Saudi Arabia regions comparison table in 2022

Kingdom of Saudi Arabia region Eastern province Makkah Riyadh Al Madinah
Quick summary
Preferred city for incorporation of the company? Dammam Jeddah Riyadh Medina
Most popular business sector? Oil & Gas Manufacturing of textile Manufacturing and finance General retail
Specific attractive Government incentives available? Yes Yes Yes Yes
Oil fields available in this region? Yes Yes Yes Yes
CBD monthly office rental per sq m? US$22 US$26 US$28 US$22
Average skilled labour monthly salary? US$2,500 US$2,500 US$2,500 US$2,500
Average unskilled labour monthly salary? US$900 US$900 US$900 US$900
Minimum monthly wage for local employees? US$800 US$800 US$800 US$800
English spoken by what % of population? 10% 25% 35% 20%
Computer literacy rate? (% of population) 50% 65% 65% 60%
Literacy rate? (% of population) 87% 94% 94% 90%
Proximity of sea port to the main city? 19km 24km 394km 152km
Proximity of airport in kilometres to the main city? 35km 45km 28km 15km
Local Municipality business location licensing body Eastern Province Municipality Holy Makkah Municipality Al Riyadh Municipality Al Madinah Regional Municipality
Logistical considerations
Attractive Region for oil and gas business? Yes Yes Yes Yes
Attractive Region for foreign investment? Yes Yes Yes Yes
Attractive Region for an export-oriented business? Yes Yes No No
CBD monthly office rental per sq m? US$33 US$22 US$31 US$25
Average monthly electricity prices? (per Kwh) US$0.042 US$0.042 US$0.042 US$0.042
City airport with flights to Europe and America? No Yes No No
Proximity of rail in kilometres to the main city? 18km 5km 6km 2km
Quality of internet broadband and Wi-Fi? Good Good Good Good
Total population? (in millions) 5 8.5 8.3 2.1
Local purchasing power (GDP per capita)? US$55,940 US$31,273 US$32,372 US$24,000
Business output market size? (in US$ billions) 388 135 137 83
Market size relative to the economy? 60% 21% 21% 13%
Corporate Banking and Finance considerations
Is the main city an industrial hub? Yes Yes Yes Yes
Is the main city an oil industry hub? Yes Yes Yes Yes
How many global banks are based in the region? 1 1 12 1
How many KSA banks with local branches? 11 4 23 19
Recommended bank for corporate banking? SABB Samba QNB Bank Al Jazira
Client must travel for account opening? No No No No
Quality of bank customer services? Good Good Very Good Good
Quality of online banking services? Good Good Excellent Good
English e-banking platform available? Yes Yes Yes Yes
Does the Region have a reputable financial district? No No Yes No
Does the Region have a local Stock Exchange? No No Yes No
Are there Private Equity Funds/VCs in the Region? Yes Yes Yes Yes
Expatriate employment considerations
Average skilled labour monthly salary? US$2,500 US$2,500 US$2,500 US$2,500
Average unskilled labour monthly salary? US$900 US$900 US$900 US$900
Minimum monthly wage for local employees? US$800 US$800 US$800 US$800
Is there a large expatriate community in the main city? Yes No Yes No
What seasons/month should travel to this region be avoided? July-August July-August June-August July-Sep
International schools for children of expatriate employees? Yes Yes Yes Yes
Will I find European F&B products in the supermarkets? Yes Yes Yes Yes
Mercer Survey Ranking for global cities? Not ranked 165 164 Not ranked
Is the main city of the Region safe for expatriates? Yes Yes Yes Yes
How many hospitals and health centres in this region? 46 31 33 20
Accounting and tax considerations
Monthly and quarterly tax filing required? No No No No
Business incentives offered by the national government? Yes Yes Yes Yes
Average customs duty of export products? 3.2%
Average customs duty for imported products? 4.03%
Local VAT rate? 0%
Number of international tourists? (in million) 18
Average annual inflation rate? 2.2%
Average unemployment rate? 5.7%
Corporation tax rate for local companies? 20%
Corporate tax for Oil and Gas companies? 85%
Corporation tax rate for foreign companies? 20%
Withholding tax on dividends to overseas shareholders? 5%
Average pension and insurance benefits (% of salary)? 10%
Mandatory labour unions? No
Minimum notice to dismiss employees? 2 months
Minimum redundancy indemnity? (for tenure of 1 year) 2 weeks salary
Time zone? (ahead of GMT) +3hours
Considerations when dealing with nationals/government institutions
Government institutions open which days of the week? Sunday - Thursday
Government body in charge of issuance of business licenses? SAGIA
Business documents can be provided in English? Arabic
Does businesses shut down during Ramadan and Hajj? No

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