Saudi Arabia is making a big push to attract businesses and investors from all over the world, and there are plenty of good reasons why your company should consider setting up its operations here. From a strong economy to generous government incentives, Saudi Arabia has a lot to offer businesses of all sizes.
In this blog, let’s take a look at some of our key reasons why businesses should set up their operations in Saudi Arabia.
Saudi Arabia has emerged as a vibrant business destination. The country's vast natural resources, combined with recent policies aimed at opening the economy up to foreign investment, make it an ideal location for investors looking to do business in the Middle East.
10% increase in population growth (next 5 years)
7.5% GDP growth in 2022 (fastest growth rate since 2011)
2/3 of the population is under the age of 35
These are just a few statistics of why now is a great time for businesses to consider setting up in Saudi Arabia. So, if you’re looking for an opportunity-rich market with plenty of potential, be sure to consider Saudi Arabia!
Saudi Arabia is currently opening its arms to the rest of the world. The country's rulers are committed to looking outwards, welcoming foreign visitors, and investing to drive the kingdom's cosmopolitan future.
This is evident on both a professional and personal level. Saudis are known to be extremely friendly and welcoming to foreigners interested in their country, so you can expect a warm welcome. In 2020, Saudi Arabia was the world’s top improver when it came to ease of doing business with a score of 63.5 from the previous 71.6 in 2019 ranking it 62nd out of 190 nations in the World Bank's Doing Business Index.
No Personal Income Tax
You must be certain that a new jurisdiction works for you before relocating or opening a business there. And for many business owners, that entails making sure taxes are efficient. Saudi Arabia is most supportive towards individuals and businesses in this area.
Personal income tax obligations for foreign investors are minimal, while the corporate tax rate is 20% of the company’s net adjusted profits. However, for LLC and GCC companies operating in the Kingdom, there is 2.5% of Zakat given annually. Furthermore, even though VAT is used in Saudi Arabia, many goods and services are exempt and thus have a zero rate.
Saudi Arabia aspires to be a global technology hub in the future. To that end, it recently announced a series of initiatives totalling more than USD 1 billion. The kingdom hopes to increase the contribution of technology to GDP by around SAR 50 billion over the next five years, increase the size of the emerging market sector by 50%, and create over 25,000 tech jobs.
Direct investment in the technology sector is driving unprecedented innovation in the country and providing incredible opportunities for its entrepreneurs. So, if you have an innovative business idea, now is the time to bring it to life in the Kingdom of Saudi Arabia.
Saudi Arabia is eager to diversify its economy away from oil and gas. And this diversification is anticipated to happen quickly, with investments worth billions to support a wide range of industries, including tourism, manufacturing, and technology. For instance, Saudi Arabia has created 555,000 new jobs in the last four years as it seeks to develop $1 trillion in new mega projects (NEOM, Diriyah Gate Project etc.) as part of its Vision 2030 initiative, which aims to diversify the economy away from oil.
However, regardless of your industry, if your offering can help the local economy, you can expect a welcoming and encouraging business environment in Saudi Arabia.
High Standards Of Living
Saudi Arabia is regarded as one of the world’s safest countries. It received a score of 86 out of 100 in the Global Law and Order 2021 survey, which makes it an ideal country to set up and run your business in an environment that is safe and secure.
In the past, foreign workers coming from outside the Kingdom used to reside in compounds, but today with the openness Saudis welcome and understand the diversity of cultures, and it become easier to engage and live among the people of Saudi.
To conduct business in Saudi Arabia, all businesses must obtain a license. While the steps required of foreign investors are not overly complicated, some prior knowledge is required. It is especially important to ensure that all of your applications for your business license and visa are completely error-free.
This may be stressful. The quickest way to get up and running is to work with a company formation specialist like us.
So what do you need to do? First and foremost, schedule a free consultation with our business set-up experts at TASC. We will learn about your business and walk you through every step of the Saudi company formation process.
We'll start by determining whether your company is better suited to the Saudi mainland or a free economic zone. We'll assist you in finding and securing business premises if you make this decision.
Furthermore, we'll handle the application and approval processes for you. Obtaining an investment license from the Ministry of Investment and requesting memoranda from the Ministry of Commerce and Investment are required.
Overall, Saudi Arabia is a great place to do business. It is a welcoming location for many entrepreneurs to establish a new business and explore new markets. The shortlist of countries with fast-growing economies is constantly shifting, but many have Saudi Arabia near the top of the list.
TASC Outsourcing provides a comprehensive suite of solutions for starting a business in Saudi Arabia. You get fast, dependable advice on your specific business setup needs. With over 15+ years of local and global experience, our experts at TASC Outsourcing can assist you in choosing the right license for your business activity and walk you through the entire process from start to ‘up and running.’
TASC Outsourcing is your one-stop solution for mainland business setup, offshore company setup, free zone company setup, trade license issuance, and any related activity for registering a company.
Curious to learn more? Talk to our local experts today!
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