How Can I Invest in Saudi Arabia?
Regulations in the market create opportunities for profit. Due to declining oil prices and political concerns, Saudi Arabia has seen a decline in foreign direct investment (FDI) in recent years. However, FDI inflows have returned as a result of recent efforts to diversify the economy and government-backed initiatives outside of the oil and gas industry, such as "Vision 2030" and the "National Transformation Programme."
Due to declining oil prices and political concerns, Saudi Arabia has seen a decline in foreign direct investment (FDI) in recent years. However, FDI inflows have returned as a result of recent efforts to diversify the economy and government-backed initiatives outside of the oil and gas industry, such as "Vision 2030" and the "National Transformation Programme."
The Kingdom's foreign direct investment (FDI) increased by over 120% between 2017 and 2018, reaching a total of $3.2 billion, as per the 2019 World Investment Report by the United Nations Conference on Trade and Development (UNCTAD). The majority of this growth can be attributed to the fact that Saudi Arabia has permitted foreign investment in four significant sectors: Employment Services, Real Estate, Media Services, and Land Transport Services.
Additionally, you must interact with numerous government entities, such as the General Authority of Zakat and Tax (GZAT), the Ministry of Commerce and Investment (MCI), the Chamber of Commerce (CoC), and the Ministry of Investment of Saudi Arabia (MISA, formerly known as SAGIA).
Today, Saudi Arabia is experiencing a significant shift as it transitions from a public sector-dominated, oil-reliant economy to one that is more diversified and built on the achievements of a flourishing private sector. In the coming years, the Saudi government has set ambitious goals to significantly boost the private sector's contribution to the country's GDP. Currently standing at around 40%, the government aims to raise this figure to 65% by 2030. This presents a compelling opportunity for your business to be a part of this growth and enjoy the associated benefits. Here are some reasons why:
Today in Saudi Arabia, the authorities are embracing foreign direct investment (FDI) as a means to introduce cutting-edge technologies, provide employment and training opportunities for the local workforce, and stimulate economic growth. Thanks to a newfound positive outlook on foreign direct investment, Saudi Arabia has achieved a ranking of 62nd out of 120 economies in the World Bank's 2020 Doing Business Report. What a remarkable improvement from last year's ranking! Saudi Arabia was also recognized as the top performer globally on the list.
Over time, it is clear that Saudi Arabia will continue to rise on this list as attitudes shift and more foreign direct investment pours in.
At CIG Saudi Arabia, we have a deep understanding of the Saudi market and are dedicated to helping businesses like yours thrive. Our expertise ensures that your business has the highest chance of initial approval and long-term success. Our turnkey solution allows you to fully concentrate on your day-to-day operations, while we take care of every step involved in setting up your business in Saudi Arabia.
The Kingdom's foreign direct investment (FDI) increased by over 120% between 2017 and 2018, reaching a total of $3.2 billion, as per the 2019 World Investment Report by the United Nations Conference on Trade and Development (UNCTAD). The majority of this growth can be attributed to the fact that Saudi Arabia has permitted foreign investment in four significant sectors: Employment Services, Real Estate, Media Services, and Land Transport Services.
How To Invest in Saudi Arabia?
Despite the abundance of opportunities that Saudi Arabia offers for businesses seeking to expand into a new market, there is a process that must be adhered to. Regrettably, the process of establishing a business in Saudi Arabia is not as straightforward as simply completing out a form online and registering it, despite the significant increase in the country's openness to FDI in recent years. Foreign businesses are still required to adhere to a rigorous process and framework, which includes the application for any pertinent licenses or permits, the Saudization process, and the establishment of a Saudi bank account, among other things.Additionally, you must interact with numerous government entities, such as the General Authority of Zakat and Tax (GZAT), the Ministry of Commerce and Investment (MCI), the Chamber of Commerce (CoC), and the Ministry of Investment of Saudi Arabia (MISA, formerly known as SAGIA).
What Is the Process to Invest in Saudi Arabia?
The investment procedure is significantly different today than it was a few years ago as a result of the numerous recent changes. Despite the fact that the precise process varies from one industry to another and is relatively circumstantial, it can be summarized in five steps:- In order to regulate all foreign direct investment (FDI) in the Kingdom of Saudi Arabia, you must register for and obtain a MISA license.
- You obtain your Commercial Registration and incorporate your company.
- You procure your General Manager's Visa from the Saudi Embassy.
- You establish a bank account and register your company with the appropriate government agencies and the Chamber of Commerce in your city.
- Lastly, you commence trading by investing in real estate to formally open your business.
Why Invest in Saudi Arabia?
There are numerous factors that make Saudi Arabia an attractive destination for foreign businesses to invest in. The country's well-managed inflation rate, steady exchange rate, welcoming attitude towards foreign investment in the gas industry, and ongoing privatization efforts are attracting a significant amount of foreign direct investment. Furthermore, the nation's robust banking sector plays a crucial role in fueling the expansion of numerous industries. The availability of the world's largest oil reserves, coupled with affordable energy expenses and a superior quality of life, serve as additional advantages.Today, Saudi Arabia is experiencing a significant shift as it transitions from a public sector-dominated, oil-reliant economy to one that is more diversified and built on the achievements of a flourishing private sector. In the coming years, the Saudi government has set ambitious goals to significantly boost the private sector's contribution to the country's GDP. Currently standing at around 40%, the government aims to raise this figure to 65% by 2030. This presents a compelling opportunity for your business to be a part of this growth and enjoy the associated benefits. Here are some reasons why:
Discover a wide range of appealing property solutions in 35 thriving cities and commercial hubs.
- We offer a wide range of industrial land and commercial real estate options at highly competitive prices. A youthful and talented workforce (with half of the country's population under the age of 25).
- This location is known for its exceptional safety and top-notch healthcare system.
- The monetary system is highly stable and the financial sector is well capitalized.
- Cities that are carefully planned and managed by a master developer to maximize investment potential.
The New Attitude Towards FDI in Saudi Arabia
The Saudi government has made significant investments in national infrastructure to encourage foreign direct investment, recognizing its crucial role in economic diversification. FDI offers a wealth of job opportunities for the younger generation, opening up new avenues for employment. Significant progress has been made in removing obstacles to foreign investment, including easing political and social tensions, improving access to credit, and revising the 'Saudization' policy.Today in Saudi Arabia, the authorities are embracing foreign direct investment (FDI) as a means to introduce cutting-edge technologies, provide employment and training opportunities for the local workforce, and stimulate economic growth. Thanks to a newfound positive outlook on foreign direct investment, Saudi Arabia has achieved a ranking of 62nd out of 120 economies in the World Bank's 2020 Doing Business Report. What a remarkable improvement from last year's ranking! Saudi Arabia was also recognized as the top performer globally on the list.
Over time, it is clear that Saudi Arabia will continue to rise on this list as attitudes shift and more foreign direct investment pours in.
Elevate Your Expectations with Us
Investing in Saudi Arabia can be a lengthy and laborious process due to the amount of work required. Due to varying customs, seemingly more 'restrictive' laws, and different processes, navigating business operations in Saudi Arabia can pose challenges for business owners who are accustomed to the practices of the Western world.At CIG Saudi Arabia, we have a deep understanding of the Saudi market and are dedicated to helping businesses like yours thrive. Our expertise ensures that your business has the highest chance of initial approval and long-term success. Our turnkey solution allows you to fully concentrate on your day-to-day operations, while we take care of every step involved in setting up your business in Saudi Arabia.
