“Economic development and digital transformation: investment opportunities in services and trade in the Kingdom”
The service and commercial sector in the Kingdom of Saudi Arabia is witnessing an important shift towards digitization and modernization, which opens new doors for investment opportunities and economic development.
The Kingdom of Saudi Arabia is considered one of the largest consumer markets in the region, which makes the service and commercial sector an attractive investment opportunity for investors.
According to a World Bank report, the Kingdom’s services GDP reached 586 billion Saudi riyals in 2020, representing a large portion of the economy.
Among the investment opportunities in the service and commercial sector are developing service infrastructure, providing logistics and transportation services, developing the tourism and entertainment sectors, and providing financial and insurance services.
However, the sector faces challenges that include high competitiveness, market changes, and logistical challenges. Success in this sector requires innovation, service development, orientation towards digitization, and improving customer experience.
“The feasibility study is considered one of the basic steps in investing in the service and commercial sectors, as it helps to analyze and evaluate potential opportunities and challenges before making the decision to invest. The basic mechanism of the feasibility study includes several steps, starting with identifying the problem or opportunity that the investment aims to solve or benefit from.”
“The next steps include analyzing the market and competition, estimating demand and supply, estimating expected costs and revenues, as well as evaluating the financial and economic aspects of the project. Accurately estimating revenues and costs is one of the key elements in a feasibility study, as it helps estimate business continuity and long-term investment profitability.”
“After completing data collection and analysis, recommendations and forecasts are made about the feasibility of the investment and the extent of achieving the expected financial return. The feasibility study can contribute to making the right investment decisions and reducing potential risks associated with the project.”
In short, the service and commercial sector is considered an important investment opportunity in the Kingdom of Saudi Arabia, as broad investment opportunities are available supported by economic reforms and improving the business environment in the country.
