Doing Business with Saudi Arabia

A comprehensive guide to doing business, exporting, investing, and manufacturing in Saudi Arabia.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Invest Saudi

Tel: +966115065777
Email: InvestorCare@misa.gov.sa
Web: investsaudi.sa

National Chamber of Commerce

Federation of Saudi Chambers

Tel: +966 11 218 2222
Web: fsc.org.sa

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Economy and Planning

Tel: +966 13241-7148
Email: info@mep.gov.sa
Website: mep.gov.sa

  • Type of Government: Absolute monarchy
  • Population: Approximately 36 million
  • GDP: Around $1 trillion USD
  • Corporate Tax Rate: 20% (for foreign companies)
  • Personal Income Tax Rate: 0% (no personal income tax)
  • Major Exports: Oil, petrochemicals, plastics
  • Major Imports: Machinery, vehicles, electronics, foodstuffs

 

Exporting goods to Saudi Arabia involves several key steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Saudi Arabia’s import regulations and product standards.
  2. Identify Your Product’s HS Code

    • Determine the Harmonized System (HS) code for tariff and regulation details.
  3. Prepare Documentation

    • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.
  4. Check Tariff and Non-Tariff Barriers

    • Verify any tariffs and ensure compliance with non-tariff measures.
  5. Select a Reliable Freight Forwarder

    • Choose a logistics provider experienced in shipping to Saudi Arabia.
  6. Comply with Labeling and Packaging Regulations

    • Ensure your products meet local labeling and packaging standards.
  7. Obtain SASO Certification

    • Acquire necessary certifications from the Saudi Standards, Metrology, and Quality Organization (SASO).
  8. Arrange for Insurance

    • Secure insurance to cover potential shipping risks.
  9. Submit Customs Declaration

    • Work with your freight forwarder to submit the necessary customs declaration.
  10. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

Importing goods into Saudi Arabia involves several key steps. Here’s a detailed guide:

  1. Research Import Regulations

    • Familiarize yourself with Saudi Arabia’s import laws and product-specific regulations.
  2. Obtain Necessary Licenses

    • Determine if your products require special import licenses or permits.
  3. Classify Your Goods

    • Identify the Harmonized System (HS) code for your products to understand tariffs and duties.
  4. Prepare Documentation

    • Gather required documents: commercial invoice, bill of lading, packing list, and certificate of origin.
  5. Choose a Customs Broker

    • Hire a licensed customs broker to assist with the import process.
  6. Comply with Labeling and Packaging Standards

    • Ensure products meet local labeling and packaging requirements.
  7. Obtain SASO Certification

    • Acquire necessary certifications from the Saudi Standards, Metrology, and Quality Organization (SASO).
  8. Submit Customs Declaration

    • File a customs declaration with Saudi Customs.
  9. Pay Duties and Taxes

    • Calculate and pay any applicable import duties and taxes.
  10. Arrange for Transportation and Delivery

    • Coordinate with a logistics provider to transport goods to their final destination.

Key Contacts

  • Saudi Customs
  • Saudi Standards, Metrology, and Quality Organization (SASO)

Incorporating a company in Saudi Arabia involves several key steps. Here’s a detailed guide:

  1. Choose a Business Structure

    • Decide on the type of company, such as a Limited Liability Company (LLC).
  2. Register Trade Name

    • Reserve your company’s trade name with the Ministry of Commerce.
  3. Prepare Articles of Association

    • Draft the Articles of Association and have them notarized.
  4. Open a Bank Account

    • Open a corporate bank account and deposit the initial capital.
  5. Submit Incorporation Documents

    • File the necessary documents with the Ministry of Commerce and Investment (MCI).
  6. Obtain Commercial Registration

    • Register your company with the MCI to receive a Commercial Registration (CR) certificate.
  7. Register with the Chamber of Commerce

    • Enroll your company with the local Chamber of Commerce.
  8. Register for Taxes

    • Obtain a tax identification number from the General Authority of Zakat and Tax (GAZT).
  9. Obtain Necessary Licenses

    • Apply for any required business licenses specific to your industry.

Costs

  • Registration Fee: Varies depending on the type and size of the company.
  • Chamber of Commerce Fee: Depends on the business category and size.

Key Contacts

  • Ministry of Commerce
  • General Authority of Zakat and Tax (GAZT)
  • Saudi Arabian General Investment Authority (SAGIA)

Setting up a manufacturing plant in Saudi Arabia involves several key steps. Here’s a detailed guide:

  1. Conduct a Feasibility Study

    • Assess market demand, location suitability, and resource availability.
  2. Choose a Business Structure

    • Decide on the type of business entity, such as a Limited Liability Company (LLC).
  3. Register the Company

    • Register your business with the Ministry of Commerce to obtain a Commercial Registration.
  4. Secure Financing

    • Arrange funding through banks or investors.
  5. Select a Location

    • Choose an industrial area or free zone with access to necessary infrastructure.
  6. Obtain Necessary Permits and Licenses

    • Apply for industrial licenses from the Saudi Industrial Development Fund (SIDF) and other relevant permits.
  7. Design and Construct the Facility

    • Hire architects and contractors to design and build the plant according to regulations.
  8. Purchase and Install Equipment

    • Acquire machinery that meets safety and operational standards.
  9. Hire and Train Employees

    • Recruit skilled workers and provide necessary training.
  10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

  • Ministry of Commerce
  • Saudi Industrial Development Fund (SIDF)
  • Saudi Arabian General Investment Authority (SAGIA)

Registering a trademark in Saudi Arabia involves several key steps. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique by searching the Saudi trademark database.
  2. Prepare Your Application

    • Gather necessary details, including the trademark design and the list of goods/services.
  3. Submit the Application

    • File your application online through the Saudi Authority for Intellectual Property (SAIP) portal.
  4. Pay the Application Fee

    • Pay the required fees for trademark registration. Check the SAIP website for current rates.
  5. Application Examination

    • The SAIP will examine the application for compliance and potential conflicts.
  6. Publication for Opposition

    • If approved, the trademark is published in the official gazette for a period during which others can oppose it.
  7. Receive Registration Certificate

    • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

  • Application Fee: Check the Saudi Authority for Intellectual Property (SAIP) website for up-to-date pricing.

Key Contacts

  • Saudi Authority for Intellectual Property (SAIP)

Resolving commercial disputes in Saudi Arabia involves several key steps. Here’s a detailed guide:

  1. Consult Legal Counsel

    • Engage a lawyer experienced in Saudi commercial law for guidance.
  2. Attempt Negotiation

    • Try to resolve the dispute amicably through direct negotiation with the other party.
  3. Mediation

    • Consider mediation through a neutral third party to facilitate a resolution.
  4. Arbitration

    • Use arbitration for a binding resolution if both parties agree. The Saudi Center for Commercial Arbitration (SCCA) can assist.
  5. Litigation

    • If other methods fail, file a lawsuit in the commercial courts. Prepare for a formal legal process.
  6. Enforcement of Judgments

    • Ensure the decision is enforced through the relevant authorities.

Costs

  • Legal Fees: Vary depending on the complexity and length of the dispute.
  • Court Fees: Required for litigation and depend on the case specifics.

Key Contacts

When considering business in Saudi Arabia, it’s important to understand various factors:

Social and Cultural Factors

  • Language: Arabic is the official language; English is widely used in business.
  • Business Etiquette: Building personal relationships is crucial. Meetings often start with tea or coffee and informal conversation.

Political Factors

  • Government: Absolute monarchy.
  • Stability: Generally stable political environment with a focus on Vision 2030 for economic diversification.

Economic Factors

  • Currency: Saudi Riyal (SAR).
  • Key Industries: Oil, petrochemicals, construction, tourism, and telecommunications.

Foreign Exchange

  • Exchange Rate: The Saudi Riyal is pegged to the US Dollar, providing currency stability.

Rule of Law

  • Legal System: Based on Islamic law (Sharia); commercial disputes are handled in specialized courts.
  • Intellectual Property: Strong protections, with enforcement through the Saudi Authority for Intellectual Property.

Infrastructure

  • Transport: Well-developed road and port infrastructure; expanding rail and air networks.
  • Utilities: Reliable electricity and water supply, with ongoing investments in renewable energy.

Key Contacts

  • Saudi Arabian General Investment Authority (SAGIA)
  • Ministry of Commerce
  • Saudi Authority for Intellectual Property (SAIP)

Our Members Include Leading Organizations in Saudi Arabia

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