The Gulf region has become a prime destination for business expansion. Amongst all, the kingdom of Saudi Arabia and the UAE lead the way. Undoubtedly, both countries facilitate attractive advantages for entrepreneurs and investors, such as:
- A business-friendly environment
- Investor-focused reforms
- A tech-savvy and youthful population
- Strategic geographic location
- Easy access to global trade routes
But here’s where it gets interesting: When it comes to starting or setting up a business, the legal requirements, complexity, and overall cost can vary significantly between the two.
Whether you’re drawn to:
- Saudi Arabia’s growing markets backed by Vision 2030, or
- Dubai’s fast-moving, startup-friendly ecosystem,
…this article will help you make the right choice.
We’ve broken down and compared the business setup costs in Saudi Arabia vs UAE to give you a clear picture.
This guide is perfect for Startups, Entrepreneurs, and Foreign investors who are looking for low-cost business setup in Dubai or strategic market entry in KSA. Thus, bookmark this article as we are going to disclose some major points that help you to do business in Saudi Arabia or KSA.
Why Choose Saudi Arabia or the UAE in 2025?
It is evident that both countries have implemented major transformation initiatives to become magnets for foreign investment.
Saudi Arabia is rewriting the rules of business. It has transformed rapidly under Vision 2030. The kingdom now offers long-term residencies, full foreign ownership, and strong government support for entrepreneurs. The economy has diversified beyond oil. Tourism, tech, manufacturing, and green energy are gaining serious traction – opening massive investment windows.
On the other hand, the UAE, particularly Dubai, continues to shine as a business hub. Quick company registration, modern infrastructure, and low tax rates are major draws.
Whether you’re going solo or scaling a multinational — Dubai makes it simple.
Cost of Doing Business Setup in Saudi Arabia
Starting a business in Saudi Arabia involves a range of costs influenced by multiple factors. It includes the nature of business, industry sector, investment capital, and regulatory charges. If you are a foreign investor, your first move is to register with the Ministry of Investment of Saudi Arabia (MISA).
Additional considerations involve licensing fees, office rental space, Saudization requirements, and legal or consultancy charges. In the subsequent sections, you will learn about what you need to know when starting a business and a detailed breakdown of the typical expenses involved in the process.
Key Steps to Start a Business in Saudi Arabia
- Decide on your legal entity type: LLC, JSC, or Branch Office
- Apply for MISA Investment License
- Register with the Ministry of Commerce (MoC)
- Set up a corporate bank account in Saudi Arabia
- Secure a Municipality License
- Lease Office Space (Mandatory)
- Comply with Saudization by hiring local talent
- Register for VAT if your turnover crosses the threshold
- Process visas for your staff and register with GOSI
KSA Business Setup Cost – Detailed Breakdown (2025)
In the following section, you will find a detailed cost breakdown of setting up a business in the kingdom in 2025. It includes government fees, legal requirements, and other essential expenses. The costs mentioned below are based on recent estimates for 2025.
| Component | Estimated Cost (SAR) | Remarks |
| Commercial Registration (CR) | 1,200 – 5,000 | One-time cost; annual renewal fees may apply |
| Municipality License | 1,000 – 5,000 | Based on business activity and office location |
| MISA Foreign Investment License | 2,000 (annual) + 10,000 (first-year service fee) | Mandatory for foreign investors |
| Chamber of Commerce Registration | 1,000 – 5,000 | Sector-dependent |
| Notarization & Legalization | 500 – 2,000 | It includes translations, MOFA & embassy attestation |
| Saudization Setup Costs | Variable | Costs for hiring Saudi nationals; may vary by sector and company size |
| Office Rental (Riyadh/Jeddah) | 15,000 – 120,000 annually | Mandatory for CR issuance |
| Limited Liability Company (LLC) Registration | 7,000- 30,000 | Additional SAR 5,000 – 20,000 per year for mandatory annual auditing |
| Sole Proprietorship Registration | 1,000 – 3,000 | Renewal fee of SAR 800 – 1,000 annually |
| Joint Stock Company (JSC) Registration | 50,000 – 100,000+ | For larger enterprises; higher compliance and capital requirements |
| GOSI Registration & payroll | Employer contributions: 12% | Required after hiring Saudi nationals |
| Other Incidental Fees | 1,000 – 5,000 | Includes admin, document processing, local sponsor (if applicable) |
Please note: These figures are indicative only—they may vary depending on your specific business situation. For precise and updated information, we recommend consulting local authorities or professional business advisors.
KSA Business Setup Cost Estimate
It is evident that establishing a business in Saudi Arabia would cost around SAR 20,000 to 120,000+ (Approx. USD 5,300 – USD 32,000+). To optimize costs, many investors consult Connect Resources Saudi Arabia for guidance—especially when entering highly regulated sectors such as healthcare, education, or fintech.
Your 2025 UAE Business Setup Playbook: Cost & Process Explained
Across the UAE — whether it’s Dubai, Abu Dhabi, or other Emirates — you’ll find flexible setup options like mainland, free zone, and offshore.
Thanks to post-2021 reforms, foreign ownership of 100% is permitted in Free Zones and many mainland sectors.
Business Setup Process in the UAE
- Select Your Jurisdiction – Mainland, Free Zone, or Offshore
- Define Your Activity & Legal Structure (e.g., LLC, FZC)
- Reserve a Trade Name with the appropriate authority
- Obtain Initial Approval from DED or Free Zone
- Lease an Office Space or Flexi-desk
- Submit MoA, AoA, and other incorporation documents
- Apply for Business License
- Visa and Immigration Processing
UAE Business Setup Cost – Detailed Overview
| Component | Estimated Cost (AED) | Details |
| Company Registration Fee (Free Zone) | From 9,000 | One-time fee; varies by Free Zone |
| Trade License (Mainland) | 10,000 – 20,000 | May include local sponsor costs |
| Trade License (Free Zone) | 8,000 – 15,000 | Activity-based annual fee |
| Licence Fee (Annual Renewal) | 10,000 – 50,000 | Annual recurring cost depending on license type (trading, services, industrial) |
| Initial Submission Approval | 256.50 | Government approval fee |
| Visa (per employee/founder) | 3,000 – 5,000 per visa | Includes medical, stamping, Emirates ID |
| Flexi-desk / Office Space | 6,000 – 12,000/year | Flexi-desk (~6,000-12,000); serviced office (~15,000-20,000); mandatory for licensing |
| PRO Services | 5,000 – 10,000/year | Document clearance, renewals, liaisoning |
| Bank Account Setup | 1,000 – 3,000 | Varies by bank type and services |
| Company Stamp + Legal Docs | 500 – 1,500 | Includes MoA, AoA, stamp |
| Establishment Card | 1,000 – 2,500 | Required for visa processing |
| Ejari Registration (Mainland) | 200 – 500 | Mandatory tenancy registration for mainland companies |
| Immigration Deposit (Refundable) | 2,000 – 3,000 per employee | Security deposit for employee visa issuance |
| Medical Insurance (Mandatory) | 600 – 3,000 per employee annually | Costs vary by insurance provider and policy |
| VAT Registration (if applicable) | 500 – 1,500 | Required if annual turnover exceeds AED 375,000 |
| Accounting & Audit Fees | 5,000 – 15,000 annually | Annual financial audits for certain Free Zones |
Please note: These figures are indicative only—they may vary depending on your specific business situation. For precise and updated information, we recommend consulting local authorities or professional business advisors.
UAE Business Setup Approximate Total Cost (First Year) Estimate
Starting a business in the UAE typically costs around AED 55,000 to AED 130,000 (approx. USD 15,000 – USD 35,400).
For a low-cost business setup in Dubai, you can consult with Connect Resources Saudi. Known for their comprehensive business setup and PRO services in the Kingdom, they also support entrepreneurs looking to expand into Dubai and other Emirates. With on-ground presence in both regions, they facilitate end-to-end service to companies aiming to establish or grow their footprint across the GCC.
Business Set Up: Saudi Arabia vs UAE – Which One’s Better for You?
Not sure where to kick off your business journey in 2025? Here’s a breakdown of the key factors to help you choose what suits you best.
| Parameter | Saudi Arabia (KSA) | UAE (Dubai) |
| Setup Timeline | 3 – 6 weeks | 1 – 3 weeks |
| Foreign Ownership | 100% in Free Zones; Partial in Mainland | 100% in most sectors after reform |
| Corporate Tax | 20% on foreign company profits | 9% corporate tax on profit over AED 375,000 |
| Setup Flexibility | Limited – fixed office mandatory | High – multiple zones & desk options |
| Hiring Regulations | Requires local hiring (Saudization) | Expats friendly, requires Emiratization |
| Market Access | Strong Local Access + Vision 2030 project ecosystem | Access to both local and global markets |
Verdict:
- Choose UAE for flexibility, speed, and low upfront costs
- Choose Saudi Arabia for long-term expansion and government-backed opportunities
Start Smart in 2025 With Connect Resources
When comparing business setup: Saudi Arabia vs UAE, remember — it’s not just about the cost, but also about growth alignment. If you are aiming for swift market validation, Dubai’s Free Zones offers a business-friendly launchpad. On the other hand, if you are eyeing on regional influence or want to align with Saudi Arabia’s Vision 2030, then setting up in KSA makes strategic sense.
To save time, reduce costs and stay 100% compliant with local laws, it is advised to partner with Connect Resources. Your go-to team for unlocking government incentives and navigating setup processes in both countries.
