How To Launch A Startup In Riyadh

Riyadh, the capital of Saudi Arabia, is making waves in the global business space. What was once an economy focused on oil and the finance sector has now shifted to innovating in all aspects of its economy.

This is due to the Kingdom’s implementation of Vision 2030, an initiative designed to diversify its economy. Riyadh is at the forefront of this shift, making it a top location for new startups.

The city boasts impressive world-class infrastructure and is central to accessing other Middle Eastern markets. For anyone who wants to grow across the GCC, Riyadh would be the initial launchpad. Let’s take a look at how a startup could be launched in this bustling metropolis.

Why Start A Business In Riyadh?

Riyadh is an excellent location for new businesses and startups for a number of reasons. These are the ones that make it a standout contender.

Location: Aside from access to the Middle East, Riyadh is also centrally located between Africa, Europe and Asia which will be crucial for businesses who want to trade internationally.

Tax-friendly: The city has no personal income tax and corporate tax rates are lower than neighbouring regions.

Government support: The implementation of Vision 2030 has seen complete reforms, including more access to public funding and programs to attract foreign investment.

Industries With High-Growth Potential

Finding the right industry for your startup will be key to its success in the long run. While there is room to innovate in most sectors, these ones have particularly high-growth potential in Riyadh.

Fintech: Saudi Arabia has a long history in the finance sector and as they shift towards digital banking, there are plenty of opportunities in the fintech space.

Sustainability: The Kingdom is highly committed to greentech and renewable energy and innovations here are set to see major success.

E-commerce: Riyadh’s population thrives on digital access and e-commerce platforms are a must-have.

Healthtech: Riyadh has remarkable healthcare facilities and in line with Vision 2030, there are opportunities to improve this sector further.

Top Startup Accelerators And Incubators For Startups

Accelerator and incubator programs are designed to guide startups through networking opportunities, mentorship and even financial support. Here are the top programs in Riyadh.

Riyadh Techstars: This accelerator offers world-class guidance and seed funding, supported by the Ministry of Communications and Information Technology.

Flat6Labs Riyadh: An accelerator program that, with the help from the Saudi Venture Capital Company, recently expanded into the Kingdom.

Badir Program for Technology Incubators: This is a long-standing initiative to assist tech startups with guidance and admin support.

TAQADAM: A King Abdullah University of Science and Technology accelerator that is also open to startup founders who are not students of the institution.

Funding Opportunities In Riyadh

When it comes to securing funding for your startup, there are a few different avenues that you can consider. In Riyadh, venture capital firms, angel investors and public funding are all options.

Venture capital: Popular firms in Riyadh include Impact46, Raed Ventures and Vision Ventures who offer venture capital to startups.

Angel networks: Oqal Network is the biggest investor group in Saudi Arabia that connects startup founders with private investors.

Public funding: Both the King Abdullah Financial District and Saudi Technology Ventures are active in investing in tech startups.

Visa Requirements For Foreign Entrepreneurs

Saudi Arabia has introduced multiple visas for foreign business owners in an effort to bring these overseas entrepreneurs into the Kingdom.

Investor Visa: Available to foreign individuals who register a company in Saudi Arabia which can lead to residency.

Saudi Business Visa: Also known as a Commercial Visit Visa for those attending business meetings or events.

Entrepreneur Visa: If a startup is incubated through approved initiatives, the Ministry of Investment of Saudi Arabia can arrange an entrepreneur visa.

Green Card-Style Permanent Residency: This offers long-term residency rights to professionals and startup founders who have significant investments in the Kingdom.

How To Launch A Startup In Riyadh

If Riyadh is your top location choice for starting a business, here is a step-by-step guide on how you can get started.

Select A Legal Structure

There are three common types to choose from in Riyadh:

Limited Liability Company: This is better suited to startups specifically.

Joint Stock Company: Ideal for bigger, large-scale ventures.

Sole Proprietorship: Suited to small businesses.

Register The Business

The next step is to apply for an Investment License with the Ministry of Investment of Saudi Arabia. You can then reserve your desired business name through the Ministry of Commerce. You will then need to register with the General Organisation for Social Insurance as well as the Zakat, Tax and Customs Authority.

Obtain Licenses And Permits

Your startup will require a Commercial Registration, Municipality License and Chamber of Commerce Membership. If applicable, you will also need a ZATCA Registration for VAT purposes.

Should You Start A Business In Riyadh?

Launching a startup in Riyadh wouldn’t just be a bold move, it would be a highly strategic one. The access that you would have to such a dynamic market in addition to funding and support would make it well worth the effort.

Whether you’re ready to innovate in health, finance, e-commerce or tech, Riyadh has the resources to make your startup vision a reality.