The Food and Beverage (F&B) industry in Saudi Arabia is thriving like never before. With rapid economic growth, evolving lifestyles, and a young, urban population, the Kingdom presents vast opportunities for entrepreneurs looking to launch restaurants, cafés, food trucks, franchises, or delivery-based kitchens.
This 2025 guide walks you through the entire process of establishing your food and beverage business in Saudi Arabia, including licensing, legal structure, market trends, location strategy, and compliance requirements. Whether you’re a local startup or an international investor, this article will help you make smarter and legally sound decisions with search engine-friendly clarity.
Why Start a Food & Beverage Business in Saudi Arabia?
Saudi Arabia’s F&B sector is one of the most attractive in the Middle East. Driven by Vision 2030, the government is actively diversifying the economy, encouraging tourism, and promoting local and international food brands.
Top Reasons to Enter the Saudi F&B Market
- A growing population exceeding 36 million
- High youth percentage and rising disposable income
- Government-backed support for hospitality and retail ventures
- Increased demand for diverse cuisine, organic food, and healthy dining
- Tax benefits, modern infrastructure, and 100% foreign ownership in most sectors
With global franchises and homegrown brands coexisting in major cities, now is the perfect time to tap into the food and beverage opportunities in Saudi Arabia.
Step-by-Step Guide to Start a Food & Beverage Business in Saudi Arabia
Starting a food and beverage business in Saudi Arabia begins with choosing the right legal structure and getting your investment license. Next, register your company, secure all required food and safety permits, and find a great location. Then, set up your kitchen, hire staff, and get ready to serve customers.
Step 1: Choose the Right Legal Structure
Before you begin, select a legal structure suitable for your business model. Common options include:
- Limited Liability Company (LLC) – Ideal for small to medium-sized businesses
- Foreign Company Branch – For international F&B chains expanding into Saudi Arabia
- Sole Proprietorship – Available only to Saudi or GCC nationals
- Joint Venture – Used when partnering with a Saudi investor or company
LLCs are the most popular structure for restaurant and café businesses in Saudi Arabia, offering flexibility and liability protection.
Step 2: Obtain an Investment License from MISA
Foreign investors must first apply for an investment license from the Ministry of Investment of Saudi Arabia (MISA).
Documents Required:
- Passport copies of owners/shareholders
- Parent company documents (if applicable)
- Financial statements
- Business plan
- Board resolution to establish an entity in Saudi Arabia
Once approved, you’ll receive a foreign investment license, which allows you to proceed with commercial registration.
Step 3: Reserve Your Trade Name and Register the Company
You must choose and reserve an Arabic trade name with the Ministry of Commerce (MoC). After name approval, prepare and notarize your Articles of Association (AoA) and submit all documents to obtain your Commercial Registration (CR).
Step 4: Obtain Municipal and Food Licensing Approvals
Key Licenses Required:
- Municipal License (Baladiya) – For operating a physical restaurant or café
- Food Establishment Permit – From the Saudi Food and Drug Authority (SFDA)
- Civil Defense Approval – For safety and fire compliance
- Signboard and Advertisement Licenses
- Waste Disposal Approval – From relevant municipal authorities
Each license comes with inspections and compliance checks. Without these, your F&B business cannot legally open.
Step 5: Choose the Right Location
Location is everything in the F&B business. Consider high-traffic areas such as:
- Malls and commercial complexes
- Tourist destinations and hotels
- Business districts
- Residential neighborhoods with high expat presence
Cities like Riyadh, Jeddah, and Dammam offer strong footfall, while places like Al Khobar, Medina, and NEOM present emerging opportunities.
Step 6: Interior Fit-Out and Equipment Setup
Once you’ve leased your space:
- Apply for fit-out approvals
- Hire a licensed contractor to meet food safety standards
- Install commercial kitchen equipment
- Ensure airflow, sanitation, and storage facilities comply with SFDA regulations
Step 7: Hire Staff and Register with Labor Authorities
You’ll need to register with the Ministry of Human Resources (HRSD) and General Organization for Social Insurance (GOSI) before hiring staff.
- Apply for work permits
- Ensure Saudization compliance based on your business size
- Offer employee contracts, health insurance, and proper accommodation if needed
Step 8: Register for VAT and Tax Compliance
If your annual revenue exceeds SAR 375,000, you must register for VAT with the Zakat, Tax and Customs Authority (ZATCA). Also, keep proper accounting and file taxes annually to avoid penalties.
Types of Food & Beverage Ventures in Saudi Arabia
In Saudi Arabia, you can explore various F&B ventures like full-service restaurants, fast-casual cafés, food trucks, cloud kitchens, and catering businesses. Franchising is also popular, offering proven models for success. Each type has its own setup, licensing needs, and customer appeal, making it important to choose based on your goals.
Restaurants and Cafés
From fast food to fine dining, Saudi Arabia welcomes a range of dining experiences, including international cuisines, theme cafés, and fusion concepts.
Cloud Kitchens and Delivery-Only Brands
With the rise of food delivery platforms like Jahez, HungerStation, and The Chefz, cloud kitchens (also known as dark kitchens) are booming in Saudi Arabia.
Food Trucks
Mobile food units require special licensing but offer low overhead and quick scalability, especially during festivals and events.
Catering Services
Catering businesses are in high demand for corporate events, weddings, and hospitality contracts.
Franchise Businesses
International and local franchises are popular. You can buy a franchise license or become a master franchisee for expansion in the Kingdom.
Saudi F&B Market Trends to Watch in 2025
In 2025, the Saudi F&B industry is shifting toward health-conscious menus, local food sourcing, and immersive dining experiences. Customers are seeking sustainable packaging, cultural fusion dishes, and fast, app-based service. Brands that combine quality, innovation, and convenience will stand out in a market that values both tradition and modern taste.
Health-Conscious Dining
Consumers are looking for organic, gluten-free, vegan, and low-calorie options. Brands that promote wellness are gaining popularity.
Smart Restaurants and AI Integration
From robotic servers to QR-code menus, digital innovation is becoming the norm in high-end and fast-casual restaurants.
Sustainable Packaging and Operations
Businesses are shifting toward eco-friendly packaging, waste reduction, and sustainable sourcing to align with consumer values.
Fusion and Global Cuisines
Japanese-Peruvian, Mediterranean-Korean, and other fusion food concepts are drawing interest from Saudi’s adventurous food lovers.
Challenges to Consider Before Launch
Before launching your F&B venture in Saudi Arabia, be ready for licensing delays, hiring requirements, and cultural expectations. Meeting Saudization quotas, adapting to local customs, and managing tough competition are key challenges. Planning ahead, understanding the market, and working with local experts can help you avoid costly setbacks and delays.
Licensing Delays
Government approvals can take time. Work with consultants to avoid setbacks.
Saudization Requirements
Ensure your hiring plan meets the Nitaqat program quotas for Saudi nationals.
Cultural Adaptation
Respect religious and cultural practices, such as prayer timings, gender-separated seating, and halal compliance.
Intense Competition
The F&B market is highly competitive. You need a unique concept, solid marketing, and exceptional service.
Marketing Your F&B Brand in Saudi Arabia
To market your F&B brand in Saudi Arabia, focus on building a strong digital presence through social media and food delivery apps. Collaborate with local influencers, run targeted ads, and create engaging content. Hosting soft launch events, loyalty programs, and seasonal promotions can also help attract and retain loyal customers.
Digital Presence
Create an optimized website, active social media profiles, and list on Google Maps and delivery platforms.
Influencer Marketing
Partner with Saudi food bloggers and Instagram influencers to promote your brand.
Loyalty Programs
Offer discounts, apps, or point systems to retain customers and encourage repeat business.
Soft Launches and Events
Host invite-only tastings or collaborations to build buzz before your grand opening.
Cost of Starting a Food & Beverage Business in Saudi Arabia
| Item | Estimated Cost (SAR) |
| Company Registration & Licenses | 20,000 – 35,000 |
| Lease and Fit-Out | 100,000 – 500,000 |
| Equipment and Kitchen Setup | 80,000 – 300,000 |
| Staff Salaries and Visas | 50,000 – 100,000 annually |
| Marketing and Launch | 20,000 – 50,000 |
Total Investment: SAR 250,000 to 1,000,000+ depending on location and concept.
Conclusion
Starting a food and beverage venture in Saudi Arabia in 2025 can be highly profitable if done correctly. With the right licenses, location, concept, and local partnerships, you can build a successful brand that serves both locals and tourists.
To simplify the process and ensure legal compliance, work with experienced Business Setup Consultants in Saudi Arabia. They guide you through licensing, location scouting, food safety regulations, Saudization, and VAT compliance — giving you peace of mind and a faster launch path.
Frequently Asked Questions (FAQs)
Can a foreigner open a restaurant in Saudi Arabia?
Yes. With a MISA license, foreigners can own 100% of a restaurant or café in Saudi Arabia and operate legally.
Do I need a Saudi partner to start a food business?
No. You can open an LLC with full foreign ownership, though some choose to partner for market insights and expansion.
How long does it take to get all the licenses?
Typically, 6 to 12 weeks, depending on your activity, documentation, and local approvals.
What is the minimum capital to start a food business in Saudi Arabia?
There’s no fixed capital requirement, but SAR 250,000–500,000 is typical for a small to medium restaurant setup.
Is VAT registration required for restaurants?
Yes. If your annual revenue exceeds SAR 375,000, VAT registration with ZATCA is mandatory.
