5 Things Every Pakistani Entrepreneur Should Know About Setting Up Business in KSA

26 Oct 2023|

By Mehreen Fatima

The Kingdom of Saudi Arabia is reimagining its role in economy and sustainable development within the Middle East and on a global platform.

Learn More: Stepping Closer To The Kingdom’s Grand Vision For Financial Inclusion

The KSA has opened up its gates for foreign investor and companies to flex their arms and thrive from the platform of Riyadh. Here is your one-minute guide to understand the crucial requirement at a glance:

Setting Up Business in KSA: A Look at Crucial Changes from 2023

Introduction of the New Companies Law

In 2022, the Kingdom of Saudi Arabia (KSA) issued a new Companies Law which came into effect on January 19, 2023. This law governs all forms of entities in the KSA market, whether commercial, non-profit, family-operated entities and/or professional. The law replaces the previous company law issued according to Royal Decree No. M/3 dated 10 November 2015.

Compliance Grace Period

The respective KSA authorities have formally granted a compliance grace period of two years for entities to implement the required changes to their corporate documents and or restructure their operations in accordance with the New Companies Law. Entities that will be incorporated and entering the KSA market post the Effective Date shall fully comply with the provisions of the New Companies Law.

Vision 2030 Plan

The KSA Government introduced the Vision 2030 plan which included several new initiatives aimed at diversifying the KSA economy. The plan for Vision 2030 is to reduce KSA’s dependence on oil and develop service sectors, such as health, education, infrastructure, recreation, and tourism.

Giga Projects

To help achieve Vision 2030, the Public Investment Fund, a sovereign wealth fund in KSA, was tasked with developing the “Giga Projects”. The biggest Giga Projects to date are Qiddiya Entertainment City, NEOM, the Red Sea Project, and Amaala Resort.

Foreign Investment Incentives and Restrictions

Last but not the least. From 2023, Saudi Arabia will not issue licenses to foreign investors or businesses with no regional headquarters in the Kingdom. This is an important consideration for foreign businesses looking to set up in KSA.

Learn More: Empowering Pakistani Startups To Thrive In The KSA Market

Plan Your Seamless Scale up in KSA with Dastak Accelerator

The Kingdom of Saudi Arabia stands on the cusp of transformation on multiple fronts spurred on by the Saudi government’s ambitious  “Vision 2030” under which a broad span of socioeconomic sectors have seen a number of programs and initiatives geared towards change on both the sector’s own ecosystem and the larger economy of the country. 

This has attracted investment and interest from abroad with multiple companies citing Saudi as one of their prime markets for the next 7 years and beyond. 

However, while the Kingdom has extended support to companies and individuals looking to establish their presence- there are still certain hurdles and challenges that companies must be mindful of before setting foot in the Kingdom.

The team of experts at Dastak Accelerator will help you deal with those challenges and set up your tech venture in Saudi Arabia. To learn more, book a quick call with our KSA business consultants.

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