The Magnetic Lure of Saudi Arabia
Posted on 2025 Feb,07  | By Iain Akerman

Dozens of regional and international agencies are expanding into Saudi Arabia, looking to capitalise on the kingdom’s growth and contribute to its transformation


“You can read all the reports about Saudi Arabias transformation, but unless youre on the ground, you cant feel the excitement,” says Tanya Dernaika, a stalwart of the regions advertising industry and now managing director of strategy at Fraser.

You cant understand the cohesiveness that Vision 2030 has created in the population. From biotechnology to retail, from fashion to music, everyone is singing from the same song sheet and excited. But its not palpable unless youre there and you see it. And it feels strange when you sometimes hear questions from other markets, like, Is it safe to come to Saudi?Dont worry, come and see.”

Now based in Riyadh, Dernaika is integral to the regional expansion of Fraser, a Berlin-headquartered, digital-first creative agency with a passion for transformation.

Founded by chief executive Benjamin Baumann six years ago, the boutique agency has launched operations in Saudi Arabia and Dubai, following the opening of offices in Zurich in 2023 and Cape Town earlier this year. Spearheaded by Baumann and driven by the requirements of two unnamed Saudi and Dubai-based clients, the expansion is supported by Dernaika, creative managing director Pablo Maldonado, and account director Mia Moussa.

Currently in the process of establishing a physical presence in Riyadh and Dubai, having already registered as an entity in Saudi Arabia, the agency is seeking office space in the kingdom’s capital. With three senior team members in place, its very much a year of foundation and at the same time of excitement,” says Maldonado, formerly chief creative officer at Grey Dubai. More team members will follow, with the search for Arabic copywriters, strategists, and account managers underway.

At the heart of Frasers offering is the integration of data, strategy, creativity, and technology – attributes that have grabbed the attention of clients such as UBS, Ferrari, and Bosch. Isnt it great to have an edge, to be different, to bring something new to the market – something thats needed,” says Dernaika, who describes the agency as “pervasively creative, open, agile, bold, honest and transparent”.

Dernaika, who spent 25 years at Ogilvy (both in Dubai and Beirut), relocated to Riyadh from Berlin, where she moved a week prior to the Beirut explosion in 2020.

“The need to balance a strong, emotional grand narrative that taps into Arab culture and national pride with the recognition that people connect in diverse, personal ways has never been greater,” she says. “In todays world, meaningful engagement calls for both a unifying story and a personalised approach that resonates authentically with individuals. This makes now the ideal moment for a communication agency to offer solutions that integrate both – creating narratives that inspire while cultivating genuine personalised connections.”

 

“It feels strange when you sometimes hear questions from other markets, like, Is it safe to come to Saudi?Dont worry, come and see.”

--Tanya Dernaika, managing director of strategy, Fraser

 

Although its proposition may be distinctive, Fraser is far from alone when it comes to new entrants to the market. Saudi Arabia is booming and – as with all gold rushes – people and agencies are heading to the kingdom in droves. Widespread economic and institutional change have combined to create an industry that is more vibrant than ever, offering the promise of business growth, jobs, and investment opportunities to those willing to take the plunge.

     PR agency Brazen MENA officially entered the Saudi market in the second quarter of this year, although its connection with the kingdom began back in 2015. Having previously engaged with the country’s media, influencers, and consumers on behalf of clients such as Atlantis and Dubai Economy and Tourism, the agency set up shop in Riyadh with a dedicated team of three.

That team is supported by the Dubai office for functions such as account administration, with the agency actively exploring expansion opportunities in Jeddah and other key regions.

“We saw an opportunity to bring our creative and results-driven approach to a country undergoing extraordinary transformation,” explains Louise Jacobson, Brazen MENA’s managing partner. “Our decision was guided by a strong belief in Saudi Arabias ambitious vision for the future, and a genuine desire to contribute to its inspiring journey of cultural and economic growth. From a client and market opportunity perspective, the rapid expansion of the tourism and hospitality sector (of which we have significant experience) was a huge draw.”

Saudi Arabias hotel industry alone is projected to grow from $13.23 billion in 2024 to $16.91 billion by 2029, according to AstroLabs. In 2023, a record 27.42 million international visitors and 81.92 million domestic tourists vacationed in the kingdom, spending a total of $67 billion.

These figures make Saudi Arabia the second fastest-growing tourism destination in the world. Such statistics underline the rapid transformation of the kingdom, which only opened up to international tourists in September 2019, when it launched its tourist visa programme.

“Yes there is a [gold] rush, but were in Saudi for the long haul,” says Jacobson, adding that the agency’s strategy is focussed on three key areas: deepening local engagement, continuing to invest in talent, and prioritising innovation and impact.

“This means assembling the right team, collaborating with clients who see us as long-term partners, and establishing lasting relationships within the region to secure the right success. Were focusing on understanding the unique needs of Saudi clients and crafting campaigns that resonate with their audiences. While our approach is centred on creativity and innovation, we are committed to ensuring that Saudi heritage and culture are at the heart of everything we do.”

 

“We saw an opportunity to bring our creative and results-driven approach to a country undergoing extraordinary transformation.”

--Louise Jacobson, managing partner, Brazen MENA

 

      The same is true of Socialeyez, a Dubai-based full-service digital agency that began laying the groundwork for its presence in the kingdom earlier this year. The official launch of its Riyadh office took place in November and “reflects months of strategic planning, thorough research and tailored preparation to meet the markets unique dynamics,” says Tarek Esper, Socialeyez’s managing director.

Ahmed Dahduli, a Saudi national, has been appointed general manager of the Riyadh office, where his “expertise and cultural understanding play a vital role in shaping our operations and deepening our local impact”. The agency is actively hiring.

“Expanding to Saudi Arabia is about more than just broadening our presence; its about introducing our distinctive approach to creative strategy in one of the worlds most dynamic and rapidly evolving markets,” adds Esper, stating that Socialeyez plans to empower local talent while leveraging the expertise of its global team to deepen the agency’s involvement in the Saudi market.

“Our launch at the Athar Festival was a strong start, offering a platform to showcase our expertise while demonstrating our commitment to understanding and engaging with the local market. This expansion is a significant step forward, marking our dedication to growing alongside the kingdom and contributing to its transformative journey. By bringing our creativity and insights, we aim to craft impactful stories, build meaningful connections and establish a lasting presence in this vibrant and fast-evolving landscape.”

 

“This expansion is a significant step forward, marking our dedication to growing alongside the kingdom and contributing to its transformative journey.”

--Tarek Esper, managing director, Socialeyez

 

Opening an operation in the kingdom is not without its difficulties, of course. Entering the Saudi market involves navigating a long list of regulatory, cultural, and operational complexities, which require a nuanced understanding of the local environment.

For Brazen, the agency’s expansion was accompanied by challenges associated with “establishing our presence, to recruiting top-tier Saudi talent in a landscape where demand for skilled professionals is surging”. Brazen also found that the business conversion cycle was slower than elsewhere.

     “Setting up has been an exciting journey, with some challenges along the way,” Annika Rehbäck, general manager for Saudi Arabia and Europe at Crater, a hybrid independent visual agency. “While the legal and regulatory requirements to establish a business in Saudi Arabia are well-structured, navigating the specifics has required close collaboration with local experts.”

The main obstacle being the time-intensive nature of the setup process itself.  Crater is expecting to receive its license and officially launch in January 2025, although it has been collaborating with media agency partners and clients in the kingdom for years. That work continues as usual, with the agency representing a roster of international directors offering creative, strategic, and production services in film, photography, VFX, animation, and 3D out-of-home.

Crater’s strategy is twofold: to continue creating impactful visuals and unforgettable stories that resonate locally and globally, and to invest in developing Saudi talent by providing training, resources, and platforms for their stories to shine.

 

 

“Our vision in Saudi Arabia is not merely about the work we produce, but also about ensuring the right stories are told…”

--Annika Rehbäck, general manager for Saudi Arabia and Europe, Crater

 

Saudi Arabias creative industry is undergoing a transformative period, and we wanted to be part of this incredible journey,” says Rehbäck, adding that the agency’s immediate priorities include deepening client relationships, expanding its local team, and contributing meaningfully to the kingdoms creative industry.

“Since we have vast previous experience in the kingdom, we know there are incredible stories to be told. Our vision in Saudi Arabia is not merely about the work we produce, but also about ensuring the right stories are told with our commitment to excellence driven by a network that extends to a roster of award-winning directors, photographers, and creatives.”