After understanding the CapEx costs (hard costs and setup partner fees) involved in establishing a business in Saudi Arabia, the next important aspect to consider is the annual operating costs (OpEx).

OpEx encompasses the ongoing operational expenses required to sustain a business in the country. This includes government fees, renewals, taxes, third-party costs, and other essential expenditures crucial for maintaining seamless business operations and preventing any unwelcome surprises.

In this article, as part of our Saudi Expansion series, we aim to provide a clear and comprehensive overview of the operational costs after landing. This article marks the third installment in our series focusing on the various costs associated with establishing and maintaining a business in Saudi Arabia. 

Note: All facts and figures have been simplified for clarity and for a more accurate and in-depth review, it would be best to consult Tawaref.

First: Corporate annual renewal fees

Corporate annual renewal fees include all charges associated with maintaining your company's legal status to operate in the country. Some of these fees overlap with hard costs, as detailed in a prior article.

Second: Labour-related costs

Labour-related costs in Saudi Arabia pertain to expenses associated with employing both Saudis and non Saudi workers, and meeting labor-related regulations.

Third: Taxes

Saudi businesses are subject to various tax obligations to support the nation’s economic growth and development. Mandatory taxes every business is mandated to fulfil are as follows:

Fourth: Third-party costs

Third-party costs for a business include expenses for services provided by external entities, such as auditor fees and dependents. Efficient management of these costs is essential for financial health and operational efficiency.

Saudi expansion series 

This article is part of the Saudi Expansion series, aiming to educate international entrepreneurs and business owners on Saudi Arabia's foreign investment regime for a smooth landing. With a focus on original, technical, and informative content, our goal is to get business owners closer to securing that first riyal in their pocket.