Why GCC nationals enjoy a special status in Saudi Arabia
Based on the provisions of the Unified Economic Agreement between the GCC States and the resolutions of the GCC Supreme Council implemented in the Kingdom:
- GCC nationals and entities (citizens of the UAE, Qatar, Kuwait, Oman and Bahrain) are treated exactly like Saudi citizens in owning and practising all economic, professional, commercial and service activities in the Kingdom.
Key differences between company formation for a GCC investor and a foreign investor
- Exemption from the Ministry of Investment (MISA):
- Foreign investor: Must first register in the National Investor Register with the Ministry of Investment and submit the parent company’s documents from abroad, attested by the embassies.
- GCC investor: Does not need the Ministry of Investment at all for the vast majority of commercial, service and industrial activities; instead applies directly to the Saudi Business Center (SBC) like any Saudi citizen.
- Zakat and tax treatment:
- Foreign investor: Pays corporate income tax at 20% on their share of net profits to the Zakat, Tax and Customs Authority (ZATCA).
- GCC investor: Fully exempt from income tax (0%), and their share is subject only to Zakat at 2.5% of the Zakat base, like a Saudi citizen.
- Establishing sole proprietorships and companies:
- A GCC national may open a sole proprietorship in his own name or establish a limited liability company or a simplified joint stock company, alone or in partnership with Saudis or other GCC nationals.
- Formation requirements for GCC nationals:
- A copy of a valid GCC passport.
- GCC national ID.
- National address and a Saudi mobile number.
- The Commercial Registration is issued instantly within minutes through the Saudi Business Center online portal.