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Why choose Saudi Arabia as your Investment Destination?
The Kingdom of Saudi Arabia is the fastest-growing economy in 2022 according to the World Economic Outlook released by the IMF. The country sits at the forefront of that economic revolution with its strategic location that connects 3 continents, an endowment of national resources, and high investment capital. Its economy is bolstered by a regulatory environment that promotes ease of doing business and is enabled by a strong national commitment to develop sustainable cities, industrial hubs, and nationwide infrastructure offering accessible investment opportunities to all. As of June 2022, Saudi Arabia was ranked the 7th most competitive economy among the G20 nations and the 24th globally based on IMB World Competitiveness Report.
The new regulatory policies in the Kingdom enhanced the flexibility and independence for foreign businesses. To promote investment, the Kingdom’s reforms have significantly deregulated and reduced the requirement to start a business to simplify the process of registration and allow direct access to investment opportunities. The wealth of opportunities coupled with the ongoing reform made Saudi Arabia a preferred investment destination for companies of all sizes and industries.
Innovative scale-up companies particularly enjoy significant advantages from operating in the Kingdom, according to the Global Entrepreneurship Monitor Index, Saudi Arabia ranked 1st out of 45 countries in the following categories:
Good opportunities to start a business.
Ease to start a business.
Business response to the pandemic
Government response to the pandemic
The Kingdom ranked among the top 5 countries in the following categories:
Ease of access to corporate and business finance
Ease of access to markets and market dynamics.
Government support for business
Lack of barriers
Ease of regulations for market access
Is 100% Foreign Ownership allowed in Saudi Arabia?
Yes, INNOVISION can help you expand your company to Saudi Arabia without the need for local equity partners.
What is Saudi Arabia’s policy regarding foreign direct investment? How would that materialize in the near future?
Saudi Arabia’s Ministry of Investment has shown a glimpse of the new investment law & made the draft accessible for public feedback. The draft emphasized renewed commitment toward the Kingdom’s investment policy. In line with Vision 2030, the new law aims to attract direct investments, enhance the investment ecosystem, preserve investor rights, & increase confidence in investing in the Kingdom through:
Facilitating market entry procedures and protecting direct investments.
Ensure fairness in procedures between domestic investors and foreign investors.
Defining the investor’s rights & obligations.
Supporting the principle of competitive neutrality and fairness, and ensuring equal opportunities in the treatment of direct investments made by public and private investors.
What are the incentives offered to do business in Saudi Arabia?
To facilitate investment in Saudi Arabia, the Kingdom offers appealing incentives designed to encourage investment for both foreign-affiliated enterprises and international companies wishing to open offices in the Kingdom. Some of these incentives include the following:
Loan program for public/private investment projects.
Special regulatory environment related to investment provided at Neom and other special zones.
Loan program for economic development and reform in Arab countries.
Political and commercial risk insurance for investments and export credit guarantees
Equity & debt financing for enterprises & productive projects in member countries through Islamic Development Bank (IsDB).
Subsidized employment for hiring and training Saudi national support through HRDF (Human Resource Development Fund).
Export credit financing, guarantee, and insurance through SIDF, ITFC & Saudi Exim.
Attractive Land Solutions in Economic Cities & Special Economic Zones.
Tax credit and exemption from National Industrial Development Centre.
INNOVISION is up-to-date on general and sector-specific incentives offered for investors and entrepreneurs looking to do business in Saudi Arabia from conception to completion. INNOVISION can help you assess which incentives would be applicable to your business. Reach out to us for more information on how to make the most of setting up your business in the Kingdom.
How can INNOVISION help you start your business in Saudi Arabia?
INNOVISION provides access to reliable, relevant, and up-to-date information to investors or entrepreneurs, providing customized insights to your queries & streamlining the process of setting up your business in Saudi Arabia, successfully. With our network of government partners & stakeholders, we can facilitate the process and handle procedures at all relevant entities, starting from MISA (Ministry of Investment) all the way to ZATCA (Zakat, Tax, and Customs Authority) and GOSI (General Organization for Social Insurance). We provide you with the necessary capabilities to facilitate and expedite the process of your market entry and ensure you a smooth journey toward a viable and successful business in the Kingdom. Contact us today to see if Saudi Arabia is the right destination for your business expansion.
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