Planning to make an investment in Saudi Arabia? But confused whether investing in Saudi Arabia is worth a try? Don’t worry! This blog is a comprehensive answer to all your doubts regarding investing in Saudi Arabia in 2024. So let’s get started!
Why Invest In Saudi Arabia?
Saudi Arabia, being one of the strategic GCC countries, is a promising destination to make huge investments. Recent business reforms offer more investment opportunities for foreigners, providing international investors with the same rights and liberty as that of locals. Vision 2030 is Saudi Arabia’s ambitious plan to transform its economy to a global one by reducing dependency on oil revenues and creating more opportunities for foreign investments and job opportunities. Considering recent diversification efforts and business reforms, Saudi Arabia offers a plethora of investment opportunities to start and flourish business setup in Saudi Arabia.
Where to Invest Money in Saudi Arabia?
Since you have made up your mind to invest in Saudi Arabia, it is very important to have a clear understanding of investment opportunities in Saudi Arabia and choose one wisely. Dammam, Riyadh, and Jeddah being key locations in Saudi Arabia are great options to consider when one plans to invest in Saudi Arabia.
Dammam
Dammam being the capital city of the Eastern province of Saudi Arabia offers great investment opportunities. It is a hub for both SMEs and MNCs alike and provides a favorable environment for investing in Saudi Arabia for both foreigners and locals. Business setup in Dammam would be a wise decision considering its strategic location and investor-friendly policies.
Riyadh
The capital city offers a conducive environment for business setup and is a great option to invest in Saudi Arabia. Its robust economy and skilled workforce make it a perfect destination for both internationals and natives to make investments. Greater living standards and investor friendly policies make it a hub for foreign investments. Being in the capital city, setting up a business setup in Riyadh would be more beneficial compared to other regions of the country.
Jeddah
Located near to the holy city of Mecca, Jeddah is a land of opportunities. Its strategic location near the sea connects it to the global market. Favorable economy and its geographical location make it an ideal choice for investment. As Jeddah is an entry point to the Saudi market, it is a perfect location for one to setup a business in Jeddah.
How to Invest in Saudi Arabia?
Saudi Arabia provides lucrative options for investment. A thorough understanding of the investment process in Saudi Arabia is essential to make wise decisions and to get started. No matter you want to make a small investment in Saudi Arabia, a deep understanding of the regulatory frameworks, cultural sensitivities,and market dynamics is essential before you make an investment in Saudi Arabia.
Types Of Businesses Eligible to Apply For An Investor License in Saudi Arabia
Confused whether your business idea will get an investor license in Saudi Arabia? Don’t worry, below is a list of types of businesses that can apply for investor license and make a foreign investment in Saudi Arabia.
- Limited Liability Company (LLC)
- Limited Liability One-Person Company
- Joint Stock Company
- Solidarity Professional Company
- Foreign Company Branch
Various Categories of Investor Licenses Issued in Saudi Arabia
As the first step to start your investor journey in Saudi Arabia, you have to obtain an investor license for investing in Saudi Arabia. Below are the few investor licenses issued by Ministry of Investment of Saudi Arabia:
- Agricultural license
- Audiovisual Media license
- Commercial license
- Consulting license for engineering offices
- Consulting license for technical & economic communication offices
- Entrepreneur license
- license for a scientific and technical office
- license for serving agents and providing workers services
- Industrial license
- Mining license
- Printing & publishing license
- Professional license with Saudi shareholder
- Real estate license
- Services license
- Transport license
What Documents Are Required To Obtain an Investor license in Saudi Arabia?
Obtaining an investor license is not a tedious task. Proper documentation and clear official papers ease your process of getting an investor license from MISA Saudi. Only two documents are required to get an investor license in Saudi Arabia, given that some additional documents may be demanded in accordance with the type of business activity and investor license you wish to apply for.
- A copy of the commercial registration of the business in its native country, validated by a Saudi Embassy
- Financial statements for the previous year, drafted and prepared by internationally valid legal office and authenticated by a Saudi Embassy
Embark Your Investor Journey With This 5 Steps
1. Issuance of Investment License by Ministry of Investment of Saudi Arabia
Essential Documents:
- The commercial registration of the company approved by the Saudi Embassy
- The financial statements of the previous year authenticated and certified by the Saudi Embassy
2. Documentation of Memorandum of Association in association with Ministry of Commerce and Industry, Ministry of Justice.
Essential Requirements:
The branches of foreign companies should submit their decision to open their business branch in Saudi Arabia, and they have to complete the issuance of the process of obtaining a Commercial Register.
3. Issuance of Commercial Registration by the Ministry of Commerce and Industry
Essential Requirements:
- Commercial registration of the company inside the kingdom
- Documental proof of the decision of the Board of directors in opening a branch in the country (applicable for foreign companies only)
- Memorandum of Association (applicable for new companies)
- Appointment of the General Director for the company
- Documental Proof of the owners and General Director’s ID
4. Open Files from Different Saudi Ministries and Organizations
Essential Requirements
- Obtain files from the General Authority of Zakat and Tax, Saudi Ministry of Labor and Social Development and The General Organization for Social Insurance
5. Issuance of General Directors Visa by Human Resources and Social Development
Essential Requirements
- Appointment letter of the General Director
- Documental proof of the ID of the General Director
How to Invest in Saudi Arabia As a GCC National
The investor journey for GCC nationals is a completely different story. Saudi Arabia considers every GCC expat as a Saudi citizen and grants the same liberty and freedom as that of a Saudi citizen for setting up and establishing a business in Saudi Arabia. Also the Public Investment Fund (PIF) Saudi also supports GCC nationals in setting up business in the country. As a GCC citizen, you don’t have to obtain a license from the Ministry of Investment of Saudi Arabia. You can completely skip this step which is mandatory for every other foreigner. Instead you have to register your business at the Ministry of Commerce. Below table throws light on the key differences between on investment journey for both foreigners and GCC nationals.
Investing in Saudi Arabia - Major Differences Between GCC National and Foreigner
Differences | For Foreign Investor | For GCC Nationals |
Investment License | Required | Doesn’t Required |
Type of Business | Can establish only subsidiaries and branches | Liberty to establish any type of business structures |
Saudi Sectors | Forbidden to establish business in the forbidden areas | Have the freedom to establish business setup in any areas ofSaudi Arabia |
Trading Activities | Minimum capital of 30 trillion with 3 branches are mandatory | Can conduct trading activities without any requirement of minimum capital. |
Tax | Corporate tax is 20% and withholding tax is 5 to 20 % | Have to pay only 2.5% Zakat tax and 15% VAT |
How can Analytix Help You to Invest In Saudi Arabia?
Ready to invest in Saudi Arabia? But confused how to obtain documents and approach authorities to get an investor license? Don’t worry, with Analytix, besides you, you don’t have to worry about the hectic task of setting up a business in Saudi Arabia and obtaining an entrepreneur license in Saudi Arabia. We are a premium business setup company easing your journey to obtain a business license in Saudi Arabia. Our decade long experience in the country helps us to understand all the intricacies of starting a business in the country. With the insights gained over the expertise and experience, we can help your dream get fulfilled by investing in Saudi Arabia and starting a business in the country.
Conclusion
Clear with the process of investing in Saudi Arabia and obtaining an investor license in the country? Hope you find this blog helpful and clears all your confusions regarding making an investment in Saudi Arabia. Comment your thoughts below. We would be happy to know your thoughts on the same. Feel free to contact us if you require any assistance regarding investing in Saudi Arabia.
- FAQs
Frequently Asked Questions
If your question is not addressed here, please feel free to reach out to us. We value your inquiry.
Is Saudi Arabia good for investment?
Strategic location and recent business reforms, makes Saudi Arabia a promising land for investment. Ambitious plans like Vision 2030 boost the country’s desire to have foreign investment and participation in the business sector.
Can Indians buy property in Saudi?
Foreigners are allowed to own real estate in Saudi Arabia, but need to obtain approval from the license issuing authority. However foreign ownership is forbidden in Mecca and Medina.
What will happen to Saudi Arabia in 2030?
Vision 2030 is a strategic plan of Saudi Arabia to diversify its economy by reducing dependence on oil revenues and develop and leverage public service sectors to carve out a dynamic and resile economy.
