EXPANDING INTO SAUDI ARABIA

5 Common mistakes even smart compagnies make

Saudi Arabia is booming — economically, institutionally, and globally. With Vision 2030 driving one of the most ambitious national transformations in the world, it's no surprise that more and more international companies are setting their sights on the Kingdom. But between strategy and execution, there’s a gap many underestimate.

At PEAK Ventures, we support businesses with strong vision — and sometimes, with blind spots. Here are five critical mistakes we see often, and more importantly, how to avoid them.

1. Assuming the Saudi market works "like everywhere else"

One of the most common traps is applying a one-size-fits-all strategy. Saudi Arabia has its own tempo and business logic: relationship-first, hierarchy-sensitive, and generally less transactional than many Western or Gulf markets.

As one cross-cultural guide points out, “Companies should be sensitive to religious practices, dress codes, business etiquette, and communication styles". That’s not a footnote — it’s a strategic pillar.

2. Underestimating administrative lead times (despite the reforms)

Saudi Arabia has made great strides in digitalizing and simplifying many procedures. But let’s be clear: company registration, obtaining a MISA license, visa arrangements, and UBO (Ultimate Beneficial Owner) declarations can still take anywhere from 2 to 12 weeks, depending on how well-prepared you are.

A recent LinkedIn report noted that the real delays often arise after initial registration, during tax setup, bank account opening, or payroll registration.

3. Not establishing real local presence

"Remote-only" doesn’t build trust in Saudi Arabia. Whether it’s a temporary office, a local representative, or even a legal mailing address, some form of local presence signals commitment and professionalism.

A recent business advisory article underlines that local representation is not just a legal checkbox — it’s a trust builder.

4. Choosing the wrong local partner in Saudi Arabia

In some sectors, a local partner is mandatory. In others, it's optional — but often strategically valuable. What matters is choosing wisely. A flashy website or big title on LinkedIn won’t guarantee reliability, responsiveness, or aligned priorities.

According to Creation Business Consultants, choosing the wrong business structure — including ineffective local partners — is a top mistake foreign investors make.

5. Copy-pasting a strategy from another market

What works in Paris, Montréal, or Dubai may fall flat in Riyadh. Saudi Arabia requires deep adaptation — in messaging, offer design, pricing, even the legal setup.

As Hussein Wehbe puts it: “Many multinationals make the fatal mistake of thinking globally and acting globally, instead of acting locally.”

What this means for your expansion strategy

Each of these five mistakes stems from the same root: a gap between planning and on-the-ground reality.

To succeed in Saudi Arabia, you need:

• Cultural fluency

• Realistic timelines

• Local credibility

• Strategic partnerships

• A localized approach from day one
  

At PEAK Ventures, we don't just hand you a strategy deck — we execute with you, on the ground, in real time, with local context and global standards.

Thinking of launching in Saudi Arabia? Let’s talk. A well-prepared entry beats ten perfect plans left in the cloud.

This article was written with the assistance of AI.