Guide to launching an IT start-up in Saudi Arabia

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The map of Saudi Arabia

Moving or launching an IT start-up in Saudi Arabia is actually a pretty smart move. Many businessmen are doing this. Saudi Arabia is becoming a perfect place for this line of work and there are many benefits when opening an IT business there. Launching a start-up in Saudi Arabia will be much different if you are doing it as a foreigner. You will need additional licenses and you will also need to talk to a lawyer. As you can see their laws are much different from the ones in the States. There is nothing to be worried about, it’s just a matter of getting adequate help and starting your business the right way. There should be no surprises once you start. Luckily, you have us to point you in the right direction.

Additional permits and paperwork you will need

The initial step in setting up a Saudi firm with foreign owners is to secure an investment license. To do so, one must first apply for an investment license from the Saudi Arabian General Investment Authority (SAGIA). Afterward, you can register your company in KSA by contacting the Ministry of Commerce. One of the mainstays of Saudi Arabian entrepreneurship is the small and medium business initiative known as Monsha’at. Your lawyer will tell you all about this when you tell them that you are planning to expand your business to Saudi Arabia, we just had to give you a heads-up.

A person signing a contract when launching an IT start-up in Saudi Arabia.
Paperwork is something you can’t avoid when starting a business. If you find professionals to help you, it will be much easier and safer.

Benefits of starting a business in Saudi Arabia

Setting your shop in Saudi Arabia makes sense for a variety of practical and ethical reasons. To begin with one or the other, it ranks among the best levels of education and health care and has one of the lowest crime rates in the world. Those from out of town who set up shop here can take advantage of low personal and corporate tax rates and a robust business infrastructure, particularly for enterprises that are not directly tied to the oil industry.

Increased business friendliness in Saudi Arabia is now also contributing to the country’s rising profile. That’s why you can hear all about American businesses moving to Saudi Arabia. The Kingdom of Saudi Arabia has made such strides in this area that it topped the World Bank’s Doing Business Index last year, placing above Qatar, India, and Luxembourg.

They are investing in IT

Experts stress the importance of training the next generation to power the region’s booming technology businesses since the kingdom is home to the region’s largest technology market (with a volume of more than $40 billion). Saudi Arabia’s Mohammed bin Salman (Crown Prince)  has been actively courting Silicon Valley. He did that in an effort to hasten the country’s modernization in 2018. He has been emphasizing the role of technology in this process. Also, he spoke with the likes of Google’s Sergey Brin and Microsoft’s Satya Nadella. In addition to touring Facebook’s offices with Mark Zuckerberg, visiting Harvard, and MIT, and talking about space flight with Richard Branson were all on his itinerary. To further its high-tech goals, the country has recently signed a number of accords and is predicted to spend $24.7 billion on tech by 2025. That would make it the country with the biggest government spending on technologies in the world at that time. And $6,400,000,000 for unspecified future technology. Now all you need to do is learn about common start-up mistakes and find a way to avoid them. Luckily, we can help you.

a person working on a laptop.
Now is a good time to start your IT business in Saudi Arabia, but do you know where exactly? Keep reading since we have a suggestion for you.

The best place for your IT start-up in Saudi Arabia

Jubail looks like the best place for this. Placed as the fifth best city in Saudi Arabia and the 5006th greatest city in the world. Jubail, the 8th biggest city in Saudi Arabia, is home to an estimated 379K people. In the last 10 years, the IT sector in this city is booming and many IT companies are moving or expanding here. Some are doing this for the benefits, some to be near competition, and some simply like Jubail. We recommend you take a good look at this city and research it well. If you decide to move or open an IT start-up right here, you will need to think about the transport of your items. You can easily transport your items without issues. All you need to do is find professionals to help you out.

a man in a suit showing thumb up for launching an IT start-up for
Launching an IT start-up in Jubail is a very smart decision.

Moving your office supplies and equipment to Saudi Arabia

This is a pretty major thing. If done right, you will be able to quickly start your business, if not you will waste time – waiting for your equipment to arrive. That’s why you need to find professionals who know how to handle transportation and who know all about Saudi Arabia’s customs and laws. Four Winds KSA is a name that will pop up as soon as you start researching professionals who can help you to achieve all this. Check them out and see how they can be of help.

Launching an IT start-up in Saudi Arabia (summing things up)

  • Hire a local real estate agent to help you to find the perfect office space to rent
  • Obtain the licenses we talked about and consult a lawyer to see if there is anything else
  • Find language experts to help you to start your business, find employees, etc
  • Move all your equipment
  • Learn all about their culture, laws, and cultural differences before you start working with them

You will be surprised to see just how different our cultures are and that’s why research is crucial here. Take some time to prepare yourself as best as you possibly can and along the way – research competition. Good luck! Hopefully, soon enough we will hear all about your successful IT start-up in Saudi Arabia.