Doing Business in the United Kingdom VS Saudi Arabia – A Comparison
Choosing between starting a business in the United Kingdom and Saudi Arabia often depends on your business goals—whether you want international reach or regional presence. Saudi Arabia is investing heavily in economic transformation under Vision 2030, while 3E Accounting highlights the UK’s strengths in legal certainty, global trade access, and fast digital incorporation. Here’s how both countries compare for entrepreneurs and investors.
The United Kingdom: The UK provides a stable legal framework, consistent regulations, and transparent business operations trusted by global investors.
Saudi Arabia: Saudi Arabia has made major reforms to improve its investment environment but still requires local sponsorship in some sectors and has complex regulatory processes.
Taxation
The United Kingdom: Corporate tax is 25%, with various reliefs for SMEs, capital investment, and R&D activity.
Saudi Arabia: Corporate tax for foreign-owned businesses is 20%, plus a 5% VAT and potential Zakat obligations. Tax rules vary depending on ownership structure.
Saudi Arabia: Company setup in Saudi Arabia has been streamlined under SAGIA (now MISA), but still involves multiple ministries, licensing, and notarised documents.
Cost of Living and Business Operations
The United Kingdom: Operational costs vary widely by region, and company setup packages help manage overheads efficiently.
Saudi Arabia: Saudi Arabia offers affordable fuel and utilities, but housing, expat salaries, and compliance costs can be high in major cities like Riyadh and Jeddah.
Access to Markets
The United Kingdom: The UK has global trade agreements, access to international capital, and strong business finance support.
Saudi Arabia: Saudi Arabia is a gateway to the Gulf and MENA region, but market access is more regional, and subject to geopolitical complexities.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
United Kingdom
Saudi Arabia
Business Environment
Transparent, globally trusted
Reforming, but complex and sector-dependent
Corporate Tax Rate
25%
20%
Capital Gains Tax
Yes
No (for most asset sales)
Ease of Incorporation
Online, 1–2 days
Multiple steps, takes 2–4 weeks
Business Costs
Moderate to high, depending on region
Low fuel/utilities, high labor/housing
Market Access
Global reach, strong FTAs
Regional (GCC, MENA)
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
Yes. The UK offers a fast, fully online process, while Saudi Arabia involves more steps and documentation. Learn more in this guide on starting a business in the United Kingdom.
Company registration in the UK is done online in 1–2 days. In Saudi Arabia, the process involves multiple government entities and may take weeks.
Contact 3E Accounting to get step-by-step guidance on company formation and structure.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.