Key Considerations for Foreign Investors Setting Up a Business in Madinah
Learn the ins and outs of company registration and business setup process in Madinah.
Over 213 development projects valued at SAR 210 billion (approximately $56 billion) are currently underway in Madina, supporting the development of its tourism infrastructure.
Central to the province’s transformation is the Rua Al Medinah, a major hospitality and real estate development boasting a tunnel network and luxury hotels.
Such strategic projects present lucrative entry pathways for international companies, underscoring Madinah’s prominence as a favorable expansion target.
This guide outlines the key steps and procedures for setting up a business in Saudi Arabia’s Madina.
How Can Foreign Companies Set Up a Business in Medinah?
The company formation in Saudi Arabia’s Al-Madinah is divided into three distinct phases.
Phase 1: Establish Your Legal Entity (1 Month)
Your business journey begins with creating a solid legal foundation that will support all future operations and growth initiatives.
- Obtain a MISA Investor License
- Name Reservation
- Draft Local Articles of Association (AoA)
- Secure Commercial Registration (CR)
- Obtain the Chamber of Commerce (CoC) Registration
Phase 2: Authorize Operations and Build Your Team (2 Months)
With your legal entity established, the focus shifts toward operational readiness and human capital development.
- Obtain a company seal
- Register with the Ministry of Labor
- Register with the General Organization for Social Insurance (GOSI)
- Register a National Address
- Issue a GM Visa
- Registration with the General Authority of Zakat and Tax (GAZT) and VAT Registration
Phase 3: Finalize Residency and Banking Setup (3 Months)
The final phase transforms your business from a legal entity into a fully operational commercial presence.
- Activate the Chamber of Commerce (CoC) account
- Obtain Health Insurance
- Get a Medical Check-up
- Issuing the GM's Iqama
- Register with the Muqeem portal
- Register with the Absher portal
- Register with the Qiwa portal
- Register with the Mudad Portal
- Open a bank account
What to Do After Incorporating a Company in Medinah
After registering a business in Madinah, companies still have to address several compliance requirements that must be adhered to regularly within one year of incorporation.
Addressing the Saudization (Nitaqat) Quota: According to Saudi labor laws, all companies must address their Saudization quota based on their size and the industry they operate in. Non-compliant companies risk being categorized in the Red Zone, which can make them subject to operational disruptions and legal penalties.
Maintaining Up-to-Date Accounts on Governmental Platforms: Saudi-incorporated Companies setting up a business in Madinah are required to maintain accurate, updated governmental accounts on Muqeem, Qiwa, and Mudad.
Filing Annual Tax Returns with ZATCA: Every entity in Saudi Arabia must file annual returns accurately and within specific timelines as stipulated by ZATCA.
Payroll Compliance For companies hiring local employees, compliance regarding salary payments and record-keeping is mandatory.
License Renewal: Companies in Saudi Arabia have to obtain specific licenses that require periodic renewals. We assist in keeping track of these requirements and manage renewals of documents such as the GM's Iqama, CR, and MISA license.
Rua Al Madinah: Creating Opportunities for Global Companies in Saudi Construction and Hospitality Sectors
Considered one of the Kingdom's largest hospitality and related development projects, the Rua Al Madinah project presents significant opportunities for global companies, particularly in construction, design, consultancy, and hospitality operations.
The destination has already been particularly attractive to the Accor Group, a global hospitality company, which plans to open Fairmont Rua Al Madinah in 2028. This opening is one of three planned by Accor in Saudi Arabia.
A year earlier, Rua Al Madinah Holding signed two contracts worth over SAR300 million with several international design, engineering, consultation, and supervision consultancy firms. These contracts, finalized at the PIF Private Sector Forum, are for overseeing work on several hotels within the fourth and fifth Super Blocks of the Rua Al Madinah project.
During the same forum, Rua Al Madinah Holding signed a contract with Jacobs, a leading global consulting and engineering firm. Under this agreement, Jacobs will provide design services for 12 hotel brands in the fourth Super Block of Rua Al Madinah. This block will also include substantial space for restaurants and cafés managed by global operating companies and is expected to offer over 8,000 rooms.
The other contract secures KEO International Consultants to supervise the implementation of the fifth Super Block.
The Rua Al Madinah project spans an expansive area estimated at 1.5 million square meters. It aims to provide 47,000 hospitality units to host approximately 149,000 visitors by 2030.
Projected to add $37 billion to the Kingdom’s GDP once complete, the project aligns with the objectives of Vision 2030 to accommodate 30 million pilgrims by 2030 and 15 million by 2025.
Frequently Asked Questions About Setting up a Business in Medinah
How to set up a business in Madinah?
The foreign business setup in Saudi Arabia’s Madinah begins with securing a MISA investor license, followed by strategic name reservation, commercial registration (CR), and completing registrations with governmental portals such as GOSI, Muqeem, and Qiwa. culminating in the general manager’s Iqama issuance and corporate bank account establishment.
Can a foreigner start a business in Saudi Arabia?
Foreign companies can establish 100% foreign-owned businesses throughout Saudi Arabia, including Madinah. The General Manager must be a resident of Saudi Arabia.
Our on-the-ground team enables companies to adhere to post-setup requirements and grow their footprint compliantly, turning regulatory requirements into competitive advantages.
What is the timeline for setting up a business in Medina?
The foreign business setup process typically spans approximately 3-6 months.
What support do businesses need after setting up in Madinah?
Post-launch success requires ongoing adherence to compliance requirements, including the Saudization program, GOSI reporting obligations, tax filing schedules, and regular license renewals.
Why choose Medinah for business setup in Saudi Arabia?
The province's large-scale development initiatives, including Rua Al-Madinah, create opportunities across multiple sectors.
