KSA عربي
KSA عربي
Global عربي
If you want to start small and keep it simple, then the initial investment to start a dropshipping business in Saudi Arabia would be approximately SAR 7,000 - 10,000 in the first year. It is best suited to individuals who are registered as individuals and have low overhead.
To set up in a more professional manner, for example opening a firm, complying fully with all the VAT and e-invoicing regulations, integrating domestic payments systems, and investment in advertisement, then the initial year's spend would be around SAR 30,000 - 75,000.
This exact figure will depend on your legal channels, compliance requirements, and the level at which you want to aggressively market during the initial months.
Read more about: How to Start a Successful Dropshipping Business in Saudi Arabia in 2026?
This involves obtaining your Commercial Registration (CR), applying as a member of the Chamber of Commerce, and even licensing processes with the MISA, especially for foreign investors. During the application, the fees of the Ministry of Commerce are published, and the fees depend on your legal entity and business, as well as the chosen legal entity and business activity.
When the amount of your annual taxable turnover surpasses SAR 375,000, you must enroll as a company operating under VAT as per the requirements with the ZATCA. It is also a legal process to have VAT-registered Company’s e-invoice within the FATOORAH system, and this might involve some software integration costs.
You will partner with a bank or payment gateway to accept local cards, such as Mada. The providers do not charge any monthly fee, but they charge a per-transaction rate and a setup fee, commonly between 1.75 to 3% and a small fixed SAR amount.
The cost may be low for local delivery. However, if you import products, the customs charges imposed by the customs service are dependent on 0.15% of the CIF value of the shipment, with a minimum of SAR 15 and a maximum of SAR 500. The duties can be given based on your product category.
These kinds of expenses can increase quickly; they depend on the type of store platform (Shopify, Zid, etc.), premium themes, and how much you spend on advertising your product on Google and TikTok, which will determine much of the initial spending.
The cost of CR is normally SAR 1,200 - 2,000 for smaller-scale entities. When the application is filled, the Ministry of Commerce issues the CR online, which displays the exact amount before the payment.
The amount you will pay as an annual subscription to the Chamber of Commerce is between SAR 300 - 5000, based on your category of membership. Each regional chamber (Riyadh or Eastern Province, etc.) possesses its own fee rate, and some new businesses may qualify for initial exemption.
The procedure normally requires a SAR 2,000 processing fee and approximately SAR 10,000 to cover the subscription fee of the first year. This may increase based on the type of activity; therefore, check with the investor portal of MISA to get precise details.
Depending on your product type and location, you may need municipal approval of permits, which can cost between SAR 500 - 5,000. If you plan to sell regulated products such as food or cosmetics, further authorization from bodies like the SFDA will increase this cost.
It is free to register for VAT with ZATCA; however, VAT-registered companies are obliged to implement accounting systems to collect and pay the 15% tax. In this case, compliance is necessary to prevent penalties.
The cost of e-invoicing compliance starts with free-of-charge basic cloud systems under Phase 1 to SAR 30,000+ in more advanced integrations under Phase 2. The price will be different depending on whether you have a basic SaaS tool or integrate your ERP directly with the ZATCA platform.
The cost of the websites and platforms varies according to your preference such as; the prices of Shopify and Zid entry range from $225 - $ 1,755 a year. Aside from a basic domain for SAR 40 – 200, you also get a premium theme for SAR 200 – 1,500, and optional app subscriptions that can go up to SAR 5,000 a year if you end up using multiple features.
In the case of payment gateways, the setup can be zero or may cost up to SAR 1,500, with transaction fees typically 1.75% - 3.00% plus a small fixed SAR amount. SAMA limits MADA rates, but each acquiring banks and gateway provider publish their detailed pricing.
For testing the local deliveries, you might need SAR 1,000 - 10,000 in pre-seed funding, while the cost of local parcels could be SAR 10 - 40 per piece. The rates on international shipping depend on origin, weight, and shipping type, and should be best checked via Saudi Post, Aramex, or DHL.
In case you are importing goods, the service fees to the customs are already at 0.15% of the CIF price, with a minimum of SAR 15 and a max of SAR 500 in most conditions. The additional obligations or clearance requirements vary according to the product type.
Some advertisers begin with the SAR 3,000 - 10,000 to try out ads on Google or Meta. It is standard advice to spend 7% to 12% of predicted revenue on marketing when you begin to scale.
The actual cost of establishing a drop shipping business in Saudi Arabia will be determined by the extent to which you wish to grow at the initial stage. Below are three plain scenarios on real market fees and regulatory requirements.
It is suitable for Saudi residents or GCC nationals who register businesses as individuals, and they operate at low levels in the initial year.
- Commercial Registration (CR): SAR 1,200
- Chamber of Commerce: SAR 300
- Municipal permit: SAR 500–1,000
- Platform: Shopify Basic or Zid Starter (SAR 1,000/year with domain)
- Payment gateway setup: Free to SAR 500
- Shipping/testing fund: SAR 1,000–2,000
- Marketing (3–4 months test): SAR 3,000–4,000
- Miscellaneous: SAR 500–1,000
You do it yourself, take advantage of low-cost or free resources, and start out with small advertising to test your market. No obligation to do the VAT registration until sales reach SAR 375,000 annually.
This applies to residents who intend to start with a registered company (LLC), local payment integrations and robust marketing from the start.
- Commercial Registration (LLC): SAR 2,000
- Chamber of Commerce: SAR 1,000–3,000 (company class)
- Municipal permit & trade-specific approvals: SAR 2,000–3,000
- VAT registration & accounting setup: SAR 2,000 (software + setup)
- E-invoicing compliance (basic cloud): SAR 1,000–3,000/year
- Platform & website: SAR 3,000–5,000 (Shopify Advanced or Zid Plus, premium theme, domain, apps)
- Payment gateway setup: SAR 1,000–1,500
- Shipping/testing fund: SAR 3,000–5,000
- Marketing (first 3–6 months): SAR 10,000–15,000
- Professional fees: SAR 3,000–5,000
Your presence is more credible, faster payments get approved, and the framework to scale up to greater revenue.
It is designed for foreign investors looking to have a fully licensed business from day one, including MISA licensing, the company registration, VAT, the integrated e-invoicing, and professional marketing.
- MISA license & subscription: SAR 12,000–15,000 (application + first year)
- Commercial Registration (LLC): SAR 2,000
- Chamber of Commerce: SAR 2,000–5,000
- Municipal permit & sector approvals: SAR 3,000–5,000
- VAT registration & accounting setup: SAR 2,000–4,000
- E-invoicing Phase 2 integration: SAR 10,000–30,000 (depends on ERP/IT needs)
- Platform & website: SAR 5,000–7,000 (high-tier plan, premium theme, domain, custom apps)
- Payment gateway setup: SAR 1,000–1,500
- Shipping/testing fund: SAR 5,000–8,000
- Marketing (first 6 months): SAR 15,000–20,000
- Professional & legal fees: SAR 5,000–8,000
It is the most expensive option that offers complete market access and credibility to larger operations, with easier cross-border investor management.
Note: These scenarios are realistic ranges, and the level of spending really depends on your personal preferences and business requirements, such as; decision of platform, outsourced vs in-house, product type and what you are importing.
Yes, in Saudi Arabia, dropshipping is legal, as long as you operate it within the rules of e-commerce and commercial requirements in Saudi Arabia. The activity is regulated by the E-Commerce Law released by Royal Decree No. M/126 of 2019 and supervised by the Ministry of Commerce (MoC). The law will govern all e-commerce activity targeting Saudi customers, whether the seller is in KSA or overseas.
In simple terms, the government sees dropshipping as any other form of online retail, and dropshippers are required to:
- Disclose the information about the products, prices, shipping schedules, and money-back guarantee.
- Do not make false advertising or the sale of a counterfeit product.
- Show your business registration or Maroof e-commerce license number on your store or sales channel.
These rules are meant to safeguard customers and increase confidence in the fast-growing local e-commerce ecosystem. Statista cited over 28 million e-commerce users in the Kingdom in 2024, and regulators want to make sure the area is sustainable.
When you are working inside Saudi Arabia, you will similarly have to comply with the tax regulations. This also includes registering for VAT at the ZATCA when your annual taxable turnover goes above SAR 375,000. Also, you will be required to meet the e-invoicing requirements of FATOORAH in case you are VAT-registered.
Yes, if you are working in Saudi Arabia, you would need a Commercial Registration (CR) with the Ministry of Commerce to have an online store for dropshipping. The official business license here is the CR in the Kingdom, without which the online business is a black market, leading to fines/shutdown.
In case you want to exclusively sell online, the E-Commerce License can be obtained via the Maroof platform on the website of the MoC. The mechanism is simple: you need to register on the portal of the Ministry, choose your activity, such as the retail trade through electronic channels, pay the fees, and get your CR. This license lasts only one year, and it is renewable.
In the case of foreign investors, it is a longer process. First, you must have a license issued by MISA, and then you register with the MoC. This will allow your business to be recognized as a legal entity in Saudi Arabia, enable you to open a bank account, set up payment gateways, and enter into contracts with shipping companies.
In practice, most payment providers (like HyperPay or PayTabs) or banks and logistics companies in Saudi Arabia will not work with you unless you have a proper CR or e-commerce license. So even though you’re planning to test the market first, go ahead and license your business on day one, and get it protected and operating.
1- Can I Dropship Internationally from KSA?
In Saudi Arabia, you can operate a dropshipping business serving local and international customers.
When you aim to conduct international sales from KSA, then it is possible to export goods to other states, according to the regulations determined by Saudi Customs and the FASAH platform. That means you should have clean export paperwork, and your shipments should comply with the importing country.
In case you are in the business model of importing goods into Saudi Arabia through overseas suppliers, you will need to get registered with FASAH, declare all the shipments properly, and pay any applicable customs duties or service fees. To remain compliant, it is essential to keep proper invoices and track records.
2- Can foreigners or non-residents start a dropshipping business in the KSA?
Expatriates and non-residents can also start a dropshipping business in Saudi Arabia; however, they must pass through the process of foreign investment.
This general starts with licensing from the MISA and registering as a legal entity with the Ministry of Commerce for a CR.
You’d have to submit certified corporate filings, and have a Saudi partner or local agent. Also, you must have a Saudi Bank account because this is what you’ll use to process your payments and withdraw your funds.
3- Do I need a physical office or warehouse in KSA?
When it comes to infrastructure, dropshipping does not need you to own a physical warehouse, as the goods are delivered by suppliers directly to the customers.
However, you need to have a registered commercial address in Saudi Arabia, a National Address, to get a CR and open a commercial bank account. Some companies also like to use the local fulfillment centers or 3PL to handle the returns or keep a small stock.
4- Is VAT registration required for dropshipping in KSA?
In terms of the tax obligations, generally, you are supposed to be VAT-registered if your annual taxable supplies in Saudi Arabia are more than 375,000, you must have registered with the ZATCA, and charge 15% VAT on local sales, as well as comply with the e-invoicing requirements in the country under the FATOORAH system. It applies to the non-resident suppliers who are selling into Saudi Arabia, depending on the sales model.
Read more about: 2025 VAT Rate in Saudi Arabia
5- Can I use Shopify or WooCommerce for my Saudi-based dropshipping business?
In Saudi Arabia, you can completely run your store on platforms like Shopify or WooCommerce. Both support Arabic content, and they are integrated into the local payment gateways. And you will also need to have the site showing the necessary legal information, such as your CR and VAT number, to comply with Saudi e-commerce and invoicing regulations.
6- Are there restricted products I cannot dropship into the KSA?
No, you cannot drop ship everything to Saudi Arabia. Some products have to be approved by the authorities, such as pharmaceuticals, certain cosmetics, food products, medical devices, and regulated electronics,
which would need approval by the Saudi Food & Drug Authority (SFDA) or by the Saudi Standards, Metrology and Quality Organization (SASO). There are even forbidden things that cannot be imported at all, or otherwise they may get in trouble, and this includes alcohol, drugs, weapons, and counterfeit products of any sort. It is important to check the rules before listing any product.
7- What payment gateways can I use for dropshipping in the KSA?
You can integrate with local payment methods such as HyperPay, PayTabs, Tap, or bank merchant services with Mada support and SADAD to allow local payments and international processors, Visa and MasterCard.
Before any merchant services are allowed, most banks will demand an active CR and business account. Most merchants offer a local and international gateway to serve all consumers and payment methods.
Disclamer:
This post is for educational purposes only, and does not constitute investment advice or a solicitation to take any financial action. It should not be relied upon when making investment or financing decisions.
