Want to start a business in Saudi Arabia? Getting an accurate understanding of the actual cost of business setup in Saudi Arabia will save you from all sorts of nasty surprises in the future. This entire 2025 guide includes types of licenses, the fees involved, and experts’ tips on how to set up economically.
Saudi Arabia is emerging as one of the attractive destinations for global entrepreneurs in 2025. The major reforms under Vision 2030 are prompting the Kingdom to actively invite investment by both foreigners and locals across a range of sectors.
However, a knowledge of setting up a business in Saudi Arabia would be imperative for planning by investors so as to avoid losses through hidden expenses and enable regulatory compliance. This article delves into licensing costs, setups, government costs, and ways to reduce your startup budget.
For a bigger picture of how to open a company in the Kingdom, read our detailed overview on business setup in Saudi Arabia.
Vision 2030 has brought about a wave of reforms that promote business-friendliness. These include foreign ownership by 100% in most sectors, no personal income tax, and a streamlined process to register companies. With a perpetually young population and favourable geography, the Kingdom is fertile ground for long-term growth.
Having said that, one must clearly ascertain upfront and ongoing setup costs before entering the market. Investors must have a clear picture of all financial obligations, including licensing, office space rental, and employee hiring.
Get in touch with our team to find out about our approach
BOOK FREE CONSULTATIONResponse within 24 Hours
Business setup costs differ considerably in Saudi Arabia due to several factors:
If you’re planning to enter the manufacturing sector, the guide on how to obtain an industrial license in Saudi Arabia outlines the cost and compliance factors involved.
Business Size | Estimated Cost (SAR) | Description |
Small | 50,000 – 120,000 | Suitable for single-owner consultancies, e-commerce startups |
Medium | 150,000 – 350,000 | Includes multiple employees and office leases |
Large | 500,000+ | Includes industrial licensing, manufacturing units, or large-scale operations |
Registering in the Saudi mainland allows total access to the local market but has more stringent Saudization rules and higher license fees. However, free zones, such as KAEC or NEOM, offer attractive tax benefits and fewer operational constraints, particularly for export-oriented businesses.
A more extensive comparison of the two options is provided in our comparison of free zones versus mainland setup in Saudi Arabia.
Talk to an Arnifi consultant to secure proper cost estimates for your business.
License Type | Estimated Fees (SAR) | Notes |
Commercial License | 15,000 – 25,000 | Includes trade license and Chamber of Commerce fees |
Industrial License | 40,000 – 100,000+ | Includes factory inspections, environmental permits |
Professional License | 10,000 – 20,000 | For individual professionals and service-based firms |
Entrepreneurial Setup | 5,000 – 10,000 | For startups or freelancers under special programs |
When mentioning manufacturing or heavy industry, it is helpful to study our case studies on setting up manufacturing companies in Saudi Arabia or the launching of the chemical production industry to understand the industrial costs associated with them.
Get in touch with our team to find out about our approach
BOOK FREE CONSULTATIONResponse within 24 Hours
Besides license and registration fees, count on these additional expenses as well:
There are various avenues to managing or cutting startup expenses:
To fairly calculate the costs for your setup:
For industry-specific examples, particularly in capital-intensive sectors, read our insights on the petrochemical sector in Saudi Arabia and how its cost structures differ from service-based businesses.
Q1. What is the cheapest way to start a business in Saudi Arabia?
Go for a professional or entrepreneurial license, as well as a virtual office, to minimize its cost.
Q2. Is it expensive for foreigners to set up in KSA?
Costs are reasonable compared to some other GCC countries and even more so with recent reforms permitting full ownership in many sectors for foreigners.
Q3. Do setup costs differ for Saudi nationals and expats?
Yes. Nationals tend to have reduced setup fees as well as easier access to certain categories of licenses. Expatriates will also incur MISA licensing and visa charges.
Knowing the cost of setting up a business in Saudi Arabia is a very important aspect of entry into the market. Both the selection of the license and hiring employees, among other compliance requirements, go through effective budgeting measures that will help you avoid costly mistakes and prepare your firm for success in the long term.
Be advised that you speak with a consultant at Arnifi, who can help target a personalized spending estimate, along with expert counsel on navigating the regulatory landscape, as well as spending wisely right from day one.
Top UAE Packages
Top UAE Packages