Starting a Business in Medina: Local Regulations & Tax Info (from a Budget Student's POV)
okay so you're thinking of starting a business in medina? first off-props. that takes guts. but lemme be real with you: it's not just about having a cool idea and a logo. there's paperwork. taxes. and a whole lot of "wait, what do you mean i need a permit for that?"
let's start with the basics. medina's local government has some specific rules. if you're setting up shop here, you'll need to register with the medina chamber of commerce. yeah, it sounds boring, but it's step one. they'll ask for your business plan, proof of address, and your iqama (residency permit). if you're a foreigner, you'll also need a commercial registration from the ministry of commerce. no shortcuts.
now, taxes. here's where it gets spicy. saudi arabia doesn't have personal income tax, which is a win. but businesses? they do. corporate tax is 20% on profits. and if you're in the oil or gas game, that jumps to 50%. zat (zakat) is also a thing-it's like a religious tax, 2.5% on certain assets. if you're a saudi-owned biz, you'll deal with zat. if you're foreign-owned, it's corporate tax instead. confusing? yeah. talk to an accountant. seriously.
rent in medina? depends where you're looking. the city center is pricey-think $800-$1,200/month for a small office. but if you're okay with being a bit outside the hustle, you can find something for $500-$700. and yeah, utilities are extra. internet? about $60/month. not terrible.
here's a quick table of what you're looking at monthly (rough estimates):
| Expense | Cost (SAR) |
|---|---|
| Office Rent | 2,000-4,500 |
| Utilities | 300-500 |
| Internet | 225-275 |
| Business Permit | 1,000-2,000 |
| ZAT/Corporate Tax | Varies |
now, let's talk weather. medina right now? hot. like, "i just walked outside and my phone said 'nope'" hot. summers hit 45°c (113°f). winters are milder-think 20°c (68°f). so if you're moving here, pack light clothes and a good ac unit.
neighboring cities? mecca's just 100km away (about an hour drive). jeddah's 400km (4 hours). both are worth a visit if you need a change of scenery or want to pitch your biz to a bigger market.
overheard gossip from a local: "everyone thinks medina is just for pilgrims, but there's money here. especially if you cater to the religious tourism crowd. just don't try to open a bar. trust me."
another local warned me: "the bureaucracy moves slower than a turtle on vacation. be patient. and always keep copies of everything."
so, is medina a good place to start a business? yeah, if you're ready for the paperwork and the heat. the city's growing fast, and there's demand for services-especially tech, hospitality, and retail. just don't expect it to be easy. nothing worth doing ever is.
want more info? check out the medina chamber of commerce or the saudi ministry of commerce. and if you're feeling brave, hit up the medina subreddit for real talk from locals.
You might also be interested in:
- https://topiclo.com/post/fitness-and-wellness-in-esenyurt-where-dumbbells-meet-deadlines-and-maybe-a-few-ghosts
- https://topiclo.com/post/fitness-and-wellness-the-best-gyms-and-yoga-studios-in-petaling-jaya
- https://topiclo.com/post/cheap-coffee-bad-wifi-and-a-few-good-bites-my-messy-cairo-adventure
- https://topiclo.com/post/mbujimayi-where-the-past-meets-the-dusty-present-also-wifi
- https://topiclo.com/post/starting-a-vintage-business-in-dallas-threads-tax-headaches-and-where-to-find-the-good-stuff