Business setup in Saudi Arabia is fast becoming a strategic priority for Singaporean investors and companies.
Deepening Singapore-Saudi business relations have prompted droves of Singaporean companies to embark on the company formation process in Saudi Arabia.
Last year, bilateral trade between Singapore and Saudi Arabia reached $1 billion, signaling the opportunities that continued cooperation can provide.
Propelling the momentum forward is Vision 2030, which acts as a catalyst for attracting inward investment and offering attractive entry points for Singaporean firms across diverse industries.
Singaporean Companies Find Growth Potential in Saudi Logistics and Construction Industries
Singapore businesses are already making their mark in some of Saudi Arabia’s most ambitious infrastructure and giga projects.
Leading examples include Singapore-based Swan & Maclaren Group (SMG), which acquired a $28 million lighting contract for Six Flags Qiddiya.
SMG has entered a partnership with Saudi firm Advanced Lighting Company through joint ownership of SM C2R Arabia. This collaboration aims to create lightning innovation projects that can complement Saudi Arabia’s next-gen infrastructure.
In fact, logistics and infrastructure have long been key areas of cooperation between private sector companies from Singapore and Saudi.
With Saudi Arabia investing heavily in logistics, from ports to last-mile delivery, Singaporean companies with expertise in stevedoring, terminal operations, and smart logistics tech find a lucrative market for their operations.
Notably, the Saudi Ports Authority (Mawani) and Saudi Global Ports (SGP), a subsidiary of Singapore’s port operator PSA, have signed an agreement for a new integrated logistics zone located at King Abdulaziz port in Dammam.
High-level discussions involving Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef and several prominent Singaporean firms were held last year.
These talks primarily focused on fostering cooperation in logistics services, engineering technology, and the development of industrial zones.
Saudi IT Sector Attracts Singaporean Firms to Establish Regional Headquarters (RHQs)
Saudi Arabia is steadily moving towards an innovation-led economy. The country’s continued lead as a magnet for Singaporean IT companies and high-impact tech firms continues to strengthen.
One of these is PayerMax, which established an RHQ in Saudi Arabia as part of its Saudi-focused expansion strategy. PayerMax counts among AstroLabs’ expansion network.
Joining PayerMax is Ant International, which recently launched its first Middle East office in Riyadh. This expansion aims to introduce cutting-edge financial technology that empowers digital transformation for small businesses in the region and beyond.
Not only are tech companies cementing a footprint in Saudi Arabia, but Singaporean venture capital (VC) firms such as Golden Gate Ventures are also going all in on Saudi expansion.
The VC has recently announced the opening of its first MENA office in Saudi Arabia, signaling a long-term commitment to nurturing regional innovation from the ground up.
Growth in Tourism Fuels Increased Company Formation in Saudi Arabia
The evolving strategic relationship between both nations has encouraged Singaporean travel agencies and tourism businesses to increasingly pick Saudi Arabia as their favored expansion destination.
As such, business partnerships between officials and private stakeholders from Singapore and Saudi Arabia have been on the rise.
One notable highlight is the partnership between Almosafer, a leading Saudi travel brand, with the Singapore Tourism Board (STB) and Changi Airport Group.
The agreement aims to boost business and leisure travel between Saudi Arabia and Singapore. Similarly, the Tourism Authority (STA) has also collaborated with several Singapore travel companies and agencies.
Both partnerships reflect evolving patterns in the travel landscape, influenced by the rapid rise of Saudi Arabia as a preferred destination for Singaporean travelers.
The hospitality sector is another area of interest for Singaporean investors and firms. For example, Ascott Limited, a major serviced residence operator, boasts a substantial footprint in Saudi Arabia. Every year, the company holds its annual KSA roadshow, showcasing its portfolio and investments in Saudi Arabia.
Improved flight links also make business setup in Saudi Arabia from Singapore even more practical, reducing travel time between Southeast Asia and the Middle East. The newly announced Singapore Airlines and Riyadh Airlines collaboration is a strategic step towards boosting interline routes and global connectivity.
Setting Up a Business from Singapore in Saudi Arabia: A Comprehensive Overview
Setting up a business from Singapore in Saudi Arabia involves key essential steps.
Firstly, a business has to collect the necessary paperwork. These include a certificate of incorporation, the memorandum of association (MoA), and articles of association (AoA), as well as an audited financial statement.
Afterward, a Singaporean business must register with more than 10 ministries and governmental entities, a crucial part of the second phase of the market entry roadmap.
Obtaining a national address and finding an office space is deemed mandatory at this point so that a company can secure a national address.
Moving on to the soft landing phase, the business has to issue the general manager’s Iqama and finalize registrations on key government portals, including Muqeem, Absher, Qiwa, and Mudad. Lastly, businesses will need to open a bank account as a final step of the complete business setup process.
The subsequent steps include hiring staff in adherence with the Saudization (Nitaqat) quota, issuing visas for non-Saudi employees, and implementing their legal due diligence as part of the post-setup stage.
Following its successful company registration in Saudi Arabia, businesses can engage third-party service providers who can offer support in core functions, such as accounting, HR and payroll management.
Frequently Asked Questions: Setting Up a Business from Singapore in Saudi Arabia:
1. How easy is it to open a Singaporean business in Saudi Arabia today?
The Saudi market entry process typically involves three phases. The first one primarily involves setting up a legal entity. Secondly, businesses are required to register with several ministries and governmental portals. The final one necessitates the opening of a bank account and issuing the GM’s iqama.
Collaborating with AstroLabs can help you get operational in only 3 months.
2. Which sectors are most welcoming to Singaporean investment in 2025?
Logistics, IT, AI, urban planning, agribusiness, and smart manufacturing are all promising sectors for Singaporean investment in 2025.
3. Can Singaporean companies benefit from local partnerships in Saudi?
Forming a joint venture or partnership in Saudi Arabia is key to boosting local market presence. Gaining access to AstroLabs’ network can facilitate key introductions and groundbreaking collaborations. Get in touch to learn more.
4. What incentives exist for digital-first or high-tech Singaporean businesses entering Saudi Arabia?
The Saudi technology sector saw a record-breaking surge in VC funding last year, with the country representing 40% of the region’s share.
The improved entrepreneurship ecosystem reflects a strong government commitment, crucial for any successful startup ecosystem globally.
The Saudi government provides tax incentives, streamlined registration, and other measures to facilitate business expansion in the country.
Many sectors permit full foreign business ownership in Saudi Arabia; this includes technology.
5. What support services are available for Singaporean companies entering Saudi Arabia?
Singaporean companies can benefit from a wide range of services online when establishing their regional headquarters in Riyadh. These include issuing a regional headquarters along with other services for reserving trade names and facilitating procedures related to the commercial registration, such as issuing, amending, and renewing. Collaborating with AstroLabs can help foreign businesses navigate licensing, compliance, and cultural nuances in the Saudi market.