Saudi Arabia emerges as regional launchpad for Egyptian companies

Egyptian companies are increasingly using Saudi Arabia as their primary launchpad for international expansion, drawn by the Kingdom’s industrial scale, investment momentum and immigration of demand across manufacturing, hospitality, technology and consumer sectors. More than 7,000 investment licenses have been granted to Egyptian firms operating in Saudi Arabia, according to HSBC Bank Egypt, while corporate investment examples include Elsewedy Electric’s commitment of over SR1 billion (about $266 million) plus SR560 million in industrial funding and a Saudi project portfolio now valued at SR17 billion.

"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," said Ahmed Fathy Elsewedy, CEO of Elsewedy Electric KSA, Qatar, and Egypt Cables Accessories, in an interview with Arab News.

Context and sector momentum

Elsewedy Electric has accelerated its Saudi expansion to meet rising demand in the Kingdom’s energy and infrastructure programs. The company expects its industrial footprint in Saudi Arabia to expand to nine facilities by 2027 and was selected as the first contractor in the Middle East to design and construct synchronous condenser stations — including associated systems — at Al‑Ghat, Al‑Rass and Al‑Kahfah.

The broader picture is supported by data from an HSBC report published in November 2025: 86 percent of Egyptian businesses surveyed expected to significantly increase trade with Saudi Arabia over the following five years, the highest among markets surveyed, while 62 percent said they were more likely to invest in and trade with the Kingdom despite global trade disruptions. Todd Wilcox, deputy chairperson and CEO of HSBC Bank Egypt, noted that more than 7,000 investment licenses had been issued to Egyptian companies across sectors such as infrastructure, food production and technology.

• Elsewedy Electric: SR1 billion invested, SR560 million industrial funding, SR17 billion project portfolio; nine facilities planned by 2027.
• Synchronous condenser stations contracted for Al‑Ghat, Al‑Rass and Al‑Kahfah.
• HSBC survey: 86% of Egyptian firms expect to boost trade with Saudi Arabia; 62% likely to invest despite disruptions.
• More than 7,000 investment licenses issued to Egyptian companies in Saudi Arabia.

Expansion is not limited to heavy industry. Egyptian luxury craftsmanship brand Kahhal 1871 is collaborating on the Fanaya Hotel project, the company’s most visible hospitality development in the Kingdom to date. "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," said Mohamed El‑Kahhal, Managing Director of Kahhal 1871. The firm is also working on additional hospitality projects in Jeddah expected to complete by 2027.

Consumer-facing Egyptian startups are also finding fertile ground. "Consumers today connect with brands through the product, the experience, and the emotional connection they create — not simply where they come from," said Farah Nofal, founder and CEO of FEHE Beauty. Nofal added that FEHE was built with an international mindset to resonate across cultures and that Saudi consumers increasingly value storytelling, community and brand identity.

Outlook

Officials and business leaders point to regulatory stability, abundant energy resources, and a growing preference for local manufacturing as drivers that make Saudi Arabia attractive for Egyptian exporters and investors. With major giga‑projects, industrial localization programs and targeted investments in renewables, technology and tourism, Egyptian firms say they will continue to use the Kingdom as a strategic gateway into the wider Gulf market through 2027 and beyond.