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Doing Business in Saudi Arabia Becoming Simpler

A Guide for Setting up a Company in Saudi Arabia

Doing Business in Saudi Arabia Becoming Simpler

Saudi Arabia had announced multiple reforms in eight sectors which were being supervised by the World Bank.

Last week, there was an inauguration of the World Bank report on “Ease of Doing Business” in Saudi Arabia where various senior government officials, international diplomats, leading entrepreneurs and media was present. The presentation quality and the content were impressive.

The
Commerce and Investment Ministry, led by Maid Al-Qasabi, was the main
reason of these accomplishments in coordination and collaboration with other
ministries. The World Bank report on “Ease of Doing Business” in Saudi Arabia was
created on the basis of interviews with almost 50,000 international
private-sector executives, who had found the Kingdom and made the utmost
progress in the area of start-ups.

With
regards to indicators, the Kingdom has come out with distinct rankings. For example,
for setting up a new business, the Kingdom stood at the 38th
position. It took the 28th ranking for receiving various permits, 18th
place for electricity access, 19th position for property registrations, and the
third rank for safeguarding minority investors. But, it slipped down a bit in
regard to trading across borders (86th place), tax payments (57th
position), enforcing contracts (51st rank), and resolving insolvency
issues (168th place).

The
result of this report has been mentioned is in the mainstream of the Saudi
Vision 2030 mission, which aims to rely lesser on oil-based revenues and
alongside implement the above-mentioned reforms to enhance revenues also from
non-oil sectors and economic drivers. To go to the next level of reforms, Saudi
Arabia should improve transparency even further, encourage fair competition and
even better governance.

Though
there is some degree of perplexity in the private sector of the country, which
is still facing challenges in operating or establishing new businesses. Therefore,
Saudi National Competitiveness Centre (NCC) should lay more emphasis on
making the local sector completely aware of these improvements and how to take
advantage from them in an effective and quick manner.

The
announcement of this report is very timely with just a week for the Future
Investment Initiative (FII) conference to happen and with various high-stature governmental
delegations participating from the US, India, and Switzerland. It should offer more
assurance in foreign direct investments (FDI) in various sectors in the nation.

 

The country and entrepreneurs should take advantage of the country’s rankings, while inviting international collaborations and partners to gain benefit from the new investment opportunities in Saudi Arabia.

 

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