Introduction to Investing in KSA
The Kingdom of Saudi Arabia is one of the top 20 economies in the world and the largest economy in the MENA region representing 38% of Arab GDP. Owing to its economic and political stability, the Kingdom has remained one of the largest destinations for foreign direct investment in the Middle East. The Kingdom’s strategic location means it is an integral driver of international trade, connecting three key continents: Africa, Asia and Europe.
Its developed industrial infrastructure and service base, and its competitive energy and commodities pricing makes the Kingdom an excellent gateway to a regional market of 300 million consumers.
Saudi Arabia and the United Kingdom
Saudi Arabia is the United Kingdom’s primary trading partner in the Middle East. Already there are over 200 joint ventures worth in excess of £10.0bn. Saudi Arabia is in the UK’s top 15 biggest import partners. UK imports from Saudi Arabia has grown by significantly over the last could of years. With currently all UK regions exporting to Saudi Arabia.
Top UK exports to Saudi Arabia include transport related equipment, medical and pharmaceutical products, general industrial machinery, professional and scientific instrument, automobiles and foodstuffs.
Major Saudi corporations have invested in the UK economy and are responsible for thousands of local jobs. These include Kingdom Holding’s part ownership of the Four Seasons hotel company and the Savoy hotel. Mohamed bin Issa Al-Jaber owns UK companies JJ Hotels, Continentoil and Jadawel International. Abdulaziz Al-Turki owns Al-Rawabi Holdings.
There is enormous investment opportunity in Saudi Arabia. According to a McKinsey Institute report, in the next decade or so to 2030, Saudi Arabia could potentially double its GDP again, increase real household income by about 60 percent and create as many as six million new jobs.
To help strengthen our business relationship, Saudi Arabia and the United Kingdom have created an organization focused purely on helping UK businesses enter the Saudi market
The British Offset Project provides a range of services and benefits that facilitate the entry of British firms into the Saudi market. Further information is available at http://www.britishoffset.com/
Doing Business in Saudi Arabia
There are several ways of doing business in Saudi Arabia, most common of these are:
• Direct Exports
• Non Resident Execution of Projects
• Commercial Agents and Distributors
• Technical and Scientific Offices (Rep Offices)
• Permanent Branches
• Temporary Branches
• Sole Proprietorships
• 100% Self-Owned Companies (Limited, Joint Stock)
• Joint Venture Companies (Limited, Joint Stock)
Doing business in Saudi Arabia is getting easier. The Kingdom is seeking to increase Foreign Direct Investment; it is ranked 3rd in the world for fiscal freedom and it’s the 3rd most rewarding tax system in the world.
For further information visit:
New investors wishing to access the Kingdom’s markets might benefit from obtaining guidance from one of the following organisations:
• Arab British Chamber of Commerce (ABCC)
• Council of Saudi Chambers
• General Authority for Zakat and Tax
• General Organisation for Social Insurance
• Ministry of Commerce and Investment
• National Industrial Clusters Programme
• Saudi Arabian General Investment Authority (SAGIA)
• Saudi Export Development Agency
• Saudi Export Programme
• Saudi Industrial Development Fund
• The Saudi British Joint Business Council
Embassy Commercial Office
The Commercial Office at The Embassy is in place to promote inward investment to the Kingdom of Saudi Arabia as well as to support Saudi exports to the UK.
The Commercial Office is based at the embassy: 30 Charles Street, London W1J 5DZ