With its GDP of US$1.1 trillion, and established reputation as an oil-rich Gulf state, Saudi Arabia has long been associated with certain characteristics that are now fast-evolving. Not only does this West Asian country’s economy continue to thrive, but its Vision 2030 initiative is upending what that economy will look like in the years ahead.
As, then, Saudi Arabia sustains its efforts to diversify away from oil and cultivate innovation across a variety of sectors, you might be wondering whether the present moment could be a good time to put in place business roots here.
The short answer to that question is: yes, it very much could be! Below, we have detailed some of the factors that have led to entrepreneurs from across the globe looking to this powerhouse Middle Eastern economy.
The relative ease of doing business in Saudi Arabia
The Kingdom of Saudi Arabia (KSA) has built strong credentials in recent years as a place where it is relatively straightforward for foreign-national entrepreneurs to do business.
Today, thanks to regulatory reforms and incentives aimed at attracting greater investment from overseas, enterprising individuals from outside Saudi Arabia can more easily set up and operate successful businesses, while enjoying 100% ownership.
New sectors have come to prominence in the country, minimum capital requirements have been reduced, and foreigners are able to pick from various business structures for their operations in KSA. The English language, too, is commonly used in business here.
Ever-more sophisticated business ecosystems are emerging
Entrepreneurs who come to Saudi Arabia from abroad are increasingly finding themselves surrounded by and supported by extensive business-friendly infrastructure and resources.
From the development of cutting-edge tech hubs and sophisticated transport networks, right through to the expansion of accelerators, incubators, and coworking spaces, Saudi Arabia is taking all manner of proactive steps to make life easier for entrepreneurs and startup businesses.
A favorable tax system
It is difficult to conduct a discussion for very long on the topic of Saudi Arabia’s attractiveness to foreign entrepreneurs, without mentioning its approach to taxation.
At the time of typing, the corporate income tax rate in KSA is 20%. This is payable by non-Saudi/non-Gulf Cooperation Council shareholders in a Saudi Capital Company, as well as by non-residents conducting business in the country through Permanent Establishment.
A strategic location that presents advantageous access to nearby markets
Saudi Arabia’s own internal market is, of course, formidable enough; the country’s population of more than 32 million people includes many tech-savvy, young, and ambitious individuals who are eager to tap into the latest exciting products and services. All of this helps to make KSA an excellent place to practice business innovation.
However, this West Asian state’s central location also helps to make it a great place from which to make connections in the broader Middle East and North Africa (MENA) region, and beyond. This means your business could be well-positioned to target hundreds of millions of potential consumers, right on the doorstep of KSA.
Whatever moves you do ultimately make in relation to your commercial involvement in Saudi Arabia, you will almost certainly appreciate all the help you can get with tax, payroll,and workforce compliance. This is something that Aspirock can help make easier for you, with our comprehensive Employer of Record (EOR) service. Simply contact us today to learn more.