The restaurant industry is an integral part of Saudi Vision 2030, which aims to achieve a comprehensive economic and social transformation. This vision aims to diversify the economy away from oil dependency. It also focuses on vital sectors such as tourism, entertainment, and hospitality, where restaurants and cafes are a cornerstone.
This vision opens broad horizons for several sectors, as the kingdom seeks to attract 150 million visitors annually by 2030 and boost tourism’s contribution to gross domestic product (GDP). Hence, the F&B sector emerges as a main driver, reinforcing the appeal of new tourism and entertainment destinations in Saudi Arabia. Given these shifts, restaurant owners, investors, and operators need to pay close attention to the opportunities and challenges offered under Saudi Vision 2030.
The expected growth in visitor numbers, the change in consumer preferences, and the increasing focus on experience quality all mean that competition will intensify. However, opportunities will match the scale of national ambition. Restaurants that align with this Vision through innovation, digital transformation, and adoption of high operational standards won’t just be more capable of expansion. These restaurants are candidates to be part of the next Saudi success story.
Read on to discover how the Vision 2030 has impacted restaurants and coffee shops across Saudi Arabia. We’ll cover achievements, impacts, challenges, and opportunities.
The Role of Restaurants and Cafes under the Saudi Vision 2030
The Vision 2030 recognizes that the experience of a visitor or resident not only involves tourist attractions and entertainment events, but also includes the quality and variety of food and beverages. This means the F&B sector, including restaurants and coffee shops, is no longer a secondary business. It has become an essential part of tourism, entertainment, and quality of life in the kingdom. It’s complementary to every major tourism project and effective global event.
The role of restaurants and cafes isn’t just economic, it involves social and developmental factors. This industry is among the top creators of diverse job opportunities for Saudi youth. F&B establishments play a pivotal role in urban development, as they attract investments. They also contribute to transforming cities into global attractions that draw in visitors and residents by offering unique and integrated dining experiences.
Key Factors Impacting the Saudi Restaurant Market
Tourism and mega projects
Saudi Arabia is experiencing an unprecedented tourism boom driven by the Saudi Vision 2030. This boom includes massive investments in mega projects reshaping the tourism and hospitality landscape.
Among these projects are the luxury Red Sea projects and NEOM, a city that represents an innovative way of living, which will create high demand for new dining concepts. All these projects require world-class food infrastructure. On the other hand, Diriyah offers an authentic cultural experience featuring over 100 restaurants and cafes, combining tradition and modernity.
With further expansion in other projects, opportunities aren’t limited to accommodating visitors, they extend to building an integrated hospitality system. This makes investing in the restaurant and cafe sector a real strategic opportunity.
Global and local brands
The Saudi market is growing with more global restaurant and coffee shop brands entering the market and benefiting from robust purchasing power and rapid expansion. At the same time, innovative local concepts led by Saudi entrepreneurs are emerging, blending cultural identity with modernity.
This diversity enhances competition, enriches customer experience, and supports the Saudi Vision 2030’s goals of economic diversification and building a global hospitality sector that meets local and international standards.
Demand for diverse dining experiences
Demand for varied dining experiences is on the rise, with demand for fine dining increasing on the back of higher incomes and growing luxury tourism.
On the other hand, quick-service restaurants (QSRs) and food trucks are still popular, as they’re convenient for a modern lifestyle. Meanwhile, cloud kitchens are largely spreading owing to their flexibility and compatibility with food delivery apps.
The influence of Gen Z
In Saudi Arabia, Gen Z has been playing a key role in the restaurant and cafes sector. Making up around 71% of the kingdom, they rely on social media platforms like Instagram, TikTok, and Snapchat to explore restaurants and share their experiences.
They also seek authenticity and innovative concepts that resonate with their interests beyond just food. Influencers and online reviews impact their choices, making digital reputation management a crucial factor for restaurants to gain this large segment’s trust.
Vision 2030 for Restaurants and Cafes in Saudi Arabia: Investment Opportunities & Easy Licensing
As part of Saudi Vision 2030, the kingdom has transformed its investment environment into a more attractive one for various sectors, including restaurants and cafes.
This shift is driven by government efforts to facilitate procedures and provide the necessary support for local and foreign investors.
Easing government procedures for the restaurant sector
While committed to enhancing the flexibility and efficiency of government services, the kingdom has taken steps to simplify the necessary licensing procedures. Through this, the government aims to reduce bureaucracy, speed up approvals, and unify requirements across government entities. This saves time and costs for investors and entrepreneurs, making the Saudi market more appealing.
Check out the Complete Guide to Restaurant Licenses & Permits in Saudi Arabia.
Government support programs
Restaurants and cafes can receive government funding through programs and institutions like “Monsha’at” that empower entrepreneurs and small and medium-sized enterprises (SMEs) by offering training, consulting, financing, and access to opportunities.
The Ministry of Investment is also working to attract local and foreign investments via the “Invest Saudi” initiative. This includes providing comprehensive information, facilitating licensing procedures, and providing incentives that support the sector’s growth, making it more appealing as a vital contributor to the national economy.
Incentives for foreign investors and local entrepreneurs
As part of the Vision 2030 for restaurants in Saudi Arabia, the kingdom is reinforcing its investment environment through compelling incentives for foreign investors.
These incentives include full ownership, regulatory facilities, and smooth transfer of profits.
Meanwhile, local entrepreneurs enjoy support from Monsha’at, financing, and partnership opportunities with leading entities. This contributes to building a balanced investment system that fosters growth and innovation.
Real estate development projects
Riyadh is undergoing an urban renaissance, focused on developing integrated food and beverage destinations. Among the most prominent is Boulevard Riyadh City, a daily hotspot known for its vibrant atmosphere and diverse options. Another destination is Via Riyadh, which offers a luxurious experience combining upscale shopping with world-class restaurants.
These developments boost Riyadh’s position as a hub for refined taste and hospitality.
Regulatory Changes in Government Authorities
SFDA regulations: The Saudi Food and Drug Authority (SFDA), which regulates the F&B sector, focuses on consumer health and transparency of transformation. As of 1 July, 2025, the SFDA has mandated all restaurants and cafes to display calorie counts and clear nutritional information on their menus. The aim is to help consumers make better dietary decisions.
The SFDA also applies strict food safety and hygiene standards across storage, preparation, and serving stages. It also handles staff training and regular inspections to ensure serving safe and healthy food, in line with the market expectations.
Sustainability and waste reduction: The kingdom is focusing on reinforcing sustainability in the F&B sector by reducing food waste and adopting eco-friendly practices. These practices include minimizing plastic usage and saving energy and water. This enhances operational efficiency and attracts environmentally conscious customers.
Taxes and e-invoicing: As part of its financial transparency drive, the kingdom continues to apply a 15% value-added tax (VAT) on restaurants and cafes. This requires accurate pricing, invoicing, and periodic tax filings.
Additionally, the e-invoicing system has become mandatory under the regulations of the Zakat, Tax and Customs Authority (ZATCA). These regulations need to be integrated with point-of-sale (POS) and accounting systems to ensure compliance and minimize errors.
Human Capital and Saudization under the Saudi Vision 2030 for Restaurants and Cafes
Developing and training staff and applying Saudization policies are among the main pillars of te Saudi Vision 2030. This is highly reflected in the restaurant and cafe sector, which is one of the largest job-creating industries.
Nitaqat Program: The Nitaqat program is one of the government’s prominent tools to localize jobs in the private sector. It requires restaurants to achieve a Saudization rate of not less than 40% and up to 50% for cafes.
Meeting these targets is necessary to avoid penalties and benefit from government incentives. This helps achieve the Saudi Vision 2030 goals by cutting the unemployment rate to below 3.5% and increasing Saudi participation in the labor market, particularly in the hospitality sector.
Training and certification programs: Saudi Arabia is working to build a skilled national workforce in the F&B industry by introducing specialized training programs and providing recognized certifications through government entities such as the Human Resources Development Fund (HRDF).
These programs equip young Saudis with practical skills in culinary, hospitality, and management, supporting Saudization and boosting the sector’s quality.
Impact on staffing and salaries: Saudization programs shift recruitment efforts toward national talent. This may raise operating costs due to differences in salaries and fees for foreign labor. These changes also require workplace adaptability and intensified training to ensure efficient integration of Saudis.
Vision 2030 and Tech Dependence
Technology is a key pillar in the development of restaurants and cafes in the kingdom, as the pace of digital transformation accelerates to include all aspects of restaurant operations.
This is evident in the growing reliance on cloud-based POS systems, which also serve as restaurant management systems.
These tools allow you to monitor your restaurant’s performance anytime, anywhere. This is in addition to smart management tools such as self-service kiosks, kitchen display systems, and inventory tracking software.
Artificial intelligence (AI) also supports the automation of restaurant operations management and data analytics. It enhances menu engineering based on actual demand and improves customer retention strategies through personalized recommendations.
The Saudi market is growing remarkably in the adoption of integrated delivery platforms and restaurant loyalty programs, which connect ordering experiences, marketing, and customer loyalty. This creates an integrated operational system that focuses on data and supports sustainable growth.
The Restaurant and Cafe Sector Is at the Heart of Vision 2030
The Saudi Vision 2030 isn’t just an ambitious plan. It’s a comprehensive invitation for transformation across all economic and social sectors in the kingdom. It’s a roadmap to reshape the future and position Saudi Arabia as a global leader in various fields.
At the heart of this transformation is the restaurant and cafe sector, which is a major beneficiary of and contributor to achieving the vision’s goals. Restaurants and coffee shops that adopt innovation and localize their services in line with Saudi culture and national objectives in tourism, entertainment, and quality of life are the ones to thrive and achieve sustainable growth.
This new age opens unprecedented horizons for growth. That’s why we invite you to discover how advanced solutions and technologies can support your restaurant or cafe on this transformative journey.
Find out how Foodics can support the growth of your restaurant or cafe in alignment with Vision 2030.
