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When thinking of doing business in the Middle East, cities like Dubai, Bahrain, and Doha typically come to mind due to their thriving commercial environments, ease of doing business, and strong economies. However, one business hub that often goes unnoticed by expatriates despite offering these same benefits and more is Saudi Arabia. With the largest economy among the Arab states and ranking among the top 20 largest in the world, Saudi Arabia presents numerous opportunities for entrepreneurs with the drive and skills to succeed. It’s simple set-up procedures and tax efficiency are just a few of the many reasons why launching your next enterprise in Saudi Arabia is a great idea
In this article, I’ll look at five of the best, including:
- Tax benefits
- Welcoming environment
- Innovation
- Broad economy
- Safety, security and standard of living
I’ll also talk about how Thinkdirect BPO can assist you in turning your Saudi business idea into a reality. So, let’s get started.
Why is Saudi Arabia good for business?
Tax benefits
When moving or establishing a business in a new location, it’s crucial to ensure that the jurisdiction is suitable for your needs, and for many entrepreneurs, this involves ensuring tax efficiency. Saudi Arabia ranks highly in this aspect since foreign investors have low liability for personal income tax, and the corporation tax is 15%. Additionally, although Saudi Arabia applies VAT, many goods and services are exempt, making them subject to a zero rate.
Welcoming environment
At present, Saudi Arabia is embracing a more global outlook, with its leaders devoted to attracting foreign investment and visitors to promote a more diverse future for the nation. This trend applies to both personal and business levels, as Saudis are recognized for their friendly and hospitable demeanor towards foreigners who show an interest in their country. Entrepreneurs will also find the business environment favorable, with Saudi Arabia ranking 62nd out of 190 countries in the World Bank’s Doing Business Index.
Innovation
Saudi Arabia is striving to become a prominent global technology center in the future, and it has unveiled a set of initiatives valued at more than USD 1 billion to achieve this goal. The kingdom aims to increase the technology contribution to its GDP by roughly AED 50 billion, elevate the size of the emerging market sector by 50%, and generate over 25,000 job opportunities in the next few years. The country’s considerable investment in the technology industry is sparking unprecedented innovation and offering exceptional prospects for its entrepreneurs. Thus, if you possess a cutting-edge business idea, there’s no better time to actualize it in Saudi Arabia.
Broad economy
Saudi Arabia is eager to reduce its dependence on oil and gas and diversify its economy. The nation’s leaders are moving swiftly to achieve this goal by providing billions of dollars in assistance to companies spanning various sectors to establish a robust and sustainable economy. Thriving sectors include tourism, manufacturing, technology, financial services, cosmetics, and pharmaceuticals. Regardless of your industry, if your product or service can enhance the local economy, you can anticipate a supportive and encouraging business atmosphere in Saudi Arabia.
Safety, security and standard of living
Saudi Arabia is widely recognized as one of the most secure countries globally, with a score of 86 out of 100 in the 2021 Gallup Global Law and Order Index, surpassing countries like the UK, Japan, and New Zealand and just trailing behind Canada. Additionally, it was recently ranked the safest G20 nation based on various essential security metrics. Expatriate communities in the country provide exceptional living standards and help alleviate the cultural shock that some may experience while moving to a conservative country. Furthermore, Saudi Arabia’s superior education and healthcare systems are a valuable advantage for individuals relocating with their families.
Set up your company in Saudi Arabia with Thinkdirect BPO
To operate a business in Saudi Arabia, it is mandatory to obtain a license. While the procedure for overseas investors isn’t overly complicated, it necessitates a certain level of prior knowledge. It’s critical to ensure that your business visa and license applications are error-free, which can be daunting. As mentioned in this article, the most efficient method to establish your business is by collaborating with a company formation specialist. At Thinkdirect BPO, we provide top-notch solutions to launch your company in Saudi Arabia. We offer quick, dependable, and impartial guidance on your specific business setup requirements. We can assist you in selecting the appropriate license for your business activity and guide you through the entire process, from start to finish.
