Doing Business in Saudi Arabia - International Franchise Association

• Standards and labeling: As part of the GCC Customs Union, the six Member States are
working toward unifying their standards and conformity assessment systems. However,
each Member State continues to apply its own standard or a GCC standard. A new ICCP
mandates that a Certificate of Conformity must accompany all consumer goods exported to
Saudi Arabia. Labeling and marking requirements are compulsory for any products
exported to Saudi Arabia.
• Travel Advisories: Americans visiting Saudi Arabia are advised to check the U.S. State
Department’s website at http://travel.state.gov/travel/cis_pa_tw/tw/tw_932.html for the latest
information on travel to Saudi Arabia.
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• The government is planning to spend US$400 billion on roads, airports and energy projects
over a five year period between 2009 and 2014. US$70 billion of this expected to be
invested in 2010.
• Saudi Arabia has the biggest IT market in the Gulf region, with a forecast value of US$3.7
billion in 2010 expected to rise to US$5.2 billion by 2014.
• All three of Saudi Arabia’s GSM operators are in the process of implementing higher data
transmission speeds over their 3.5G networks. This development should stimulate increased
demand for mobile broadband services in the long term.
• Saudi Arabia’s ambitious rail plans are fuelling activity in the infrastructure sector, with
US$30 billion worth of contracts under way or at the bidding stage.
• Saudi Arabia is the third largest consumer of water per capita in the world, but has limited
groundwater to tap. Desalination forms the backbone of the government’s water strategy.
US$6bn a year has been committed by the government to bolstering the water sector over
the next two decades.
• The state-owned Saudi Electricity Company (SEC) intends to invest US$28bn to add
approximately 13GW of power in the next three years. The utility company also plans to
spend US$70 billion by 2018 to add 25GW to meet the growing demand from a rapidly
increasing population.
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• American exporters are not required to appoint a local Saudi agent or distributor to sell to
Saudi companies. For complete information and regulations on registering a business in
Saudi Arabia, please visit the Saudi Arabia Government Investment Agency (SAGIA) at
www.sagia.gov.sa/en/Investor-tools/Business-Centre-Wizard/Introduction/.
• Although the Saudi Government encourages foreign investment, a U.S. firm is strongly
encouraged to seek in-country legal counsel on the best approach. The U.S. Commercial
Service can assist by providing a list of local attorneys, which may be associated with
American law firms.
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