When you think of business in the Middle East, the bustling streets of Bahrain, the bright lights of Dubai, and the deal makers of Doha may come to mind. However, there is another business hub in the region that is often overlooked by expatriates, despite offering the same benefits and more. We’re talking about Saudi Arabia – a country with the largest economy of the Arab states and among the top 20 largest in the world.
In this article, we’ll explore the reasons why Saudi Arabia is a great place to start a business. We’ll also introduce BizVibez, a company formation specialist that can help you make your Saudi enterprise a reality.
Tax Benefits
One of the key considerations when starting a business in a new jurisdiction is ensuring tax efficiency. Saudi Arabia scores highly in this regard, with foreign investors having minimal liability for personal income tax while corporation tax sits at 15%. While the country does apply VAT, many goods and services are exempt and therefore subject to a zero rate.
Welcoming Environment
Saudi Arabia is opening its arms to the wider world, with the country’s rulers committed to looking outwards and welcoming both foreign travelers and investment to drive a cosmopolitan future for the kingdom. Saudis are known to be incredibly friendly and welcoming to foreigners taking an interest in their country, so you can expect impeccable hospitality. Entrepreneurs will also find it
easy to do business in Saudi Arabia, which ranks 62nd out of 190 countries in the World Bank‘s Doing Business Index.
Innovation
Saudi Arabia is keen to position itself as a global technology hub in the future. To achieve this aim, it recently outlined a series of initiatives worth over USD 1bn. In the coming years, the kingdom is aiming to increase the tech contribution to GDP by around AED 50bn, boost the size of the emerging market sector by 50%, and create over 25,000 jobs. This direct investment in the tech sector is driving unparalleled innovation in the country, presenting incredible opportunities to its entrepreneurs.
Broad Economy
Much like the UAE, Saudi Arabia is keen to diversify its economy away from oil and gas. The country’s rulers are offering billions of dollars in support to businesses across a wide range of industries to create a broad, strong, and future-proof economy. Growing industries include tourism, manufacturing, technology, financial services, cosmetics, and pharmaceuticals. Whatever your industry, if your offering can boost the local economy, you can expect to find a supportive and encouraging business environment in Saudi Arabia.
Safety, Security, and Standard of Living
Saudi Arabia is widely regarded as one of the safest countries in the world. It scored 86 out of 100 in the Gallup Global Law and Order 2021, ranking just one place behind Canada and ahead of the UK, Japan, and New Zealand. The kingdom was also recently rated as the safest of all G20 nations based on a range of key
security indicators. Overseas compounds provide high standards of living and offer a great buffer against the initial culture shock that some experience when moving to such a conservative country. Saudi Arabia’s high standard of education and healthcare are also a bonus when relocating with family.
How to Start a Business in Saudi Arabia with BizVibez
If you’re interested in starting a business in Saudi Arabia, BizVibez can help you make your dream a reality. All businesses require a license to trade in Saudi Arabia, and while the steps required of overseas investors are not too complicated, a certain amount of prior knowledge is required. Specifically, it’s vital to ensure that your applications for your business visa/license are all completely free from mistakes. BizVibez Consultants can guide and assist you through every step, limiting the hassle for you.
