Key Legal Requirements to Set Up a Foreign Business in Mecca
This guide incorporates what you need to know before registering a business in Mecca.
Setting up a business in Mecca opens the doorway to various strategic opportunities across sectors like construction, retail and hospitality.
This guide is intended to present the necessary steps and procedures behind the foreign business setup in the strategic province.
How Can Foreign Companies Set Up a Business in Mecca?
Incorporating a foreign business in Mecca requires the implementation of several steps divided into three primary stages.
Phase 1: Establish Your Legal Entity (1 Month)
The process begins by laying the legal foundation of your business as well as obtaining the necessary licenses
1.Obtain a MISA Investor License
2.Name Reservation
3.Draft Local Articles of Association (AoA)
4. Secure Commercial Registration (CR)
5. Obtain the Chamber of Commerce (CoC) Registration
Phase 2: Authorize Operations and Build Your Team (2 Months)
Once the legal entity is formed, the next step is authorizing operations and recruiting staff.
6. Obtain a company seal
7. Register with the Ministry of Labor
8. Register with the General Organization for Social Issuance (GOSI).
9. Register a National Address
10. Issue a GM Visa
11. Registration with the General Authority of Zakat and Tax (GAZT) and VAT Registration
Phase 3: Finalize Residency and Banking Setup (3 Months)
The final stretch includes issuing GM residency (Iqama) and establishing a corporate bank account
12. Activate the Chamber of Commerce (CoC) account
13. Obtain Health Insurance
14. Get a Medical Check-up
15. Issuing the GM’s Iqama
16. Register with the Muqeem portal for streamlined visa and residency management
17. Register with the Absher portal for an array of e-government services
18. Register with the Qiwa portal for business services designed for SMEs
19. Register with the Mudad Portal to manage essential municipal services for your company
20. Open a bank account
The Next Steps After A Foreign Company Formation in Mecca?
Once the company is fully incorporated and operational, the focus shifts to meeting ongoing compliance requirements. This primarily includes multiple areas, such as adhering to the Saudization (Nitaqat) program and keeping company accounts on key government portals effectively managed and up to date, renewing business licenses and other key documents, such as the GM's Iqama, and filing annual tax returns.
Obtaining the help of integrated corporate service provider platforms such as AstroLabs, the Gulf’s leading business expansion platform, becomes necessary not only in ensuring a seamless company registration in Mecca but also in complying with post-setup regulatory requirements.
Reasons Behind Mecca’s Emergence as a Global Investment Destination
Historically, the Mecca province has stood out as a significant contributor to the Kingdom’s economy. It currently represents 21% of the Kingdom’s GDP and is home to more than 8 million residents.
The province remains at the heart of a profound infrastructure overhaul, with large-scale initiatives like the Masar mega project central to this transformation. The project will see an investment of more than $26 billion and create more than 16,000 jobs.
Stretching over 1.2 million Square feet, Masar is designed to include 24,000 hotel rooms and 13,000 residential units. It will also increase the city’s capacity to accommodate 30 million pilgrims annually by 2030.
Currently, Mecca welcomes over 13.5 million Umrah pilgrims annually. With tourism surging in Mecca, licensed hospitality facilities rose by 80% in 2024 alone, making it a prime destination for hospitality investments.
Province-wide, new incentives are also drawing interest in high-growth, priority areas like mining and construction. Earlier in 2025, Saudi Arabia implemented strategic reforms to allow foreign investors to invest in property firms in the Province. The move allows for increased FDI in Mecca, aligning with Vision 2030's objectives to secure $100 billion in funding a year by 2030.
Highlighting the city's increased attractiveness to global investors, the US-based investment firm Burlington Capital has recently joined the Al-Bushra Infrastructure Development Fund as a strategic partner. This fund aims to develop more than 734,000 sq. meters of land in the Al-Aziziyah district of Mecca.
Just north of the city, King Abdullah Economic City (KAEC) adds further growth muscle to Mecca’s economy.
As one of the leading special economic zones, KAEC is focused on logistics, manufacturing, real estate, and port operations. By 2020, the SEZ's industrial valley had attracted over 215 foreign companies in various sectors.
Frequently Asked Questions About Setting up a Business in Mecca
How to set up a business in Mecca?
To start a business in Mecca, foreign investors must first obtain a MISA investor license, reserve a company name, and register their commercial registration (CR). Then, they complete necessary registrations with the Ministry of Labor, GOSI, and tax authorities, followed by securing visas and opening a bank account. Working with AstroLabs can significantly fast-track the company setup process in Mecca as well as the wider country.
Can a foreigner start a business in Saudi Arabia?
Foreign investors can enjoy full ownership of their business in Saudi Arabia. But the general manager of the newly registered company must be a resident of Saudi Arabia; therefore, securing the GM's Iqama is a fundamental aspect of a successful market entry process.
What is the timeline for setting up a business in Mecca?
Approximately, the entire process takes up to 6 months. With support and guidance from AstroLabs, setting up a business in Saudi Arabia can be completed in as little as 3 months.
What support do businesses need after setting up in Mecca?
After setting up a business in Mecca, companies must meet ongoing compliance requirements, including Saudization, GOSI reporting, and tax filings.
