Pakistani Companies in Saudi Arabia: Key Routes to Market Entry

Fintech, real estate, retail, e-commerce, and manufacturing are emerging as key focus sectors for Pakistani companies expanding into Saudi Arabia.

This article explores what is driving interest across these sectors while offering a practical overview of the routes Pakistani businesses are using to enter the Kingdom and establish long-term operations.

Partnerships Are a Key Route Into the Market

The pace of Pakistani investment in Saudi Arabia continues to accelerate, with partnerships being a common route to expansion.

As of July 2026, 12 Pakistani companies had signed investment agreements with Saudi-based Al Raee Group at the Saudi Company Formation and Business Expansion Summit in Islamabad, committing to launch operations across the Kingdom.

These companies join a growing roster of Pakistani businesses that have recently expanded into Saudi Arabia by partnering with Saudi firms.

A notable example is Pakistani FinTech company ABHI, which entered the Saudi market through multiple local partnerships, including an agreement with Riyadh-based automotive e-commerce platform Syarah to provide employees with on-demand access to earned wages.

This followed another partnership with TAM Aerospace & Defense, a Saudi company providing aviation support and maintenance services to government, defense, and commercial operators. ABHI now serves more than 1 million users and works with more than 7,000 businesses across Pakistan, the UAE, Saudi Arabia, and Oman.

Saudi Arabia's push to localize manufacturing under Vision 2030 is also creating opportunities for joint ventures between Pakistani and Saudi companies. Forward Sports, one of the world's largest football manufacturers and a longstanding Adidas supplier, plans to begin operations in Saudi Arabia this year through a joint venture.

The company was one of two manufacturers of the Al Rihla ball used in the 2022 FIFA World Cup and produces approximately 15 million footballs annually. It has also recently overtaken a Chinese competitor to become Adidas' largest football supplier.

Raising Capital to Accelerate Saudi Expansion

Securing the right funding is another increasingly important route for companies looking to accelerate their expansion into Saudi Arabia.

A notable example is Revora. The company, which was co-founded by Pakistani entrepreneur Daniyal Baig, raised $2 million in seed funding to support its growth in Saudi Arabia.

Originally named My Alice, the company operates an AI platform for online merchants, helping businesses manage customer interactions, automate support, and drive sales through AI agents. Its platform also converts product catalogs into structured datasets for AI-powered discovery and recommendations. Notably, Revora has set up its operations in Saudi Arabia with support from AstroLabs.

Similarly, Pakistani coworking operator COLABS has accelerated its expansion plans in Saudi Arabia, backed by a group of Saudi and international venture capital firms. Founded in Pakistan with locations across Lahore, Karachi, and Islamabad, the company launched a 4,000-square-meter campus in Riyadh’s Al-Narjis district in mid-2026, marking its first international expansion.

The company has raised more than $8 million from investors, including Shorooq, Waseel Partners, and Indus Valley Capital. Its Riyadh campus is designed to accommodate more than 500 members and includes meeting rooms, event space, a rooftop terrace, and a podcast studio.

It currently operates more than 500,000 square feet of workspace across more than 10 locations, supporting over 5,000 members and 300 companies.

Setting Up a Pakistani Company in Saudi Arabia: What's Required

Setting up a business in Saudi Arabia typically involves several stages, from securing the appropriate investment license to completing incorporation, hiring, and government registrations.

Phase 1: Establish Your Legal Entity

The first stage is creating the legal structure that will support the company's Saudi operations. This typically involves obtaining the appropriate MISA investment license, drafting the Articles of Association (AoA), securing a Commercial Registration (CR), and registering with the Chamber of Commerce.

Phase 2: Set Up Operations and Build Your Team

Once the Saudi entity has been incorporated, the company can move into operational setup and recruitment.

This stage includes registering with relevant government authorities such as GOSI, ZATCA, and Qiwa; establishing the company's National Address; and beginning the process of hiring employees.

Companies should also plan the General Manager's visit to Saudi Arabia early in the setup process. The GM may need to be physically present to complete certain incorporation, banking, and residency procedures and ultimately secure their Iqama.

Phase 3: Complete Residency, Banking, and Portal Setup

The final stage focuses on making the company fully operational. This includes activating the relevant government portals, such as Muqeem, Absher, Mudad, and Qiwa, completing the GM's residency process, and opening the company's corporate bank account.

At this point, companies should also ensure that their employment, payroll, tax, and regulatory obligations are in place before commencing full-scale operations.

Frequently Asked Questions

Can Pakistani citizens start a business in Saudi Arabia?

Yes. Pakistani nationals can establish companies in Saudi Arabia, subject to the Kingdom's investment regulations and the approvals and licenses applicable to their business activity. In many sectors, foreign investors can own 100% of their Saudi company without a local partner.

What documents do Pakistani companies need to register in Saudi Arabia?

Common requirements include a Certificate of Incorporation or commercial registration document and audited financial statements. The parent company generally needs to have been operational for at least one year. Additional documents, such as passport copies, Articles of Association, and a Power of Attorney, may be required depending on the activity and licensing route.

Can a foreigner own 100% of a business in Saudi Arabia?

Yes, in many sectors. However, ownership requirements and restrictions vary depending on the specific business activity and applicable regulations.

What is the most common company structure for Pakistani investors?

The Limited Liability Company (LLC) is a common structure for foreign investors. It provides limited liability protection and can be suitable for businesses looking to establish a long-term operating presence in Saudi Arabia. Pakistani companies may also establish a branch of an existing foreign entity, depending on their requirements and licensing eligibility.

How long does it take to set up a company in Saudi Arabia?

The full business setup process can take 2-4 months, depending on the company's activity, documentation, licensing requirements, banking arrangements, and government registrations.

How much does it cost to set up a business in Saudi Arabia?

The first-year operational costs, including licensing, registration, compliance, and related requirements, can reach approximately SAR550,000 for many foreign business setups. Actual costs vary depending on the business activity, company structure, office requirements, staffing, and other regulatory obligations.

How much does an Iqama cost?

The fee for issuing or renewing a one-year Iqama is SAR650, while three-month and six-month renewal fees are SAR163 and SAR325, respectively.