Instant Business
License
Fast Company
Setup
Easy Bank Account
Opening
Structured
Workflow
Instant Business
License
Fast Company
Setup
Easy Bank Account
Opening
Structured
Workflow
Agriculture License
in Saudi Arabia
The country’s harsh climate, lack of arable land, and reliance on imports for food have encouraged the government to invest in new technologies and practices to increase the productivity of local agriculture. The country has the largest dynamic agricultural projects in the Middle East related to the date palm, poultry, dairy and aquaculture.
Agriculture Market
in Saudi Arabia at a Glance
- The Saudi agriculture market is one of the largest in the region.
- The agriculture sector is expected to grow at a CAGR of 4.9% from 2023-2028.
- It contributes 53 billion SR to Saudi Arabia's GDP each year.
- The country's agriculture heavily relies on winter rainfall.
- Key crops grown in Saudi Arabia include wheat, sorghum, barley, millet, tomato, watermelon, eggplant, potato, cucumber, onions, date palm, citrus, grapes, and alfalfa.
-
The segments of the Saudi Arabian Agriculture Market by type are:
- Food Crops or Grains
- Fruits
- Vegetables
- Oilseeds
- Pulses
The Significance of the Agriculture Industry in Saudi Arabia
Agriculture plays a significant role in the economy of Saudi Arabia. It is important for the following reasons:
Food Security
The agriculture industry is crucial in ensuring food security in the country by providing sufficient food supplies to meet the demands of the growing population.
Diversification of Economy
The agriculture industry contributes to the diversification of the economy, reducing the dependence on oil exports.
Export Revenue
The agriculture industry generates significant revenue from exports of agricultural products, such as dates, vegetables, and fruits, to other countries.
Agricultural Licensing Requirements in Saudi Arabia
The Ministry of Environment, Water, and Agriculture regulates agricultural licensing in Saudi Arabia.
License to Practice Bus Public Transportation within Cities
This license permits international companies to operate public bus transportation services in cities within the Kingdom of Saudi Arabia.
Required Documents
- The Company’s Board of Directors’ resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders’ shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
- A copy of the business entity’s commercial registry from its country of origin, with authentication from the Saudi Embassy.
- Evidence demonstrating adherence to contract completion timelines in the previous five years.
- Documentation showing financial capability aligned with the project’s capital requirements, shareholder contribution, consistency with the project’s implementation plan, and in accordance with the financial restrictions established for the type of activity.
Rules and Restrictions
- Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
- The foreign company’s average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
- The foreign company must hold licenses in at least two countries and have a minimum of 10,000 employees.
- The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment’s standards for service sector companies (500,000 SAR).
- In the case of a Saudi shareholder, a copy of the Department of Transportation/Public Transportation Authority license for bus transportation activities is required.
- Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
- The establishment’s record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
- There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
- Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
- Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
- The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
- The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application.
The licensing process involves obtaining a permit or approval from the relevant authorities for agricultural activities such as planting, harvesting, and exporting crops. The licensing requirements vary based on the type and size of the agricultural project.
Read our blog to learn more about Agriculture Business in Saudi Arabia.
Companies involved in the agriculture sector must ensure they comply with all relevant regulations and obtain the necessary licenses to operate legally in the country. Factors considered in the licensing process include the location, water source, and land use. The licensing process also includes environmental impact assessments and adhering to local and international regulations.
Required Documents
- You will provide a copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
- Your financial statements of the last financial year of the foreign company certified by the Saudi Embassy.
Rules and Restrictions
- Consistency between the total percentage of the Saudi (shareholder/ shareholders) and the capital according to the financial limits set forth for the type of activity.
- Premium residence holders are exempted from the above documents.
- If one of the partners was previously licensed by the Ministry of Investment, it must be clarified when filling in the partners' data while submitting the electronic application.
- The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.
License to Practice Bus Public Transportation within Cities
This license permits international companies to operate public bus transportation services in cities within the Kingdom of Saudi Arabia.
Required Documents
- The Company’s Board of Directors’ resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders’ shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
- A copy of the business entity’s commercial registry from its country of origin, with authentication from the Saudi Embassy.
- Evidence demonstrating adherence to contract completion timelines in the previous five years.
- Documentation showing financial capability aligned with the project’s capital requirements, shareholder contribution, consistency with the project’s implementation plan, and in accordance with the financial restrictions established for the type of activity.
Rules and Restrictions
- Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
- The foreign company’s average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
- The foreign company must hold licenses in at least two countries and have a minimum of 10,000 employees.
- The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment’s standards for service sector companies (500,000 SAR).
- In the case of a Saudi shareholder, a copy of the Department of Transportation/Public Transportation Authority license for bus transportation activities is required.
- Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
- The establishment’s record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
- There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
- Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
- Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
- The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
- The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application.