Making the move to Saudi Arabia provides a game-changing growth opportunity for global businesses. Our 2025 Market Entry Report showed that 64% of companies were looking to enter Saudi Arabia within 1-3 months of last year, as compared to 48% in 2023. Of these, almost 30% were looking to expand immediately within a month.
As exciting as it is to expand into Saudi Arabia, many companies can be unaware of the regulatory matters necessary to get their operations off the ground. While market entry remains the primary focus, if a company is unprepared for change, it risks falling behind due to poor operational readiness.
Top Issues Companies Face After Expanding in Saudi Arabia
Ideally, robust operational readiness helps businesses anticipate and address market changes as well as adapt to evolving conditions to avoid stagnation. The success of this approach requires being constantly on top of several post-incorporation processes.
As the expansion and growth partner of more than 700 companies, we’ve identified distinct patterns that companies can adopt when expanding to Saudi Arabia.
Companies tend to overlook the significance of complying with key requirements on the path towards being operationally ready and successful.
This can typically arise from a lack of complete understanding of the regulatory environment and can impede a company’s capacity to expand and endure.
Common Compliance Issues and Consequences
Issue: Expired CoC (Chamber of Commerce Certificate) or CR (Commercial Registration)
- Consequence: Blocks access to government portals, prevents companies from bidding on projects, and may cause a freeze in bank accounts. Failure to complete the annual CR renewal within a 90-day grace period results in its cancellation.
Issue: Qiwa portal not activated
- Consequence: Inability to issue new work permits for foreign employees.
Issue: General Organization for Social Insurance (GOSI) not configured
- Consequence: Prevents companies from participating in government tenders or receiving government subsidies. Additionally, Saudi employees can’t be properly registered on the GOSI portal.
Issue: Iqama (Residency Permit) delays due to mismatched contract templates
- Consequence: Leads to fines, restricted work permissions, and difficulties in renewing Iqamas for foreign employees.
Issue: Saudization quota not met
- Consequence: Blocks new hiring processes across the business and hinders the company’s ability to bid on government projects.
Identifying the Gaps: Ensuring Smooth Transition to Operational Readiness
Achieving operational readiness involves navigating a multi-portal ecosystem—one that is intricately interconnected. This requires a certain level of scale and market expertise to effectively navigate the constantly evolving regulatory environment.
From increased Saudization requirements to ongoing updates and policy improvements, the Saudi compliance landscape for entity incorporations is changing constantly.
These developments make it a necessity to partner with an experienced corporate provider to help companies quickly adapt and therefore gain a solid foothold.
PRO and GRO Services: Fueling Business Compliance and Growth
A Public Relations Officer (PRO) service provider supports businesses in establishing legally compliant operations in Saudi Arabia. A PRO service provider serves as a company’s liaison for handling all government-related administrative procedures, covering responsibilities that mainly include
- License Renewals and Approvals: Proactively manage the renewal process for all necessary business licenses, permits, and registrations.
- Talent Matchmaking: Ensure that recruitment and talent acquisition processes strictly comply with local labor laws.
- Visa Processing and Employee Sponsorship: Efficiently manage the entire visa application, acquisition, and renewal process for employees.
- End-to-End Compliance: Conduct comprehensive audits across various compliance areas such as , portal management processes and license renewals. Develop and implement mitigation strategies to address potential problems before they occur.
Meanwhile, the Government Relations Officer (GRO) plays a crucial role in supporting businesses in managing governmental interactions and ensuring businesses operate within the boundaries of regulatory frameworks while enhancing operational efficiency. Their role usually entails
- Document Processing: Efficiently handle the submission, collection, and follow-up of official government documents, licenses, and certificates.
- Government Liaison: Direct coordination with key government entities, including MISA (Ministry of Investment), MoC (Ministry of Commerce), and CoC (Chamber of Commerce).
- End-to-End Compliance Support: Comprehensive assistance with business activity amendments, legal structure updates, shareholder changes, and other corporate modifications.
- National Address Management: Ensure timely and accurate updates on the SPL (Saudi Post) portal to avoid compliance issues.
- Real-Time Regulatory Updates: Proactive alerts and guidance on all procedural or regulatory changes impacting GRO (Government Relations Officer/Office) functions in Saudi Arabia.
The Vital Role of PRO and GRO Services in Accelerating Operational Readiness
Prioritizing post-incorporation compliance involves adhering to stringent legal requirements that govern various facets of a business.
Neglecting this leaves a business vulnerable to various operational challenges. Adding to this, businesses may risk missing critical deadlines and encountering numerous administrative roadblocks along the way, which can impede operational longevity.
By relying on PRO and GRO experts, businesses not only ensure sustained success but also optimize resources.
Utilizing external PRO services can help companies save up to 50% of their PRO expenses if done internally.
Operational Readiness and Logistics Localization: Key Components of a Successful Market Entry Strategy
Maintaining a robust governance framework is essential to operate efficiently in Saudi Arabia. This, coupled with effective supply chain management, is pivotal for businesses looking to enter and deliver strategic advantage in the Saudi market.
Whether it is a digital-first company or requires a physical presence, a company needs a robust operational setup encompassing efficient logistics and supply chain capabilities as well as a local team.
This view was echoed in our 2025 Market Entry Report, where a vast majority of businesses emphasized the importance of localizing logistics strategies and understanding approval and regulatory compliance processes.
The impact of maintaining a viable market presence, whether online or offline, ahead of the official physical launch can boost the company’s growth trajectory.
Engaging with local service providers like AstroLabs early on helps build operational resilience, which in turn reduces time to market and supports your business’s rapid establishment and growth in this strategic hub.