Introduction
Setting up and running a business in Saudi Arabia has become increasingly attractive due to Vision 2030 reforms, foreign investment incentives, and a thriving economy. However, understanding the monthly and annual costs of running a company in Saudi Arabia is essential for entrepreneurs, SMEs, and multinational corporations planning entry.
This guide breaks down all key expenses—from registration and licensing fees to salaries, office rent, compliance costs, and taxes—so you can plan your investment effectively in 2025.
Monthly Costs of Running a Business in Saudi Arabia
1. Salaries and Wages
- General Manager (GM): SAR 20,000–25,000/month
- Saudi Nationals: SAR 5,000–12,000/month
- Expatriates: Salaries vary by sector but typically start at SAR 8,000/month for mid-level roles
Monthly and Annual Costs of Run…
💡 Tip: Employing Saudi nationals not only fulfills Saudization requirements but can also unlock government incentives.
2. Office Rent and Utilities
- Shared Workspaces / Virtual Offices: ~SAR 700/month
- Dedicated Office Rentals: Starting at SAR 20,000 annually (~SAR 1,700/month)
- Utilities & Admin Fees: Variable, depending on location and activity
Monthly and Annual Costs of Run…
3. Professional Services
- Accounting, Audit & Legal Support: SAR 1,000–5,000/month
- Business Consultancy & Compliance Services: Average SAR 2,000/month
Annual Costs of Running a Business in Saudi Arabia
1. Registration & Licensing Fees
- Commercial Registration (CR): SAR 1,500–8,000 annually
- Municipality License: SAR 500–5,000
- MISA (Foreign Investment) License: SAR 12,000 registration + SAR 62,000 annual renewal
Monthly and Annual Costs of Run… - Chamber of Commerce Membership: SAR 800–3,000/year
2. Compliance & Renewals
- Digital Portal Renewals + Regulatory Compliance: ~SAR 75,000 annually
- Visa & Iqama Fees for Expat Staff: ~SAR 12,000 per employee/year
3. Taxation
- Corporate Tax: 20% (applies to foreign-owned companies)
- Value Added Tax (VAT): 15% on applicable goods and services
First-Year Setup and Operating Costs
- Incorporation & Setup: SAR 50,000–150,000
- Office Rent + Hiring + Compliance: Brings the first-year total to ~SAR 300,000 on average
Monthly and Annual Costs of Run… - Additional Capital Requirements: Certain business activities require higher investment thresholds (e.g., industrial, healthcare, financial services).
Key Considerations for Investors in 2025
- Vision 2030 Opportunities: High growth in contracting, construction, IT, tourism, and renewable energy sectors.
- Government Incentives: Free zones, tax exemptions, and support for Saudi partnerships.
- Hidden Costs: Delays in licensing, Saudization compliance, or visa approvals can add unexpected expenses.
- Cost-Saving Strategy: Start lean with shared offices, outsource non-core services, and gradually expand.
Conclusion
Running a company in Saudi Arabia requires careful budgeting across monthly operational expenses and annual compliance costs. On average, businesses should expect SAR 300,000 in the first year, with recurring licensing, visa, and tax obligations thereafter.
For entrepreneurs and global investors, the Kingdom remains a lucrative market—provided financial planning is accurate.
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