Saudi Arabia Issues Six Regional Headquarters Licenses to Global Companies in October
Saudi Arabia issued six new regional headquarters licenses to global companies last October. In the same month, 1,275 new businesses owned by foreign investors were registered, with total declared capital of SAR 10.3 billion. That is an average of 56 businesses every working day, a sign that the Saudi market keeps drawing in foreign companies and investment.
Foreign Ownership
The monthly foreign direct investment analysis comes from the International Business Services Center at the Federation of Saudi Chambers. It found that 96.5% of the new businesses are wholly owned by foreign investors, and the remaining 3.5% have Saudi partners. The busiest week was October 18–24, when 327 businesses were registered. The busiest single day was October 21, with 76 registrations.
Capital
Half of the new businesses registered capital of SAR 100,000 or less. At the other end, 289 businesses registered exactly SAR 30 million each, which is the minimum required for a commercial license with full foreign ownership. Together these 289 accounted for about 84% of all declared capital, or SAR 8.67 billion. The rest of the businesses declared around SAR 1.6 billion combined.
Ten businesses registered more than SAR 30 million each, for a total of SAR 758 million. The largest was an agricultural business with SAR 300 million in capital.
Industrial Sector
Manufacturing drew the most new foreign businesses: 451, or 35% of the total, holding 39% of declared capital. It was followed by:
- construction, with 285 businesses
- information and communications technology, with 126
- agriculture, with 95
- wholesale and retail trade, with 90
- transportation, with 53
These six sectors made up 86% of all new businesses, which were spread across 16 economic sectors.
Investment Flows
The analysis is based on the commercial registrations of new foreign businesses, checked against indicators from the relevant government agencies. It notes that registered capital is the amount declared when a business is set up. It does not necessarily show how much has actually been invested in the Saudi economy.
Foreign Investment in October at a Glance
- 1,275 new foreign businesses
- SAR 10.3 billion in declared capital
- 56 businesses per working day
- 451 businesses in manufacturing
