Ghada Ismail
In recent years, Saudi Arabia has thrown open its doors to foreign entrepreneurs, promising 100% ownership, faster business licensing, and easier visa pathways. Backed by Vision 2030, these reforms aim to position the Kingdom as a startup magnet, especially as regional rivals compete for global talent and capital. While homegrown entrepreneurship is thriving, a growing number of foreign entrepreneurs are also seeing Saudi Arabia as a promising destination to launch startups. As traditional barriers fade and incentives increase, expats are stepping forward not just as contributors to the Saudi economy but as builders of entirely new ventures. But what exactly makes Saudi Arabia appealing to expatriate entrepreneurs, and what roadblocks still stand in their way?
Is It Easy for Expats to Start a Business in Saudi Arabia?
Starting a business as an expat in Saudi Arabia is more possible than ever, but it isn’t without challenges. On the upside, the government has rolled out a suite of reforms and incentives aimed at making the Kingdom an attractive launchpad for startups of all kinds. Startups led by foreign nationals can now apply for investment licenses without needing a Saudi partner, thanks to changes rolled out by the Ministry of Investment (MISA). The business visa process has also been simplified, with multi-entry options for founders and employees.
Entrepreneurial residency programs, such as the Special Talent and Premium Residency visas, offer an alternative to traditional work sponsorships. These permits provide greater mobility, the right to own property, and fewer employment restrictions—key incentives for global entrepreneurs considering Saudi Arabia as a base.
Opening the Door for Expat Founders: Premium Residency Options
Saudi Arabia’s evolving residency landscape is playing a crucial role in attracting global entrepreneurial talent. One standout initiative is the Premium Residency Program, which offers foreign professionals, investors, and startup founders the opportunity to live and work in the Kingdom with greater flexibility and fewer restrictions.
According to Monsha’at, the Premium Residency holders enjoy several key benefits, including the ability to own real estate, conduct business, invite family members, and move freely in and out of the country without a visa. Notably, they are exempt from expat fees and can transfer between employers without penalties—a significant shift from the older sponsorship-based system.
There are multiple tailored tracks under the program that cater to the needs of foreign entrepreneurs and investors:
Entrepreneur Residency is specifically designed for startup founders aiming to build and scale in Saudi Arabia. It allows entrepreneurs to nominate two team members for residency under the Special Talent category and exempts them from the Saudization quota (Nitaqat) for the first three years. Those who create 10 jobs in the first year and another 10 in the second can directly qualify for conditional permanent residency.
Investor Residency targets those looking to tap into the Kingdom’s booming economy and offers a streamlined path to long-term residency.
Other tracks like Special Talent, Gifted, and Real Estate Owner Residency further expand the program’s appeal, catering to scientists, artists, athletes, and property owners.
With both limited and unlimited duration options, the Premium Residency program is helping redefine what it means to be a foreign entrepreneur in Saudi Arabia, offering not just access but long-term stability and inclusion in the Kingdom’s ambitious development journey.
On the policy side, recent changes have made it easier for non-Saudis to own 100% of their companies without the need for a local sponsor. Licensing procedures have been streamlined through platforms like “Meras” and “Monsha’at,” while the Ministry of Investment offers dedicated support for foreign investors looking to navigate regulations.
In the same context, foreign entrepreneurs can choose from several business structures based on their goals and industry, including:
Limited Liability Company (LLC)
Subsidiary of a Foreign Company
Joint Stock Company (JSC)
Regional Headquarters (RHQ)
Technical and Scientific Services Office (TSSO)
According to the Setup in Saudi website - a comprehensive digital platform designed to assist foreign entrepreneurs and businesses in establishing and growing their ventures within Saudi Arabia - each structure offers distinct benefits depending on the founder’s vision and operational needs, and consulting with a qualified business advisor or local incubator is highly recommended to navigate the legal and regulatory landscape smoothly.
Further, the Saudi Arabian General Investment Authority (SAGIA), now part of the Ministry of Investment (MISA), has made it possible for foreigners to obtain investment licenses within days, streamlining what used to be a more complicated process.
The Drawbacks:
However, barriers remain. Bureaucracy, though improving, can still be complex and time-consuming. Some expats face difficulties understanding regulatory updates, especially if they’re unfamiliar with Arabic or the local legal system. Moreover, competition in certain sectors—like food tech or logistics—has intensified, particularly from well-funded Saudi firms.
Cultural nuances also pose hurdles. Building trust with local partners or clients often requires deeper integration into Saudi business etiquette, which can be unfamiliar to newcomers. For many expats, establishing credibility and a reliable local network takes time—and often, patience.
Vision 2030 Impact:
Vision 2030, the Kingdom’s landmark transformation plan, explicitly encourages foreign participation in building a diversified, knowledge-based economy. The plan supports SMEs and startups through funding bodies like the Saudi Venture Capital Company (SVC), the Social Development Bank, and the Public Investment Fund (PIF).
Moreover, the Monsha’at SME Authority provides training, mentoring, and subsidized tools to early-stage founders—services which are increasingly accessible to expat entrepreneurs. Free zones and innovation hubs such as King Abdullah Economic City (KAEC), Neom’s Oxagon, and the Riyadh Techno Valley also offer regulatory and operational advantages to foreign-led ventures.
Real-Life Stories: Finding the Right Fit in Saudi Arabia
One compelling example of foreign expansion into Saudi Arabia comes from Waagner Biro Steel and Glass, an Austrian firm with over 165 years of engineering expertise, whose success story was narrated by the Setup in Saudi website.
Known for high-profile projects across the Middle East, including the Floating Bridge and Al Noor Island Development in the UAE, the company recognized Saudi Arabia as the next logical step, both strategically and economically.
“We saw a market that’s simply too big to ignore,” said Jason Wilson, General Manager of Waagner Biro Steel and Glass. “The upcoming global events—like the 2029 Asian Winter Games and Expo 2030—are more than milestones. They are catalysts driving accelerated urban development.”
Motivated by the ambitions of Vision 2030 and the scale of infrastructure transformation underway, the firm partnered with expansion platform AstroLabs to navigate entry into the Saudi market. With local guidance, they were able to efficiently meet entry requirements, build the right relationships, and set up operations aligned with their long-term vision.
Wilson emphasizes that local engagement is key. “It takes face-to-face interaction. Don’t spend too much time developing remote strategies. Get on the ground. Meet suppliers. Assess capacities. The earlier you’re in, the sooner you adapt.”
Waagner Biro’s story underscores how established foreign companies, when supported by local networks and aligned with national priorities, can thrive in Saudi Arabia’s evolving economic landscape.
Challenges to Watch Out For
Despite the promising developments, launching a startup in Saudi Arabia as an expat is not without its friction points.
Legal and Licensing Complexities:
Even with streamlined procedures, licensing can still be nuanced depending on the sector. Certain activities require approvals from multiple agencies, and rules around foreign ownership can vary for industries deemed strategic or sensitive. Navigating these nuances often requires legal counsel or local advisors, adding to the cost and complexity.
Access to Capital:
While the venture capital scene is growing rapidly, access to funding for expat-led startups is still somewhat limited compared to those with Saudi founders or partnerships. Many local VCs prefer to back teams with a strong Saudi presence or deep local understanding. Establishing investor confidence as an outsider can be difficult unless paired with a compelling Saudi-market value proposition or a local co-founder.
Hiring and Retention:
Saudi Arabia’s labor laws and Saudization requirements—while not always applicable to early-stage ventures—can still affect long-term hiring plans. Many expat founders report challenges in finding the right mix of local and international talent, especially in niche tech or design roles.
Cultural and Consumer Fit:
Creating a product that resonates with Saudi consumers often requires an insider’s perspective. Foreign founders must take time to understand social norms, spending habits, and consumer expectations. What works in Western or Asian markets may not translate directly in the Kingdom.
Navigating the Ecosystem:
While support programs are abundant, knowing which doors to knock on isn’t always easy. Some expats report difficulty navigating the overlapping mandates of multiple government agencies or gaining visibility within local investor networks.
Conclusion & Future Outlook
Saudi Arabia is emerging as a serious contender on the global startup map, not just for Saudis, but increasingly for the world’s entrepreneurs. Its fast-growing market, government-backed funding, and ambitious economic diversification goals make it a fertile ground for innovation.
For expat founders, the opportunity is clear: access to a young and growing population, government support, and a hunger for new ideas. But success requires more than just a visa and a business plan. It takes cultural adaptability, regulatory know-how, and the ability to forge strong local partnerships.
As the Kingdom continues to open its doors to global talent, the next wave of startups will likely be built by teams that blend international experience with local insight. And for those willing to learn, adapt, and build with intention, Saudi Arabia may well be one of the most promising frontiers for entrepreneurship today.
Advice for Aspiring Expats:
- Do your homework. Understand the legal and market landscape before making the leap.
- Build local connections early. Having a Saudi partner, mentor, or advisor can be invaluable.
- Be patient but proactive. Things move quickly, but building trust takes time.
- Leverage the ecosystem. From incubators to grants, take full advantage of what’s available.
With the right mix of preparation and adaptability, expat founders can thrive and help shape the future of Saudi innovation.