GCC Markets · current conditions as of 11 October 2026 · fundamentals reviewed 16 October 2026
🇸🇦 Doing business in Saudi Arabia
Largest GCC economy undergoing rapid Vision 2030 reforms.
Long-term risk: Medium
Current alert: High
Directly exposed to the Iran conflict; Gulf export routes disrupted. Crude is moving via the East–West pipeline to Red Sea ports, but the Houthis declared a maritime embargo on Saudi shipping in July and seized much of Yemen's Bab al-Mandeb coastline on 10–11 Sep (partly retaken by Yemeni government forces in early October).
The Strait of Hormuz has been effectively closed to normal commercial shipping since 28 Feb 2026: official daily transit counts remain in single digits on most days (vs ~85 pre-war), and much of the remaining traffic sails with transponders off. Attacks on ships became near-daily in early October (12 in the week to 7 Oct, the most since the war began) and the US blockade of Iran continues. Talks have stalled: Washington has not accepted Iran's late-September proposals, and on 4 Oct Iran said the strait will stay closed until its conditions are met. Saudi Arabia has shifted exports to Red Sea ports via the East–West pipeline, but the Houthi embargo on Saudi shipping and their seizure of the Bab al-Mandeb coastline (10–11 Sep, now contested) add risk to that route.
Conditions change fast. Check current government travel and trade advisories before acting.
What makes up the long-term score
Highlights: Vision 2030 diversification · Mega project opportunities · Saudisation requirements apply
Key industries
Energy & Petrochemicals ↑ Stable growth
Saudi Aramco is the worlds most profitable company. Vision 2030 is diversifying downstream petrochemical value chain.
Main investors: China, Japan, US, South Korea
Construction & Infrastructure ↑ Rapid growth
NEOM, Red Sea Project, Diriyah and Qiddiya represent over $1 trillion in giga-project construction pipeline.
Main investors: China, US, UK, South Korea
Tourism & Entertainment ↑ Rapid growth
Saudi Arabia targeting 150M visitors by 2030. Massive investment in culture, sport and entertainment sectors.
Main investors: US, UK, France, UAE
Technology & Digital ↑ Strong growth
Saudi Vision 2030 targets technology sector contribution of 3% of GDP. Cloud, AI and cybersecurity are priorities.
Main investors: US, China, UAE, UK
Sector priorities
- Giga-Projects & Construction: Over $1 trillion in committed project spend across NEOM, Red Sea, Diriyah creating enormous demand for contractors and consultants.
- Tourism & Hospitality: Government targeting 150M visitors by 2030 creating massive hotel, entertainment and transport infrastructure demand.
- Technology & AI: SDAIA and STZA are offering significant incentives for technology firms establishing regional operations in Saudi Arabia.
Talent & work permits
Saudi workforce of 15M with growing female participation now at 33%. English widely spoken in business contexts.
- Foreign workers: Iqama work permit required. Employer sponsored. Dependent on Nitaqat compliance status of the hiring company.
- Localisation: Nitaqat Saudisation programme mandates local hiring quotas ranging from 10% to 35% depending on sector and company size.
- Key consideration: Regional Headquarters mandate requires multinationals to employ Saudi nationals in senior leadership roles.
Summarised from our dataset and not yet linked to sources. Verify with local counsel before acting.
How to enter: first four steps
Saudi Arabia requires foreign firms to obtain a MISA licence. Multinationals bidding on government contracts must establish a Regional HQ.
- Obtain MISA licence: Ministry of Investment Saudi Arabia is the single window for foreign investment approvals
- Determine RHQ requirement: Mandatory for multinationals seeking government contracts from January 2024
- Register with ZATCA: Saudi tax authority registration required before commencing operations
- Establish Nitaqat compliance plan: Map your Saudisation targets by role before hiring begins
Indicative cost: 10-person team
Professional-services team (1 senior manager, 5 professionals, 2 admin, 2 support), Grade A office, registration, legal, audit and tax compliance. Model estimate, not a quote.
First year by industry (10 people)
Regulatory watch
- Feb 2026 · VAT Refund Process Update: ZATCA announced streamlined VAT refund process for qualifying foreign businesses.
- Mar 2026 · RHQ Mandate Enforcement: Saudi Arabia begins enforcing Regional Headquarters requirement for multinationals bidding on government contracts.
- Mar 2026 · Vision 2030 Giga Project Procurement: NEOM and Red Sea Project announced new international contractor prequalification rounds for 2026 construction phases. Regional HQ requirement strictly enforced for bidders.
- Feb 2026 · Saudisation Targets Increased: HRSD announced increased Nitaqat Saudisation targets across financial services, technology and consulting sectors effective Q2 2026.
Compare with GCC Markets peers
Tap a market to see it side by side with Saudi Arabia.
Common questions
Is Saudi Arabia a good market to enter in 2026?
Saudi Arabia has a long-term score of 7.0/10 on EmergingMarketIQ’s index (long-term risk: Medium) and scores 5.0/10 now, as of 11 October 2026. Largest GCC economy undergoing rapid Vision 2030 reforms. The Strait of Hormuz has been effectively closed to normal commercial shipping since 28 Feb 2026: official daily transit counts remain in single digits on most days (vs ~85 pre-war), and much of the remaining traffic sails with transponders off. Attacks on ships became near-daily in early October (12 in the week to 7 Oct, the most since the war began) and the US blockade of Iran continues. Talks have stalled: Washington has not accepted Iran's late-September proposals, and on 4 Oct Iran said the strait will stay closed until its conditions are met. Saudi Arabia has shifted exports to Red Sea ports via the East–West pipeline, but the Houthi embargo on Saudi shipping and their seizure of the Bab al-Mandeb coastline (10–11 Sep, now contested) add risk to that route.
How much does it cost to set up a 10-person office in Saudi Arabia?
Our cost model estimates about US$1.4M for the first year (≈US$107k per month run-rate plus ≈US$31k one-off setup) for a 10-person professional-services team; depending on industry the range is US$1.1M–US$1.6M. Indicative only.
What are the first steps to set up a company in Saudi Arabia?
Obtain MISA licence: Ministry of Investment Saudi Arabia is the single window for foreign investment approvals Then: Determine RHQ requirement: Mandatory for multinationals seeking government contracts from January 2024 Then: Register with ZATCA: Saudi tax authority registration required before commencing operations Then: Establish Nitaqat compliance plan: Map your Saudisation targets by role before hiring begins
Source: EmergingMarketIQ country dataset. Current conditions and alerts updated 11 October 2026; GDP (World Bank 2025) and FX 24 September 2026; structural scores reviewed 16 October 2026. Rules, rates and conditions change, so verify with local counsel before acting. Not legal, tax or investment advice.