Saudi Arabia - Market Entry and Legal Services

Lawyer & Law Firm in Saudi Arabia

With a population of around 35.5 million (2021) and around 20% of the world's conventional oil reserves, Saudi Arabia is the largest economy of the Middle East and the 18th largest in the world. The country is located strategically at the heart of major trade routes crossing three continents and bountiful natural resources. Saudi Arabia holds exciting potential and opportunities for domestic and international investors.

Commercial Realtions between India-Saudi Arabia

• India exports rice, meat, electrical machinery, vehicles, mineral oils, organic chemicals, ceramic tiles, and apparels to Saudi Arabia. India's major imports from Saudi Arabia include crude oil, LPG, fertilizers, chemicals, plastic products, aluminium, iron and steel, copper, and raw hides and skins.
• Saudi Arabia is India's fourth-largest trading partner, accounting for over 18% of India's crude oil imports. In the fiscal year 2022-23, India's imports from Saudi Arabia reached $38.6 billion, while exports amounted to $9.7 billion, marking a significant 49.5% increase from the previous year. The total trade represented 4.14% of India's overall trade.
• Visa fees for Indian nationals have been reduced for both business and visit purposes, based on reciprocal terms. Saudi Arabia ranks as the 12th largest market for Indian exports globally, accounting for about 2% of India's total exports.
• From April 2000 to March 2023, Saudi Arabia became the 19th largest foreign investor in India, with a cumulative investment totalling $3.2 billion.

Business Advantage for Indian Companies in Saudi Arabia

Indian companies operating in Saudi Arabia enjoy several business advantages due to strong diplomatic and economic ties between the two countries. Saudi Arabia offers a sizable and affluent consumer market with a population of over 35 million, including an expanding middle class. Its strategic location facilitates access to regional and international markets, making it a gateway for Indian companies to the wider MENA region. The Saudi government's focus on economic diversification under Vision 2030 provides numerous opportunities for Indian businesses across various sectors, including infrastructure, renewable energy, construction, healthcare, IT, education, and tourism. Cultural similarities and historical connections ease business relationships, and Saudi Arabia's skilled and educated workforce is beneficial for Indian companies. The Saudi government's efforts to attract foreign investment and improve the ease of doing business further support Indian companies' operations in the country.

Incentives and Support Programs by Saudi Arabia for Indian Companies

Saudi Arabia offers several incentives and support programs to attract and facilitate Indian companies to do business in the Kingdom. Some of these initiatives include:

• Saudi Arabian General Investment Authority (SAGIA): Facilitates foreign investment with streamlined registration, licensing, and permits.
• Vision 2030: Diversification plan opens opportunities in renewable energy, healthcare, tourism, entertainment, logistics, and manufacturing.
• Special Economic Zones (SEZs): Offer incentives, tax benefits, and modern infrastructure for Indian companies.
• In-Kingdom Total Value Add (IKTVA): Saudi Aramco's program encourages localization in the oil and gas sector.
• Industrial Clusters: Specific zones for plastics, metals, minerals, and renewable energy industries.
• Financial Incentives: Tax exemptions, subsidized loans, land leases, and grants for R&D projects.
• Business Matchmaking and Trade Missions: Events fostering networking and partnerships between Saudi and Indian companies.

Starting a Business in Saudi Arabia

• Select Business Location
• Obtain a Business License
• Pay Registration Fee
• File Application for License
• File Application for Tax Residency Status
• Submit Invoicing Request Form
• Obtain other Documents

Visa and Immigration

Following are some of the most common types of visas provided by Saudi Arabia for entering the country & setting up a business in the country:

Business Visit Visa (Commercial Visit Visa)
Work Visit Visa (Work Permit)
Business Visa (Business Visit Visa - Extended Stay)
Residence Visa (Iqama)
Investor Visa
Family Visit Visa
Multiple-Entry Visa

Saudi Arabia offers significant opportunities for businesses entering the Middle East market due to its large economy, strategic location, and stable environment. Although there are certain challenges including competition, regulations, and import reliance but with a well-informed strategy you can expect significant returns on investment in Saudi Arabia's growing market.

To read more about the Saudi Arabia market and various business opportunities – CLICK HERE

How Do We Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to companies from Saudi Arabia seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in Saudi Arabia, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our counterparts from Saudi Arabia, we are well-equipped to provide guidance on cross-border transactions between India and Saudi Arabia, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of India- Saudi Arabia business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate