FITA helps you find
service providers for:


flag Saudi Arabia Saudi Arabia: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

The Sole Proprietorship is a single-partner company.
Number of partners: One single person.
Capital (max/min): No minimum capital required.
Shareholders and liability: The individual entrepreneur is liable for debts the company on his personal possessions.
Sharikat Al-Mossahamah (S.A.M) is a Public Limited Company.
Number of partners: Minimum 5 partners.
Capital (max/min): Minimum SAR 10 million.
Shareholders and liability: Liability is limited to the amount contributed.
SHARIKAT ZAT MASSOULIYYAH MAHDOOAH (S.M.M) is a Private Limited Company.
Number of partners: Minimum 5 partners.
Capital (max/min): Minimum SAR 2 million.
Shareholders and liability: Liability is limited to the amount contributed.
Sharikat Tadhamou is a General Partnership Company
Number of partners: Minimum 2 partners.
Capital (max/min): Minimum SAR 500,000
Shareholders and liability: Liability is unlimited.
Sharikat Tawsiyah Bel-ashom - Ashom is a partnership limited by shares.
Number of partners: Minimum 2 partners and maximum 50.
Capital (max/min): Minimum SAR 1 million.
Shareholders and liability: At least one partner must have an unlimited liability. Liability of other partners is limited to the amount contributed.
The Competent Organization
Ministry of Commerce and Industry

 

Ministry of Finance

Department of Zakat and Income Tax

Search a Company or a Financial Report
Arabian Travel Directory
 
Setting Up a Company Saudi Arabia Middle East & North Africa
Procedures (number) 9.0 8.0
Time (days) 21.0 23.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Saudi Arabia.
The Ministry of Commerce and Industry, for Business licenses.

Return to top

The Active Population in Figures

20112013
Labor force 7,630,0008,412,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -54.50%49.90%
Men activity rate 79.80%74.20%74.10%
Women activity rate 21.20%17.40%17.70%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Education 11.4%
Construction 11.1%
Households with Employed Persons 10.4%
Manufacturing 6.5%
Transport and Storage 4.5%
Health and Social Work 4.5%
Real Estate, Renting and Business Activities 3.9%
Hotels and Restaurants 3.2%
Mining and Quarrying 1.3%
Electricity, Gas and Water Supply 0.9%

Source: International Labor Organization (ILO)

 
For Further Statistics
Ministry of Economy and Planning
Central Department of Statistics (CDS)
For Further Information About the Labor Market
ILO, International Labor Organization

Return to top

Working Conditions

Legal Weekly Duration
8 hours a day or 48 hours a week. The number of working hours may be raised to 9 hours a day where the workman does not work continuously, such as seasonal establishments, hotel, snack bars, restaurants, etc.
Retirement Age
60 years for men and 55 years for women.
Working Contracts
Broadly there are two types of contracts: Permanent and Fixed-term.

Majority of the contacts for foreigners in the labor sector are of fixed-term, while as for the locals these are of permanent type.

The number of 'temporary contracts' is very low.

Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Return to top

Cost of Labor

Minimum Wage
No minimum wage exists.
Average Wage
Average monthly gross earnings is SAR 2,461 (USD 656).
Social contributions
Social Security Contributions Paid By Employers: 11%
Social Security Contributions Paid By Employees: 9%

Return to top

Social Partners

Social Dialogue and Involvement of Social Partners
The labor law does not provide for collective bargaining. However, the companies that employ more than 100 Saudis are allowed to form "labor committees." There are 15 labor committees registered in the Kingdom.
Unions

Labor Regulation Bodies
Ministry of labor

Return to top

Any Comments About This Content? Report It to Us.

 

Learn more about Operating a Business in Saudi Arabia on Globaltrade.net, the Directory for International Trade Service Providers.

© Export Entreprises SA, All Rights Reserved.
Last Updates: February 2015