Is it legal to run home based Business in Saudi Arabia?

Different kinds of Home-Based businesses in Saudi Arabia: There are a lot of expatriates running a home-based business in Saudi Arabia. People are running beauty parlors, tuition and coaching centers, babysitting arrangement and selling of different products through social media like Facebook groups.

If you have joined some groups on Facebook related to your city in Saudi Arabia, you must have found many advertisements selling a different kind of things there. I find them too annoyed as they reserve a lot of space in my Newsfeed.

Having said all this, have you ever thought if this business is legal in Saudi Arabia? I have tried to uncover it in the below link.

Tuition Centers: Let’s start with the coaching and home-based tuition centers, one needs to get permission to start it from the Ministry of Education.

Trading: In order to start buying and selling at home, you need to get a license from the Ministry of Commerce and Industry. Home Based business managed by expatriates in Saudi Arabia has become an industry which is out of the control of the government.

Beauty Parlours: People have been buying and selling clothes and other related material from there, sending their kids for coaching and getting themselves beautified from there. We find them cheaper as they don’t have to pay the extra cost of rent and another operating cost so they can afford to reduce its price.

Legal or Illegal? There are many benefits of trading with home-based businesses but are they really legal? It is absolutely illegal to run home-based business in Saudi Arabia by expatriates. Expatriates should not be involved in this kind of business if they really want to spend their time peacefully.

Punishment of running a Home-based Business: In case, if somebody complains about it to the Jawazat or labor office, you will be in deep trouble. If you are caught running a home-based business in Saudi Arabia, minimum punishment will be;

  • A fine of SR 25,000 or more as per the size of the business
  • Immediate detention of the individual running the home based business
  • Detention of the sponsor of the home based business if the individual running the business is dependent
  • Deportation with a 5 years’ ban

Don't take any risk: I would advise everyone to not to play with the system. Rules and regulations have been made for our safety. When we are living in a country, it is our duty to obey the rules. I don’t think one should risk his career to add some additional income in your portfolio.