Tawaref Series: Saudi corporate annual operating costs explained

Tawaref Series: Saudi corporate annual operating costs explained

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