Overview

Saudi Arabia is the fastest-growing economy in the Middle East and a great investment hub. The capital of the Kingdom is Riyadh. The Kingdom is a Muslim country. Saudi Arabia is divided into 13 provinces. Each Saudi Arabian province has a governor, deputy governor, and provincial council. These 13 provinces are further subdivided into 118 governorates.

Saudi Arabia at a Glance

• Population: 36.891 million
• 7th most competitive economy among G20 countries
• The largest consumer market in the Middle East
• World’s largest oil producer
• 18th richest GDP in the world
• 41st most populous country in the world

Saudi Business Landscape

Legal Environment

Saudi Arabia has a civil law legal system, and foreign companies must navigate complex regulations and processes. It is essential to have local legal and accounting expertise to avoid potential pitfalls.

Labor Market

The labour market is highly regulated in Saudi Arabia, with restrictions on hiring and firing and a strong preference for hiring Saudi nationals. Companies must comply with local labour laws and clearly understand the local culture and customs.

Learn more about Saudization: Stay Green on Nitaqat System with Al Taasis.

Business Culture

Saudi Arabia has a rich cultural heritage and a strong emphasis on personal relationships and trust. Business is often conducted through personal introductions and referrals, focusing on building long-term relationships.

Significance of the Saudi Arabian Market

Large and Growing Market

Saudi Arabia’s rapidly growing economy makes it an attractive investment market.

Abundant Natural Resources

Saudi Arabia is the world’s largest oil producer and has significant reserves of natural gas, making it a key player in the global energy market.

Giga Projects in Saudi Arabia

Giga projects are driven by technology, innovation and sustainability to stimulate broader economic growth and develop the Kingdom’s digital infrastructure. These large-scale, complex, multi-purpose construction projects aim to transform the wider economy. The Kingdom’s main giga-projects are Diriyah, NEOM, the Red Sea Project, Qiddiya and Asir.

Government Support

The Saudi government has implemented several initiatives to support and encourage foreign investment, including creating special economic zones and the liberalization of particular industries.

Strategic Location

Saudi Arabia’s strategic location connecting Europe, Asia, and Africa makes it a key hub for trade and commerce.

Special Economic Zones

The government has established several special economic zones, including the King Abdullah Economic City and the Jeddah Economic City, to attract foreign investment and encourage economic development.

Please read our blog to learn about Saudi Arabia’s Economic Cities, Special Economic Zones, and Industrial Cities.

Favourable Business Environment

The country has a relatively stable political and economic environment, making it an excellent place to do business. Additionally, the government has been implementing reforms to improve the business environment, including measures to streamline regulations and increase transparency.

Expansion to Saudi Arabia: A Complete Business Setup Guide for Foreigners

Tax Incentives

Foreign investors may be eligible for tax holidays, reduced corporate tax rates, and exemptions from certain taxes, such as the value-added tax.

Investment Guarantees

The Saudi Arabian government guarantees foreign investors protection against expropriation, nationalization, and discriminatory treatment.

Access to Financing

The government provides support to foreign investors in the form of loans and financing, as well as access to financing from local banks.

Simplified Regulations

The government has implemented several measures to simplify regulations and streamline the business process in the country, making it easier for foreign investors to establish and operate their businesses. Please read our blog to learn about the Step-by-Step Process of obtaining a MISA License in Saudi Arabia.

Intellectual Property Protection

The government has established laws and regulations to protect intellectual property rights, including patents, trademarks, and copyrights.

Visa and Residency

The government provides streamlined processes for obtaining work visas and residency permits for foreign investors and their employees.

Learn about the Visa Types in Saudi Arabia.

Stock Market

The Saudi Arabian stock market, known as the Tadawul, is the largest in the Middle East and one of the largest stock markets in the world.

Access to Local Market

Foreign investors have access to the large and growing local market in Saudi Arabia and opportunities to export to other countries in the region. Learn about Import-Export Business in Saudi Arabia.

Establish Your Corporate Presence in Saudi Arabia

Al Taasis boasts corporate expertise across all Saudi sectors. Please read our blog to learn more about the business requirements in Saudi Arabia.

Start a Successful Business in Saudi Arabia with Al Taasis.

Al Taasis helps you enter the Saudi market compliantly. We can guide you on the sector-specific requirements and take responsibility for your entire company formation process.

Contact us to know more about the prerequisites of your business journey.