04 — Core practice
Strategy & Risk Advisory
Most failed entries into Saudi Arabia trace back to a few avoidable decisions: the wrong partner, the wrong vehicle, or a business case that ignored payment cycles, local content and Saudization. We give you senior, independent advice on how to enter, where the risks sit, and how to structure the business so it holds up.
What we deliver
- 01
Market entry & growth strategy
Where to play, how to win, and in what order.
- 02
Entry-mode advisory
Partnership, joint venture, branch, subsidiary or regional headquarters, compared on your terms.
- 03
Counterparty & partner risk
Independent assessment of the people and companies you are about to rely on.
- 04
Regulatory & localization advisory
Saudization, local content and licensing obligations that shape the business case.
- 05
Risk mitigation planning
Scenarios, safeguards and a plan your board can sign off.
The outcome
A clear strategy, the risks named and priced, and a plan to manage them.
Risk
Where new entrants get caught out.
An illustrative map of the risks we plan for from the first conversation.
- 1Partner misalignmentVague governance, control or exit terms, and weak due diligence. Nominee arrangements are illegal under the Anti-Concealment Law.
- 2Slow payment cyclesThe statutory payment chain on government work runs to about 70 working days, and delays have occurred in practice.
- 3Project re-prioritisationGiga-project budgets and scopes have been re-sequenced, and some contracts cancelled.
- 4Local-content shortfallPrice preferences, mandatory lists, and fines of up to 10% of contract value.
- 5Saudization obligationsNitaqat bands and profession quotas; a Nitaqat certificate is required to bid.
- 6Regulatory changeSeveral rules are in transition, from local content to agency and arbitration law.
- 7Licensing and registration delaysSector licences, portal activations and documents often take longer than planned.
- 8Regional securityThe 2026 conflict disrupted shipping and hit energy infrastructure; plan for supply-chain resilience.
- 9Exit and repatriationNon-residents pay 20% tax on gains from selling Saudi shares and 5% withholding tax on dividends, which treaties can reduce. Capital and profits can be repatriated once taxes are settled; weak exit terms in the shareholders’ agreement are the bigger risk.
Illustrative: typical risk patterns for new entrants, drawn from published regulation and market reporting. Your own risk map depends on sector, partner and client base.
FAQ
Common questions
Which risks do new entrants underestimate most?
Partner selection, payment cycles, shifting project priorities and localization obligations, from local content to Saudization quotas.
How are commercial disputes usually resolved?
Arbitration is common. The Saudi Center for Commercial Arbitration applies modern rules, and Saudi courts rejected nearly 90% of applications to annul arbitral awards between 2023 and 2025 (Baker McKenzie, July 2026). Take legal advice on any specific dispute.
What does it cost to take money out, or to exit?
Dividends paid to non-resident shareholders carry 5% withholding tax, which a tax treaty may reduce, and a non-resident’s gain on selling Saudi shares is taxed at 20%. Profits and capital can be repatriated once taxes are settled. The exit terms in your shareholders’ agreement usually matter more, so we plan them at entry.
Related services
Talk to us about Strategy & Risk Advisory.
Tell us your sector and ambition. Within one business day we will reply with an honest first view of where the opportunity is and, if it fits, a scope for an Opportunity Scan.
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