RIYADH: Interest among UK business leaders in the Middle East as a key investment hub has doubled to 36 percent, driven by the region’s economic transformation and strategic appeal, a new survey has revealed.
The study, conducted by communications consultancy Pagefield, surveyed over 200 senior figures across the finance, technology, and manufacturing sectors.
Europe is the leading region, with 55 percent of respondents naming it their primary international investment market, yet the Middle East’s growing appeal reflects regional efforts to diversify economies and attract foreign direct investment.
Mega projects such as Saudi Arabia’s NEOM and large-scale developments in the UAE are reshaping the landscape, promising to draw more global capital.
NEOM’s luxury destinations on the Gulf of Aqaba coast are designed to deliver the highest standards of future living and quality of life. File/SPA
“The data shows a clear shift in UK businesses’ global outlook. While Europe remains a top priority, the sharp rise in interest in the Middle East and Asia signals a growing appetite for new, high-potential markets,” said Christopher Clark, partner at Pagefield.
He added: “Businesses are looking beyond traditional hubs and seeking opportunities in regions that offer both economic dynamism and strategic advantages.”
Saudi Arabia’s regional headquarters program has emerged as a major pull for international firms, including UK companies. The program offers incentives such as a 30-year exemption from corporate income tax and withholding tax on headquarters activities, alongside other benefits like discounts and support services.
Several leading UK firms, including IHG Hotels and Resorts, PwC, and Deloitte, have already set up their regional headquarters in the Kingdom, positioning themselves to capitalize on the country’s rapid economic transformation.
The survey also highlighted rising UK business interest in Asia, with investment focus climbing from 22 percent to 32 percent.
Participants in the survey emphasized the need for greater government support as UK firms pursue international expansion.
International companies looking for investment opportunities have established regional headquarters in the Kingdom. File/Reuters
According to the study, 83 percent of UK companies said the government must do more to support international growth, with nearly 31 percent identifying Free Trade Agreements as the most crucial mechanism.
Other key factors influencing investment decisions among UK business leaders include economic stability, workforce quality, and a strong commitment to equality, diversity, and inclusion.
The report also noted that UK firms remain overwhelmingly optimistic about foreign direct investment, with 91 percent expressing confidence in cross-border expansion despite global economic and political challenges.
“UK businesses are ready to invest overseas, but they need the right conditions to do so. The government should stand ready to support outward as well as inward investment, as it will strengthen UK businesses and the UK economy,” said John Alty, senior adviser at Pagefield and former permanent secretary for the Department for International Trade.
He added: “Businesses are looking to the government to facilitate supply chains through free trade agreements and provide in-country support to boost business confidence.”
