The Hidden Costs of Starting a Business in Saudi Arabia and Dubai

So, you’re thinking about starting a business in Saudi Arabia or Dubai — awesome choice!
Both places have a ton of opportunities, but here’s the thing: while the setup might look
simple and affordable at first, there are a few sneaky extra costs that can pop up along the
way.
Let’s break it down so you know exactly what to expect before diving in.
Hidden Costs in Dubai
Dubai is known for being business-friendly — and it definitely is — but there are still a few
expenses that tend to surprise new founders.

1. Visa Costs
   The business license might sound cheap, but visa expenses are usually separate.
   You’ll need to pay for things like medical tests, biometrics, and your establishment card —
   typically AED 2,000–3,500 per person, depending on how fast you want it done.
2. Office Requirements
   Some free zones offer virtual offices, but others (especially on the mainland) require a
   physical workspace.
   Rent can easily become one of your biggest costs.
3. Bank Account Setup
   Opening a business bank account can be tricky. It’s technically free, but using an agent or
   facing delays can lead to extra fees and frustration.
4. Special Approvals
   Certain business types (like finance or telecom) need extra approvals from regulators such as
   SAMA or CITC, which means more paperwork and costs.
5. Agency & Consulting Fees
   Some setup agencies promote super low prices — but the catch is that every step (visas,
   renewals, paperwork) has an extra charge.
   Tip: Always ask for a full cost breakdown upfront before you commit.

Hidden Costs in Saudi Arabia
When you register your company in Saudi Arabia, you’ll pay the usual fees for your MISA
license, commercial registration, and Chamber of Commerce. But that’s just the start.
Here’s where extra costs can creep in:

1. Hiring Locals (Saudization Rules)
   Saudi law requires companies to hire a certain number of Saudi nationals. If your company +
   You can’t register your business without a real, physical office address — no virtual offices
   allowed here.
   Expect to pay SAR 15,000 to 100,000+ per year for rent, plus another SAR 1,000–3,000 for a
   municipality license.
2. Visas & Work Permits
   Getting your investor or employee visas, Iqamas (residency cards), medical tests, and portal
   activations all come with separate fees.
   This usually adds up to around SAR 10,000–15,000 per person.
3. Professional Help (PRO, Accounting, Legal)
   Most companies hire “PRO” services to handle government paperwork, payroll, and
   compliance — it saves time but adds to your monthly costs.
   These can cost around SAR 5000 per month, plus another SAR 1,000–3,000 for document
   translations or notarizations.
4. Capital Transfer Setup
   Moving your declared company capital into a Saudi bank can take a bit of time and
   sometimes comes with extra transfer or processing fees.
   A good expert can save you time and money and Stress -even if it costs a small fee. Consult
   BrightVision today for a clear cost breakup!