A supply chain business involves planning, executing, and controlling all activities related to moving goods and services from raw materials to the final customer. This includes sourcing, manufacturing, warehousing, transportation, distribution, and customer service. Efficient supply chain management in Saudi Arabia is crucial for businesses to minimize costs, improve customer satisfaction, and stay competitive—making it the right time to setup a supply chain business in Saudi Arabia.
How to Setup a Logistics and Supply Chain Business in Saudi Arabia?
To setup a logistics and supply chain business in Saudi Arabia, you need to register your company with the Ministry of Investment of Saudi Arabia (MISA), obtain a Commercial Registration (CR), and secure necessary licenses, including those for logistics and transportation.
The detailed steps are given below:
- Company Registration and Legal Compliance:
- Register with MISA: Foreign-owned companies must register with the Ministry of Investment of Saudi Arabia (MISA) to operate legally.
- Obtain Commercial Registration (CR): After registering with MISA, you’ll receive a Commercial Registration (CR) number, essential for participating in trade activities.
- Notarize Articles of Association: Ensure your Articles of Association are notarized to validate your company’s establishment.
- Open a Local Bank Account: Open a bank account in Saudi Arabia to facilitate financial transactions.
- Register with Customs and Ministry of Labour: Register with the relevant authorities, including the Customs Department and the Ministry of Labour.
- Register with Mudad Business Portal: Register with the Mudad Business Portal to handle administrative and financial procedures.
- Licenses and Permits:
- Logistics and Transportation Licenses: Obtain the licenses and permits required to operate a logistics company in Saudi Arabia, including those from the Ministry of Transport.
- Commercial License: Secure a commercial license from the Ministry of Commerce to operate legally as an importer or exporter.
- Industrial License (if applicable): If you are a manufacturer, you’ll need an Industrial License.
- Other Licenses: You may need additional licenses from other government bodies depending on your specific activities.
- Saudization Compliance:
- Saudization (Nitaqat) Program: Comply with the Kingdom’s Saudization policies, which require companies to hire a certain percentage of Saudi nationals.
- Ministry of Human Resources and Social Development (HRSD): The Ministry of Human Resources and Social Development (HRSD) enforces Saudization policies.
Logistics and Supply Chain Saudi Arabia
In the context of Saudi Arabia’s “Vision 2030” plan, logistics and supply chain management is crucial for economic diversification, aiming to transform the Kingdom into a global trade and logistics hub by investing in infrastructure and technology.
Key Sectors:
The supply chain sector is crucial for supporting the growth of various strategic sectors, such as oil and gas, manufacturing, e-commerce, and pharmaceuticals.
- Economic Diversification: By developing a robust and efficient logistics network, Saudi Arabia aims to attract a wide range of industries and support key sectors, contributing to economic diversification.
- Global Trade and Investment: The Kingdom seeks to become a significant global trade and investment player by improving its supply chain capabilities and attracting foreign businesses.
- Supply Chain Resilience: Saudi Arabia also focuses on strengthening its global supply chain resilience through initiatives like the Global Supply Chain Resilience Initiative (GSCRI).
- Technology and Innovation: The Kingdom is embracing technology and innovation to improve the efficiency and effectiveness of its supply chain operations.
Examples of Logistics Initiatives:
- Riyadh as a Logistics Hub: Riyadh is at the heart of Saudi Arabia’s logistics transformation, with the government focusing on creating and improving logistics hubs.
- Logistics License: The Ministry of Transport and Logistics inaugurated the Logistics License in 2021 to develop and improve Saudi Arabia’s position in the World Bank’s Logistics Performance Index (LPI).
- Private Sector Investment: The private sector is expected to contribute significantly to the logistics sector with investments in large-scale projects like railways, ports, and highways.
How can the Helpline Group in Saudi Arabia help?
Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in Saudi company formation, offering a seamless, hassle-free experience for clients, including foreigners.
Our seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency. We help investors to set up supply chain businesses in Saudi Arabia, thereby opening up new supply chain opportunities in Saudi Arabia.
With a global presence and a tailored approach, we ensure that your business setup is handled with precision and professionalism, making us your reliable ally in achieving success.
