NEOM is Saudi Arabia’s most ambitious investment project and one of the biggest business opportunities in the world right now. This guide covers what NEOM is, why it matters for foreign investors, how to set up a company there, and what sectors offer the strongest opportunities right now.
What is the NEOM Project in Saudi Arabia?
NEOM is a $500 billion giga-project in the Tabuk province of northwestern Saudi Arabia, spanning over 26,500 square kilometres along the Red Sea coast. It sits at the crossroads of Saudi Arabia, Jordan, and Egypt.
The project is backed by Saudi Arabia’s Public Investment Fund (PIF) and is a flagship initiative under Saudi Vision 2030, the Kingdom’s plan to diversify its economy away from oil. Foreign investment in NEOM is actively encouraged, with the zone designed from the ground up to attract international capital across 14 sectors.
NEOM Zones
NEOM is structured around five distinct zones, each with its own commercial focus:
- The Line: This is a 170-kilometre linear city designed to run on 100% renewable energy with no roads, no cars, and a target population of 9 million people. All daily essentials will be accessible within a five-minute walk, and an end-to-end high-speed rail journey will take just 20 minutes.
- Oxagon: This is NEOM’s industrial and logistics hub, built around a smart port with a 1.5 million TEU capacity and a 48 km² industrial core integrating AI, robotics, and IoT, all powered by renewable energy.
- Sindalah: This is NEOM’s luxury island destination in the Red Sea. It opened in October 2024, making it the first NEOM zone to welcome visitors, with marina services, boutique hotels, and hospitality venues.
- Trojena: This is a mountain resort at 2,600 metres elevation, selected to host the 2029 Asian Winter Games. It is positioned as a year-round adventure tourism and winter sports destination.
- Magna: This is NEOM’s coastal Gulf of Aqaba region, comprising multiple sub-developments focused on tourism and residential living.
Benefits of Setting Up a Company in NEOM
As a special economic zone, NEOM gives foreigners starting a business in Saudi Arabia 100% company ownership, an independent legal framework with international-standard dispute resolution, and first-mover access to a government-backed procurement pipeline. These are the key advantages:
- 100% foreign ownership: Foreign investors can own their NEOM company outright, with no requirement for a local Saudi partner. This applies across eligible sectors and is one of NEOM’s most significant draws for international businesses.
- Independent legal framework: NEOM operates under its own NEOM Law, separate from standard Saudi civil and commercial legislation. Dispute resolution mechanisms are modelled on international standards, giving foreign investors greater legal familiarity and predictability.
- First-mover advantage: NEOM is still in active development. Companies that establish supplier relationships, sign early contracts, and build a presence early will be better positioned as the zone’s population and commercial activity scales over the coming decade.
- Modified Saudisation requirements: NEOM applies adjusted Nitaqat (Saudisation) targets during the development phase, giving businesses more flexibility in workforce composition at the early stage.
- Government-backed procurement pipeline: NEOM’s Supplier Portal gives registered companies visibility of planned tenders up to two years in advance. This allows businesses to prepare bids, form partnerships, and pre-qualify well ahead of contract windows opening.
How to Start a Business in NEOM
Starting a business in NEOM involves choosing a zone to set up in, selecting a legal structure, applying for a NEOM license, signing a lease, opening a bank account, and processing visas. IncorpKSA’s company formation and licensing experts can simplify the process for entrepreneurs and investors.
These are the steps to start a business in NEOM:
Step 1: Choose Your Zone and Sector
You must align your business operations with one of NEOM’s 14 target sectors. Your chosen sector dictates your geographic location, such as placing advanced manufacturing inside the Oxagon industrial zone.
Step 2: Establish Your Corporate Entity
You can structure your business as a limited liability company, a joint venture, or a branch office. NEOM permits complete foreign ownership, so you do not need a local Saudi partner to register your business.
Step 3: Apply For Your NEOM Commercial License
You must submit your corporate application and strategic business plan directly to the NEOM Authority. This entity operates its own autonomous legal system separate from the mainland Ministry of Investment.
Step 4: Secure an Office and a Bank Account
You must lease a physical office space or industrial plot within your designated NEOM region. You will then use these registration documents and lease agreements to open your corporate bank account.
Step 5: Register on the NEOM Supplier Portal
You can register your company in the official SAP Ariba-powered NEOM Supplier Portal once you receive your commercial registration number. This registration places your business into the vendor evaluation system to bid on upcoming procurement tenders.
Step 6: Process Employee Visas
You will link your approved corporate entity to the regional labor portals to issue employee visas. This final step allows you to hire international staff and begin daily commercial operations.
NEOM Investment Opportunities by Sector
NEOM’s Investment Fund (NIF) actively co-invests across 14 sectors. Based on current construction progress and confirmed commercial deals, these are the strongest opportunities:
Advanced Manufacturing and Industrial Technology
Oxagon is NEOM’s most commercially active zone, built around a 1.5 million TEU smart port and a 48 km² industrial core running on renewable energy. Its port, planned airport, and Industry 4.0 infrastructure create immediate demand for automated warehousing, modular construction, and clean industrial technology.
Green Hydrogen and Clean Energy
The NEOM Green Hydrogen Company (NGHC) is an $8.4 billion joint venture between NEOM, Air Products, and ACWA Power, reporting 80% construction completion as of early 2025. When operational, it will produce 600 tonnes of green hydrogen per day, opening supply chain opportunities in electrolyser components, energy storage, safety systems, and hydrogen-ready logistics.
Tourism and Hospitality
Trojena is anchored by the 2029 Asian Winter Games, making it the clearest near-term entry point for luxury hospitality, F&B, marina services, and events businesses.
AI and Digital Infrastructure
NEOM signed a $5 billion deal with DataVolt in February 2025 to build an AI campus in Oxagon powered by 1.5 GW of renewable energy, with phase one targeting go-live by 2028. Companies in AI, cybersecurity, high-performance computing, and sustainable data infrastructure have a first-mover window here.
Biotech, Health, and Innovation
NIF co-invests in biotech and health as designated priority sectors, with long-term demand driven by The Line’s planned resident population. Businesses weighing NEOM against other government-backed locations, including Saudi industrial cities, will find the ownership terms and sector incentives differ significantly.
Start a Business in NEOM With IncorpKSA
NEOM’s regulatory environment is evolving quickly. The rules are different from the standard mainland Saudi procedures, and the specific requirements for licensing, ownership structures, and compliance are continuing to develop as the zone matures.
Getting the setup right from the beginning matters. IncorpKSA is a Riyadh-based business setup consultancy with over 20 years of local expertise in Saudi market entry, MISA licensing, and corporate compliance.
Our experience with Saudi mainland licensing and compliance gives us a practical foundation for guiding clients through NEOM’s related but distinct regulatory environment.
We work with international businesses entering both the Saudi mainland and special economic zones. We help our clients with:
- Company structure advice and ownership planning
- MISA licensing and commercial registration
- GRO, PRO, and ongoing government compliance
- Corporate bank account opening
- Registered business addresses and office solutions
- HR, payroll, and VAT registration
Whether you are entering NEOM directly, setting up a mainland entity to support NEOM operations, or doing both, our business setup consultants in Riyadh can guide you from first enquiry to fully operational status.
Get in touch for a free consultation!
FAQs
What does NEOM stand for?
NEOM combines the Greek prefix Neo (meaning new) with the Arabic word Mostaqbal (meaning future). The name reflects the project’s purpose: building a new future for Saudi Arabia’s economy, aligned with the goals of Saudi Vision 2030.
Is 100% foreign ownership allowed in NEOM?
Yes, foreign entrepreneurs can completely own their business in NEOM. There is no requirement for a local sponsor for most business activities.
