Introduction
Saudi Arabia is the fastest-growing economy in the G20, and with Vision 2030, the government has made it easier than ever for foreign investors to enter the market. However, understanding the cost structure is vital for budgeting.
1. Government Fees (The Basics)
The cost of a MISA (Ministry of Investment) license has been significantly reduced to encourage investment.
- MISA License Fee: Approx. SAR 2,000 (Yearly) + SAR 10,000 (Subscription) for first year. *Note: Fees can vary based on activity.*
- Commercial Registration (CR): SAR 1,200 per year.
- Chamber of Commerce: SAR 2,200 per year.
2. Office & Address Costs
Unlike some UAE Free Zones, a physical address is mandatory in KSA.
- Virtual Office / Co-working: SAR 4,000 - 15,000 per year.
- Physical Office: SAR 25,000+ per year depending on city (Riyadh is more expensive than Dammam).
3. Hidden/Additional Costs
Don't forget these often-overlooked expenses:
- General Manager Visa: SAR 2,000 + Medical Insurance.
- Translation & Attestation: Documents must be attested in your home country and translated to Arabic. Budget approx. SAR 5,000 - 10,000.
- Government File Opening: SAR 1,000 - 2,000.
Total Estimated First-Year Budget
Small Service Company: SAR 35,000 - 50,000 (approx. USD 9,300 - 13,300)
Trading/Industrial Company: SAR 60,000+ (approx. USD 16,000+)
Conclusion
While the initial setup cost in Saudi Arabia might seem higher than a cheap UAE Free Zone, the market potential of 35 million consumers makes the ROI incredibly attractive.