Doing Business in Saudi Arabia

Published 25 August 2026

In short

Indian businesses must register with the Ministry of Investment (MISA), obtain commercial registration from the Ministry of Commerce, register with ZATCA for tax and VAT, comply with Saudization (Nitaqat) quotas, and secure sector-specific approvals. All Indian documents must be attested and translated to Arabic. The process is sequential and typically takes several months.

Key facts

Capital: Riyadh
Currency: Saudi Riyal (SAR)
Trade with India: US$ 41.88 billion in FY 2024-25 (MEA India-Saudi Arabia Bilateral Brief, 31 May 2026). India's exports were US$ 11.76 billion and imports US$ 30.12 billion. The earlier MEA brief recorded US$ 42.98 billion for FY 2023-24.
Indian community: Approximately 2.74 million Indians, per the MEA India-Saudi Arabia Bilateral Brief dated 31 May 2026.

The market

Saudi Arabia is the largest economy in the Gulf and India’s fifth largest trading partner. Bilateral trade stood at US$ 41.88 billion in FY 2024-25, with Indian exports at US$ 11.76 billion and imports at US$ 30.12 billion, per the MEA bilateral brief dated 31 May 2026. The imbalance is energy. India imported 33.14 million tonnes of crude from Saudi Arabia in FY 2024-25, 13.58 percent of its total crude imports, and 3.34 million tonnes of LPG, 14.99 percent of its LPG imports. India is Saudi Arabia’s second largest trading partner.

Why Indian businesses go there

Vision 2030 is spending enormous sums on giga projects, housing, tourism, healthcare, education, entertainment and industrial localisation. That creates demand for construction materials, engineering services, IT, healthcare staffing, food and agriculture, and manufacturing that Indian firms are well placed to supply. The Kingdom announced during the 2019 Strategic Partnership Council visit that it intended to invest about US$ 100 billion in India, and Saudi investment into India through the Public Investment Fund and Vision Fund has been around US$ 10 billion, including stakes in Reliance Jio Platforms and Reliance Retail Ventures. Indian investment into Saudi Arabia reached about US$ 3 billion by August 2023.

The diaspora and business community

The Indian community numbers approximately 2.74 million per the MEA bilateral brief of 31 May 2026, one of the largest expatriate groups in the Kingdom. It spans construction and services labour through to engineers, doctors, accountants and business owners. India and Saudi Arabia have an Agreement for Domestic Sector Workers from 2014, an Agreement for General Category Workers from 2016 and a skill verification agreement from March 2022, which govern recruitment and give some protection. For a new entrant this community means you can find Indian managers, contractors and suppliers quickly, though senior local relationships still matter more than in Dubai.

Sector strengths

Engineering and construction contracting, building materials and ceramics, rice and food products, pharmaceuticals and medical supplies, chemicals, IT and digital services, healthcare and education services, and defence where an agreement worth US$ 225 million for ammunition exports from India was signed in 2024.

The honest difficulties

Saudization is the biggest operational constraint. The Nitaqat system sets minimum Saudi national employment percentages by sector and company size, and failing your band blocks visa issuance, work permit renewals and government services. You must budget for Saudi hires from day one, and their salaries are generally higher than expatriate equivalents. Second, since 1 January 2024 companies without a regional headquarters in the Kingdom are excluded from most government and state entity contracts, which is a real barrier if your target customer is public sector. Third, paperwork is heavy and sequential. MISA registration, commercial registration, chamber membership, municipality licence, GOSI, Qiwa, Muqeem and ZATCA all have to be done in order, most require attested and legalised Indian documents, and delays are normal. Fourth, payment cycles on contracting work can be long, and retention money is common. Fifth, cultural and regulatory expectations differ from the UAE. Working weeks, prayer time closures, gender segregation rules in some workplaces and Arabic language requirements on official documents all need planning. Sixth, the tax position is split. Non-Saudi ownership pays 20 percent income tax while Saudi and GCC ownership pays 2.5 percent Zakat, so joint ventures need careful structuring.

How to apply

Confirm your activity is open to foreign investment and check whether it appears on the list of activities reserved for Saudi nationals, for which an exception must be requested from the Ministry of Investment.
Register as a foreign investor with the Ministry of Investment of Saudi Arabia (MISA). Since the New Investment Law took effect in February 2025, this registration replaces the old Foreign Investment Licence.
Prepare and legalise the Indian parent's documents. Certificate of incorporation, memorandum and articles, board resolution and audited accounts must be attested by the Ministry of External Affairs in India and the Saudi mission, and translated into Arabic.
Reserve the trade name and file the Articles of Association with the Ministry of Commerce through the Saudi Business Centre platform.
Obtain the Commercial Registration certificate from the Ministry of Commerce. This is the document Saudi counterparties will ask for.
Register with the Chamber of Commerce of the city where you are based, which is required to authenticate signatures and many commercial documents.
Obtain the municipality (Baladiya) licence for your premises and register the national address with Saudi Post.
Register with the Zakat, Tax and Customs Authority (ZATCA) for income tax or Zakat and for VAT, and set up compliant e-invoicing under the Fatoorah system.
Open the file with the Ministry of Human Resources and Social Development, register on the Qiwa platform, and obtain your Saudization (Nitaqat) classification and visa quota.
Register with the General Organisation for Social Insurance (GOSI) for employee contributions.
Apply for the block visa and then individual work visas for expatriate staff, and complete Iqama issuance and Muqeem registration after arrival.
Open a corporate bank account, which normally requires the commercial registration, the MISA registration, the national address and the manager's Iqama.
If you intend to bid for government or state entity contracts, assess whether you must establish a Regional Headquarters in the Kingdom, since companies without one have been excluded from most such contracts since 1 January 2024.
Obtain sector specific approvals, for example the Saudi Food and Drug Authority for food, drugs, devices and cosmetics, or the Saudi Contractors Authority classification for construction work.

What the trade actually looks like

→ India sells

Engineering goods and machineryListed by MEA among the main Indian export commodities, driven by Vision 2030 construction and industrial demand.
Rice and cerealsIndia is a leading supplier of basmati and other rice to the Kingdom, which imports almost all its grain.
Pharmaceuticals and medical productsGeneric medicines and medical supplies for the Saudi public and private health systems.
ChemicalsOrganic and inorganic chemicals and dyes supplied into Saudi processing and manufacturing.
Textiles and garmentsMade-ups, apparel and home textiles for the retail and hospitality sectors.
Ceramic tiles and building materialsSpecifically named in the MEA bilateral brief and directly linked to the construction pipeline.

← India buys

Crude oilIndia imported 33.14 million tonnes in FY 2024-25, 13.58 percent of its total crude imports (MEA bilateral brief, 31 May 2026).
LPGIndia imported 3.34 million tonnes in FY 2024-25, 14.99 percent of its total LPG imports.
FertilisersUrea and DAP supply from Saudi producers is important to Indian agriculture and is often tied to long term offtake arrangements.
Petrochemicals and polymersFeedstock and intermediates from Saudi petrochemical complexes for Indian plastics and chemicals industry.
Inorganic chemicals and sulphurByproducts of the hydrocarbon industry used in Indian fertiliser and chemical manufacture.

Treaties and agreements with India

Double Taxation Avoidance Agreement Signed 25 January 2006, in force 1 November 2006

Prevents double taxation on the same income and sets the permanent establishment threshold that decides when your Saudi project work becomes taxable there. Important for Indian contractors, because a site or supervisory presence beyond the treaty period creates a taxable presence and a 20 percent income tax exposure on attributable profit.

Saudi Arabia's New Investment Law Published 11 August 2024, effective from around 7 February 2025

Abolishes the old Foreign Investment Licence that had to be obtained before incorporating. Foreign investors now register with the Ministry of Investment of Saudi Arabia instead, and are treated on the same legal footing as Saudi investors in similar circumstances. It also adds arbitration and mediation as dispute routes alongside the courts.

India Saudi Arabia Strategic Partnership Council Established 2019

A leader level council with committees on political and security cooperation and on economy and investment. It is the machinery through which large investment commitments, energy security arrangements and market access problems get taken up, and it is where the announced Saudi intention to invest about US$ 100 billion in India sits.

Labour mobility agreements Domestic Sector Workers 2014, General Category Workers 2016, skill verification March 2022

Govern recruitment of Indian workers into the Kingdom, standardise contracts, and require pre-departure skill testing and certification for certain trades. If you plan to bring Indian technicians or site staff, these determine the documentation and the recruitment agents you can lawfully use.

No bilateral free trade agreement Not concluded as of August 2026

India and Saudi Arabia have no bilateral FTA, and the wider India GCC free trade negotiations have not concluded. Indian goods therefore pay the GCC common external tariff, generally 5 percent with higher rates on some protected lines, so price your quotations on most favoured nation duty and not on preference.

Which company type to use

Limited Liability Company (LLC)	The standard vehicle for foreign investors. Can be wholly foreign owned for most activities after MISA registration. Governed by the Companies Law of 2022, which reduced minimum capital requirements for many activities.
Joint Stock Company (JSC)	Used for larger ventures, regulated sectors and anything intended for eventual listing on Tadawul. Higher capital, board and audit requirements than an LLC.
Branch of a foreign company	Permitted with MISA registration. Useful for contractors executing a specific project, but the Indian parent carries liability and the branch is taxed at 20 percent on attributable profit.
Technical and Scientific Services Office	A limited presence allowing technical support to Saudi distributors and agents. It cannot trade or invoice, so it suits manufacturers supporting a local partner.
Regional Headquarters (RHQ)	A special licence with tax incentives, introduced to attract regional management functions. Since 1 January 2024 it has effectively become a condition for most government and state entity contracts.
Simplified Joint Stock Company	Introduced by the Companies Law of 2022 for start-ups and venture backed businesses. More flexible share classes and governance than a conventional JSC.

Visas and tax

Getting yourself there

There is no self sponsored founder visa. An Indian founder normally becomes general manager of the Saudi entity, is sponsored by it, and receives a work visa converted into an Iqama residence permit after arrival, medical tests and biometrics. Expatriate hiring is controlled by a block visa quota tied to your Nitaqat Saudization band, so a company with too few Saudi employees cannot obtain visas at all. Premium Residency offers longer self sponsored categories.

What you will pay

Corporate income tax is 20 percent of net adjusted profits on the share attributable to non-Saudi and non-GCC ownership. The Saudi and GCC owned share pays Zakat at 2.5 percent of the Zakat base instead. Oil and hydrocarbon production is taxed at 50 to 85 percent. Withholding tax on payments abroad ranges from 5 to 20 percent. VAT is 15 percent. A Double Taxation Avoidance Agreement with India exists, signed on 25 January 2006 and in force from 1 November 2006.

Indian government support for this market

Engineering Export Promotion Council of India (EEPC India)

The Department of Commerce sponsored council for engineering goods, which is the largest Indian manufactured export line into the Kingdom's Vision 2030 project pipeline. It runs Saudi buyer seller meets and pavilions at Saudi trade fairs, helps members with SASO and Saber conformity certification, and maintains technical market reports on Gulf procurement.

Federation of Indian Export Organisations (FIEO)

The apex export body under the Department of Commerce. It issues Registration cum Membership Certificates, organises delegations to Riyadh, Jeddah and Dammam, and coordinates with the Indian Embassy and Consulate on commercial disputes and payment problems, which are a real risk on Saudi contracting work.

ECGC Limited

Government owned export credit insurance. Given long payment cycles, retention money and single buyer concentration on Saudi projects, ECGC cover on receivables and its specific shipment and contracts policies for project exports are practically necessary, and they also unlock better bank funding against those invoices.

Export-Import Bank of India (India Exim Bank)

The government owned development finance institution. It provides project export finance, buyer's credit and overseas investment finance for Indian companies executing contracts or setting up subsidiaries in Saudi Arabia, and administers the National Export Insurance Account for large project exports that commercial cover cannot handle.

Frequently asked questions

What is Saudization and why does it matter for my business in Saudi Arabia

Saudization (Nitaqat) sets minimum Saudi national employment percentages by sector and company size. Failing your band blocks visa issuance, work permit renewals and government services. Budget for Saudi hires from day one; their salaries are typically higher than expatriate equivalents.

Do I need a regional headquarters in Saudi Arabia to bid for government contracts

Yes, since 1 January 2024, companies without a regional headquarters in the Kingdom are excluded from most government and state entity contracts. This is a significant barrier if your target customer is the public sector.

What documents from India do I need to legalise for Saudi Arabia

Certificate of incorporation, memorandum and articles, board resolution and audited accounts must be attested by the Ministry of External Affairs in India and the Saudi mission, and translated into Arabic before filing with Saudi authorities.

What is the tax rate for foreign companies in Saudi Arabia

Non-Saudi ownership pays 20 percent income tax. Saudi and GCC ownership pays 2.5 percent Zakat. Joint ventures need careful structuring to optimise the tax position.

How large is the Indian community in Saudi Arabia

Approximately 2.74 million Indians live in Saudi Arabia, one of the largest expatriate groups. They span construction and services labour through to engineers, doctors, accountants and business owners, offering quick access to managers, contractors and suppliers.

Before you apply: confirm every date, fee and eligibility rule on the official website linked on this page. Public and Policy is an independent portal, not a government body, and details change without notice.