How to Set Up a Business in Dammam: Processes and Opportunities

Home to the largest port in the GCC, known as King Abdul Aziz Port or Dammam Port, Dammam serves as a vital hub for manufacturing, logistics and trade.

With a vibrant economy and diverse landscape, Dammam’s business opportunities make for an excellent starting point for foreign companies and entrepreneurs looking to start a business in Saudi Arabia.

How to Set Up a Business in Dammam: The Three-Phase Saudi Market Expansion Roadmap

Phase 1: Establish Your Legal Entity (Timeline: 1 Month)

Firstly, a company must lay the legal foundation for the Saudi entity.

1. Obtain a One-Year MISA Investor License
2. Reserve Your Company Name
3. Draft and Notarize Articles of Association (AoA)
4. Register Commercial Registration (CR)
5. Register with the Chamber of Commerce (CoC)

Phase 2: Authorization and Build Your Team (Timeline: 2 Months)

Then, a company must prioritize assembling a team and formalizing its presence.

1. Obtain a Company Seal
2. Register with the Ministry of Labor
3. Register with the General Organization for Social Issuance (GOSI)
4. Register a National Address
5. Issue a GM Visa
6. Register with the General Authority of Zakat and Tax (GAZT) and Get VAT Registration

Phase 3: Finalize Residency and Banking Setup (Timeline: 3 Months)

Lastly, the process concludes with completing the bank account setup and the Iqama issuance process for the general manager (GM).

1. Activate the Chamber of Commerce (CoC) account.
2. Obtain Health Insurance
3. Get a Medical Check-up
4. Issuing the GM’s Iqama
5. Register with the Muqeem portal
6. Register with the Absher portal
7. Register with the Qiwa portal
8. Register with the Mudad Portal
9. Open a bank account

Documents Required for Starting a Business in Dammam

Vital documents commonly requested are:

For Startups:

• Commercial Registration (Attested by MOFA and the Saudi Embassy)
• Memorandum of Association (MoA) & Articles of Association (Attested by MOFA and the Saudi Embassy)
• A letter of intent, a startup brief, and a pitch deck
• A support letter from a VC company or a licensed incubator

For Established Businesses:

• Commercial Registration (Attested by MOFA and the Saudi Embassy)
• Memorandum of Association (MoA) & Articles of Association (Attested by MOFA and the Saudi Embassy)
• An Audited Financial Statement

Benefits of Setting Up a Business in Dammam: Sectors Poised for Growth in 2025

Dammam’s economy is on an accelerated growth path, with diverse sectors offering enormous potential for expansion by 2025 and beyond.

Earlier this year, the Eastern Province Municipality identified 238 areas for investment, laying the groundwork for a substantial strategic initiative across the port city of Dammam.

Setting up a business in Dammam empowers businesses with early investment opportunities in sports facility construction, for instance. Amid the country’s preparations to host the FIFA World Cup 2034, Aramco Stadium is one crucial project that catalyzes growing investor interest.

Beyond construction, the logistics sector is primed for further expansion in Dammam amid plans to establish a regional logistics center.

Chiefly, such initiatives align with Saudi Arabia’s broader national strategy, which mandates 17 out of the planned 59 centers to be located in the Eastern Province.

The country’s focus on becoming a global logistics hub has made Saudi Arabia the ideal expansion destination for Unipart Group, a UK-based global provider of manufacturing, logistics, and consultancy services.

In recent years, Unipart has been actively ramping up its presence in the Kingdom, culminating with the launch of its office with the help of AstroLabs' on-the-ground team.

Furthermore, firms engaged in energy activities stand to benefit immensely from having a physical presence in Dammam, where they can have direct access to mega projects such as the King Salman Energy Park (SPARK).

Markedly, the energy sector in Saudi Arabia has been key to its diversification strategy, with the country taking bold steps to achieve net-zero emissions by 2060.

This provides the ideal operating environment for companies like Yellow Door Energy, which recently expanded to Saudi Arabia via AstroLabs.

With a focus on the corporate segment, Yellow Door Energy leads the transition to cleaner energy across different sectors.