The Gulf region is becoming one of the fastest-growing areas in the world for new businesses. While cities like Dubai and Riyadh are already well known, other smaller and lesser-known cities are now catching the spotlight. With strong support from governments, major investment projects, and a focus on innovation, these emerging business hubs are becoming the future centers of economic growth.
In this article, we’ll look at ten promising cities in the Gulf that are attracting new businesses, startups, and global investors.
Ras Al Khaimah, UAE
Ras Al Khaimah (RAK) is quietly turning into one of the most attractive places for businesses in the UAE. Known for its peaceful setting and low cost of living, RAK also offers strong infrastructure and excellent free zones. The RAK Economic Zone (RAKEZ) has become a popular choice for international companies and startups due to its affordable licenses and simple registration process.
RAK is focusing on industries like manufacturing, tourism, and real estate, offering a good mix of business opportunities and lifestyle benefits. Its location, near Dubai yet more relaxed, makes it an ideal base for companies looking to grow without the high costs of bigger cities.
Manama, Bahrain
Manama, the capital of Bahrain, is a rising star in the fintech and digital economy sectors. Bahrain’s government has taken active steps to make it easier for new businesses to launch, including simpler regulations and open banking policies. This is why many financial startups and tech companies are setting up operations here.
The city also has a well-educated population and strong ties with neighboring Saudi Arabia, giving businesses access to a much larger market. With its modern infrastructure and smart city plans, Manama is fast becoming one of the Gulf’s top choices for business growth.
Sharjah, UAE
Sharjah is well known for its culture and education, but it is also making huge progress in becoming a strong business hub. The city has made big investments in creative industries, technology, and research. One of its major highlights is the Sharjah Research Technology and Innovation Park, which brings together businesses, researchers, and innovators in one place.
Startups in areas like renewable energy, health tech, and advanced manufacturing are finding a welcoming home in Sharjah. The government offers strong support programs, and the cost of doing business is lower compared to Dubai or Abu Dhabi.
Dhahran, Saudi Arabia
Dhahran has long been famous as the headquarters of Saudi Aramco, the world’s biggest oil company. But now, the city is looking beyond oil. With the Kingdom’s Vision 2030 pushing for a diversified economy, Dhahran is becoming a center for energy innovation and research.
The city has top universities and research centers that focus on technology, sustainability, and renewable energy. This makes Dhahran a strong choice for companies in the energy and tech sectors. With its educated population and large talent pool, businesses have all the tools they need to thrive.
Sohar, Oman
Located on the northern coast of Oman, Sohar is a growing industrial and logistics hub. Thanks to its deep-sea port and strategic location, it is becoming an important player in global trade. Sohar’s free zone has attracted investment in steel, aluminum, food processing, and logistics.
The city is part of Oman’s national vision to reduce its dependence on oil. With political stability, business-friendly rules, and new infrastructure projects, Sohar offers exciting opportunities for companies wanting to expand in the region.
Al Khobar, Saudi Arabia
Al Khobar, a coastal city in the Eastern Province of Saudi Arabia, is known for its modern lifestyle and strong business environment. It is part of the Dammam metropolitan area and plays a key role in the Kingdom’s economic plans. Al Khobar is growing in sectors like information technology, retail, and professional services.
The city is also benefiting from its close location to Dhahran and Dammam, giving companies access to a large market and skilled workforce. With new smart city projects underway, Al Khobar is quickly gaining attention as a future-focused business hub.
Fujairah, UAE
Fujairah is the only emirate in the UAE located entirely on the eastern coast, giving it a unique advantage. Its location along the Gulf of Oman makes it a major center for shipping and logistics. The Port of Fujairah is already one of the largest oil bunkering ports in the world.
The emirate is now expanding its economic focus to include tourism, manufacturing, and trade. With new hotels, industrial zones, and transport links, Fujairah is ready to welcome more global businesses looking for smart investments.
Muscat, Oman
Muscat, the capital of Oman, is known for its beautiful scenery and peaceful environment. But behind its calm image, the city is pushing forward with big plans for economic growth. Oman’s Vision 2040 focuses on technology, tourism, and entrepreneurship, and Muscat is leading this charge.
Several business parks and tech incubators have opened in recent years, helping young companies grow and connect with international markets. Muscat’s mix of tradition and modernity makes it an attractive destination for entrepreneurs who want both opportunity and quality of life.
Al Ain, UAE
Al Ain, also known as the “Garden City” of the UAE, is beginning to show great potential for business development. While it has traditionally been a center for agriculture and education, Al Ain is now focusing on industries like clean energy, health care, and cultural tourism.
With new economic zones and a growing population, Al Ain offers space and support for companies that want to invest in long-term growth. It’s also home to several universities and research centers, making it ideal for education and innovation-based businesses.
Jazan, Saudi Arabia
Jazan, located in the southwestern part of Saudi Arabia, is an upcoming economic zone with massive potential. The city is home to the Jazan Economic City (JEC), which is a key part of the country’s diversification plans. With strong investments in infrastructure, agriculture, and heavy industries, Jazan is set to become one of the country’s major business hubs.
Its location near international shipping routes and borders with Yemen also adds to its strategic value. As more government projects take shape, Jazan is quickly moving from a regional town to a global business opportunity.
Final Thoughts
The Gulf region is changing fast. With strong support from leadership, heavy investments in innovation, and a drive to build smart and sustainable cities, many smaller cities are now stepping into the spotlight. These ten emerging business hubs show that opportunity in the Gulf is no longer limited to the biggest names like Dubai or Doha.
For entrepreneurs, investors, and companies looking to enter a promising market, these cities offer a perfect mix of potential, support, and lifestyle. Whether you’re starting a tech company, expanding logistics operations, or looking for a peaceful city with smart policies, the Gulf’s rising hubs are ready to welcome you.
Also read: Bahrain to Host Epic Gulf E-Sports Championship from 2026
