How to Start Import Export Business in Saudi Arabia

In 2023, Saudi Arabia exported goods worth about US$320 billion and imported around US$207 billion, leaving the Kingdom with a trade surplus of roughly US$113 billion.

Saudi Arabia is pushing hard to grow non oil trade under Vision 2030, so import and export activity keeps rising each year. That shift opens space for small and mid sized firms that can handle paperwork, sector rules and bank planning without guesswork. 

A clear structure for licences, customs registration and VAT helps a founder treat cross border trade as a controlled project instead of a risky experiment.

Why Saudi Arabia Attracts Import and Export Ventures

Saudi Arabia sits between Asia and Africa and is close to Europe. It has busy ports on the Red Sea and on the Arabian Gulf. For many nearby producers, the kingdom is both a strong consumer market and a base to send goods onward. 

Vision 2030 plans aim to grow logistics services, factories and tourism. As these plans move ahead, demand is rising for imported machinery and specialist materials. Consumer brands are also seeing more interest in the market.

Local factories also search for export partners who can handle regional distribution.

For any new entrant, the goal is simple. Treat Saudi trade rules, tax systems and banking needs as core parts of the business model, not as back office tasks.

Clarify Business Model and HS Codes Before Registration

Planned product line	Example HS chapter / heading	Example 6-digit HS code*
Consumer laptops / notebooks	Ch. 84 – Automatic data processing machines (8471)	847130
Cotton T-shirts for retail	Ch. 61 – Knitted apparel, T-shirts etc. (6109)	610910
Face creams / skin care creams	Ch. 33 – Beauty or skin care preparations (3304)	330499
Sweet biscuits / cookies	Ch. 19 – Bread, pastry and biscuits (1905)	190531
Industrial mixing equipment	Ch. 84 – Machines with individual functions (8479)	847982

Before any licence request, management should write a short note on the proposed trade model. That note usually covers target sectors, main products, supplier regions, buyer regions and expected shipment values.

Each planned product needs a rough classification under the Harmonised System code structure. HS codes drive customs duty rates, import controls and possible anti dumping measures. A wrong code can delay clearance or change landed costs.

At this stage many firms take light advice so product descriptions and HS choices match Saudi customs practice. That avoids later disputes when declarations are audited.

Licences Needed To Start Import Export Business In Saudi Arabia

Key permits for an import export venture often include:

• Commercial Registration with the Ministry of Commerce, showing the correct import and export activities.
• Membership of the relevant Chamber of Commerce to access certificates of origin and trade services.
• Registration with the Zakat, Tax and Customs Authority as an importer and, if in scope, as a VAT registrant.
• Sector approvals for regulated goods, such as food, medicines, telecom equipment or chemicals.
• Municipal or zoning licences for warehouses, showrooms or offices inside the kingdom.

Some founders operate only as export agents, with goods never entering Saudi territory. Even in that lighter model, bank and tax registrations still matter so commission income is reported correctly.

Estimated Costing for a Basic Import Export Structure

Typical government fee bands for a standard import export company in Saudi Arabia includes the following structure.

However, exact figures change by activity and year, yet this outline helps founders size a first budget. On top of this, traders budget for Fasah customs account setup, import VAT at 15 percent on goods at entry, plus advisory and logistics costs.

Item	What it usually covers	Indicative range (SAR)
Trade or investment licence	Core approval for trading or import export activity	Around 2,000 to 12,000
Commercial Registration and name	CR, trade name reservation and basic Ministry services	Around 1,200 to 3,000
Chamber, municipal and legal work	Chamber membership, municipal licence and document attestation	Often 8,000 to 20,000

Step-By-Step: Opening Import Export Activity Online

Saudi authorities now lean heavily on digital portals, which reduces in person visits. A typical online sequence looks like this:

• Create a national access account and obtain credentials for the Ministry of Commerce portal.
• Apply for or amend the Commercial Registration so import and export activities appear in the list.
• Register for VAT once revenue, or expected revenue, crosses local thresholds or when the model clearly falls in scope.
• Open an account on the customs single window, linking it to the CR, tax number and chambers membership.
• Connect the ERP or accounting tool to e-invoicing systems so tax invoices follow local formats.

Working With Saudi Customs, Ports and Logistics

Once the structure exists, attention shifts to movements through ports, airports and land borders. Saudi customs systems expect advance electronic declarations that match physical documentation.

Forwarders and customs brokers play a large role for new entrants. They translate shipping plans into declarations, arrange inspections when needed and coordinate with port operators. Even then, ultimate liability for accuracy stays with the trader, not the broker.

Clear written instructions for each shipment, plus agreed HS codes and values, prevent last minute disputes on the quay.

Core Documents for Import and Export Shipments

Customs officers rely on a standard set of records. For most general goods the package includes:

• Commercial invoice with correct legal names, tax numbers and payment terms.
• Packing list that matches weights and carton counts on the manifest.
• Transport document, such as bill of lading or airway bill, showing ports and consignees.
• Certificates of origin, especially where free trade agreements reduce duty.
• Any safety, conformity or health certificates required for the product line.

Keeping templates for these documents inside the accounting or logistics system reduces typing errors and speeds up repeat orders. Arnifi can very well guide throughout the process to make it error-free.

Managing VAT, Duties and Tax in an Import Export Business

Saudi Arabia applies VAT at a standard rate that currently sits above the early GCC level. Import VAT is usually collected at the border based on customs value plus duties. Registered businesses later treat that VAT as input tax if conditions are met.

Exports of goods often qualify for zero rating if evidence of export is kept. Services follow detailed place of supply rules, so firms that sell consultancy or digital services across borders should test each transaction carefully.

Some product groups suffer excise tax, such as tobacco or sugary drinks. Any trader near those lines needs early excise advice so pricing and labelling match the regulations.

Saudization Rules For Small Trade Firms

Saudization, also called Nitaqat, sets minimum hiring levels for Saudi nationals by sector and size. Each company sits in a colour band that affects licence renewals and visa services. Even small traders usually need at least one Saudi employee over time.

Visa Steps After Company Setup

After Commercial Registration and ZATCA setup, the firm opens labour and social insurance files, then applies for work visas. Later, those visas convert into residence permits that link staff to the employer’s records.

Opening A Trade Bank Account

Banks ask for the MISA licence in foreign owned cases, CR, ID for managers and owners and basic KYC documents before opening a trade account. Many guides note that activation can take several days or in some cases a few weeks, especially when import export activity needs Fasah links.

Planning Tips for an Import Export Company

Trade owners in Saudi Arabia usually face four people’s questions once licences are ready.

Bringing staff into Saudi Arabia

After CR, ZATCA and labour files sit in place, the company can request a quota of work visas that fits its Saudization band and activity. Approved candidates use these to get entry visas, then finish medical tests and fingerprinting inside the Kingdom before work starts.

Who sponsors the employees?

In a standard setup, the trading company itself acts as sponsor for its expat staff once the labour file opens and first visas are issued. That sponsor link feeds directly into the firm’s Saudization record.

How does Iqama work?

The iqama is the resident ID card. It ties the worker to one employer and to social insurance systems. It is issued after entry and checks. Owners must track expiry dates and job titles so iqamas always match real roles and contracts.

Saudization for import export activity

Nitaqat rules set minimum Saudi hiring levels by sector and size. Trade and logistics entities sit inside that grid. Ignoring those levels can lead to blocks on fresh visas or renewals. A basic plan to add Saudi staff over time keeps the file in safer bands.

How Arnifi Supports Trade Businesses Across 13 Markets

Arnifi supports business setup across thirteen markets in the Gulf and nearby regions, then links that view to daily accounting and tax support. Boards see one map of how Saudi customs rules, VAT, Zakat and home country tax paths interact inside each trade lane.

For Saudi Arabia, Arnifi works with specialist partners on trading structures that align MISA or other licence routes, Commercial Registration, Fasah customs registration, Chamber membership and ZATCA onboarding. 

Once trade flows begin, we develop structured calendars to track import VAT, duty, excise where relevant and periodic returns. It helps management focus on pricing, supplier terms and customer delivery instead of chasing deadlines.

Final Checks Before First Shipment

Before the first commercial shipment leaves, it helps to run one tight final check. Confirm that CR, VAT and customs registrations match your current activities and addresses. Test sample invoices and e invoices in the accounting system and make sure every field posts in the right format. 

Check that contracts clearly state who handles freight, insurance and customs clearance, then store soft copies of all permits, sample documents and bank approvals in a shared, secure drive. For extra comfort, Arnifi can review Saudi registrations and sample documents once and highlight any gaps before shipping.

FAQs

Is a local partner always required for an import export company in Saudi Arabia?

Company law now allows full foreign ownership in many sectors, subject to investment licences. Some sensitive areas still keep extra conditions, so founders should check the current foreign investment list before deciding on structure.

How long does it take to obtain an import export licence in Saudi Arabia?

Timelines depend on sector and document readiness. Simple trading activities with clean shareholder records can move through in a few weeks. Regulated sectors that need technical approvals may take longer.

Can a Saudi trading company operate only as an exporter without importing goods?

Yes, some entities act as export agents for local manufacturers. They still hold Commercial Registration and tax numbers, since commissions and service fees remain taxable income and must appear in accounts and returns.

What minimum capital is needed for an import export venture in the kingdom?

Minimum capital depends on legal form, foreign ownership level and investment licence terms. Many small trading entities operate with modest capital, provided banking and regulatory requirements are satisfied.

How does an importer keep up with customs and tax changes in Saudi Arabia?

Regular checks of official portals, participation in chamber events and periodic reviews with advisers keep policies current. Firms that work with regional specialists such as Arnifi often fold those updates into annual tax and process reviews.