The recent launch of the World Expo 2030 Riyadh Company by Saudi Arabia’s Public Investment Fund marks a pivotal moment for European businesses seeking to capitalize on one of the decade’s most significant global events. With a budget of $7.8 billion and projected economic impact of nearly $70 billion, this mega-event represents far more than a six-month exhibition, it’s a transformative catalyst for Saudi Arabia’s Vision 2030 ambitions.
World Expo 2030 Riyadh: A Vision Taking Shape
Under the leadership of newly appointed CEO, Mr. Talal Al-Marri, the Expo 2030 Riyadh Company (ERC) is orchestrating what will be one of the largest World Expo sites in history. Spanning 6 million square meters in northern Riyadh, strategically positioned near the future King Salman International Airport, the venue will welcome over 40 million visitors from October 1, 2030 to March 31, 2031.
The ambitious project, themed “Foresight for Tomorrow,” will feature over 195 participating countries and is projected to generate approximately 171,000 direct and indirect jobs during its construction phases. Once operational, the event is expected to contribute $5.6 billion annually to Saudi GDP, with its legacy infrastructure transforming into a permanent “Global Village” serving as a multicultural hub for retail, dining, and an international residential community.
The masterplan integrates cutting-edge smart infrastructure powered by artificial intelligence, sustainable energy systems, and climate-responsive architecture adhering to green building standards. With seamless connectivity to the Riyadh Metro system and comprehensive transport networks, the site represents a model for future urban development and sustainable tourism.
Dubai Expo 2020: Lessons from a Remarkable Success
The success of Dubai Expo 2020 provides compelling insights into the potential impact of Riyadh’s upcoming event. Despite pandemic challenges, Dubai’s World Expo attracted 24.1 million visits over six months, generating substantial economic benefits that continue to ripple through the UAE economy.
The economic impact has been profound: Dubai Expo 2020 and its legacy are projected to contribute $42.2 billion in gross value added to the UAE economy from 2013 to 2042. This translates to supporting over 1,039,000 full-time equivalent job-years, equivalent to more than 35,000 full-time jobs annually throughout the period.
Significantly, Dubai Expo 2020 awarded $1.8 billion in contracts to small and medium-sized enterprises, representing more than a quarter of all contracts by value, with 64% of these going to UAE-based SMEs. This demonstrates the substantial opportunities available to businesses of all sizes in major expo events.
Unprecedented Opportunities for European Companies
The scale of Riyadh Expo 2030 presents exceptional opportunities for European companies across multiple sectors. The first construction tenders have already been issued, with ERC tendering contracts for site offices as initial construction work begins. This marks the beginning of what will be a massive procurement cycle valued in the billions.
Construction and Infrastructure: With a 6 million square meter site requiring comprehensive development, European construction, engineering, and architectural firms have substantial opportunities. The project encompasses not only exhibition pavilions but also supporting infrastructure, transportation networks, and utilities systems.
Event Management and Business Services: Drawing from Dubai’s experience where this sector generated $20.5 billion in economic value, European companies specializing in event organization, marketing, and business services can expect significant opportunities. The six-month event requires comprehensive programming, cultural activities, and visitor management systems.
Technology and Digital Solutions: The integration of AI-powered infrastructure, smart city technologies, and digital visitor experiences creates extensive opportunities for European technology companies. The commitment to creating the “most technologically advanced Expo in history” opens doors for innovation in areas ranging from visitor management systems to sustainable energy solutions.
Hospitality and Tourism: With over 40 million expected visits, the demand for hospitality services, tourism experiences, and related infrastructure will be substantial. European companies with expertise in luxury hospitality, sustainable tourism, and visitor experience design are well-positioned to capitalize on these opportunities.
Sustainable Energy and Green Building: Saudi Arabia’s commitment to hosting the first carbon-negative World Expo creates significant opportunities for European companies specializing in renewable energy, sustainable construction, and environmental technologies. The Kingdom’s $235 billion renewable energy investment target by 2030 further amplifies these opportunities.
The Saudi government has allocated $343 million specifically to assist 100 eligible countries with participation, including pavilion construction, maintenance, and technology support. This creates additional opportunities for European companies to work with their home countries’ pavilions.
Navigating Saudi Arabia’s Localization Framework
European companies must understand Saudi Arabia’s evolving localization requirements to successfully participate in Expo 2030 opportunities. The Kingdom’s Vision 2030 emphasizes localization across multiple dimensions, fundamentally reshaping how foreign companies can engage with the Saudi market.
Registration and Licensing Requirements: To participate in public tenders, including those related to Expo 2030, foreign companies must obtain commercial registration in Saudi Arabia.
Saudization Mandates: The Saudi government has implemented comprehensive Saudization policies requiring private sector companies to maintain specific percentages of Saudi nationals in their workforce. Recent decisions have extended these requirements to consulting professions, with 40% Saudi national employment mandated in the consulting sector.
Regional Headquarters Preference: New guidelines effective from January 2024 restrict government contracting opportunities to companies with regional headquarters in Saudi Arabia. While exemptions exist for specialized services and certain circumstances, this requirement significantly impacts European companies’ ability to directly bid on government contracts without local presence.
Local Content Requirements: The government prioritizes local content in procurement decisions, with specific requirements for local sourcing, manufacturing, and value addition. The In-Kingdom Total Value Add (IKTVA) program, originally developed for the oil and gas sector, is being extended to other industries, requiring suppliers to increase local content progressively.
European companies can navigate these requirements through several strategies: establishing local subsidiaries or joint ventures with Saudi partners, setting up regional headquarters, or partnering with established local companies that can serve as agents or representatives.
The Critical Role of Relationship-Based Business Culture
Success in Saudi Arabia’s business environment extends far beyond legal compliance and technical competence. The Kingdom’s business culture is fundamentally relationship-based, prioritizing personal connections, trust, and long-term commitment over transactional approaches.
Building Trust and Personal Relationships: Saudi business culture emphasizes getting to know partners personally before engaging in formal business discussions. This relationship-building phase is not merely courtesy, it’s essential for establishing the trust necessary for successful partnerships.
Hierarchical Decision-Making: Saudi organizations tend to be hierarchical, with decision-making concentrated at senior levels. European companies must identify and engage with key decision-makers early in the process, showing appropriate respect for titles and authority.
The Importance of Local Representation: Given the relationship-centric nature of Saudi business culture, having dedicated local representation is crucial for European companies. This goes beyond mere legal compliance. It’s about having someone who can navigate cultural nuances, maintain ongoing relationships, and represent the company’s interests effectively. Local representatives serve multiple functions: they provide market intelligence, facilitate introductions to key stakeholders, manage day-to-day business relationships, and ensure cultural appropriateness in all interactions.
Long-term Commitment and Patience: Saudi business culture values long-term relationships and demonstrated commitment to the market. European companies should approach the Saudi market with patience, understanding that relationship building and deal-making processes may take longer than in other markets.
Strategic Recommendations for European Companies
Artemis Business Care is here to help you benefit from the unique opportunities offered by the World Expo Riyadh 2030. Don’t hesitate to contact us for more information on our services.