Saudi Arabia’s Restaurant Sector Growth Attracts Global Investment

Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)
Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)
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Saudi Arabia’s Restaurant Sector Growth Attracts Global Investment

Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)
Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)

The strength of consumer demand in Saudi Arabia’s food and beverage sector makes it an appealing market for international brands. The development of regulations and legislation has created an investment framework that facilitates foreign companies’ expansion and achievement of their goals in the Kingdom.

Point-of-sale operations using “Mada” cards in Saudi Arabia have shown a 13.6 percent annual growth in the restaurant and café sector, increasing from SAR 78 billion ($20.8 billion) in 2022, to SAR 89 billion (%23.7 billion) over the past year. The growth indicates a promising future for the market, which is experiencing strong consumer demand.

Amro Bagedo, the founder and CEO of Kraiv, said: "The continuous and remarkable growth in the food, beverage, and hospitality sector in the Kingdom is driven by the younger generation. Their desire to experience renowned international brands without traveling abroad has created opportunities for stakeholders from the America, Europe, and Asia to invest in Saudi Arabia. This has led to gradual and exponential growth in local business opportunities."

“The Kingdom’s hosting of the FIFA World Cup in 2034 has created an urgent need for its host cities -Riyadh, Jeddah, Al-Khobar, Abha, and NEOM - to expand their dining and hotel options to accommodate visitors attending the tournament,” Bagedo told Asharq Al-Awsat.

He added that tourism will be a major focus for the Kingdom in the coming years, and hospitality will play a crucial role in strengthening the sector.

The restaurant market in the Kingdom is expected to double annually, reaching approximately SAR 168 billion ($44.8 billion) by 2030.

This growth is driven by strong consumer demand and the increasing presence of renowned brands investing in the local market.

Recent rapid social and cultural changes in restaurant services, fueled by a booming economy, indicate that Saudi Arabia is on track to become a global hub for entertainment and tourism. This growth is supported by restaurants and outlets that cater to the high demand from both local and international visitors.



Saudi Arabia, Major Tech Companies Discuss Expanding Future AI Partnerships

Eng. Abdullah Alswaha held meetings with leaders of leading global companies in Davos
Eng. Abdullah Alswaha held meetings with leaders of leading global companies in Davos
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Saudi Arabia, Major Tech Companies Discuss Expanding Future AI Partnerships

Eng. Abdullah Alswaha held meetings with leaders of leading global companies in Davos
Eng. Abdullah Alswaha held meetings with leaders of leading global companies in Davos

The Saudi Minister of Communications and Information Technology (MCIT) Eng. Abdullah Alswaha has held meetings with leaders of leading global companies during his participation in the World Economic Forum (WEF) in Davos.

The meetings discussed prospects for strategic investments and expanding future partnerships in artificial intelligence (AI), cloud computing, and modern technologies, highlighting the Kingdom's position as a hub for technology and innovation in the region.

To enhance Amazon Web Services' investments in Saudi Arabia, Alswaha met with the CEO of Amazon Web Services (AWS), Matt Garman, to discuss enhancing the strategic partnership in cloud computing, AI, and AWS investments in the Kingdom. This will support the growth of the digital economy and affirm Saudi Arabia's regional position as a center for innovation and advanced technical solutions.

In the context of strengthening global partnerships in AI, Alswaha engaged in discussions with founder and CEO of Scale AI Alexandr Wang, focusing on enhancing AI and data solutions and developing the Kingdom's capabilities to achieve its aspirations and develop the digital economy.

Alswaha also discussed with IBM CEO Arvind Krishna opportunities for high-quality investments in Saudi Arabia, expanding IA and big data partnerships, and developing national capabilities in modern technologies.

He met with Sony's Chairman and CEO Kenichiro Yoshida to expand partnerships in technology and innovation, develop strategic partnerships, and exchange expertise to support the digital economy and develop capabilities in online gaming.

Additionally, MCIT Vice Minister Eng. Haitham AlOhali discussed with OpenAI's Chief Product Officer Kevin Weil ways to enhance partnerships in developing AI technologies and invest in their promising potential to drive the growth of the digital economy and achieve sustainable development.