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ARABIC
As part of the 2030 vision, the Kingdom allows foreigners to own 100% of their companies in order to develop its tourism industry. The Kingdom of Saudi Arabia (KSA) is currently experiencing a significant increase in foreign investment.
REASONS TO SET UP A COMPANY IN SAUDI ARABIA?
KSA has an enormous buying capacity and potential, without a doubt. In the global landscape, the KSA stands out for the following reasons:
- Environmental safety
Saudi Arabia continues to have a high vaccination rate, reaching 68% of the population, according to the World Bank. Under the Organization of the Petroleum Exporting Countries (OPEC)+ arrangement, Saudi Arabia continues to play a crucial role in correcting oil market imbalances globally.
- Market size
Increased oil production, which is projected to rise by 13% in 2023 following the termination of the OPEC+ production curbs in December 2023, is primarily responsible for the recovery. With an estimated 4% growth in 2023, it is anticipated that the non-oil sector will continue on its current growth trajectory.
- Intense economic development
Despite challenges from tighter fiscal and monetary policy in the medium term, it is predicted that domestic capital spending will rise, religious tourism will increase, and stronger private consumption will also occur. These trends are signaled by the PIF and other state agencies.
HOW CAN YOU SET UP YOUR COMPANY IN SAUDI ARABIA?
The Saudi Arabian Ministry of Investment (MISA), formerly the Saudi Arabian General Investment Authority (SAGIA), declared in 2015 that it would encourage foreign businesses to establish trading companies with 100% foreign ownership. A regulation enacting this change was quickly adopted by the Saudi Council of Ministers following the June 2016 announcement of Saudi Vision 2030.
According to early indications, only very large multinational corporations are 100% foreign-owned (especially those that employ a sizable number of Saudi citizens). Because it specifies the regulatory bodies or a process of incorporation, as well as the taxation standards applicable to the relevant business, Saudi companies can be differentiated based on their ownership structure (GCC or non-GCC nationals owned).
What to take into account when forming your Saudi company if you intend for an expat to own 100% of it:
- an organization that has been running for more than a year and is established in its home country.
- a profitable outcome for the aforementioned company.
- the financial statement of business operations for the most recent year, as audited.
TAKEAWAY/CONCLUSION
For your Saudi Arabia commercial registration, there are a number of steps and conditions that you must follow and take into account. Thinkdirect BPO will assist you throughout the entire process, from choosing the best structure for your business to drafting the appropriate documentation, office registration, visa services, banking support, accounting, bookkeeping, payroll, and tax services.
Our team of experts will use our collective experience to speed up the procedure and give you all the information you require to establish your business in Saudi Arabia and the GCC. For a free expert consultation on your Saudi Arabian entity, get in touch with a member of our team.
To easily establish your business in Dubai, get in touch with us.
