Kingdom of Saudi Arabia (KSA)
  • Population:
    34 million
  • Capital:
    Riyadh
  • Official language:
    Arabic
  • Currency:
    Saudi riyal (SR)
  • Government:
    Absolute theocratic monarchy
  • Weekends:
    Friday and Saturday
Saudi Arabia is an Arab state in Southwest Asia, occupying more than 80% of the Arabian Peninsula and has an area of ​​2,218,000 km². It borders Jordan, Iraq and Kuwait to the north and northeast, Qatar, Bahrain and the UAE to the east, and Oman and Yemen to the southeast and south. The most influential member of the Organization of the Petroleum Exporting Countries (OPEC).
Let's look at the key aspects of doing business in Saudi Arabia:
Saudi Arabia is one of the largest and fastest growing economies in the Middle East, offering unique opportunities for business and investment. With its Vision 2030 strategic program, the country aims to diversify its economy away from oil and into sectors such as tourism, innovative technologies, transportation and logistics.
Free Trade Zones
Saudi Arabia has several free trade zones, each focusing on different sectors and attracting international companies by offering incentives for foreign companies, including tax exemptions and access to global markets.
  • King Abdullah Economic City (KAEC)
    The largest free trade zone focused on logistics, manufacturing, innovation and tourism. It provides companies with access to one of the largest ports on the Red Sea and a network of highways.
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  • King Abdulaziz City for Science and Technology (KACST)
    The free trade zone focuses on scientific innovation and development, providing companies with the opportunity to collaborate with government agencies in the field of technology and science to support the development of agriculture, industry and the extractive industry. Investors have access to laboratories, information sources and the necessary communication and technical resources.
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  • Riyadh Techno Valley
    An innovative technopark in the capital that supports startups and technology companies.
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  • Wa'ad Al Shamal Industrial City
    An industrial zone with a concentration of companies working with natural resources, chemical production and mineral processing.
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Tax System
Saudi Arabia offers conditions for companies with foreign and local owners, adhering to the principles of fair tax distribution. Foreign companies are subject to a corporate income tax (CIT) of 20%, while citizens of Saudi Arabia and the Gulf states pay 2.5% Islamic tax - zakat, calculated on the net value of the enterprise. VAT is set at 15% from 2020.
There are preferential conditions for businesses in free economic zones (FEZ): the CIT rate is reduced to 5% for up to 20 years, and profit repatriation is possible tax-free.
Benefits of doing business in Saudi Arabia's Free Zones
Companies in the Free Zones receive tax breaks, the right to 100% foreign ownership, full repatriation of profits and exemption from import duties. These zones also provide a high degree of infrastructure support and access to financial services.
Investment areas
Saudi Arabia is striving to diversify the economy within the framework of Vision 2030, actively developing such sectors as tourism, culture, healthcare, renewable energy, high technology and transport.
Technology and innovation:
The development of IT, start-ups and transport systems is supported by major programs, such as the Saudi Digital Transformation program to stimulate start-ups and attract IT companies, with an emphasis on the creation of smart cities and the introduction of digital solutions in public administration.
Tourism and culture:
One of the major projects is the NEOM megalopolis and the Al-Ula cultural center, aimed at attracting tourists and creating new jobs.
Renewable energy:
The region plans to increase the share of solar and wind energy, reducing dependence on oil and attracting environmentally oriented companies.
Key Saudi Arabian Banks
The Kingdom's banks support initiatives related to Vision 2030 by offering investment products and international banking services.
  • Saudi National Bank (SNB)
    The largest bank in the kingdom, offering corporate lending, asset management and business services.
  • Al Rajhi Bank

    The largest Islamic bank in the world, focused on Islamic finance and small businesses.
  • Riyad Bank

    Actively involved in project finance and offers specialized services to foreign investors.
  • Banque Saudi Fransi (BSF)
    Focuses on investment and commercial banking, cooperating with Crédit Agricole.
  • Arab National Bank (ANB)
    Provides project finance, mortgage lending and corporate banking services, including international settlements.
In Saudi Arabia, adherence to Islamic traditions and norms is an important part of the culture. The religious police, “mutawwa”, is active in the capital, whose representatives and agents in civilian clothes constantly patrol the streets and public places. Visitors to the country are advised to dress modestly and respectfully, especially in public places, to avoid misunderstandings. Revealing clothing may cause comments, although in most cases foreigners are treated with understanding. It is also best to avoid local national clothing, as its styles indicate belonging to certain clans. By following these recommendations, you can safely enjoy your stay and interact with locals, showing respect for their customs and way of life.