Company formation from the UK to Saudi Arabia has increased significantly in recent years, representing a shift in its economic landscape.
According to our 2025 Market Entry Report, the UK was among the top three regions incorporating companies pursuing a business formation in Saudi Arabia in the previous year.
In view of ongoing economic transformation, UK multinational corporations (MNCs) are cementing their presence in one of the world’s most dynamic markets. Examples include big names like IHG Hotels and Resorts, PwC, and Deloitte.
The strong investment relations between the two nations have led 50 British companies to set up their Regional Headquarters (RHQs) in Saudi Arabia, joining over 1300 firms already operating in the Kingdom.
This article explores the leading opportunities associated with the formation of a British company in Saudi Arabia across multiple high-growth sectors, such as construction, tourism, and IT.
Industrial and Construction Sector Attracts UK Company Formation in Saudi Arabia
The hallmark of Saudi’s construction industry is its multi-billion-dollar infrastructure development projects.
Giga projects like Red Sea Global, Amaala, Diriyah Gate and NEOM are driving a newfound demand for expertise and solutions from UK firms. Currently, there are more than 1,100 UK investors holding active licenses in Saudi’s construction market.
Beyond giga projects, other major initiatives, such as the King Salman Airport expansion project, have unlocked opportunities for UK businesses.
Source: UK Outward Stock is defined as the total value of FDI by UK investors in economies abroad. This graph shows the exponential increase of Foreign Direct Investment from 2016 to 2023 in Saudi Arabia from the UK.
Among these is London-based Foster + Partners, which was selected to design the master plan for King Salman International Airport. The project covers 57 square kilometers, which will establish one of the world’s largest and most advanced aviation hubs.
To further strengthen these construction ties, the UK-Saudi Sustainable Infrastructure Forum, held last year, brought together leaders and policymakers to forge impactful partnerships in green energy and sustainable city planning. This timely collaboration comes as Saudi Arabia builds new smart cities from the ground up, making British expertise in sustainable construction increasingly sought after and valued throughout the Kingdom.
The British business expansion to Saudi Arabia in the industrial sector received a boost with the UK-Saudi Critical Minerals Partnership announcement in January 2025. This agreement will ensure a steady supply of key materials like copper, lithium, and nickel, all vital for producing smartphones, electric vehicles, and AI-driven data centers.
Building on this solid foundation, UK firms are making significant industrial investments. Graphene Innovations Manchester is launching the world’s first commercial graphene-enriched carbon fiber production facility in Saudi Arabia, while Next Generation SCM has partnered with Saudi Arabia’s City Cement Company to produce up to 700,000 tonnes of sustainable cement annually.
With Saudi Arabia increasing investment in green infrastructure, UK business expertise in low-carbon technologies and sustainable materials is in high demand.
Saudi’s Global Appeal as an IT Hub Propels British Investments
The UK’s expertise in AI, cybersecurity, fintech, and cloud computing aligns perfectly with Saudi Arabia’s digital transformation goals under Vision 2030.
The country’s Cloud-First Policy provides a compelling narrative for the expansion of major British corporations like Sword. The UK firm has recently expanded to Saudi with the help of AstroLabs’ on-the-ground team.
Over the years, IT has emerged as a key focus of business links between Saudi Arabia and the UK.
For example, the launch of a Saudi UK Tech Hub was the result of an agreement between the Ministry of Communications and Information Technology and the Saudi British Joint Business Council. The digital platform aims to bridge entrepreneurs, investors, and industry leaders from both countries.
Building on this momentum, research and development (R&D) has become a strategic priority for UK-Saudi relations. In March 2024, the two nations unveiled a comprehensive joint plan targeting innovation in food security, clean energy, and deep tech.
This collaboration extends beyond government initiatives into academic and institutional partnerships. The Royal College of Art has formalised ties with Saudi Arabia’s Architecture and Design Commission to drive architectural innovation, complementing the Kingdom’s ambitious urban development projects.
Similarly, Cranfield University’s partnership with Prince Sultan University strengthens the aviation R&D ecosystem, directly supporting Saudi Arabia’s transportation ambitions.
UK companies specialising in AI, advanced materials, and sustainable solutions find Saudi Arabia an ideal testing ground for innovation. With billions invested in R&D, firms entering the market can now establish themselves as leaders in the Kingdom’s digital transformation.
British Firms Tap Into Saudi Arabia’s Tourism Surge with High-End Hospitality Expertise
The country’s push to become a global tourism hub created a high demand for hospitality expertise, and UK firms are responding to this demand.
In May 2024, VisitBritain and the Saudi Tourism Authority signed a Declaration of Intent to enhance tourism exchanges, giving British hospitality firms greater access to the Saudi market.
The UK Creative Industries Trade Mission in 2024 connected British design firms with Saudi developers working on high-end hospitality projects.
As Saudi Arabia aims to attract 150 million annual visitors by 2030, British companies offering premium tourism experiences will find a market eager for innovation.
Integral to Saudi’s thriving tourism industry is rapidly expanding aviation and improving air connectivity.
Riyadh Air, the Kingdom’s second national airline, is set to launch long-haul flights from London Heathrow at the end of 2025, strengthening trade and tourism links between the two countries.
The aviation sector presents lucrative opportunities for UK firms specialising in training, technology, and aircraft maintenance.
With Saudi Arabia investing heavily in its airline industry, including plans to turn Riyadh into a global aviation hub, British expertise in aeronautical engineering, logistics, and infrastructure will continue to be in demand.
Registering a business in KSA from the UK, is charting a path of partnerships and progress, offering a rewarding ecosystem for businesses ready to make long-term investments in this dynamic market.
How to Set Up Your Business in Saudi Arabia from the UK: Understanding the Market Entry Process
The initial phase of the Saudi market expansion typically necessitates having all the company’s foundational documents ready and attested. These include a certificate of incorporation, the memorandum of association (MoA), and articles of association (AoA), as well as an audited financial statement.
To complete the Saudi business setup process from the UK, business owners must register with more than 10 ministries and governmental entities as part of the three-stage market entry roadmap.
Afterwards, it is important to obtain a nationally registered office space to get a national address.
In the soft landing phase, companies must issue the general manager’s Iqama and finalise registrations on key government portals, including Muqeem, Absher, Qiwa, and Mudad. Having an up-and-running bank account is mandatory to complete the entry process.
Lastly, businesses will need to hire staff in adherence with the Saudization (Nitaqat) quota, issue visas for non-Saudi employees, and complete their legal due diligence as part of the post-setup stage.
Utilising third-party services might be essential to support companies with critical business functions such as accounting, HR and payroll management.
Expanding Your British Business in Saudi Arabia: Frequently Asked Questions (FAQs)
- Which sectors in Saudi Arabia offer the best investment opportunities for UK investors?
- The most promising sectors include renewable energy, technology, tourism, healthcare, and infrastructure.
- What incentives does Saudi Arabia offer to foreign investors?
- The government provides tax exemptions, 100% foreign ownership in many sectors, and streamlined regulations, with additional benefits in Special Economic Zones.
- How easy is it to start a business in Saudi Arabia as a UK investor?
- The Ministry of Investment (MISA) offers simplified company registration procedures, allowing fast-track licensing. Collaborating with AstroLabs can significantly accelerate market entry for UK businesses in Saudi Arabia. AstroLabs’ clients can get operational in approximately 3 months.
- What are the legal requirements for setting up a business in Saudi Arabia from the UK?
- Foreign companies must first secure a MISA license to establish their legal entity. Afterward, they must obtain commercial registration (CR) to verify the business’s operating status. Then, registrations with governmental portals will be necessary for a foreign company to get operational. The market entry process of a foreign company formation in Saudi ends with issuing a GM iqama and opening a corporate bank account. A detailed breakdown of the entire process is found here.
- What are the tax implications for UK companies?
- Corporate tax in Saudi Arabia stands at 20%. In fact, there’s no personal income tax, but businesses may be subject to VAT (currently at 15%), Zakat, and excise income. But, this depends on the company’s entity type and activities. Saudi offers various tax incentive schemes ranging from exemptions and/or deductions to promote the growth of its private sector-led economy.