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Healthcare Business in Saudi Arabia: The Kingdom Calls for Massive Investments The Kingdom of Saudi Arabia considers the Healthcare Sector a priority, seeking to provide quality healthcare and build a world-class infrastructure. Saudi Arabia’s healthcare sector is a platform of significant opportunities for investors offering 100% foreign ownership. Al Taasis offers you a fast business setup with customised prices. Step-by-Step Process to Obtain MISA License in Saudi Arabia Overview The Healthcare Industry is related to clinical services, manufacturing drugs and medical equipment, health insurance and other healthcare-related support services. The Healthcare sector in Saudi Arabia is an investment hub due to its large population, encouraging foreign investments and implementation of business-friendly laws. The Kingdom aims to build medical facilities worth $13.8 billion by 2030. Why is the Saudi Healthcare Market Attractive to Investors The healthcare sector is a unique growth opportunity for investors because demand for healthcare remains stable as the business cycle fluctuations affect the healthcare sector the least. The Growing Saudi Population The current population of Saudi Arabia is over 36 million, and it is expected to grow to 39.4 million by 2030 and 77.2 million by 2050. A large population has increased the demand for healthcare services and created more investment opportunities. To cater to the needs of its growing population, the Kingdom requires the following: 13,700 doctors by 2030 Additional 20,000 hospital beds by 2030 Healthcare is among the Top Priority Sectors The government has allocated $36.8 billion from its 2022 budget to healthcare and social development as the third largest expense. The Kingdom plans to invest over 65$ billion to develop its healthcare infrastructure. Privatisation of the Health Sector The Kingdom aims to improve healthcare infrastructure by privatising healthcare services and enhancing public-private partnerships (PPP). By 2030, the Kingdom aims to increase private sector contribution from 40% to 65%, including 290 hospitals and 2300 healthcare centres to be privatised. Fastest-Growing Digital Health Market in GCC The government is adopting digital information systems to offer practical solutions with reduced cost, better quality and easy access to resources. The government has allocated $1.5 billion to incorporate information technology in healthcare and implement digital transformation programs. Health Transformation Goals The Kingdom’s focus on healthcare development is aligned with Vision 2030, and National Transformation Program launched in 2022. The National Transformation Program targets to provide sustainable healthcare services and develop an integrated health system with e-health services and digital solutions. Inclusive health services will cover 88 % of the population by 2025 The unified digital medical records system will cover 100 % of the population. Health Clusters in Saudi Arabia The Ministry of Health has launched health clusters across Saudi Arabia to provide quality health services and build an integrated healthcare network. These clusters are a set of independent companies that focus on specialist services. The government aims to detach the Ministry of Health from overlooking hospitals and health centres and entrust the network of new companies with improving healthcare quality. Contact us to know more about the prerequisites of your business journey. Key Healthcare Entities in Saudi Arabia The Ministry of Health (MoH) The MoH is responsible for regulating and supervising all public and private health institutions. Health Holding Company (HHC) HHC is responsible for digitising and advancing the Kingdom’s healthcare system, focusing on providing medical services and care through health clusters. HHC focuses on expanding digital health programmes and virtual medical services. National Unified Company for Medical Supplies (NUPCO) Owned by the Public Investment Fund, NUPCO is centralised government procurement of pharmaceuticals, medical equipment and supplies to benefit all public healthcare facilities. It aims to achieve cost-spending efficiency and enhance governmental healthcare services in the Kingdom. Saudi Food & Drug Authority (SFDA) SFDA is the government agency that regulates the imports and safety of food, drugs, and medical devices. Council of Cooperative Health Insurance (CCHI) CCHI is responsible for regulating prevention and improving the value of healthcare services for health insurance beneficiaries. National Center for Privatisation (NCP) NCP assists in formulating regulations, creating privatisation frameworks, and preparing government assets and services identified for privatisation to ensure quality outcomes. Contact us to know more about the prerequisites of your business journey. Key Segments of the Healthcare Industry Al Taasis has the expertise for setting up businesses across all key healthcare industry segments. The healthcare sector can further be divided into two groups. The healthcare sector can further be divided into two groups. Pharmaceuticals, Biotechnology and Services Healthcare Providers Hospitals and other medical centres Nursing homes and rehabilitative centres Ambulatory service providers Healthcare Financiers Government agencies and private companies facilitate health insurance policies and fund healthcare services. Life Sciences Pharmaceutical firms making drugs and chemical products related to healthcare Manufacturers making high-tech medical equipment Biotechnology firms conducting research in the field of healthcare Saudi Arabia’s Recent Investment Deal in Healthcare Sector (Source: MISA) Burjeel Holdings, a UAE healthcare giant, signed a Memorandum of Understanding (MoU) with the Ministry of Investment (MISA), aiming to invest up to $ 1 billion in Saudi Arabia. The target investment areas will be in the healthcare ecosystem: specialty medical treatment centres and hospitals, digital health ventures, and clinical research programs. Invest in the Healthcare Sector of Saudi Arabia Al Taasis makes your investor experience more seamless by offering a one-stop platform. Get your license in a few easy steps and kickstart your business journey in Saudi Arabia. Our team can guide you further about the specific requirements of your business activity. Contact us to know more about the prerequisites of your business journey. Subscribe to Our Newsletter! Enter your email to receive our monthly newsletter. Popular Articles Opening Digital Business Account with Wio Bank Saudi Arabia’s Economic Cities KSA, an Irresistible Attraction for Tourists Government Entities and Online Portals Dealing with Import and Selling in Saudi Arabia: SFDA, SASO, SABER and FASAH Business Licenses Offered by MISA to Foreign Investors Visa Types in Saudi Arabia No posts found

Business Setup Types in Saudi Arabia Branch Office Representative Office Commercial Agency Agreement Temporary Commercial Registration Foreign investors have many options to incorporate a business in Saudi Arabia. Along with limited liability companies and joint stock companies, foreigners can set up their representative or branch offices, obtain a temporary commercial registration or appoint a commercial agent on behalf of their foreign company. → Technical and Scientific Services Office in Saudi Arabia Foreign companies that have appointed a Saudi agent to distribute the company’s products in the Kingdom seek to open an office to provide scientific and technical services or assistance to agents, distributors, and consumers of their products. Representative offices can also conduct product research and market surveys for the parent company. Based on the market research, the office can prepare a report for its head office. TSOs can conduct liaison activities to provide technical assistance but are not allowed to engage in commercial activities. Requirements for Scientific and Technical Office There are no minimum capital requirements for a Scientific and Technical Office. Its formation process is more straightforward than that of a company and quite like that of a branch. The office must submit an annual summary of its activity in the Kingdom to the Ministry of Investment (MISA). → Temporary Commercial Registration in Saudi Arabia Temporary Commercial Registration is a temporary license for specific government contracts. With Temporary Commercial Registration, you can not conduct activities in the private sector other than the specific government project. Requirements for Temporary Commercial Registration There is no minimum capital requirement to obtain TCR, but its formation process is like a branch office. You can not apply for TCR unless you get a government contract. You can even obtain a Temporary Commercial Registration for consulting projects. → Commercial Agency Agreement in Saudi Arabia A Commercial Agency Agreement is an option for foreign investors who do not intend to incorporate a legal structure in Saudi Arabia but are willing to trade in Saudi Arabia. Foreign investors can promote or distribute their products and services in the Saudi Market through their appointed Commercial Agent. Requirements for Commercial Agency Agreement The Commercial Agent must be a Saudi national, or the Commercial Agency must be owned by a Saudi national. You are required to sign an agreement with Saudi Commercial Agent, and your agreement must be registered with the Ministry of Commerce and Industry. You are not required to obtain a license from the Ministry of Investment Saudi Arabia (MISA). → Branch Office in Saudi Arabia You can conveniently open a branch office of your company in Saudi Arabia with 100% ownership of the business. The branch office is an extension of your parent company. Your branch office can conduct the commercial activity according to the parent company’s license scope. Your legal representative is responsible for managing your business in the Kingdom. Foreign branches cannot get involved in promotion, marketing or trading activities. Only those activities are allowed, which are mentioned in the MISA (SAGIA) license of the branch. Your branch office is eligible for both public and private sector projects. Requirements for Setting Up a Branch Office in Saudi Arabia Opening a branch office is similar to a limited liability company with the exact capital requirement. The difference is that you are not required to submit Articles of Association (AoA). The branch of a foreign company is required to deposit a minimum capital of SAR 500,000. No local sponsor or participant is required to open a branch office in Saudi Arabia. The branch office will obtain its Commercial Registration Certificate. Setting up a branch office might take some time if the manager is not a Saudi national, GCC national or a Saudi resident because a foreigner must have a residence permit as part of the incorporation process. Why should you open a branch office in Saudi Arabia? Convenient and Fast Process Setting up a branch office is more convenient than incorporating other entity structures as no specific requirements or approval of the Articles of Association are required. The Ministry of Commerce and Industry issues the certificate of registration to your business. Business Growth Your business expansion helps your brand get visibility to a diverse audience. You can grow your business quickly by opening a branch office in Saudi Arabia. Your company will get recognition in Saudi Market, reducing risk by getting more opportunities and increase profits. Access to Saudi Market By setting up a branch office, you are eligible to access the local Saudi Market to sell products and services. Your branch office can help you understand the demands of the local Market, and you must comply with the rules and regulations of the Kingdom. Documents Required to Open a Branch Office in Saudi Arabia Our team will guide you regarding the documents’ requirements depending on the business activity of your parent company. Setting up a foreign company or LLC branch typically takes three to six months (Source: Deloitte). Contact us to know more about the prerequisites of your business journey. Subscribe to Our Newsletter! Enter your email to receive our monthly newsletter. Popular Articles Opening Digital Business Account with Wio Bank Saudi Arabia’s Economic Cities KSA, an Irresistible Attraction for Tourists Government Entities and Online Portals Dealing with Import and Selling in Saudi Arabia: SFDA, SASO, SABER and FASAH Business Licenses Offered by MISA to Foreign Investors Visa Types in Saudi Arabia No posts found

Registration with Saudi Government Departments and Authorisation to Hire Staff Getting a MISA license is the first and foremost phase of incorporation in Saudi Arabia. The step-by-step process of obtaining a MISA License is explained in our previous blog This part will guide you through the next steps of your investor journey. For your legal entity to be authorised to hire people, you must register with relevant government departments. Your General Manager (GM) will have a one-time work visit visa issued at this stage, allowing him to travel to Saudi Arabia. Registration with the Ministry of Human Resources and Social Development (HRSD) We make you stress-free by handling your registration process with the Ministry of Human Resources and Social Development (HRSD). The role of HRSD is to achieve an efficient, systematic labour market and organised recruitment of foreign workers. Registration with General Organisation for Social Insurance (GOSI) GOSI, or General Organisation for Social Insurance, is a government organisation in Saudi Arabia that manages provisions of the Social Insurance Law. We help you with the registration process, and you must have a valid national ID or Iqama, a registered mobile number, and an email address to register in GOSI. GOSI Know-How GOSI contribution is calculated on the basic salary plus housing allowance. The employer is responsible for paying a 2% GOSI contribution. However, there is no GOSI fee to be paid by an expatriate employee in Saudi Arabia. The total GOSI percentage for Saudi nationals is 21.50%. Registration with the Zakat, Tax and Customs Authority (ZATCA) ZATCA is the Saudi authority regulating, administering, and implementing taxation in the Kingdom. ZATCA is responsible for administering and collecting all taxes, including Value Added Tax (VAT). ZATCA Know-How All persons who carry on an Economic Activity and register for VAT purposes will receive a Tax Identification Number from ZATCA. Under the GCC Unified VAT Agreement, any business with annual revenue over SAR 375,000 must register for VAT. Businesses with annual revenues between SAR 187,500 and SAR 375,000 have the option to register for VAT, which will allow them to claim VAT input tax. Businesses with revenues below SAR 187,500 are exempted from registration. Registration with the Chamber of Commerce We support you in registering with the Ministry of Commerce to issue a commercial registry and acquiring a membership number in the Chamber of Commerce. QIWA Registration As a foreigner in Saudi Arabia, you must register on the QIWA platform, and we can help you with the registration process. The purpose of the Ministry of Human Resource and Social Development (HRSD) in developing the Qiwa platform is to provide more than 80 services to the labour sector. HRSD is working with concerned authorities to facilitate the registration of employees and handle work contracts in cooperation with the Ministry of Justice. Qiwa is the only approved platform for documenting and approving work contracts. Muqeem Registration We assist you with Muqeem registration which allows you to review your resident workers’ data and complete their transactions online, anytime, and anywhere. Absher Registration We help you register with Absher, enabling you to access government services online, from passport and traffic services to civil and expatriate affairs services. Mudad Portal We help you register at the Mudad portal, a digital platform providing a Payroll System and a Compliance System for Small and Medium Establishments. Initiate Bank Account Opening We assist you in opening a bank account with a leading local bank in Saudi Arabia for depositing the initial capital. Al Taasis Supports You Beyond Your Business Setup! Our services are not just limited to your business setup; we extend our support and provide structured and practical business solutions whenever you need them. Click here to learn about our complete services. Contact us to know more about the prerequisites of your business journey. Subscribe to Our Newsletter! Enter your email to receive our monthly newsletter. Popular Articles Opening Digital Business Account with Wio Bank Saudi Arabia’s Economic Cities KSA, an Irresistible Attraction for Tourists Government Entities and Online Portals Dealing with Import and Selling in Saudi Arabia: SFDA, SASO, SABER and FASAH Business Licenses Offered by MISA to Foreign Investors Visa Types in Saudi Arabia No posts found

Step-by-Step Process to Obtain MISA License in Saudi Arabia We understand the complexity of business expansion and the role of local laws and regulations. Our blog post will help you navigate the MISA investor journey and how to get through the business setup process in Saudi Arabia. Getting MISA License As a foreigner, you must get MISA License to start your business in Saudi Arabia. Through a MISA Investor License, you get full ownership of your business and can operate freely across Saudi Arabia. Your preference for economic activity decides which type of license you need for your business. We help you get your investor license conveniently. Difference between SAGIA and MISA SAGIA MISA The Saudi Arabian General Investment Authority (SAGIA) is the former name of the Ministry of Investment Saudi Arabia (MISA). The Kingdom established SAGIA in 2000, which was responsible for attracting investment and licensing for local and global investors. SAGIA was fully transformed into a ministry in 2020 and renamed as MISA (Ministry of Investment Saudi Arabia), which is solely responsible for issuing investment licenses to foreign investors and overseeing foreign investment into the Kingdom. Types of Legal Entities in Saudi Arabia Limited Liability Co (LLC) Limited Liability One-Person Company Joint Stock Company Foreign Company Branch Solidarity Professional Company Difference between Branch and Subsidiary Branch Subsidiary A branch is established at a different location to increase business coverage. It is an extension of the parent organization to conduct the same business operations as the parent company. The branch has no separate legal standing, and it reports to the head office of the company. While on the other hand, a subsidiary is considered a separate legal entity from its holding company. The subsidiary is free to conduct its business operations, and it is not mandatory to undertake the same operations as its holding company. Step 1: Company Structure It is always advised to obtain expert legal advice when deciding on your legal entity in Saudi Arabia. The right selection of company structure and careful planning can help your business grow fast. Step 2: Documentation Before applying for the MISA license, there are prerequisites that you must fulfil. Our team guides you regarding the required documents and helps you with the documentation process. Step 3: Name Reservation If you choose to set up a branch in Saudi Arabia, you will get a license in Saudi Arabia with the same name as the parent company. Subsidiaries get to choose the same trade name with an append word. Our team guide you through carefully selecting names that mirror your brand. Step 4: Drafting the Articles of Association We help you draft the Articles of Association for your MISA-licensed company. Our operations team guides you through the detailed decision-making and ensures the local documentation align with your growth plans. Difference between Memorandum of Association and Articles of Association Memorandum of Association Articles of Association A Memorandum of Association (MoA) is a legal statement signed by all shareholders agreeing to establish the company. Articles of Association (AoA) is a document containing operational rules about running the company. Step 5: Commercial Registration (CR) Issuance Getting your Commercial Registration (CR) is the most crucial part of being officially registered in Saudi Arabia and with MISA. After getting your MISA license and getting your Articles of Association, we proceed to issue your Commercial Registration. Al Taasis is Your Trusted Gateway to Saudi Business Setup! After going through the detailed process, you will have a clear roadmap. We simplify your entire business setup process with our comprehensive services. We will be delighted to assist you further with your business incorporation process. Initiate your business journey with Al Taasis to mitigate risk, stay compliant and accelerate your success. Contact us to know more about the prerequisites of your business journey. Subscribe to Our Newsletter! Enter your email to receive our monthly newsletter. Popular Articles Opening Digital Business Account with Wio Bank Saudi Arabia’s Economic Cities KSA, an Irresistible Attraction for Tourists Government Entities and Online Portals Dealing with Import and Selling in Saudi Arabia: SFDA, SASO, SABER and FASAH Business Licenses Offered by MISA to Foreign Investors Visa Types in Saudi Arabia No posts found

Import-Export Business in Saudi Arabia: Everything You Need to Know A well-planned entry to Saudi Arabia can ensure financial and reputational success for your business. Considering the logistics, timing, and practicalities before entering an unknown market is crucial, as you can expect new challenges. Keep reading this blog to understand even the minutest details about the import-export in Saudi Arabia. Saudi Arabia, an Ultimate Trade Destination The import demand in the Gulf’s largest economy, Saudi Arabia, is high due to its large population. The Kingdom is one of the world’s largest oil and gas producing and exporting countries. The business-friendly environment of the Kingdom is an excellent attraction for businesses looking to invest and find new export markets. Foreign companies can get 100% ownership in the trading sector. Saudi Strategic Location Conducive for Global Trade Strategically located at the crossroads of Europe, Africa and Asia, Saudi Arabia is the epicentre of global trade routes and at the heart of a fast-growing region of over 424 million consumers. Saudi Arabia shares its borders with – Jordan, Iraq, Kuwait, Qatar, Bahrain, United Arab Emirates, Oman and Yemen by land and Bahrain, Egypt, Eritrea, Iran, and Sudan by sea. With 13 ports on the Arabian Gulf and the Red Sea, the Kingdom facilitates 13 per cent of the global trade. The Saudi ports contribute to the access of 70% of imports and 95% of its exports through 291 docks. Latest Trends in Saudi Import-Export In May 2022, Saudi Arabia exported SAR144B and imported SAR51.8B, resulting in a positive trade balance of SAR92B. Between May 2021 and May 2022, the exports of Saudi Arabia increased by SAR61.6B (74.9%) from SAR82.2B to SAR144B, while imports increased by SAR7.35B (16.6%) from SAR44.4B to SAR51.8B. Top Exports and Export Partners of Saudi Arabia (May 2022) In May 2022, Saudi Arabia mainly exported to India, Japan, Korea, the United States, and Egypt. The top exports were: Mineral Products Chemical Products Plastics and Rubbers Metals Transportation Top Imports and Import Partners of Saudi Arabia (May 2022) Saudi Arabia imported mainly from the United States, United Arab Emirates, India, Germany, and Switzerland. The top imports were: Machines Transportation Chemical Products Metals Mineral Products Saudi Arabia’s Free Trade Agreements Being the most significant free economic market in the Middle East and North Africa (MENA) region and part of the Gulf Cooperation Council, the Kingdom has free trade agreements with: The Greater Arab Free Trade Area (GAFTA) The European Free Trade Association (EFTA) Singapore How to Enter Saudi Trade Market You can enter the Saudi Trade Market by selecting one of two options: Partnerships 100% ownership Commercial License with Saudi Shareholder 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). Financial statements of the last financial year of your company certified by the Saudi Embassy. Required Documents to Import into Saudi Arabia Importers are required to present the following documents before starting import: A commercial invoice A bill of lading A certificate of origin As an importer, you are also required to provide all the necessary documents depending on the nature of the imported goods, for example: Obtaining an IECEE certificate for goods that require this certificate. Registration of products with the concerned parties if necessary. There are specific conditions that apply to each product you want to import. As an Importer, you are also required to complete (FASAH) clearing procedures by providing the necessary documents and completing the customs declaration form at least 48 hours prior to the arrival of the shipment at the port of entry. This clearance procedure allows you to track the shipment in Customs or before its arrival and get instant notifications. Start Your Import-Export Business Compliantly with Al Taasis! As an international business, you might cope with extra logistical problems, contractual issues, and paperwork. You might need guidance regarding standard commercial practices to clarify your responsibilities. Al Taasis supports you at every step. We help you comply with Saudi Arabia’s regulations and satisfy the Kingdom’s standards. Incorporate your trading company with our fast and tailored services. Contact us to know more about the prerequisites of your business journey. Subscribe to Our Newsletter! Enter your email to receive our monthly newsletter. Email(Required) Edit Template Popular Articles Opening Digital Business Account with Wio Bank Saudi Arabia’s Economic Cities KSA, an Irresistible Attraction for Tourists Government Entities and Online Portals Dealing with Import and Selling in Saudi Arabia: SFDA, SASO, SABER and FASAH Business Licenses Offered by MISA to Foreign Investors Visa Types in Saudi Arabia No posts found Edit Template