Saudi Arabia is rapidly emerging as a global tourism hotspot. Backed by its Vision 2030 economic diversification plan, the Kingdom has made significant strides in transforming its tourism sector into a powerful engine of growth.

With billions invested in world-class infrastructure, streamlined regulations for business owners, and major international events on the horizon, there’s never been a better time to launch a tourism business in Saudi Arabia.

This post provides a detailed, updated overview of tourism business setup in Saudi Arabia including the process, licensing requirements, and key opportunities.

MAJOR ASPECTS OF TOURISM COMPANY FORMATION IN THE KSA

Why Launch a Tourism Business in Saudi Arabia?

The Saudi tourism sector is scaling new heights. In 2023, the country welcomed over 100 million visitors, contributing around SAR 444.3 billion (USD 118.4 billion) to its GDP. Looking ahead, the government aims to increase tourist numbers to 150 million annually by 2030, making tourism one of the country’s top economic priorities.

What’s driving this growth?

• Massive Infrastructure Investment: As of mid-2024, there are 255 active tourism development projects, worth approximately USD 1.7 trillion. These include iconic destinations like The Red Sea Project, Diriyah Gate, and Amaala.

• Global Events: Saudi Arabia is preparing to host major international events, including the FIFA World Cup 2034 and Riyadh Expo 2030, which will attract millions of visitors and international attention.

• Government Support: The Ministry of Tourism and Ministry of Investment are actively supporting foreign investment in the tourism sector through licensing, incentives, and regulatory clarity.

With this foundation in place, foreign investors and entrepreneurs are finding Saudi Arabia to be a high-potential market for launching travel agencies, tour operations, accommodation services, and other tourism-related ventures.

Key Steps to Starting a Tourism Business in Saudi Arabia

Setting up a tourism business in Saudi Arabia involves three main stages: incorporation, workforce and operational setup, and licensing. On average, the process takes about six months.

Stage 1: Business Incorporation

1. Obtain Investment License
   Foreign investors must secure an investment license from the Ministry of Investment of Saudi Arabia (MISA) to legally operate in the Kingdom.

• Reserve Trade Name
  Choose and reserve a company name through the Ministry of Commerce.

• Prepare Legal Documents
  Draft and notarize your company’s Articles of Association, detailing the business structure, ownership, and governance.

• Register the Business
  Register your company with the Ministry of Commerce to receive a Commercial Registration Certificate.

• Join Chamber of Commerce
  Register your company with the Saudi Chamber of Commerce, a required step for conducting business.

Stage 2: Operational Setup and Employee Registration

1. Apply Company Seal
   Official documents must be stamped with the company’s legal seal to be recognized.

• Register with Labor Authorities
  Enroll your business with the Ministry of Human Resources and Social Development (MoHRSD) to begin hiring.

• Social Security Registration
  Sign up with GOSI (General Organization for Social Insurance) to provide social security benefits to employees.

• Register Company Address
  Secure a National Address to enable official correspondence and legal recognition.

• General Manager Visa and Appointment
  Apply for a General Manager Visa and appoint a GM who will be legally responsible for business operations.

• Tax and VAT Registration
  Register with the Zakat, Tax and Customs Authority (ZATCA) and complete VAT registration, where applicable.

Stage 3: Residency and Banking

1. Activate Chamber Account
   Use your Chamber of Commerce account for business transactions and to access government services.

• Obtain Health Insurance
  Mandatory health coverage must be secured for both owners and employees.

• Medical Examination
  Complete the required medical tests to proceed with residency visa issuance.

• Issue Iqama
  Obtain a residency permit (Iqama) for the General Manager or business owner.

• Register with e-Government Portals
  Set up accounts on platforms such as:

  • Muqeem (residency compliance)

  • Absher (government services)

  • Qiwa (employment contracts)

  • Mudad (employee wage management)

• Open Corporate Bank Account
  A business bank account is required before beginning operations.

Tourism Business Licensing Requirements

Once the company is fully registered, investors must obtain the correct license from the Ministry of Tourism based on the type of tourism service they plan to offer. Below are the most common tourism licenses.

1. Tourist Accommodation License

Required for operating hotels, resorts, or serviced apartments.

Key Requirements:

• Valid Commercial Registration (CR)

• Approvals from:

  • Ministry of Municipal and Rural Affairs and Housing (MoMRAH)

  • Civil Defense

  • National Center for Vegetation (if applicable)

• Integration with national platforms like Shomoos and NTMP

• Operator contracts (if management is outsourced)

2. Travel and Tourism Services License

For businesses offering bookings, travel packages, or agency services.

Key Requirements:

• Commercial registration with a tourism activity listed

• MoMRAH approval

• Active business website

• Financial guarantee:

  • SAR 800,000 for general travel services

  • SAR 50,000 for tour operators

3. Touristic Services Office License

Applicable to guides, travel agents, and local tour operators.

Key Requirements:

• Valid CR and relevant tourism activity

• Municipal approvals

• Financial guarantee similar to travel services license

Final Thoughts

Saudi Arabia’s tourism industry is on a remarkable growth path, with a supportive legal environment and an eager market for new experiences. For investors and entrepreneurs, now is the ideal time to establish a compliant, well-structured tourism business in the Kingdom.

With proper licensing and a strategic approach, businesses can benefit from Saudi Arabia’s position as a rising global tourism destination. By understanding the process, fulfilling regulatory requirements, and aligning with the country’s long-term vision, you’ll be set to tap into one of the most exciting tourism markets in the world.