Saudi Arabia’s bustling economy, valued at $1.7 trillion in 2022, offers aspiring entrepreneurs and investors a multitude of opportunities for starting a new business or expanding an existing venture.
Through careful research and planning, you can establish a business in Saudi Arabia and tap into the vast potential this huge market offers.
For those keen to leverage the kingdom’s vibrant business environment, the following Saudi business setup guide should get you on the right track.
Why start a business in Saudi?
- Strong economy and growth potential. Saudi Arabia was the fastest-growing economy among the G20 countries in 2022 and is expected to maintain its growth momentum in 2023. As such, it provides a wealth of opportunities for setting up a business.
- Strategic location and global connectivity. At the crossroads of Asia, Europe, and Africa, Saudi Arabia’s strategic location is perfect for businesses looking to tap into a global market. In addition, it has well-developed infrastructure and transportation networks.
- Skilled workforce and talent pool. Saudi Arabia has a young and increasingly educated population. Approximately two-thirds of the population is under 35, with a high literacy rate.
- Expanding consumer market. Saudi has a growing consumer market of nearly 36 million with a rising middle class. Because of this, more and more businesses are opening to cater to this growing market.
Read: Saudi Arabia a natural “incubator” for startups
Saudi business setup types
Limited Liability Company
Limited Liability Companies (LLCs) are a common choice for foreign investors looking to set up a business in Saudi. These companies require a minimum of two shareholders, with each shareholder’s liability limited to their share capital.
In addition, LLCs offer a flexible structure, making them suitable for small to medium-sized businesses. To set up an LLC in Saudi Arabia, follow these steps:
