Company Formation in Free Zone in Saudi Arabia
Saudi Arabia, well known for its massive oil sector, has the largest free-market economy in the Middle East and North Africa, accounting for around 28% of total Arab GDP. The position allows them easy access to several export markets, including Europe, Asia, and Africa. Domestic consumption, fueled by a young and affluent population, is gradually and consistently raising local demand and speeding up the rate of company formation in free zone in Saudi Arabia.
To encourage international investment in commercial and industrial activity, Saudi Arabia has established two types of free zones. While industrial free zones primarily serve the manufacturing industry, economic free zones were established to support essential economic activities like as agriculture, healthcare, education, logistics, science and research, and so on. The industrial cities were established in the 1980s and later evolved into major economic centres. Economic cities were founded around the turn of the century and are currently being built. Both the industrial and economic free zones allow for 100% foreign ownership while also providing tax breaks and low tax rates.
The development plan for free zones underlined the need to diversify the country’s economy and minimise its dependency on oil and gas by utilising non-oil resources. Saudi Arabia currently has 28 industrial cities that are managed and administered by the Saudi Industrial Property Authority and offer custom duty exemption on raw materials and equipment, easy access to loans up to 75% of the capital, extended repayment periods of up to 20 years, and affordable land lease options. All of these factors have led to attracting investors around the globe for company registration in free zone in Saudi Arabia.
Benefits of Company Registration in Free Zone in Saudi Arabia
Why Company Registration in Free Zone in Saudi Arabia?
The Kingdom of Saudi Arabia is undergoing a shift and striving to diversify its economy away from its historic reliance on fossil resource exports. The establishment of free zones and attracting global investors for company formation in free zone in Saudi Arabia is only one component of the country’s economic strategy, which will also include tourism development, new cities, sports, higher employment, and more efficient governance.
Several considerations may make Saudi free zones appealing to global corporations operating in various countries. With a population of over 35 million people, the Kingdom of Saudi Arabia has by far the biggest population in the GCC. Multinationals entering this market will have unrestricted access to the country’s enormous economy, with no additional import levies.
Access to government contracts is another factor, Saudi Arabia intends to modify its government contracting regulations so that only companies based in Saudi Arabia would be able to secure government jobs. Many companies that provide services to the Saudi government are currently situated in other countries. As a result, the free zones may make migrating to Saudi Arabia more appealing for enterprises that work on Saudi government contracts.
Market opportunity for international corporations that do not presently have a presence in the Middle East or the GCC, relocating to Saudi Arabia and establishing a free zone might be advantageous. As one of the region’s main powers, with clear aspirations to diversify the economy, the opportunity for company registration in free zone in Saudi Arabia is a particularly appealing inducement for global corporations considering relocation.
It's Time to Partner with MIA Consulting
MIA Consulting offers expert services at the lowest possible cost of establishing a business in a Saudi Arabian free zone. The activity determines the cost of incorporating a corporation. MIA Consulting is a well-known name in free zone business registration in the Kingdom of Saudi Arabia. You may own and manage many businesses fully on your own. Our experience can assist you with all aspects of company registration in a free zone in Saudi Arabia.
If you feel your company may gain from company formation in a free zone in Saudi Arabia, you must ensure that you complete all necessary application criteria, including undertaking the mandated tasks. Working with a business partner like MIA Consulting who understands the requirements and can help you evaluate if Saudi free zones are suited for your business can be advantageous when establishing a business in the ILBZ. years of expertise assisting businesses throughout the GCC. We can assist you in navigating the whole process of registering a free zone company in Saudi Arabia, from company creation to post-launch business assistance.
MIA Consulting has the experience and competence to advise customers on the appropriate business type, taking into consideration local legislation and the individual demands of each customer. We have handled a variety of sectors and geographies all around the world. We understand money and the legal structure necessary to run a business. We will advise on the proportion of shareholding permitted for foreigners, as well as the rights associated with that percentage, as well as other commercial problems. MIA Consulting is closer to the customer and has a greater awareness of Saudi Arabia’s regulations and practices.
U A E