avenue attracting more Polish firms to KSA. Presently, the Council develops joint action plans with authorities from both countries to streamline market entry for Polish companies seeking business setup in Saudi Arabia, establishing first-mover advantages in respective niches.
European Business Setup Process Overview
Starting a business from Europe in Saudi Arabia involves several clear steps. Preliminary steps typically require gathering essential paperwork, including certificates of incorporation, memoranda of association (MoA), articles of association (AoA), and audited financial statements.
European companies finalize registrations with more than 10 ministries and governmental entities outlined in three-stage market entry roadmaps. Choosing pertinent office spaces represents key components of this stage. In soft-landing phases, European businesses issue general manager Iqamas and finalize registrations on key government portals, including Muqeem, Absher, Qiwa, and Mudad. Next critical tasks include setting up corporate bank accounts, marking the conclusion of successful foreign business setup.
Following successful registration, businesses hire Saudi employees, remaining compliant with Saudization (Nitaqat) quotas while issuing visas for non-Saudi employees. Appointing
third-party service providers proves indispensable for managing key business functions, including payroll, HR and accounting.
Companies completing their business setup process in Saudi Arabia through AstroLabs receive comprehensive support for European expansion, including guidance on sector-specific requirements, regulatory considerations, and market entry strategies, positioning them for sustained success.
