The Kingdom of Saudi Arabia is working towards enhancing and diversifying its economy. With mega-projects like NEOM city, Hexagon, and Trojena under Vision 2030, KSA is set to revolutionize the country’s long-standing history of being an oil exporter. An economically thriving climate like this is an excellent window for business setup in KSA.
Among the many booming trade industries, an import-export business is one. Let’s dive deep into it and look at how you can get a business license in Saudi Arabia for an import-export company.
What Is an Import-Export Business?
The industry is largely concerned with extending trade boundaries, and numerous business models are available. A person with an export/import license can sell manufactured goods to clients abroad and operate as an intermediary between the local manufacturer and the overseas buyer or vice versa. Additionally, they can directly purchase imported items and sell them in the domestic market.
According to the Economic Complexity Index, in 2020, Saudi Arabia was the world’s 20th-largest economy in terms of GDP. In terms of overall global imports and exports, it was ranked 30th. GDP per capita ranks 46th. And 32nd in terms of economic complexity.
The Kingdom’s primary exports:
- Crude Oil
- Refined Petroleum
- Propylene Polymers
- Ethylene Polymers
Mostly exported to China, India, Japan, South Korea, and the UAE.
- Pharmaceuticals and Medicine
- Automobiles and Vehicles
- Broadcasting Equipment
It is mostly imported from China, UAE, Germany, USA, and India.
Saudi Arabia was the world’s largest importer of Iron Reductions, Sheep and Goats, Nutmeg, Mace, Cardamons, Asphalt, and Artificial Monofilament in 2020.
Starting an export or import business setup in KSA can be a thrilling and profitable experience. Because of the abundance of oil, the Middle Eastern regions have enormous financial potential and purchasing power.
However, the majority of them lack other natural resources, such as arable land. As a result, there is an increase in demand for imported agricultural products, food, consumer goods, vehicles, and machinery. Saudi Arabia, specifically, imports a large number of such commodities.
How can you launch a low-cost export-import business setup in KSA?
Use the internet to your advantage by creating a website
To help your firm, you must first establish a business plan and strategy. Before creating a business plan, conduct extensive market research, collect important information, analyze, and draw conclusions. Only once you have adequate information can you uncover opportunities and viable products, and then you can start planning your business.
If you intend to export or sell to Arabia, you should alter the language to Arabic. The pictures and illustrations should be appropriate for local people and cultural norms.
Start marketing to the right audience
Much depends on how well you target and how enticing the marketing message is. If you target incorrectly or choose an unprofessional advertising business, you could lose a lot of money. If you do your own marketing, it can be ineffective at times. Before you begin doing online marketing, you need to think about it and make a plan.
Select a delivery option
After receiving consumer orders, you must begin the delivery process. Numerous shipping options are available nowadays to ensure that your consumers receive their items quickly and conveniently. Some manufacturers may also offer drop-shipping services.
So you can now own a business without having to pay a lot of money. What you must do is learn in order to develop your talents and make your company more professional.
To set up a company in import-export in KSA, we recommend conducting research, making local relationships, and attending interesting local trade events. Ensure you have the correct import or export trade license. The licenses can vary according to what you wish to supply and note that some items may need special permissions. Saudi Arabia, being the custodian of the two holy mosques, has several rigid laws around the business. Things, like not affecting religious sentiments when choosing a trading name and employing Saudi nationals, are crucial. To avoid delays in business setup and operations, it is pivotal to have the knowledge or hire expert PRO services who can take care of it for you. They can provide you with a visa, document attestation, and a business license in Saudi Arabia.