Case Study - Project Management

Saudi-Based Project Management Company Formation





A case study in the establishment of a new branch for a business

A major UK infrastructure design company with offices throughout the Middle East region wished to establish a branch office for its subsidiary project management services company as a 100% foreign owned company in Riyadh, Saudi Arabia.

looking over a city to the bottle opener building




The establishment of a subsidiary project management business as a 100% foreign owned company under a SAGIA investment licence was intended to serve to establish a foothold for the company in the Kingdom and would enable the Group to achieve a degree of familiarisation with the market, prior to seeking the involvement of a local partner or sponsor.

To facilitate the establishment of its project management business, the company sought local relationships in the form of non-exclusive local business advisory and project development agreements. They also entered into discussions with a number of key players for a number of strategic business alliances to target specific industry sectors.

The process of company establishment involved the consultants in a process lasting approximately 15 months that involved:

  • Liaison with an accounting company to prepare and submit application to SAGIA for an investment licence
  • Subsequent application to the Ministry of Commerce and Industry (MOCI) for the commercial registration process
  • Negations with commercial property owners for the rental of city centre office accommodation
  • Recruitment of key members of staff including GOSI and compulsory medical insurance
  • Locating and securing private accommodation for senior members of staff
  • Chamber of Commerce registration
  • Tax and Zakat registration
  • Setting up banking facilities and lodge required capital sum
  • Acquisition of vehicles and office furniture, equipment and supplies
  • Arranging office and accommodation utilities connections
  • Arranging company accounting and audit services.