Saudi Arabia with its Vision 2030 and the Ministry of Investment of Saudi Arabia (MISA) is redesigning the framework for business setup in Saudi Arabia, enabling the Kingdom to become the most popular country for expansion of international companies. In this blog, we will discuss how Vision 2030, the country’s development plan up to the year 2030, and MISA’s actions make the kingdom favorable for international business ventures. Here we will be discussing the role of Vision 2030 and MISA in easing the investment practices, major sectors and opportunities for foreign investment, and successful expansion of foreign companies. Analytix with all its domain knowledge and years of experience continues to assist international business entities in realizing their business prospects and presence in the Kingdom of Saudi Arabia. Let us now take a look at the changes that came along with the initiatives launched by the Ministry of Investment under the pioneering Vision 2030.
100 % foreign ownership
The Ministry of Investment has now allowed the right to 100% ownership of foreign companies which has enabled investors and businesses all around the world to expand their business and relocate their operations to the kingdom while enjoying the benefits of the strategic location of Saudi Arabia being the prosperous trade route.
Speedy establishment
MISA has reduced the requirements for the establishment of foreign companies by 54% through the automation of most of the procedures and processes. As a result, foreign companies can now start their operations in the kingdom in almost one-quarter the time required for establishment 5 years back.
The Premium Residency
The Kingdom of Saudi Arabia has now launched Premium Residency Centers intending to allow foreign investors to obtain a permanent or renewal residency upon meeting the requirements. This is done as a part of the kingdom’s efforts to facilitate the easier establishment of foreign companies and the ownership of assets, shares, and properties.
The Qualified Foreign Investor Program
To enable foreign investors to directly access the Saudi financial market, Tawadul (the Financial and stock exchange market of Saudi Arabia) now offers the ‘Qualified Foreign Investor Program’. Tawadul is the 9th biggest financial market in the world.
Government-supported Industrial loans
Foreign companies including the ones in Saudi Arabia are now eligible for industrial loans supported by the government up to a tenure of 20 years. The companies operating in the energy, logistics, mining industry, and fourth industrial revelation applications are eligible for these loans.
Lower Interest rates
Saudi Arabia is passionately aiming toward the privatization of government services and institutions under the pioneering Vision 2030. The Loan Program for investment projects in the private and public sectors comes with reduced interest rates, a grace period of 4 to 6 years, and repayment options of 22 to 25 years.
Sustainable business environment
The PIF now runs a comprehensive program, for the process of localizing and increasing supply chains intending to avoid any delays on projects and ensure the availability of materials and services at reasonable prices which would eventually lead to the growth of the private sector.
Pre-export and Post-shipment financing
The Kingdom of Saudi Arabia also facilitates incentives for pre-export financing for exporters and buyers and post-shipment financing to international customers who consume Saudi goods with political and commercial risk insurance.
Invest Saudi
Invest Saudi is a platform launched by the Government of Saudi Arabia intending to make sure there is a responsible and accountable government to answer all the questions, share relevant information and support foreign investors entering the country. The platform allows the investors all around the world to make a smoother entry to the market of Saudi Arabia through this platform or any of the 11 centres available at the Saudi Arabian embassies worldwide.
How Can Analytix Help You
For foreign companies and investors, the expansion of the business to the kingdom of Saudi Arabia requires some important factors to be considered such as rules and regulations, procedure and other aspects to be taken care of. You need a strong and efficient on-ground partner to help you with everything and Analytix can only be the best choice.
As a trusted business consulting firm, we focus on providing comprehensive support for the establishment, growth and successful expansion of your business in Saudi Arabia. Apart from incorporation, we also provide other related services like accounting and bookkeeping, company dissolution service, tax and auditing, trademark registration service, GRO and PRO services, business expansion and restructuring support and many more. Our expert team of professionals will help throughout every single step of the way, so that you can focus on the core business.
Conclusion
Hey.
We are glad you’re here.
Hope you had a great time reading our blog.
Understanding and identifying the best business possibilities that the KSA provides under its pioneering Vision 2030 and through MISA is really important.
We have explored a bunch of vital information here.
If you think that we have missed out on something, please let us know in the comments.
Happy reading!
