The Saudi Arabian government has made significant progress in implementing the Vision 2030 reform program. The nation has come to the conclusion and comes to realization that in order to compete with the regional market and satisfy the expectations of future generations, certain rules, government requirements, and regulations need to be updated.
According to the IMD Global Competitiveness Rankings, Saudi Arabia’s competitive economies have climbed 13 places, from 39 in 2018 to 26 in 2019. This is a sign of how driven Saudi Arabia is to achieve their goals. In 2018, Saudi Arabia ranked 39th in competitive economies.
In addition, in order to reflect the significant increase in the overall score of the ease of doing business in Saudi Arabia, the procedures to begin forming your firms in Saudi Arabia have been reduced. In light of this, what are the prerequisites for acquiring an investment license in Saudi Arabia?
In order to become incorporated in Saudi Arabia in compliance with the regulations governing foreign investment, Basic Prerequisites for establishing a business in Saudi Arabia generally consist of submitting two required documents, which are as follows:
- A copy of the commercial registration of the shareholding partner that has been certified by the Saudi Embassy
- Financial statements of the applicant foreign company that have been certified by the Saudi Embassy for the most recent fiscal year
After submitting the necessary documentation, the SAGIA evaluation procedure takes less than a day to complete. If the firm is approved, it will be granted a SAGIA license, which is a license granted by a government entity known as the Saudi Arabia General Investment Authority.
The investment license is the first document that is necessary for any overseas business that has decided to enter the market in Saudi Arabia. In addition, the minimum capital requirement that was previously needed to incorporate and establish in Saudi Arabia has been eliminated for the majority of operations, making it easier for small and medium-sized foreign enterprises to establish a presence in the Saudi market.