{"id":105108,"date":"2026-03-09T00:00:00","date_gmt":"2026-03-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=105108"},"modified":"2026-03-09T03:41:03","modified_gmt":"2026-03-09T03:41:03","slug":"modern-business-continuity-now-demands-a-genuine-footprint-in-saudi-arabia","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/03\/09\/modern-business-continuity-now-demands-a-genuine-footprint-in-saudi-arabia\/","title":{"rendered":"Modern business continuity now demands a genuine footprint in Saudi Arabia"},"content":{"rendered":"

The calculus for operating in the Gulf could be shifting \u2014 in favor of Riyadh.<\/strong> Ongoing strikes against ports and airports, coupled with the threat to the Strait of Hormuz, are exposing structural vulnerabilities in logistics and financial frameworks. Saudi Arabia, on the other hand, is quietly cementing its position as the region\u2019s operational and logistical safe haven.<\/p>\n

The result? The <\/strong>era of relying on a sole entry point to the Middle East is probably coming to an end.<\/strong> Maintaining a genuine, scaled presence in Saudi Arabia is increasingly becoming a critical requirement for business continuity, not just about appeasing government procurement mandates.<\/p>\n

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What happened<\/p>\n

Real estate and tech in the UAE could take a hit.<\/strong> Dubai\u2019s real estate engine \u201cwould face a slowdown if foreign buyers lose confidence in the safety of the location,\u201d Ralf Wiegert, head of MENA economics at S&P Global Market Intelligence, tells EnterpriseAM. While the UAE\u2019s rapidly growing AI sector should remain operational despite hardware supply disruptions, negative sentiment \u201ccould still impact investment decisions, notably for new projects and facilities,\u201d Wiegert said.<\/p>\n

Banking is also an area to watch:<\/strong> The UAE and Qatar are structurally \u201cmore vulnerable than the rest of the Gulf Cooperation Council to liquidity strains given their elevated reliance on both foreign liabilities for funding and interbank liabilities,\u201d Director of Country Default and Banking Risk at S&P Alyssa Grzelak notes. Still, regional interbank offered rates do not signal significant liquidity strains. <\/p>\n

\u201cSaudi banks are also very resilient<\/strong>, and although the sector\u2019s reliance on foreign liabilities has increased... it remains much lower than in the UAE and Qatar, and much of this has come in the form of longer-term debt, limiting immediate rollover risks,\u201d Grzelak added.<\/p>\n

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Why this matters<\/p>\n

No one is seeing a panicked exodus of capital or talent from Dubai or elsewhere.<\/strong> Most investors will take a wait-and-see approach to Middle East funding, with risks of liquidity outflows becoming more acute the longer Iranian strikes continue, Grzelak said.<\/p>\n

BUT- The longer the disruption lasts<\/strong>, new facilities and fresh capital injections could start looking at Riyadh\u2019s almost untouched infrastructure as the safer wager.<\/p>\n

So far, the corporate response has been hesitant.<\/strong> \u201cIt will depend on the duration of the conflict. For now, we don\u2019t see companies moving their activities, but opting for optional work-from-home policies,\u201d Jaap Meijer, head of research at Arqaam Capital, tells EnterpriseAM.<\/p>\n

The more likely scenario? Accelerating the road to the dual-hub reality.<\/strong> Instead of one-way capital migration, \u201cthe practical outcome is a multi-hub model: meaningful presence in both the UAE and Saudi Arabia, aligned to where demand, regulation, and talent best fit their strategy,\u201d Meijer notes.<\/p>\n

Companies were already setting up fully functional bases in more than one place:<\/strong><\/p>\n