Expanding Your Business to Saudi Arabia in 2024
Published on April 20, 2024
Saudi Arabia is currently undergoing one of the most significant economic transformations in history under Vision 2030. For international businesses and UAE-based companies, the Kingdom represents a massive growth opportunity. From technology to tourism, and construction to consulting, the demand for expertise is skyrocketing.
The MISA License
The Ministry of Investment of Saudi Arabia (MISA) has streamlined the process for foreign companies to set up 100% foreign-owned entities. The days of needing a Saudi partner for every activity are largely behind us. However, obtaining a MISA license requires a clear business plan and financial commitment.
Regional Headquarters (RHQ) Program
A key development is the RHQ program. Starting from 2024, the Saudi government has mandated that multinational companies wishing to contract with government entities must have their regional headquarters in the Kingdom. This policy is driving a surge in corporate re-structuring and office setups in Riyadh.
Why Now?
- Incentives: Tax breaks and support for RHQ companies.
- Market Size: The largest economy in the Arab world with a young, tech-savvy population.
- Infrastructure Projects: Giga-projects like NEOM, Red Sea, and Qiddiya offer billions in contracts.
Steps to Enter
- Market Research: Understand the local competition and regulatory variation.
- Issuance of MISA License: Submit audited financials and certificate of incorporation.
- Commercial Registration (CR): Post-MISA approval, obtain the CR from the Ministry of Commerce.
- Labor & Visa: Register with Qiwa and Muqeem for employee visas.
Founderae offers cross-border consulting. We assist UAE companies in seamlessly establishing their presence in KSA, handling everything from MISA licensing to government relations management.