What To Think Before Investing In Saudi Arabia

What To Think Before Investing In Saudi Arabia

When thinking about business opportunities in Saudi Arabia, you might wonder what to look for and what to avoid. There are several important issues to consider, including the country’s investment climate, Human rights abuses, tax rates, and the legal system. This article will help you navigate these issues. We’ll also cover the political situation in the country. And, we’ll touch on some of the key issues for foreign investors to consider.

Investment climate

The Kingdom of Saudi Arabia is an investment destination with a sound economic policy. Its Ministry of Investment aims to attract foreign investors with facilities and flexibility. In addition, the government offers a range of tax incentives to promote business development. This country has been ranked 29th in the Doing Business 2020 report, and the government has implemented 555 reforms to better serve investors. In addition, the government has made it easier to start a business in Saudi Arabia, with the time to establish a company reduced from 15 days to thirty minutes.


Before investing in Saudi Arabia, foreign investors should know the country’s taxes and regulations. The minimum capital required by law is SAR500, 000. However, there are specific requirements for specific types of businesses. In addition, Saudi Arabia’s income tax is 20%, which limits the deductibility of expenses. Additionally, profits transferred to related parties are subject to a 5 percent WHT tax. The country also has certain reserve requirements and minimum capital amounts.

Legal system

The Saudi legal system is based on a five-stage process. First, laws are drafted. These laws then go through the regulatory body and are then voted upon. If a law is approved, it becomes the law of the land. The Saudi legal system is based on Sharia, which is an Islamic system of law. The king, who is the head of state, is a member of the council of ministers. The council oversees many separate agencies, including the Ministry of Education, health, and defense.

Shareek program

Before making investments in Saudi Arabia, it is advisable to understand the Shareek program. This program is designed to accelerate the growth of the kingdom’s economy and create hundreds of thousands of new jobs. The Shareek program aims to boost the private sector’s contribution to GDP from the current 18 percent to 65% by 2030. Furthermore, the Shareek investment projects will be closely monitored for job creation and GDP contribution.