New Players are cultivating deeply in the “fifth ring road” of Middle East
When people think of the Middle East, their first impressions are often Riyadh’s skyscrapers, Dubai’s luxury malls, or Abu Dhabi’s ultra-modern cityscape. But a closer look reveals that the region’s untapped market potential extends far beyond these core cities.
The MENA region spans multiple countries from Morocco to Iran, with a population of approximately 503 million, accounting for 6.18% of the world’s population. While Saudi Arabia and the UAE remain critical markets, more and more companies are broadening their perspective: establishing a foothold in core markets first, then expanding into neighboring GCC countries and the wider pan-Arab region.
Souq Waqif, Doha, Qatar
For example, some companies have piloted their operating models in smaller Saudi cities. Within a month, they entered Riyadh; after two months, once the model stabilized, they rapidly expanded to 20 cities nationwide. This same model was then replicated in Qatar, Kuwait, and the UAE. Meanwhile, Saudi homegrown social platforms have moved beyond national borders, covering all six GCC countries and expanding into Egypt and Pakistan.
In the past, Chinese companies’ engagement in the Middle East often took the form of single-point transactions—selling products or executing specific projects. Today, that model is quietly shifting: Companies are increasingly forming alliances with local capital and government-backed platforms, moving from “selling software” or “selling products” to delivering capabilities plus localized solutions.
According to Jessica, Founding Managing Partner of eWTP Arabia Capital, cooperation between the Middle East and Asia has moved beyond simple trade and have already entered a second phase of deep capital and industrial restructuring:
“More and more Asian companies have realized that to truly provide service to the Gulf and the broader Middle Eastern and Muslim markets, relying only on long-distance exports is no longer sufficient. They must move closer to end markets and build localized production capacity. This means parts of the Asian supply chain will gradually be restructured within the Gulf area, forming local manufacturing systems deeply integrated with local energy, logistics, and financial networks.
This transition also brings greater challenges: regulatory coordination, risk management and the ability of cross-cultural execution, these are all going to become key factors that affect final results. For all parties involved, this is not a zero-sum game, but a rebalancing in response to the global industrial transformation.”
A hub-and-network structure is emerging among GCC countries. Bahrain—once seen as Saudi Arabia’s “backyard”—is leveraging its location to connect Saudi Arabia and Qatar, transforming itself into a regional hub. Oman and Qatar are strengthening port and logistics capabilities, while Kuwait is driving economic diversification through infrastructure development. Companies no longer need to solve every problem within one country; instead, they can deploy operations according to each market’s functional strengths.
Investment trends are also shifting. Capitals in Middle East are moving from broad diversification to focused bets on specific sectors: entertainment, gaming, green energy, and technology. AI and digitalization are becoming particularly thriving fields. Abu Dhabi is building AI data center, developing domestic AI models, and actively promoting collaboration with international companies. The gaming industry is also seeing massive funding: PIF of Saudi Arabia has become a controlling shareholder in global gaming companies and continues to seek partnerships worldwide.
Changes are equally pronounced on the consumer side. Take Saudi Arabia as an example, the middle class is expanding rapidly, the young generation who are willing to try new products, brands and new models is counting for a majority population in this country. Meanwhile, local culture and national identity play a significant role in purchasing decisions. Apart from speaking Arabic, brands must understand local cultures, habits, and social background. There is still room for innovation in F&B (Food & Beverage), Cafe, Leisure & Entertainment (L&E), while digital retail channels remain the most effective entry point.
Tourism and cultural industries development is accelerating. Saudi Arabia emphasizes historical and cultural tourism, while the UAE focuses on integrated tourism and theme parks. As numbers of inbound visitor grow, demand for hotels, residential properties, and commercial facilities is rising in tandem. The influx of expatriates and high-net-worth individuals has made real estate and hospitality investments particularly attractive in both countries.
The Middle East is undergoing a transition from oil dependence to a diversified economic structure, with digital economy, tourism, AI, and gaming emerging as new pillars. Economic diversification strategies, capital deployment, consumption upgrades, and local partnerships needed to be considered for companies who plan to enter the region. Keys for Success are understanding local culture, choosing the right entry cities, establishing compliance systems, building sustainable operating capabilities, and forming long-term relationships with local capital and ecosystem partners.
There is no shortcut to overnight riches in the Middle East, but there is vast space for companies willing to deeply understand the market and commit to long-term development. The real challenge lies in identifying trends and turning opportunities into sustainable value.
Kuwait City
Housing & property demand in the UAE is highly concentrated in Dubai and Abu Dhabi.
Dubai has attracted American financiers from Wall Street, Europeans seeking low-tax environments, professional managers relocating from Singapore, Russians seeking safe havens amid the Russia–Ukraine conflict, and Chinese entrepreneurs expanding overseas. As global wealth continues to pour into the UAE, property prices have surged.
According to the Henley & Partners Wealth Migration Report, an estimated 9,800 high-net-worth individuals are expected to move to the UAE in 2025—the highest net inflow globally. Meanwhile, a February 2025 briefing by the Dubai Government Media Office revealed that by the end of 2024, the Dubai International Financial Centre (DIFC) had attracted 120 families and ultra-wealthy individuals, managing a total of USD 1.2 trillion (approximately RMB 8.45 trillion) in global assets.
From closed and conservative to open and inclusive; from oil-driven to tourism & services led, Middle East is becoming a real global node.
A line from the 1989 American classic film Field of Dreams perfectly captures the region’s current reality:
“If you build it, they will come.”
When infrastructure and opportunity are in place, global capital and talent naturally follow.
Aerial view of Riyadh at night
As Ray Dalio, founder of Bridgewater Associates, put it: “The Middle East is becoming the Silicon Valley for capitalists. People are moving in, money is moving in, talent is moving in.”
In the past, the Middle East was known for its grandeur and opulence. Today, it is emerging as a hub where talent, capital, and information converge and circulate. Throughout history, people is always the core of success in a region instead of glamorous architecture.
According to research by Savills, among 30 global cities ranked for high-net-worth individual attractiveness, Dubai surpassed New York to become the world’s top city for global elites. Over the past three years, the UAE’s foreign direct investment (FDI) has more than doubled, while Saudi Arabia’s FDI grew 25% last year, reaching USD 32 billion. Both countries now rank among the top 20 in Kearney’s Foreign Direct Investment Confidence Index, which assesses the most attractive markets over the next three years.
Today, certainty has become more precious than gold. Walking through Dubai’s soaring towers, Riyadh’s local streets, or Doha’s urban avenues, one can feel a long-missed sense of confidence and momentum—the unmistakable energy of an economy on the rise.
What changes will unfold next in this “land of the future”? ShineGlobal will continue to track the latest developments and trends in the Middle Eastern market.