Saudi Arabia is the world’s largest oil producer and exporter and controls the world’s second largest hydrocarbon reserve. It’s the only Arab country to be a part of the G20 countries, the Organization of Islamic Cooperation and OPEC. The country’s global standing has created substantial business opportunities and has become a preferred destination for many foreign investors.

The government eased entry requirements for foreign investors and established the Saudi Arabian General Investment Authority (SAGIA) to assist businesses. SAGIA help businesses with the approval process for operating in KSA, obtaining a license, labor visas and other related items all under one umbrella.

Basics

Region: Middle East & North Africa

Income Category: High income

Population: 32,938,213

Capital City: Riyadh

Ease of doing business: 63.5/100

Business culture in Saudi Arabia

Business culturein Saudi Arabia has an approach that’s focused on building relationships rather than getting straight to business. Meetings are usually lengthier and include social time to get to know the people you are working with. They may even start later than scheduled and run overtime too. When greeting people, Saudis will take time to shake each person’s hand while standing, and sometimes a kiss on the cheek will also be exchanged before sitting down. However, men and women do not shake hands or greet each other in public.

Business visa in Saudi Arabia

Visiting Saudi Arabia requires the correct visa to remain compliant. If you’re visiting for business purposes, you can choose between the business visit visa and the commercial visit visa. If you are permanently relocating, then you’ll need a work visa and iqama.

• Business visit visa: this visa is for those who wish to visit the Kingdom to work on a temporary basis. This doesn’t allow you to live in the Kingdom or open a bank account.
• Commercial visit visa: this visa is for those that are visiting the Kingdom for a meeting, a conference or other business purpose. It doesn’t allow you to work in the Kingdom at all.

There are several types of entities that can be incorporated in Saudi Arabia are as mentioned below:

• General Partnerships
• Limited partnerships
• Joint Ventures
• Corporations
• Partnerships Limited by Shares
• Limited Liability Partnerships (LLCs)
• Variable Capital Companies
• Cooperative Companies (Joint Stock Company)

Time Frame for Incorporation of Company in Saudi Arabia varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. IMC professionals estimate the time required for the process of Company formation in Saudi Arabia to be completed is 20-25 working days.