Construction Business Setup in Saudi Arabia
Navigate the licensing landscape and regulatory requirements to successfully establish your construction business in Saudi Arabia.
Unlock Saudi Arabia's $1.7 Trillion Construction Opportunity
With a $1.7 trillion construction pipeline, Saudi Arabia leads the MENA region in development. To help international firms capitalize on this growth, AstroLabs has supported high-growth global companies—from engineering consultancies to industrial contractors—in establishing operations in the Kingdom.
Navigating Key Regulatory Frameworks
Saudi Building Code
The Green Building Code addresses sustainability requirements, including site development, material resource conservation, and energy efficiency—reflecting Saudi Arabia's commitment to environmental standards.
New Civil Transactions Law (NCTL)
The law recognizes both material and emotional damages and establishes a ten-year statute of limitations, aligning Saudi Arabia with international standards and providing greater operational certainty.
The 20-Step Roadmap to Construction Business Setup in Saudi Arabia
Establishing Legal Foundations ( Projected timeline: 1 month)
- Firstly, obtain a service license from MISA
- Reserve a Company Name
- Draft Local Articles of Association (AoA)
- Obtain a Commercial Registration (CR) Certificate
- Register with the Chamber of Commerce (CoC)
Authorization and Hiring (Projected timeline: 2 months)
- Obtain a Company Seal
- Register with the Ministry of Labor (MoL)
- Sign up with the General Organization for Social Insurance (GOSI)
- Secure a National Address Registration
- Issue a General Manager Visa
- Register for Tax Compliance
Residency and Banking (Projected timeline: 3 months)
- Activate Chamber of Commerce (CoC) Membership
- Arrange Health Insurance for Employees
- Complete a Medical Check-up for the General Manager
- Obtain a Residence Permit (Iqama)
- Register on the Muqeem Portal
- Sign up for the Absher Portal
- Register on the Qiwa Portal
- Utilize the Mudad Platform
- Lastly, Open a Corporate Bank Account
Why AstroLabs is Your Expansion Partner
We've Done This 70+ Times
AstroLabs has expanded more construction companies into Saudi Arabia than any other expansion partner in the market. That track record means fewer surprises, faster processing, and a setup pathway that has already been stress-tested across firm sizes and activity types.
We Know the Bidding Landscape
Getting licensed is one thing. Being positioned to win government contracts is another. Our team understands the Etimad portal, tender pre-qualification requirements, and the compliance criteria that determine whether your entity can bid on public-sector construction work from day one.
Sector-Specific Licensing Expertise
Construction companies in Saudi Arabia can require a service, industrial, real estate, or engineering consulting license depending on their activity — and the wrong choice creates costly delays. AstroLabs has navigated every license category across the construction spectrum and knows exactly which structure fits your business model.
Everything Handled In-Country
Our 50+ on-the-ground consultants in Riyadh handle everything your business needs to get set up and stay compliant — licensing, registration, banking, Saudization, and beyond.
Construction License Categories
1. Service License
The service license represents one of the most flexible options for foreign construction companies, encompassing a broad spectrum of business activities.
Services include:
- Administrative investment
- Information technology solutions
- Tourism-related construction
- Training and development
- Healthcare facility construction
- Insurance and reinsurance services
- Educational institution development
- Advertising and media infrastructure
- Logistics and supply chain facilities
- Exhibition center construction
- Catering and food service facilities
- Financial service structures
- Aviation and handling facilities
2. Industrial License
The industrial license is a key component of Saudi Arabia’s broader industrial development strategy, especially within the construction sector.
Services include:
- Heavy industrial construction projects
- Light industrial facility development
- Transformative industrial installations
- Manufacturing plant construction
- Industrial infrastructure development
3. Real Estate License
This specialized license category caters to foreign companies focusing on substantial real estate development projects within the Kingdom. The total project cost, including both land and construction, should not be less than SAR 30 million, and the investment is located outside the boundaries of the cities of Mecca and Medina.
Services include:
- Large-scale residential developments
- Commercial property projects
- Mixed-use development initiatives
- Infrastructure development projects
4. Consulting License for Engineering Offices
This license caters to foreign companies that seek to offer engineering consultation services within the Kingdom with 100% ownership.
Services include:
- Architectural consulting
- Structural engineering services
- MEP consulting
- Project management consulting
- Environmental impact assessment
- Technical feasibility studies
5. Professional License
This license is available to foreign companies wishing to engage in professional activities inside the Kingdom with a Saudi partner.
Services include:
- Specialized construction services
- Technical consulting
- Project management
- Quality control and inspection
- Construction supervision
- Safety and compliance monitoring
Hear it Directly from the Leaders
As two non-Arabic founders based in the UAE expanding into the Saudi market, the support from AstroLabs was invaluable. They helped us with licensing, visas, and banking arrangements. We collaborated with various members of the AstroLabs team throughout the process and they consistently provided expert assistance.
Arran Summerhill
CEO
Insights
Construction Success Stories
February 20, 2026
Impararia – On aligned visions and disruptive technologies
Founded in Montreal as an aerospace and defense technology company, Impararia has since shifted its focus to providing innovative solutions for the architecture, engineering and construction industry, particularly within the context of smart cities.
El-Hani describes Impararia’s business model as disruptive, alluding to its goal of promoting an industrial approach to construction rather than a traditional one. This objective made it necessary to seek out ecosystems where such a model had room to grow and value to contribute.
Construction Success Stories
February 20, 2026
Holo: Capitalizing on the Opportunities in Saudi Arabia’s Proptech Sector
The renaissance of the Saudi tech sector has sparked disruptive advances across major industries, including increasing opportunities in Saudi’s proptech sector.
As a result, businesses in Saudi Arabia increasingly recognize proptech as crucial for driving efficiency and maintaining competitiveness.
Innovations are rapidly taking hold in the realms of construction and property across the country, and mortgages are becoming a popular target for proptechs such as Holo, a leading player in the digital mortgage sphere.