Saudi Arabia Travel Business Assistance Fact File

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Basic Facts About Saudi Arabia

Origin of the name

The name “Saudi Arabia” is a relatively recent invention, established in 1932. King Abdulaziz bin Saud, the founder of the modern nation, issued a royal decree unifying the regions of Hejaz and Nejd under the name “al-Mamlaka al-ʿArabiyya as-Suʿūdiyya”. This translates literally to “the Saudi Arab kingdom,” but is more commonly rendered as “the Kingdom of Saudi Arabia” in English. The key to understanding the name lies in two parts. “Arabia” refers to the larger geographic region, the Arabian Peninsula. “Saudi” stems from the name of the ruling family, Al Saud. By incorporating their family name into the country’s title, King Abdulaziz emphasized the Al Saud’s role in forging the unified kingdom. This naming convention reflects a historical practice where a ruling dynasty’s name becomes associated with the land it governs.

The Saudi Arabia Flag

The national flag of Saudi Arabia, also called al-Alam, features a simple yet powerful design rich in symbolism. It consists of a rectangular field of green, the traditional colour of Islam, representing hope and prosperity. In the centre of the green field is a white inscription in the Thuluth script, a bold and elegant form of Arabic calligraphy. This inscription is the shahada, the Islamic declaration of faith: “There is no deity but God; Muhammad is the Messenger of God.” The shahada signifies the country’s foundation in Islamic principles. Positioned horizontally below the inscription is a white sword, symbolizing strength, justice, and defense of the faith. The current design, adopted in 1973, depicts a straight sword as opposed to the earlier curved version. Interestingly, the flag must always be displayed such that the inscription reads correctly on both sides. This is due to the religious significance of the shahada.

Capital City of Saudi Arabia

The capital of Saudi Arabia is Riyadh, a bustling metropolis situated in the heart of the country. Founded in the 18th century, Riyadh has emerged as the political, administrative, and economic centre of the kingdom. It boasts the title of the largest city on the Arabian Peninsula.

Riyadh’s name itself holds a hint to its past, translating from Arabic to “the gardens” or “meadows.” This reflects the area’s natural fertility, created by its location at the meeting point of two wadis (seasonal rivers). While the modern city is a far cry from its historical namesake, it thrives as a centre for commerce, government, and culture.

History & Independence

The Rise of the Modern Kingdom of Saudi Arabia: A Timeline

The land that is now Saudi Arabia has a long and rich history, but the modern Kingdom itself is a relatively recent development. Here’s a timeline outlining its key periods:

Early 18th Century (1727):

First Saudi State: Established by Muhammad ibn Abd al-Wahhab and Muhammad bin Saud (founder of the Al Saud dynasty) in central Arabia (Najd region).
This state followed a strict interpretation of Islam and embarked on territorial expansion.

Early 19th Century (1802 – 1818):

Leader: Abdulaziz I (son of Muhammad bin Saud)
Expansion and Conflict: Abdulaziz I recaptured the family’s ancestral home of Riyadh and conquered Hejaz, including the holy cities of Mecca and Medina.
Ottoman Intervention: The Ottomans, fearing the growing Saudi power, sent forces that crushed the First Saudi State in 1818.

Late 19th & Early 20th Century (1824 – 1902):

The Interregnum: The Al Saud family went into exile for decades.
Rise of Ibn Saud: In 1902, Abdulaziz ibn Abdul Rahman (later known as Ibn Saud) recaptured Riyadh, marking the beginning of the process to re-establish the Saudi state.

Early to Mid-20th Century (1902 – 1932):

Leader: Ibn Saud
Strategic Alliances: Ibn Saud formed strategic alliances with local tribes and the British.
Conquest and Unification: Through a series of military campaigns, he conquered most of the Arabian Peninsula, including Hejaz in 1924-25.

1932:

Founding of the Modern Kingdom: On September 23, 1932, Ibn Saud unified his conquered territories, formally establishing the Kingdom of Saudi Arabia.
The Kingdom became an absolute monarchy ruled by the Al Saud dynasty, adhering to Wahhabi Islam.

Post-Independence

Since its founding, Saudi Arabia has undergone significant economic and social transformations, largely fuelled by the discovery of vast oil reserves in the 1930s.
The Kingdom has also played a prominent role in regional and international affairs.

Current Ruler

King Salman bin Abdulaziz Al Saud (ascended to the throne in 2015)

Government

The Kingdom of Saudi Arabia is an absolute monarchy with Islam as its foundation. King Salman bin Abdulaziz Al Saud sits at the head of the government, holding the titles of both head of state and Prime Minister. The King is advised by a cabinet known as the Council of Ministers, which consists of appointed specialists who oversee various government ministries. There’s also the Consultative Council (Majlis Al-Shura), a legislative body that proposes and amends laws, though its members are also chosen by the King.

The legal system in Saudi Arabia is based on Islamic Law (Sharia), with the King holding the highest authority within the judicial system. It’s important to note that, unlike some other monarchies, there are no political parties or national elections in Saudi Arabia. The Basic Law of 1992 serves as a foundational document, outlining the government’s structure and responsibilities.

Official Language

The official language of Saudi Arabia is Arabic. It’s a beautiful and historic language, spoken by millions across the globe. Interestingly, within Saudi Arabia itself, there are several regional variations of Arabic, with some of the most common being Hijazi and Najdi. These dialects can differ in pronunciation, vocabulary, and even grammar. However, standard Arabic, also known as Modern Standard Arabic, is the form used for official purposes, education, and media throughout the country. While Arabic is the official language, English is also increasingly used, particularly in major cities and the business world.

Business Culture

Saudi Arabian business culture prioritizes relationship-building and trust over quick deals. Patience and investing time in getting to know your counterparts are key. Greetings are warm and handshakes are standard for men. Be aware of Islamic prayer times, as business may pause briefly. Punctuality is flexible, with meetings scheduled by loose timeframes like “morning” instead of precise times. Dress modestly and professionally. Business decisions are often made by senior members, so hierarchy is respected. Small talk and building rapport are important before diving into business discussions. Be mindful of cultural sensitivities; avoid topics like religion or politics.

Saudi Arabia Demographics

Saudi Arabia boasts a young and rapidly growing population. As of 2024, estimates suggest over 37 million people reside in the kingdom, with a median age of around 30.6 years. This youthful demographic is fuelled by a fertility rate of 2.46 births per woman. Interestingly, the country also houses a significant expat community, contributing to its status as one of the world’s largest immigrant populations. Over 83% of the population resides in urban areas, and Islam is the overwhelming religion, with Sunni Muslims forming the majority.

Time Zone

Saudi Arabia observes Saudi Arabia Standard Time (SAST), also known as UTC+3. This means they are three hours ahead of Coordinated Universal Time (UTC). There is no daylight-saving time implemented in Saudi Arabia, so the time zone remains constant throughout the year. In comparison, London operates on Greenwich Mean Time (GMT) during winter, also known as UTC+0. During summer, British Summer Time (BST) is observed, which is UTC+1. Therefore, the time difference between Saudi Arabia and London can vary depending on the season. In winter, Saudi Arabia is three hours ahead of London. In summer, the difference shrinks to two hours.

Climate

Saudi Arabia’s climate is primarily defined by scorching deserts, with the exception of a small, southwestern region. This area boasts a more pleasant, semi-arid climate. Throughout most of the country, scorching days give way to surprisingly chilly nights, creating a significant temperature swing. Summers are brutally hot, with highs exceeding 43 °C (109 °F) in the interior and remaining above 38 °C (100 °F) along the coasts. Rainfall is scarce and erratic, with most areas receiving less than 150 mm (6 inches) annually. The southwestern mountains provide a refuge from the heat, with cooler temperatures and slightly higher precipitation, reaching up to 600 mm (24 inches) per year.

Borders Of Saudi Arabia

Saudi Arabia’s vast territory is bordered by a unique combination of land and sea. To the west, the country is cradled by the Gulf of Aqaba and the Red Sea, stretching for nearly 1,800 kilometres. This coastline extends southwards along Yemen, where a demarcated land border of roughly 320 kilometres follows a mountain ridge. However, the border southeast of Najran remains undefined. On the northern front, Saudi Arabia shares a land border of almost 1,400 kilometres with three countries: Jordan, Iraq, and Kuwait. This border stretches from the Gulf of Aqaba in the west, reaching all the way to Ras al Khafji on the Persian Gulf coast. It’s worth noting that some sections, like the one with Jordan established in 1965, have involved territorial exchanges to achieve a mutually agreed-upon boundary.

Eastward, Saudi Arabia is bordered by several Gulf nations. The coastline meets the Persian Gulf, bordering Kuwait (with a long-standing neutral zone resolved in 1969) and Qatar (with a border dispute nearly settled in 2001). Further along the eastern flank lie the United Arab Emirates (whose border remains undefined) and Oman (with a well-defined section in the southeast).

Size of Saudi Arabia

Saudi Arabia boasts an impressive size, claiming the title of the largest country in the Middle East. With a land area of approximately 2,150,000 square kilometres (830,000 square miles), it ranks as the fifth-largest country in all of Asia. To put this in perspective, its size is comparable to the land area east of the Mississippi River in the United States. This vast territory contributes to the diverse landscapes found within the kingdom, encompassing deserts, mountains, and even coastal regions along the Red Sea and the Persian Gulf.

Religion

Islam is the official religion of Saudi Arabia, with the vast majority of Saudi citizens being Muslim. Specifically, Sunni Islam is the dominant branch, practiced by around 85-90% of the population. Within Sunni Islam, Saudi Arabia adheres to the Hanbali school of jurisprudence, a stricter interpretation. The country’s religious identity is further shaped by Wahhabism, a conservative movement within Sunni Islam that emphasizes a literal interpretation of Islamic texts and a return to early Islamic practices. This ideology has been a cornerstone of Saudi rule and significantly influences Saudi culture and law. Interestingly, while Islam is the state religion, a significant Shi’a Muslim minority exists, comprising 10-15% of citizens. It’s important to note that non-Muslim religious practice is not permitted within the country.

Saudi Arabia Currency

The official currency of Saudi Arabia is the Saudi riyal, denoted by SAR or SR. It’s further divided into 100 halalas, though denominations of halalas are rarely used in everyday transactions. Visitors will typically encounter riyal notes in denominations of 1, 5, 10, 20, 50, 100, 200, and 500, and coins in denominations of 1 or 2 riyals. Interestingly, the Saudi riyal is pegged to the US dollar, meaning its exchange rate remains stable with the USD. This offers a degree of predictability when converting currencies.

Exchange Rate Dynamics

Saudi Arabia’s exchange rate against major currencies experiences fluctuations. As of today 18/03/24), 1 GBP is equivalent to approximately 4.77 SAR.

https://www.xe.com/currencyconverter/convert/?Amount=1&From=GBP&To=SAR

Practical Tips for Using SAR :

ATMs: ATMs are widely available in Saudi Arabia, especially in major cities. Look for ATMs affiliated with your bank network for potentially lower withdrawal fees.
Cash is king: While cards are becoming more accepted, cash is still widely used in Saudi Arabia, especially for smaller purchases at souqs (markets) and for tipping.
Carry smaller bills: Having a mix of smaller denominations (5 SAR, 10 SAR, 20 SAR) will be helpful for taxis, street vendors, and tipping.
Bargaining: Bargaining is expected at souqs (markets). Be prepared to pay with cash for these purchases.
Tipping: Tipping is not customary in most restaurants as service charges are often included in the bill. However, you may tip a few Riyals for exceptional service or at hotels for porters or bellhops.

Saudi Arabian Food

Saudi Arabian gastronomy is a delicious and flavourful cuisine that reflects the country’s rich culture and traditions. Influenced by its desert environment and Islamic heritage, Saudi Arabian food is known for its use of spices, herbs, and locally sourced ingredients. Some of the most common include:

Kabsa: Considered the national dish of Saudi Arabia, Kabsa is a flavorful mixed rice dish typically made with basmati rice, meat (chicken, lamb, camel, or beef), vegetables, and a blend of spices. The spices are what give Kabsa its distinctive and delicious flavor. Some of the common spices used include black pepper, cardamom, saffron, cinnamon, cloves, dried lemon, and bay leaves. The rice is cooked in a broth flavored with caramelized onions and tomatoes.
Jareesh: A traditional dish from the Arabian Peninsula, Jareesh is a type of cracked wheat stew often compared to porridge. It’s a hearty and comforting dish made with simple, staple ingredients like wheat and meat. Jareesh is a prime example of Saudi Arabian cuisine’s resourcefulness and ingenuity.
Mutabbaq: Mutabbaq is a popular street food and everyday snack, especially in the western part of Saudi Arabia. It’s a folded flatbread stuffed with a spiced meat mixture and egg. Mutabbaq is typically served with a yogurt dip.
Mandi: Similar to Kabsa, Mandi is another flavorful rice dish but cooked with different spices. It’s usually made with lamb or chicken that’s marinated in yogurt and spices before being slow-cooked in an underground oven.
Harees: Harees is a thick wheat porridge made with meat, typically lamb or chicken. It’s a flavorful and filling dish that’s often served during special occasions.
Maqluba: Maqluba is a turned-over rice dish that’s made with chicken, vegetables, and spices. The rice is cooked with the chicken and vegetables, and then the pot is inverted onto a plate to reveal the dish. Maqluba is a beautiful and impressive dish that’s perfect for a special occasion.
Qatayef: Qatayef are small, sweet pastries that are filled with nuts, cream, or cheese. They’re a popular dessert that’s often served during Ramadan.
Luqaimat: Luqaimat are sweet dumplings that are deep-fried and then drizzled with honey or syrup. They’re a delicious and decadent treat that’s perfect for satisfying a sweet tooth.
Baklava: Baklava is a rich and flaky pastry that’s made with layers of phyllo dough, nuts, and honey. It’s a popular dessert throughout the Middle East, and Saudi Arabia is no exception.

Things to see and do in Saudi Arabia

Saudi Arabia’s vast and diverse landscapes encompass deserts, mountains, and coastlines. While the country is known for its arid deserts, it also has a surprising variety of natural reserves that protect these unique ecosystems. Here are a few of the most notable ones:

Al Wahbah Crater – This volcanic crater is a stunning natural wonder located in northwestern Saudi Arabia. The crater is about 2 kilometres in diameter and 250 meters deep, with dramatic cliffs and a volcanic cone at its centre. The surrounding lava fields and black sand dunes add to the otherworldly feel of the place.
Harrat Khaybar – This volcanic field is located in western Saudi Arabia and is home to hundreds of volcanic cones, lava flows, and craters. The area is also known for its ancient rock art and inscriptions.
The Empty Quarter – This vast desert region covers about a quarter of Saudi Arabia and is one of the largest sand deserts in the world. The Empty Quarter is known for its towering sand dunes, some of which reach heights of over 300 meters.
Al Disah Desert – Located in northwestern Saudi Arabia, Al Disah Desert is known for its rock formations, including arches, bridges, and mesas. The desert is also home to a variety of wildlife, including gazelles, oryx, and foxes.

National Parks

Saudi Arabia is relatively new to the concept of National Parks, but there are several designated areas with protected status:

Imam Turki bin Abdullah Royal Natural Reserve – This vast reserve encompasses a variety of landscapes, including desert plains, mountains, and valleys. The reserve is home to a variety of wildlife, including oryx, gazelles, and houbara bustards.
Shuaiba Rock Resort – This scenic area is located in the southwest of Saudi Arabia and is known for its dramatic rock formations and lush valleys. The resort is a popular destination for hiking, camping, and picnicking.

Urban Parks

Saudi Arabia has also seen a rise in urban parks in recent years. These green spaces provide a much-needed respite from the hustle and bustle of city life and offer opportunities for recreation and relaxation. Here are a couple of examples:

King Fahd Park, Riyadh – Sprawled across 100 hectares, this is the largest park in Saudi Arabia. It features man-made lakes, waterfalls, and gardens, making it a popular destination for families.
Salam Park, Jeddah – This 25-hectare park is a popular spot for picnics, jogging, and cycling. It also has a lake, a children’s play area, and a variety of restaurants and cafes.

Culture and History

Saudi Arabia boasts a rich culture and deep history, evident in its traditions, architecture, and archaeological sites. Here are some of the must-visit destinations to immerse yourself in the country’s past and present:

Madain Saleh (Mada’in Saleh): Madain Saleh, also known as Al-Hijr or Hegra, is a fascinating archaeological site located in northwestern Saudi Arabia. It boasts a rich history, having been inhabited as early as the 1st millennium BCE. The city truly flourished during the reign of the Nabataean Kingdom, from the 1st century BCE to the 1st century CE. Madain Saleh served as their southernmost metropolis, second only to their capital, Petra, in Jordan. The most striking aspect of Madain Saleh is its collection of over 130 monumental tombs carved directly into the sandstone cliffs. These facades are elaborately decorated, showcasing the artistic talents of the Nabataeans. The site also features other remnants of Nabataean life, including temples and a complex water management system. Evidence of the Lihyan and Roman presence can also be found at Madain Saleh. In recognition of its exceptional cultural heritage, Madain Saleh was designated a UNESCO World Heritage Site in 2008, becoming the first such site in Saudi Arabia. Today, it stands as a remarkable testament to the ingenuity and artistry of ancient civilizations.
Diriyah: Diriyah, nestled on the outskirts of Riyadh, boasts a rich history and cultural significance for Saudi Arabia. Founded as the first capital of the Emirate of Diriyah under the first Saudi dynasty (1727-1818), Diriyah served as the home of the Saudi royal family. Today, the region is a governorate encompassing Diriyah town itself alongside neighboring villages. The most notable aspect of Diriyah is At-Turaif, its historical heart. This district designated a UNESCO World Heritage Site in 2010, offers a glimpse into the past through its traditional mud-brick architecture. Visitors can explore the pedestrianized Al-Bujairi, a maze of alleyways lined with cafes and shops. Cultural enthusiasts can delve deeper at the Diriyah Museum, a former palace showcasing Saudi history, or admire the restored Al-Zawihra Mosque. Beyond its historical significance, Diriyah boasts natural beauty. The Wadi Hanifah valley, a popular spot for picnics, strolls, and cycling, features a river flanked by date palms. With its blend of cultural heritage, historical sites, and scenic landscapes, Diriyah offers a captivating experience for visitors seeking a deeper understanding of Saudi Arabia’s roots.
Al Masjid an-Nabawi (The Prophet’s Mosque) is the second holiest site in Islam, surpassed only by the Masjid al-Haram in Mecca. Located in the heart of Medina, Saudi Arabia, it was built by the Prophet Muhammad himself in 622 CE, shortly after his arrival in the city. Originally a simple structure, the mosque has undergone numerous expansions over the centuries to accommodate the growing numbers of pilgrims. Today, it boasts a vast prayer hall adorned with white marble and topped by a magnificent green dome, a landmark that adorns Saudi Arabia’s 100-riyal note. Al-Masjid an-Nabawi holds immense significance beyond its architectural beauty. It is believed to enshrine the tomb of Prophet Muhammad, making it a major pilgrimage destination for Muslims worldwide. Historically, the mosque served not only as a place of worship but also as a community centre, a school, and a courthouse, reflecting the central role it played in early Muslim society. Even today, the mosque remains a vibrant centre of faith and a powerful symbol of Islamic history.

Al Masjid al-Haram (The Grand Mosque) or the Great Mosque of Mecca, is the holiest site in Islam and the largest mosque in the world. Located in Mecca, Saudi Arabia, it encloses the Kaaba, a cubical structure believed to have been built by Abraham and Ishmael. Muslims around the world face the Kaaba during their daily prayers. The mosque serves as a destination for the Hajj pilgrimage, which every able-bodied Muslim must undertake at least once in their lifetime. Millions of pilgrims visit the mosque each year to perform circumambulation (tawaf) around the Kaaba, and other rituals associated with Hajj. The mosque also welcomes worshippers year-round for Umrah, a lesser pilgrimage that can be undertaken at any time. Throughout history, the mosque has undergone numerous expansions to accommodate the growing number of pilgrims. The current structure boasts a vast central courtyard surrounded by covered prayer areas, along with features like the Zamzam Well (believed to be a miraculously generated spring) and the hills of Safa and Marwa, which pilgrims walk between as part of their rituals. With its rich history, religious significance, and architectural grandeur, Al-Masjid al-Haram remains a central pillar of the Islamic faith.
National Museum of Saudi Arabia, established in 1999, offers a comprehensive journey through the Kingdom’s rich history and culture. Located in Riyadh’s al-Murabba neighbourhood, the museum is part of the King Abdulaziz Historical Centre. Eight exhibition halls, spread over a vast 28,000 square meters, showcase artifacts and exhibits that tell the story of Saudi Arabia from prehistoric times to the present day. Visitors can embark on a chronological exploration, starting with the Man and the Universe Gallery, which delves into the origins of the cosmos and the Arabian Peninsula’s geological makeup. Subsequent galleries explore the development of ancient civilizations, the pre-Islamic era, and the rise of Islam. The museum also dedicates sections to the founding of the Saudi state and the Kingdom’s modern development. With over 3,700 artifacts on display, including sculptures, manuscripts, and everyday objects, the National Museum of Saudi Arabia offers a window into the nation’s fascinating past and vibrant present.

Jeddah Historical Area also known as Al-Balad, is a vibrant portal into the city’s rich past. Founded in the 7th century, it flourished as a major port city on the Red Sea trade routes, serving as a vital connection for goods and pilgrims journeying to Mecca. This dual role fostered a unique multicultural atmosphere, reflected in Al-Balad’s distinctive architecture. The area boasts imposing tower houses, built by the city’s mercantile elite in the 19th century, showcasing a blend of Red Sea coral building traditions with influences from across the trade routes. Alongside these grand structures stand traditional coral stone houses, mosques, bustling souqs (markets), and small public squares, forming a cohesive and lively historic space. Recognized for its exceptional cultural heritage, Al-Balad was designated a UNESCO World Heritage Site in 2014. Today, it offers visitors a chance to step back in time and experience the traditional heart of Jeddah.

Festivals and Events:

Saudi Arabia is undergoing a transformation, opening its doors to tourists and hosting a wide variety of festivals and events throughout the year. Here are some of the top spots to visit for festivals and events:

The Saudi Seasons: This is a year-round program of festivals that take place in different regions of the country. Each season has its own unique theme and offerings. Some of the most popular seasons include:
- Riyadh Season is a major annual event that transforms the Saudi capital into a vibrant hub of entertainment and sports. Launched in 2019 as part of a wider Saudi Seasons initiative, it has become one of the world’s largest winter entertainment festivals. Held during the cooler months between October and March, the Riyadh Season offers a wide range of activities for visitors. The centerpiece of the Riyadh Season is Boulevard World, a sprawling complex featuring twelve unique zones. Each zone offers a distinct theme, allowing visitors to explore different cultures, indulge in culinary delights from around the globe, or catch a concert by a renowned artist. Beyond Boulevard World, the Riyadh Season encompasses various other experiences, including high-end shopping, family-friendly entertainment options, and world-class sporting events. With its diverse offerings and festive atmosphere, the Riyadh Season has become a major draw for both local residents and international tourists.
- Jeddah Season is a vibrant art, culture, and entertainment festival held annually in Jeddah, Saudi Arabia. It’s a cornerstone of the “Saudi Seasons” initiative, aiming to boost tourism and showcase the country’s rich heritage. Lasting for 60 days, the festival offers a multitude of experiences for all ages. Visitors can enjoy over 60 entertainment games, 20 concerts, and 4 international exhibitions. Jeddah Season unfolds across nine distinct zones, each catering to different interests. From seaside events and amusement parks to jungles, international circuses, and cultural experiences, the festival offers something for everyone. With its focus on “Our Good Days.. Are Coming,” Jeddah Season promises an unforgettable experience that celebrates the city’s beautiful culture, welcoming people, and stunning seafront.
- Taif and Al Baha Seasons: These seasons offer a chance to experience the mountainous regions of Saudi Arabia, with hiking, camping, and cultural events.

Other Festivals: In addition to the Saudi Seasons, there are a number of other festivals that take place throughout the year in Saudi Arabia. These include:

Janadriyah Festival: The Janadriyah Festival is a two-week long celebration of Saudi Arabian culture and heritage held annually near Riyadh. Established in 1985, the festival offers a vibrant window into the kingdom’s traditions. Visitors can experience a multitude of activities, including camel racing, equestrian performances, poetry recitals, and folk music and dance like the Ardah and the Mizmar. Artisans showcase their skills in various crafts, while regional pavilions highlight the unique cultural aspects of different provinces. The festival also features exhibitions and displays by government institutions and businesses, along with international participation, fostering a spirit of cultural exchange. With over a million visitors flocking to the event each year, the Janadriyah Festival serves as a major platform for preserving and celebrating Saudi Arabia’s rich cultural tapestry.
Jeddah Shopping Festival: The most prominent shopping festival is likely Haya Jeddah, which takes place during the Jeddah Season in June and July. This festival promotes Jeddah as a tourist destination and features sales at a variety of malls throughout the city.
National Day: Saudi Arabia celebrates its National Day annually on September 23rd. This day commemorates the unification of the Kingdom of Nejd and Hejaz under King Abdulaziz Ibn Saud in 1932. The official designation of the day as National Day came in 1965, replacing the previously celebrated Royal Seating Day. It became a public holiday in 2005. National Day is a vibrant celebration of Saudi pride and heritage. The streets are adorned with flags, buildings are illuminated in green, and people dress in traditional attire. Parades, music, and traditional dance performances fill the air, while fireworks displays cap off the festivities. It’s a day to reflect on the kingdom’s rich history and its journey to unification under the House of Saud.

Living in Saudi Arabia

Housing and Living Cost

The cost of living in Saudi Arabia is lower than in Western countries, and housing is a big factor in this. Renting an apartment can vary greatly depending on location, size, and amenities. In expat compounds with high security and Western-style facilities, expect to pay a premium – a two-bedroom flat starts at around SAR 6,000 ($1,600) monthly. Outside these compounds, rents are more affordable. A spacious 200-square-meter apartment can be found for around SAR 2,000 ($530) monthly, and prices drop even further in suburbs and rural areas. Beyond housing, groceries and utilities are also relatively inexpensive. Keep in mind that these are estimates, and the final cost will depend on your lifestyle choices. Resources like Numbeo and Expatistan can provide more specific figures based on your needs.

Health and Education Facilities

Saudi Arabia offers a growing network of healthcare and educational facilities. The Ministry of Health oversees hospitals, primary care centres, and specialist institutions throughout the country. Public education is free for all Saudi citizens, with universities like King Saud bin Abdulaziz University for Health Sciences providing advanced programs in healthcare fields. Additionally, public health education initiatives are increasing, promoting healthy lifestyles and disease prevention. While there are areas for improvement, Saudi Arabia is actively developing its health and education sectors to serve its population.

Investing in Saudi Arabia

Economy in Saudi Arabia

The Saudi Arabian economy is a complex one, transitioning from an oil-reliant model towards diversification. While it boasts the largest economy in the Middle East and ranks 18th globally, its dependence on oil is significant. Oil contributes roughly 40% of GDP and a whopping 75% of government revenue. This dependence makes the economy vulnerable to fluctuations in oil prices.

Recognizing this challenge, Saudi Arabia has launched Vision 2030, an ambitious plan to diversify its income sources and boost non-oil sectors. This includes investments in tourism, technology, and renewable energy. The efforts are showing progress. The non-oil sector has grown steadily in recent years, reaching an average growth rate of nearly 5% in 2023. This economic transformation is still ongoing, and its success will be crucial for Saudi Arabia’s long-term prosperity.

Political Overview

Saudi Arabia’s political system is a unique blend of tradition and evolving modernity. It functions as an absolute monarchy, meaning the king holds ultimate power. The current king, Salman, is both head of state and head of government. Decisions are made through consultation with various groups, including the Council of Ministers, religious scholars (though their influence has waned in recent years), and tribal leaders.

Unlike most modern countries, Saudi Arabia has no political parties or national elections. The king appoints government officials, including the crown prince (currently Mohammed bin Salman, his son). Women’s participation in politics is a recent development, with them gaining the right to run for seats on municipal councils in 2015.The legal system is based on Islamic law (Sharia), though interpretations and implementation can be influenced by political considerations and tribal customs. This creates a complex system where tradition and religious law interact with the needs of a modern state. It’s important to note that Saudi Arabia is considered an authoritarian regime by most observers. There are limited political freedoms and dissent is not tolerated. However, the government has undertaken some recent reforms aimed at modernization, and it will be interesting to see how the political landscape continues to evolve.

Legal in Saudi Arabia

Saudi Arabia’s legal system is a unique blend of Islamic law and modern statutes. Here’s a breakdown of the key sources:

Sources of Law

Sharia (Islamic Law):
- Primary Source: Sharia forms the foundation of the legal system. It’s derived from the Quran, the holy book of Islam, and the Sunnah, the teachings and practices of Prophet Muhammad.
- Interpretation: Islamic scholars interpret Sharia through various methods:
  - Ijma: Consensus of scholarly opinion on legal matters.
  - Qiyas: Analogical reasoning, applying existing Sharia principles to new situations.
- Specific School: Saudi Arabia primarily follows the Hanbali school of Islamic jurisprudence, known for its stricter interpretations.
Statutory Law:
- Modern Legislation: Alongside Sharia, Saudi Arabia has a growing body of codified laws passed by the government. These laws typically address specific areas like commerce, administration, and certain criminal matters.
- Compatibility: Statutory laws must comply with Sharia principles.

Royal Orders:
- King’s Decrees: The King of Saudi Arabia issues royal decrees that carry the weight of law. These decrees often address urgent matters or provide more specific guidance on existing laws.

Court System in Saudi Arabia

The court system in Saudi Arabia is a unique blend of Islamic law and modern legal structures. Here’s a breakdown of its key features:

The Foundation: Sharia Courts

Core of the System: Sharia courts form the backbone of the Saudi judiciary. Judges (often referred to as “ulema”) are experts in Islamic law (Sharia).
Court Levels: These courts have several tiers:
- First Instance Courts: These courts hear most civil and criminal cases. They are further divided into Summary Courts (for smaller claims) and General Courts.
- Appellate Courts: Appeals from First Instance Courts are heard here by panels of judges.
- Supreme Judicial Council: This highest appellate body reviews legal points, not factual findings, of judgments.
Cases Handled: Sharia courts manage a wide range of issues including:
- Criminal offenses
- Civil disputes (contracts, property)
- Family law matters

Additional Judicial Bodies

Board of Grievances: This specialized court addresses disputes involving the government and its citizens.
Specialized Courts: Established in 2008, these courts handle specific areas like:
- Commercial matters (Commercial Courts)
- Labor disputes (Labor Courts)

The King as the Highest Authority

Final Appeal: The King holds the ultimate authority in the legal system. Individuals can appeal court decisions directly to him.
Power of Pardon: The King also retains the power to grant pardons.

Important Reforms

Modernization Efforts: Since 2007, significant reforms have been undertaken to enhance efficiency and transparency in the court system.
New Procedures: A formal criminal procedure code was introduced, and specialized courts were created.

Key Characteristics of Law in Saudi Arabia

The legal system in Saudi Arabia is unique in its close integration of religious and codified law. Here’s a breakdown of the key characteristics:

Sharia as the Foundation:

- Core Principle: The foundation of Saudi law is Sharia, the Islamic legal code derived from the Quran and the Sunnah (teachings and practices of Prophet Muhammad).
- Wahhabi Interpretation: Saudi Arabia follows a strict interpretation of Sharia known as Wahhabism, emphasizing a literal reading of Islamic texts.

The Basic Law: A Modern Framework

- Introduced in 1992: The Basic Law of Saudi Arabia serves as a constitution-like document outlining the government’s structure and principles.
- Codified Norms: While Sharia remains supreme, the Basic Law establishes a legal framework for governance, including the role of the monarchy, citizens’ rights and duties, and the functioning of the state.
- Harmony with Sharia: The Basic Law emphasizes that it functions within the boundaries set by Sharia.

Unique Aspects of the Saudi Arabia Legal System:

Dominant Source: Sharia – Unlike most legal systems based on secular codes, Saudi Arabia relies primarily on Sharia, derived from the Quran and the Sunnah (Prophet Muhammad’s teachings). This makes law and religion inseparable in the Saudi context.
Uncodified System – In contrast to many Muslim-majority countries that have codified Sharia into written law, Saudi Arabia adheres to an uncodified version. This means interpretations of Sharia by judges play a crucial role, leading to some uncertainty in legal matters.
Strict Interpretation – Judges in Saudi Arabia base their rulings on the Hanbali school of Islamic jurisprudence, known for its literal interpretation of Sharia. This approach can be seen as more conservative compared to other schools of Islamic law.
Limited Secular Law – While Sharia remains the primary source, a limited body of secular laws and regulations exist to address specific modern-day situations. These laws typically supplement Sharia when no clear guidance exists within Islamic law.
Centrality of the Monarchy – The King holds the ultimate authority in the legal system, acting as the final court of appeal and possessing the power to grant pardons. This reflects the absolute monarchy structure of the country.

Comparison with Other Muslim Countries

Saudi Arabia’s uncodified Sharia system is distinct from codified systems in other Muslim nations, offering more flexibility for interpretation but also less predictability.
The strict Hanbali interpretation is another point of difference, as some Muslim countries follow more moderate schools of Islamic law.

Saudi Arabia General Investment Authority (SAGIA):

The Saudi Arabian General Investment Authority (SAGIA), now known as the Ministry of Investment (MISA), is a government agency responsible for overseeing foreign investment in Saudi Arabia. Established in 2000, MISA works to attract foreign businesses and investors to the country.

Here’s a breakdown of MISA’s key functions:

Improving Saudi Arabia’s Investment Climate: MISA works to make Saudi Arabia a more attractive destination for foreign investment by streamlining regulations and procedures.
Supporting Investors: MISA provides a variety of services to investors, including advisory services, government liaison assistance, and market research.
Finding Investment Opportunities: MISA helps connect investors with potential business opportunities in Saudi Arabia.

MISA plays a critical role in Saudi Arabia’s Vision 2030, a national economic diversification plan that aims to reduce the country’s dependence on oil. By attracting foreign investment, MISA helps to create jobs, promote economic growth, and develop new industries in Saudi Arabia.

Establishing a Company in Saudi Arabia as a Foreigner

The Saudi Arabian government has implemented reforms to attract foreign investment, making it easier for you to establish a business. Here’s a breakdown of the key steps involved:

Choosing Your Business Structure

- Limited Liability Company (LLC): This is the most common option for foreign investors. It requires a minimum capital of SAR 500,000 (subject to change, confirm with MISA) and offers limited liability protection.

Eligibility for 100% Foreign Ownership

- While traditionally requiring a Saudi partner, recent reforms allow 100% foreign ownership for LLCs under specific conditions:
  - You have a support letter from a government entity like MISA, PIF, or a designated research institution.
  - Your business involves a patented technology or innovation.

Key Government Approvals

- Ministry of Investment (MISA): Obtain a foreign investment license from MISA. This is crucial for starting your business activities.
- Ministry of Commerce and Industry (MOCI): Apply for a Commercial Registration Certificate (CR) from MOCI.

Additional Requirements

- Articles of Association (AoA): Prepare an AoA outlining your company structure, ownership, and operations. Have it notarized and approved by MOCI.
- Local Presence: Secure a physical office address in Saudi Arabia and establish a local bank account.
- Ministry of Labor and Social Development (MLSD): Register with MLSD to obtain a registration certificate for employing staff.

Additional Requirements

Articles of Association (AoA): Prepare an AoA outlining your company structure, ownership, and operations. Have it notarized and approved by MOCI.
Local Presence: Secure a physical office address in Saudi Arabia and establish a local bank account.
Ministry of Labor and Social Development (MLSD): Register with MLSD to obtain a registration certificate for employing staff.

Investment Opportunities

Saudi Arabia is undergoing a significant economic transformation driven by Vision 2030, a strategic plan to diversify the economy and attract foreign investment. This presents exciting prospects for international investors seeking new markets. Here’s a breakdown of key areas and considerations:

Promising Sectors:

Energy: The Kingdom is a major oil producer, but it’s also heavily invested in renewable energy like solar and wind power. Opportunities lie in clean technology, grid modernization, and related infrastructure.
Technology & Innovation: Vision 2030 prioritizes developing a robust digital economy. Investors can find opportunities in fintech, artificial intelligence, cybersecurity, and companies catering to this growing tech sector.
Tourism & Entertainment: Saudi Arabia aims to become a major tourism destination. Investments in hospitality, leisure facilities, cultural experiences, and entertainment ventures hold high potential.
Infrastructure: The government is investing heavily in infrastructure development. Opportunities exist in transportation, logistics, smart cities, and real estate projects.
Healthcare: The privatization of healthcare opens doors for foreign investors in hospitals, clinics, medical equipment, and pharmaceuticals.

Benefits of Investing in Saudi Arabia:

Government Incentives: The Saudi government offers tax breaks, customs duty relief, and streamlined business registration to attract foreign investors.
Full Ownership: Many sectors allow 100% foreign ownership, giving you full control over your investment.
Profit Repatriation: There are no restrictions on repatriating profits earned in Saudi Arabia.
Strategic Location: The Kingdom boasts a strategic location at the crossroads of three continents, ideal for global trade.

Mega Projects in Saudi Arabia

Saudi Arabia is undergoing a massive economic transformation, and at the heart of this change are a series of ambitious mega projects. These large-scale initiatives aim to diversify the economy beyond oil, fostering innovation and creating exciting opportunities for foreign investors.

Vision 2030: The Driving Force

These mega projects are part of Saudi Arabia’s Vision 2030, a comprehensive plan to build a thriving future for the kingdom. The vision focuses on diversifying the economy, creating jobs, and positioning Saudi Arabia as a global leader in innovation and sustainability.

Mega Projects: A Glimpse into the Future

Several mega projects are attracting international interest. Here are a few highlights:

NEOM is an ambitious project to build a futuristic city in Tabuk, Saudi Arabia. Launched in 2017, it aims to be a global hub for innovation and a model for sustainable living. Envisioned as a sprawling region of 26,500 square kilometres, NEOM encompasses several zones. The centrepiece is “The Line,” a 170-kilometer-long linear city designed to minimize environmental impact. This car-free zone will prioritize pedestrians and utilize renewable energy sources. Other areas include Oxagon, a floating industrial city focused on research and development, and tourist destinations with stunning natural landscapes. With a target completion date of 2039, NEOM is still under development, but it has the potential to revolutionize urban living and industry.
Red Sea Project is a massive tourism development project underway in Saudi Arabia. It’s part of the country’s Vision 2030 program, which aims to diversify the economy beyond oil. Announced in 2017, the project encompasses an archipelago of pristine islands, stunning deserts, and dramatic mountain landscapes along the Red Sea coast. Designed as a regenerative tourism destination, the project focuses on ultra-luxury experiences while prioritizing environmental conservation. Upon completion in 2030, it will boast over 50 resorts offering thousands of hotel rooms and residences. Beyond luxurious accommodations, the development will include marinas, golf courses, and various leisure facilities. Notably, the project prioritizes sustainability, aiming to be powered by renewable energy and implementing strict environmental preservation measures.
Qiddiya is a massive entertainment and tourism project currently under construction in Riyadh, Saudi Arabia. Launched in 2018, it aims to be a global hub for entertainment, sports, and culture. Upon completion, it is envisioned to be the world’s largest entertainment city by 2030. This giga-project is a key part of Saudi Vision 2030, a program aimed to diversify the country’s economy and create a more vibrant society. Qiddiya will feature a variety of attractions, including family-friendly theme parks, world-class sports facilities, concert venues, and outdoor activities. It will even boast a dedicated gaming and esports district, aiming to make Saudi Arabia a global leader in this growing field. Overall, Qiddiya is poised to transform Riyadh into a major tourist destination, offering something for everyone. With a focus on “the power of play”, it hopes to not only entertain visitors but also provide new opportunities for Saudis in terms of leisure, employment, and overall quality of life.

Immigration

Saudi Arabia has become more welcoming to foreign investors in recent years, offering residency permits in exchange for investment. Here’s a summary of the key points:

Investor Visa (Golden Visa): This program grants residency based on investment. There are two tiers:
- Renewable Residency Permit: Invest 100,000 SAR (around $27,000 USD).
- Permanent Residency Permit: Invest 800,000 SAR (around $213,000 USD).
Benefits:
- Residency for yourself and family.
- Potentially own real estate.
- Establish businesses.
Eligibility:
- Minimum 21 years old.
- Valid passport.
- Clean criminal record.
- Proof of financial resources.
- Medical report.

Tax for Foreign Investors

Corporate Income Tax:
- Standard rate: 20% on net profits for non-Saudi and non-GCC investors [GCC – Gulf Cooperation Council].
- Higher rates (50-85%): Apply to income from oil and hydrocarbon production.
- Tax Exemptions and Incentives: Saudi Arabia offers tax breaks to attract foreign investment in specific sectors like technology, renewable energy, and tourism. These can include tax holidays or lower rates.
Withholding Tax (WHT): Non-resident investors earning income from a Saudi source (e.g., dividends, interest) may face withholding tax between 5% and 20% on the income amount.
Capital Gains Tax: A 20% capital gains tax applies when selling shares in a local company, with some exemptions.

Foreign Employees:

Income Tax: Unlike some other countries, Saudi Arabia doesn’t have a personal income tax for residents. However, there is a social security tax employers must pay on behalf of their employees, with a slightly higher rate for foreign workers compared to Saudi nationals.
Withholding Tax: Similar to investors, foreign employees might be subject to withholding tax on certain types of income earned in Saudi Arabia.

Additional Considerations:

Zakat: This Islamic wealth tax applies to Saudi nationals and GCC citizens on their assets, but not to foreign residents.
Real Estate Transaction Tax (RETT): A 5% tax applies to property purchases in Saudi Arabia, including for foreigners.

Finding More Information:

For the latest details and specific situations, it’s advisable to consult with a tax professional or refer to official resources from the Saudi Arabian General Authority for Zakat and Income (GAZIZ) (https://zatca.gov.sa/en/Pages/default.aspx).