Let’s discuss how to start business in Saudi Arabia for foreigners and residents. Some prerequisites to open a foreign company in KSA involve registering with your country’s Ministry of Trade.
You can start a company in Saudi Arabia even if you are from another country. The government has made it easier for people from other countries to do this. There are different ways to set up a business in Saudi Arabia. We’ll cover everything from reasons to invest in Saudi Arabia and how to do it to showing you successful case studies of businesses that did well by investing in KSA. So without any further ado, let’s discuss how to start business in Saudi Arabia for foreigners and residents.
Its city Riyadh is considered the top city in the Middle East for startups. The average internet speed is 94.64 Mbps, and the literacy rate here is high at 95%. When you start business in Saudi Arabia, foreigners have several options for how to structure their business.
These options include being a subsidiary of a foreign company, forming a limited liability company (LLC), establishing a joint stock company (JSC), creating a regional headquarters (RHQ), or setting up a technical and scientific services office (TSSO). The best choice depends on the needs and circumstances of the foreign business owner.
Also Check: Saudi Labor Law and New Working Hours in Saudi Arabia
The countries around the Gulf have really good chances to do business. It’s easy to start and run a business there, and the economies are strong. In Saudi Arabia, especially, there are lots of chances for people who want to start their own businesses and do well.
Foreign investors in Saudi Arabia enjoy low personal income tax, a 15% corporate tax rate, and most items and services are exempt or zero-rated from VAT.
Saudi Arabia is actively welcoming foreign travelers and investments, with friendly citizens and government programs to attract foreigners.
Saudi Arabia has announced billion-dollar programmes, increasing 50% market sector and creating over 25k work opportunities.
Saudi Arabia is now investing in tourism, pharmaceuticals, technology, finance, real estate, education, agriculture, technology, health care, luxury goods, construction materials, and more.
Saudi Arabia is the safest of all G20 countries, according to the Gallup Global Law and Order. It has defeated Canada, the UK, Japan, and New Zealand in safety.
Starting a business in Saudi Arabia as a resident means understanding how to set up the company and getting the right papers. Let’s learn how residents in Saudi Arabia can start a business.
Read: The Role Of Social Media Marketing in Customers Purchase Decisions In Saudi Arabia
Some prerequisites to open a foreign company in KSA involve registering with your country’s Ministry of Trade and Industry, and opening a local bank account in Saudi Arabia. Then you have to register with Wasel, lease a physical local office for an LLC, register with the Ministry of Labour and Social Development for visa options. After that, complete the GOSI registration for social insurance.
Now that you have learned how to start business in Saudi Arabia for foreigners, let’s talk about 5 ways anyone can open a company in KSA in 2024.
For an entrepreneurial license, your startup must be at least five years old and meet one of these standards:
Companies owned by GCC nationals can form a branch office that is separate from the parent company. The parent company, however, is still liable for the debts and liabilities of its branch. A subsidiary can also be formed and have its own management with a board of directors. Subsidiaries can combine multiple business activities on their licenses.
Foreign companies can invest in different things in KSA. Some types of investments allow full ownership by foreign companies. For trading, you need four global branches and SAR 10 million. For capital or real estate, you need 25% Saudi ownership.
See this list of licenses:
If you’re from a GCC country, you can start a business setup in KSA just like Saudi residents. It includes sole proprietorships, LLCs, and joint stock companies. But for that you need to show that you’re not a government worker and also get a police clearance.
To setup a business in Saudi Arabia as a foreigner, you’ll need a government entity support letter. For example, MISA, PIF, CODE, KAUST, TDF, or a patented idea. This type of LLC is owned by one or more shareholders with limited liability.
You get a lot of advantages when you set up a business in Saudi Arabia. Note that there are also disadvantages to consider. The process can be challenging for foreigners or those who don’t know about the country laws.
Check: 5 Actionable Ways To Target Young Saudis In Your Digital Strategy
Amazon changed the name of Souq.com to Amazon.sa to sell more things to people in Saudi Arabia. This made more people buy stuff online in Saudi Arabia. Amazon now has more kinds of things for people to buy. Amazon Web Services (AWS) is going to open some big computer buildings in Saudi Arabia in 2026. They are going to spend more than $5.3 billion. These buildings will store information very safely, make work happen faster, and make it easier for people to use. AWS is working with big companies like Google and Microsoft to help more people in the area use AI technology.
AWS has teamed up with local companies like Saudi Telecom Company, Seera Holding, and Mobily to show its dedication to improving technology in the region. The facility in Saudi Arabia has expanded its storage space to 390,000 square feet, which can hold over nine million products. Amazon Saudi Arabia and the Saudi Exports Development Authority (SEDA) have agreed to work together to support 40,000 Saudi sellers by 2025 using Fulfilled by Amazon (FBA) services.
Now you know the exact blueprint of how to start business in Saudi Arabia. We have discussed successful examples of international businesses that opened in KSA and saw tremendous success. We also talked about the options foreigners have in Saudi Arabia and how they can open a company there. Although setting up business in Saudi Arabia comes with challenges like understanding local customs and rules, Saudi Arabia is a great country for both residents and foreigners to start a business in. With its strong economy and the government’s support for businesses, you can have a great deal of successful business in KSA in the upcoming years.
Hi, I'm Aaqil Abdul Rehman, one of the key individuals behind the success of First Growth Agency. With a spirited blend of marketing savvy and a dash of technical genius, I've dedicated myself to catapulting brands into the spotlight where they belong.
- Aaqil
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