Doing Business in Saudi Arabia - International Franchise Association

equipment manufacturers (OEM) parts and accessories, and a growing awareness of preventive
maintenance which increases the demand for spare parts.
During the Ramadan and Hajj religious holidays, over 3 million pilgrims gather in Mecca and
Medina to perform the Hajj and Umrah pilgrimages. As the number of pilgrims is increasing
every year, construction activity in both cities is picking up to provide accommodation. This will
increase the demand for air-conditioning and A/C spare parts.
Opportunities Return to top
Across the Kingdom, a variety of food and beverage outlets and cold-storage centers, including
hotels, restaurants, supermarkets, malls, and catering service centers are being constructed.
This adds further impetus to the already thriving air-conditioning ventilation and heating sector.
Meanwhile, cold nights in some parts of Saudi Arabia are driving demand for a board variety of
international-standard, high performance heating equipment.
The Air conditioning market is expected to increase with the uninterrupted growth of non-oil
GDP through government expenditure on infra-structure and economic cities as well as
mosques and government buildings. With continuously growing Saudi population and the
expatriates arriving for work, by 2020, the population is estimated to be 36.74 million, with 7.1
million households occupied, using approximately 35 million air-conditioning units.
In addition to the new construction market, the growing replacement market will generate
opportunities for U.S. companies. A key factor that has also boosted the demand for U.S. parts
and components in recent years is the relatively weak and stable dollar against the Japanese
yen and major European currencies. The prices in Saudi riyals of Japanese air-conditioning
spare parts and components have risen significantly, and in many cases Japanese and
European products are far more expensive than American products.
Best Sales Prospects
• compressor units
• spare parts for compressors
• pressure control valves
• air filtration products
• motor louvers
• capacitors
• switch rotary motors
• heat transfer equipment
• electronic controls
• fans/blowers
• oils and refrigerants
• controllers
• timers
• capacity control valves
• expansion valves
• conductors