When you run a successful business, you are always looking for ways to improve it. Whether it be a new office or a new employee, it can make a huge difference. But what does the best job in improving the quality of your business is expanding overseas. No matter where you currently live and where your business is, you can and you should start thinking about expanding your business to Saudi Arabia. If you aren’t sure why this would be a great idea, no need to worry. We have all the information you want to know about expanding your business to Saudi Arabia.
Why is expanding your business to Saudi Arabia a good idea?
Saudi Arabia has one of the most rapidly expanding populations in the world as well as a great economy. Mostly people from the United States and Europe move to the Middle East. When you put these two together you have got yourself a perfect place for expanding your business. When you are looking to expand your business, you want to do it in a market that is in better condition than the one you are already working in. Saudi Arabia is a tough market to penetrate, which is amazing for those who want to expand their businesses. But partnerships can be difficult to establish in Saudi Arabia which might be a problem for certain businesses.
Saudi Arabia is a rich country. They set aside a lot of money while still spending a lot of money. This is because they are one of the biggest oil exporters in the world. And oil is very expensive. Just last year, Saudi Arabia earned over $230B just from exporting oil. But oil isn’t the only thing they export in large amounts. They export petroleum too which is also a very expensive good that brings a lot of money to their economy.
Import is also very important in Saudi Arabia. They import a lot of goods such as cars, food, clothes, etc. So, if your business has something to do with import or any of the goods Saudi Arabia imports you already know expanding it there isn’t a bad idea. fourwinds-ksa.com is a moving company that can help you relocate your business and your family if you see this country as a perfect opportunity to thrive.
Main industries in Saudi Arabia
Before you relocate your business anywhere in the world you have to know which industries dominate the market and where the biggest profit is. Without this information, you can make a huge mistake. So to prevent this from happening to you, you might want to read what we have to tell you about the industries in Saudi Arabia.
- Oil – Like we already mentioned, Saudi Arabia earns a lot of money from exporting oil as 90% of export earnings come from the nation’s oil reserves. This is considered to be Saudi Arabia’s biggest commodity.
- Power and Water – Because the population is rapidly growing, the country’s infrastructure is suffering. Because of this, the country of Saudi Arabia set aside $200B for improving and developing its power and water technology.
- Education – The unemployment rate in Saudi Arabia is pretty high, believe it or not. This is also because of the large number of expats. For this reason, Saudi Arabia decided to start investing more money in the education of its population. Working in this industry in Saudi Arabia can bring you a lot of success. Now, young people from Saudi Arabia don’t have to move to Europe for University education.
- Construction – As the country has been evolving quickly, construction became one of the main industries in Saudi Arabia. They are also building transport links to help them transport goods to other countries as well as import them. Transportation of your goods in Jeddah is now much easier to do than it was before.
- Information and Communications technologies – Because we live in the age of computers, information and communications technologies became very popular among the population of Saudi Arabia. The government is looking to make the telephone networks better and eventually privatize them.
- Financial Services – the government simply wants to create more diversity in its predominantly oil-based economy and that is why they decided to invest in financial services. So, if your business has anything to do with financial services, Saudi Arabia is the place for your expansion.
What else you need to know before expanding your business to Saudi Arabia
Because Saudi Arabia is a new market, not many people know what exactly the things you need to do in order to expand your business there are. SAGIA is a company registration process in Saudi Arabia. To be a shareholder in a company or own a company, a foreigner must obtain a foreign capital investment license from SAGIA. The first thing you need to do is to reserve the name of the company. Then you need to submit the articles of association and notarization.
After you’ve done that, you need to open a bank account. Then the Municipality of Riyadh and Post Office has to give you the business location license. After you obtain that license you can register your company. But you have to pay for the registration fee. The company registration fee in Saudi Arabia is SAR500. And after you register your company, you have to wait another day to obtain a certificate of company registration in Saudi Arabia.
The next step would be to pay the Chamber of Commerce a membership fee – SAR 2000. Registering with the Ministry of Labor is the next task on your “to-do” list. You also need to register with the General Organization for Social Insurance – GOSI, and with the Department of Zakat. After you’ve done all of this, you need to open a branch office in KSA. From there they will give you all the other information you need for your business relocation and expansion.