As part of the key reforms launched in the wake of Vision 2030, Saudi Arabia has liberalized its rules and regulations relating to establishing business setups in Saudi Arabia by foreigners and locals.
Business-friendly reforms of Saudi Arabia
The reforms have facilitated company registration in Saudi Arabia and extensively promoted foreign investment in Saudi Arabia. Among the significant reforms contributing to excellent foreign investment is allowing 100% foreign ownership of the companies without needing a local partner. It has permitted greater control of the company by the foreign investor.
The reforms have permitted foreign investors to choose different types of business entities/structures to start their companies in Saudi Arabia, such as limited liability companies, joint stock companies, partnerships, foreign branches, etc. Choosing a proper business structure for your company is vital. If you are a foreigner, you can have 100% ownership of your company.
Key business gateway for the GCC countries
By introducing the key reforms, Saudi Arabia, one of the largest economies in the Middle East, is expected to emerge as a thriving hub for businesses and investors. Situated strategically for conducting business across Europe, Asia, and Africa, Saudi Arabia is now on the way to becoming a key business gateway for the Gulf Cooperation Council (GCC) countries.
There could be several reasons for this promising development for the country:
Economic Integration: Saudi Arabia is the largest economy among the GCC countries. The companies can exploit GCC’s free trade agreements and economic integration.
Access to GCC Common Market: Companies in Saudi Arabia, including FDI companies, are free to access GCC common market area. This includes incentives such as duty-free imports for most goods manufactured in the member countries of the GCC.
Infrastructure: Saudi Arabia is a logistic hub of the GCC area. With its world-class infrastructure, multimodal transportation networks, and connectivity, the country is easily a top destination for investment.
Investment opportunities: Saudi Arabia offers new investment opportunities through government initiatives like Vision 2030.
Special Economic Zones: Saudi Arabia offers tax incentives, simplified procedures, and other benefits for simplified business formations in its special economic zones.
What are the Benefits of Starting a Business in Saudi Arabia?
The Saudi Arabian government offers unique benefits to GCC nationals. They include:
- Exclusive investment opportunities
- Many new Saudi Arabia business opportunities
- Treatment similar to Saudi citizens
- Speedy company setup and bank account openings
- Lower Zakat tax rate
- No need for a MISA License.
Why start a business in Saudi Arabia?
The country made several changes to the investment laws 2024 to facilitate foreign investment. The new Foreign Investment Law is expected to come into force in February 2025. The main changes introduced include the following:
- Protection: The investors will have the right to manage their investments and transfer funds. Investors are protected from confiscation, direct and indirect expropriation and have the right to fair and just treatment.
- Freedom of Investment: Investors are permitted to have a high level of freedom of investment, excepting certain activities limited to Saudi investors
- Opening new Sectors for investment: Foreigners can generally invest in all areas of Saudi Arabia’s economy except oil and mining.
- Elimination of the Foreign Investment License: Instead, there will be an investment register operated by the Ministry of Investment.
- No funds restriction: No restriction is made on the transfer or repatriation of funds.
- Intellectual property and trade secrets: Investors are protected for their intellectual property and trade secrets.
- Streamlining of the registration process: To facilitate faster approvals.
- Reduce entry barriers: The new law will create a framework that reduces barriers to entry and enhances legal certainty.
- Align with Global Best Practices: The law will reflect Saudi Arabia’s strategic intent to integrate into the global market.
To sum up, Saudi Arabia is emerging as a key business gateway to the GCC due to a friendly business environment in the country and access to the common GCC market.
Role of Helpline Group in Saudi Arabia
Helpline Group in Saudi Arabia, backed by a strong and experienced team, brings over 25 years of expertise in company formation in Saudi Arabia, offering a seamless, hassle-free experience for clients, including foreigners.
Our 300+ seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency.
With a global presence and 10 branches, we ensure that your business setup in Saudi Arabia is handled with precision and professionalism, making us your reliable ally in achieving success. With Saudi Arabia becoming a key business gateway to GCC countries, the Helpline Group will facilitate businesses’ access to the typical markets in the GCC.
