Starting a business in Saudi Arabia

Starting a business in Saudi Arabia

There are some key advantages of starting a business in Saudi Arabia as a foreigner and this is the reason behind the organizations show interest to do business in Saudi Arabia along with individuals looking to invest in KSA. A sound understanding of Saudi business and social culture, values, attitudes and communication styles will be found through maximizing some of the key benefits that have been stated in the following. Our services are 100% foreign ownership company registration, JV, business license in the free zone, income tax and accounting service.

Ease of doing business

Saudi Arabia was rated 13th out of 183 countries in terms of general ease of doing business in the year of 2009 which is an encouraging sign for those organizations currently running business as plan in the largest of the Gulf States, KSA.

A shift away from nationalization to privatization

Saudi Arabia has experienced a shift in its national business model which is increasing the number of privatization and at the same time corporation in recent years. Foreign consultancy services are benefited from here and Saudi Arabia is rapidly becoming a profitable place for doing business and setting up operations through the shifting from nationalization to privatization.

A reinvigorated political and cultural system

Council of Ministers is a consultative body which was formed in Saudi Arabia in 1995. The council is made up of ministers who are allocated specific responsibilities and lead to further liberalization of the economy in Saudi Arabia. For the foreign investors, the business culture of Saudi Arabia is complex which is influenced by age-old customs and traditions.

Foreign employees should participate in a cultural awareness training program which will help the employees to understand local customs, business habits and provides the organization an advantaged position starting a business in Saudi Arabia as foreigner.


The first important asset of Saudi Arabia is its people which are undeniable though this country has enormous natural richness ranking in third position globally considering the most plentiful and valuable natural resources like oil, gas, and strategic minerals.

The people of Saudi Arabia are always welcoming and hospitable at the same time very supportive and willing to help other people with a smile on their face and this kind of people is very helpful along with essential for setting up business for the foreign investors.

Family is a well-respected institution in Saudi Arabia and considered is the pillar with top priority. For example, someone needs to leave from office for a family issue or emergency; everybody will encourage you to take care about it straight away without restricting him/her even boss, manager or supervisor.


Saudi Arabia is as safe as many western countries in the world and a major of foreign investors who are currently running their business express the country is safer than most of the countries in the world along with Riyadh is one of world's 50 safest cities.

The level of violence is far less considering in acity of comparable size in the United States, Canada or Europe where the security level is high and the government of Saudi Arabia is fully committed to maintain the security along with is a must in this country.

Work and business opportunities

Saudi Arabia ranked 24th among the 144 countries which was reviewed by World Economic Forum (WEF) titled “The Global Competitiveness Report” in the session 2014-2015. Besides, Saudi Arabia got the second highest position of the 20 largest emerging market economies and at the same time largest economy in the Gulf Cooperation Council (GCC) region.

Saudi Arabia has been recognized for their macroeconomic stability, low debt, and a strong budget surplus.  This country has received worldwide attention because of providing a modern institutional framework for starting a business in Saudi Arabia.

Therefore, Saudi Arabia is building sound institutions through reducing administrative burdens which is the most notable progress. As oil & gas is still the most important sector contributing to the domestic GDP, so some of the biggest projects in the globe are located is Saudi Arabia.

Accommodation and infrastructures

In most of the cases, foreign investors and their families choose to live in Saudi Arabia because it is safe, comfortable, convenient and a 'home from home' for expatriates with high-quality villa-style accommodation and extensive supermarkets, swimming pools, restaurants, bowling alleys, gyms and even golf courses facilities are there.

Disadvantages of starting a business in Saudi Arabia

The disadvantages rise for women entrepreneurs in most of the cases in Saudi Arabia that they need male permission to start a business in Saudi Arabia as their name where government support is minimal.

  • Women need permission from their husband or father is the owner of all her finances and controls her business
  • Women are not being able to drive is an inconvenience and requires the added expense of a driver and the government of Saudi Arabia has initiated only a limited number of programs for women entrepreneurship development
  • The lack of support from other women which is the biggest issue facing women in business especially the foreign female entrepreneurs in Saudi Arabia

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