While Saudi Arabia is known for its diverse and serene landscape, it’s also a land of varying business opportunities. The country’s largest industry, oil, with approximately 260 billion barrels of reserves, makes up roughly one-fifth of the world’s supply. However, Saudi Arabia is not just about oil production. It’s also a promising land for other businesses like real estate, luxury goods, and building materials, offering diverse opportunities for foreign entrepreneurs. This blog will simplify your business setup in Saudi Arabia with precise guidance. Let’s embark on a journey to build your venture in Saudi Arabia.
Why To Establish A Business In Saudi Arabia?
Saudi Arabia is a developing country. With a GDP per capita (with a population of 36,408,820 people) of $21,069 in 2022, a change of 7.4% compared to last year, the business setup in Saudi Arabia is a smart move because of a consistently growing economy. However, the government is working to make the country less dependent on the oil industry, creating better opportunities for different businesses. The country is investing in things like transportation and technology, making it easier for business operations in Europe, Africa, and Asia. However, it is necessary to understand and respect the local culture and rules for doing business here because Saudi Arabia is relatively strict regarding rules and regulations.
Quality Lifestyle
Saudi Arabia offers a good quality of life with modern amenities and a mix of traditional and modern lifestyles, making it a good place for business setup. However, having a license is a must for a business setup in Saudi Arabia. While the steps for foreign investors are not too complicated, prior knowledge is essential for ensuring error-free applications for licenses and visas.
Supporting Business Environment
While Saudi Arabia is a prime player in the oil industry, the government is actively working to ease business in different industries such as real estate, travel & tourism, etc. The country has streamlined the business restriction process, enhanced bankruptcy laws, and improved contract enforcement to create a more business-friendly environment.
Global Investment Hub
Saudi Arabia’s Vision 2030 initiative aims to transform the country into a global investment powerhouse. This initiative will create opportunities, making it an ideal location for establishing a venture. The three main pillars of a Global Investment Hub are a vibrant Society, a Thriving Economy, and an ambitious nation that attracts global investors.
Low Taxation
Another reason to consider a business setup in Saudi Arabia is its low taxation policy. The low income and sales taxes stimulate economic growth, encourage foreign investment, and support the country’s 2030 Vision. This positioned the country as the primary destination for business establishment.
What Type Of Business to Establish In Saudi Arabia?
Aside from oil, Saudi Arabia offers several business opportunities for global investors. If you are looking for a business setup in Saudi Arabia, the following ideas can help you choose the right option.
- Agriculture
- Healthcare
- Travel & Tourism
- Sports
- Construction
- Solar Energy
- Luxury Goods
- Food Delivery
- Foods & Beverages
These business opportunities are thriving and profitable in Saudi Arabia.
How To Start Business In Saudi Arabia For Foreigners?
To establish a genuine business in Saudi Arabia, you should follow the country’s rules and regulations. Below, understand how to start a business in Saudi Arabia.
- Choose your business industry
First, you will have to outline the business venture in which you want to enter. This will determine whether it is best to set up a business on the mainland or in the free zone. - Search for business premises.
For a business setup in Saudi Arabia, you will need to lease a business premises to work with a local service agent because the Kingdom no longer issues licenses for foreign companies. - Obtain Investment License
To establish a business in Saudi Arabia, you will need an investment license issued by the Saudi Arabia General Investment Authority (SAGIA). This license is required to invest in the country, buy a new company, or establish a new company. - Require Additional Documents
Additional documents that you will need for business setup in Saudi Arabia are-
- ID proof and address of all members of the company
- Passport copies of shareholders and directors of the company
- Copy of trade name confirmation
- Memorandum of Associations
- Article of Associations
- Bank Reference Letter
Important Things To Consider While Setting Up Business In Saudi Arabia
Choosing the right name is an integral part of business. Your business name should be unique while representing your identity and require legal requirements like Ltd or Limited. It must not sound offensive and contradict religious values. Additionally, you should know and understand all the laws, including labor laws, taxation, intellectual property laws, banking regulations, and sector-specific regulations.
Unlock Your Buisness Potential In Saudi Arabia!
Saudi Arabia is a developing country with a potential market that provides several opportunities for entrepreneurs to grow. Regardless of which business you opt for, there are higher chances of success because of the vibrant market and global reach.
