Expanding Business in Saudi Arabia: A Comprehensive Guide for Entrepreneurs
As Saudi Arabia undergoes immense transformations under Vision 2030, it presents a prime opportunity for international and regional companies to expand into the kingdom. Setting up a business in Saudi Arabia involves various stages and engagement with government entities. Here’s a comprehensive guide for entrepreneurs looking to establish or expand their businesses in Saudi Arabia.
Initial Steps for Starting a Business in Saudi Arabia
The process of starting a business in Saudi Arabia involves 20 steps divided into three key stages. The first stage focuses on laying the foundation for the legal entity, obtaining necessary licenses, and registering with the Chamber of Commerce. The second stage involves obtaining authorizations for hiring staff and preparing for operations. The final stage settles the general manager as a resident by opening a bank account and activating the Chamber of Commerce membership.
Key Considerations for Starting in Saudi Arabia
When expanding into or starting a business in Saudi Arabia, there are important factors to consider. Saudisation, the policy of growing local integration, requires a hiring ratio of three Saudi nationals for every international hire. Local communicators and facilitators are crucial for success in the market. The Regional Headquarters (RHQ) program incentivizes setting up headquarters in Saudi Arabia, granting eligibility for government tenders.
Industries Brimming with Untapped Potential for Startups
Saudi Arabia is undergoing digitalization across various industries, making it an attractive market for startups. The fintech sector is growing, with the goal of moving the economy increasingly online. The Financial Sector Development Programme aims for 80 percent non-cash transactions within the decade. Construction is another sector experiencing rapid changes through large-scale projects. Other industries with potential include manufacturing, technology, and renewable energy.
With opportunities across industries and major milestones such as mega-events and infrastructure projects, Saudi Arabia is ripe for global startups seeking their next phase of growth.