Set Up a Business in Jeddah in 2025:Guide to Essential Processes and Opportunities

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How Can Foreign Companies Set Up a Business in Jeddah?

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

Firstly, the process starts with laying the groundwork for the legal existence of a foreign business.

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)

Afterward, a company becomes in a position to hire staff and authorize operations.

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)

Finally, the market expansion journey ends with finalizing the procedures necessary to obtain the general manager (GM) Iqama and to open a corporate bank account.

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

Post-Incorporation Checklist for Foreigners Starting Businesses in Jeddah

To effectively start a company in Jeddah, maintaining compliance is key to ensuring that a business meets regulatory obligations and is well-positioned for leveraging substantial growth opportunities and achieving sustainable development.

Essential post-registration tasks include keeping the company’s accounts on government portals like Muqeem, Absher, Qiwa, and Mudad accurately up to date.

Another crucial compliance area is ensuring full adherence to hiring a specific number of Saudi nationals to remain in compliance with Saudization rules. As a matter of fact, new foreign businesses are given a grace period of 5–9 months to hire their first Saudi national.

Additionally, timely filing of tax returns and prompt payment of tax returns are a must to maintain corporate compliance.

Staying acquainted with changes in tax law and regulation in Saudi can significantly help mitigate risks, and avoid potential penalties.

Related read: Next Steps After Business Incorporation In Saudi Arabia

Why Jeddah is a Prime Location for Foreign Businesses

Jeddah boasts a series of governmental projects that actively encourage direct foreign investment.

Key among them is the Jeddah Central Development, which aims to revitalize the central region in the city, with a total cost estimated at $5.3 billion, or SAR 20 billion.

The prominent project is expected to be completed in 2027 and is set to feature various landmarks, including a sports stadium, an opera house, oceanic aquariums, and an industrial museum.

Moreover, Jeddah’s proximity to African and European markets makes it a strategic location for an attractive option for company incorporation for businesses in logistics.

Consequently, given its strategic significance, the government is trying to sustain and support the growth of businesses basing their operations in Jeddah in accordance with the country’s economic aspirations.

Businesses can leverage the fiscal and non-fiscal incentives offered at the King Abdullah Economic City (KAEC), a special economic zone located in close proximity to Jeddah. These incentives range from tax breaks, streamlined business-setting processes and flexible employment regulations

In fact, the zone has been consistently attracting multinational corporations (MNCs) to set up operations in the Kingdom, including the likes of US-based Lucid Motors. Up until recently, the entire zone had received up to $4.8 billion (SR18 billion) in foreign investments.

Registering a business in Jeddah allows companies to gain enhanced access to competitive, once-in-a-lifetime opportunities.

Typically, as one of the host cities of FIFA World Cup 2034, Jeddah features a host of new stadiums and facilities that are being built from scratch and others that are being revamped. This, in turn, triggers a multiplier economic effect across industries, particularly construction, creating a conducive environment that encourages international business expansion.

One of AstroLabs’ expansion clients, Lenskart, a global eyewear brand, has already picked Jeddah as the location of its two stores, underscoring Jedda’s edge as a fast-growing consumer market buoyed by strong demand.

This comes as part of Lenskart's ever-expanding coverage in Saudi Arabia, where it solidifies a viable physical footprint as it looks to become a key player in the country's thriving retail and e-commerce spheres.

Related read: Top Cities for Business Setup in Saudi Arabia in 2025