The Kingdom of Saudi Arabia is the destination of choice for your business set up

Akeela Bharuchi, Head of Middle East at Equiom, sheds light on how Saudi’s ‘Vision 2030’ plan aims to further strengthen the Kingdom’s position as a global economy, making it the ideal destination to setup a business.

The Kingdom of Saudi Arabia (KSA) is the largest Arab state, founded in 1932. It boasts the biggest economy in the Middle East and is the highest recipient of Foreign Direct Investment (FDI) in the Arab world.

Saudi Arabia is committed to developing its investment environment and is taking big strides to improve and advance the ease of doing business in the Kingdom through the implementation of ‘Saudi Vision 2030’. Many such measures are already in place including 100% foreign ownership of investment, no personal income taxes, low corporate tax rates and no restrictions on capital transfer abroad.

Saudi Arabia holds great potential and opportunity for investors. Its strategic geographic location means it connects three continents: Asia, Europe, and Africa. This makes it a natural bridge to connect people, goods and services around the world and allows it to build a role as a driver of international trade. 

Saudi Arabia’s Vision 2030

Saudi Vision 2030 is a hugely ambitious plan to diversify the economy of the country and reduce its dependency on hydrocarbons. To achieve this transformation, the private sector must take a front seat as a strong driving force for future economic growth and change. It was created as a bold step towards a transformation into a more sustainable economy. The Kingdom’s Public Investment Fund will also transform to one of the largest sovereign wealth funds in the world, with $2 trillion in assets under management.

The government continues to pursue economic reform and diversification programmes, and is continually investing in new ventures, having announced a $3 trillion investment in numerous Mega and Giga projects spread across Saudi Arabia. The largest and most prominent of these is the brand new ‘smart city’ of NEOM, a $500 billion project spanning 17 sectors. Other similar projects include Qiddiya and Dereiyah (culture and entertainment hubs), The Red Sea Project & AMAALA (property development, land, and sea), and Al Ula (a living museum).

Saudi Arabia is determined to promote and push its agenda of tourism, cultural, housing and investment initiatives through several schemes which are defined by these giga projects. These ambitious landmark projects are already underway and will help transform the economy while showcasing Saudi Arabia’s geographic wealth, cultural heritage, hospitality, and economic ambitions. 

How can Vision 2030 help to support your business ambitions?

Saudi Arabia represents a very attractive investment destination for many organizations. Where there was historically a dependence on crude oil, the government’s focus on the diversification into other industries is now visible and the country is witnessing strong inflows of foreign investments in the new sectors. The shift in the culture brought about by an ambitious leadership vision is in full effect, and young nationals are now being encouraged to establish their own businesses, women are being empowered to join the workforce and the economy is benefitting from this diversification. 

The Government has invested heavily in the country’s national infrastructure in a bid to attract further foreign investments and has recently announced the opening of the retail and wholesale sectors to 100% foreign ownership, as well as having recently launched a privatisation programme. The new investment strategy looks across several sectors and aims to empower investors with a platform for opportunities, creating a competitive environment which will further push the private and public sectors to collaborate, grow and prosper.

Looking to enter the Saudi Arabian market?

Expanding into new markets is always challenging and it is natural for business owners to wish to keep their overheads as low as possible. Understanding challenges, and mitigating risks is on the top of our minds when we discuss the requirements of our clients and offer our solutions. 

Based in Riyadh, Equiom Group Middle East supports existing businesses and those looking to enter the Saudi market with business enabling solutions. Our solutions cover the various stages of the clients’ journey from market insights and due diligence to company formation and registration to providing post entry solutions such as PRO services. Our experienced team of advisors will share practical tips to save you time, money and efforts.  

Please get in touch with Akeela Bharuchi to find out more about how Equiom Group can support your company’s growth strategy into Saudi Arabia.

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Equiom to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.

For information on the regulatory status of our companies, please visit www.equiomgroup.com/regulatory