By Innovation-sa on April 24, 2021 in Blog
The oil-rich Arab country, Kingdom of Saudi Arabia (KSA), is emerging as a fresh ground for new businesses and companies. Widely known as a conservative country with much prominence to the cultural rules and guidelines, companies and people need to adapt and appreciate the local system to function smoothly. With the government introducing flexibility to acquire a visa for Saudi Arabia, the country has become more open to entrepreneurs and private sector companies. With the country being ranked high in the Ease of Doing Business Survey, especially for protecting minority investors, Saudi continues to grow as a hub for SMEs and larger corporate. Here are four conducive factors promoting business in KSA:
Economy
Although the petrochemical and construction industry is the existing major profitable sectors in the country, newer spheres have been emerging. The government has introduced various relaxations to its traditional regulations to encourage tourism. Special visa provisions like instant visas, businesses, and new entrepreneurs are getting fresh opportunities to explore and flourish in the country.
Legal Reforms
The government has been striving to offer a better and nurturing condition to businesses with various loan schemes and other government programs. Positive reformations supporting minor investors in the country lead to the country being ranked high for ease of doing business. Multiple revisions and simplification of the visa procedures have further accelerated the system for employment and other business activities. By promoting equal rights in various rights, the country has also been eliminating gender discrimination to encourage women entrepreneurs.
Relaxation in Procedures
Foreign entrepreneurs who wish to establish their businesses in the country can now experience easy regulations and improved support from the concerned authorities in power. The government has also eased ownership rights of any business to have full ownership over the business. Anyone who abides by the existing country regulations can open a limited liability company, limited liability one-person company, joint-stock company, and a foreign company branch in Saudi. The Saudi Arabian General Investment Authority has also introduced special benefits such as minimal corporate taxes compared to other MENA countries to encourage businesses and companies to function smoothly in the country.
Labor Conditions
The country has a properly working system and rules to control the work hours and holiday patterns. A legal working week in Saudi involves 48 hours. This may be executed by companies in different ways, such as for five days with working timings of eight hours a day or six days with six hours a day. All firms are obliged to maintain daily prayer breaks five times a day.