Saudi Arabia is the largest food and beverage market in the Middle East, and it’s still growing. The sector was worth over SAR 90 billion in 2023, with steady demand for restaurants, cafés, cloud kitchens and franchises across major cities.

More than 60 percent of the population is under 35, and appetite for casual dining, fast food, coffee shops and delivery-led models keeps rising. Riyadh and Jeddah continue to see a steady stream of new local brands, regional operators and global chains.

Rules around foreign ownership have eased in recent years, allowing full control for international investors. It’s a competitive space, but there’s still room for well-executed concepts with a clear offer.

This guide breaks down the steps to launch a food or beverage business in Saudi Arabia, covering licensing, location rules, kitchen fit-outs, staffing, compliance and common setup issues.

Start with the concept

Before you register the company or scout for premises, get the concept clear. Are you opening a dine-in restaurant, a small café, a food truck, a dark kitchen or a catering unit? Each one has different requirements. Your concept shapes everything else, from your licence and layout to your location and the approvals you’ll need.

Keep it simple and specific. A focused concept is easier to cost, easier to fit out and more likely to get approved without delays. It also helps you hire the right staff and manage permits tied to the type of food you’ll serve. Saudi authorities do not just look at your business model, they assess the whole operation, including menu, design, layout and hygiene, against that stated concept from day one.

Licensing and approvals

Once the concept is locked in, the next step is licensing. You’ll start with a commercial registration through MISA. This gives you legal status and allows you to apply for other permits. From there, the municipal process begins.

If you’re opening a restaurant or café, you’ll need a municipal licence through Balady. This includes a food activity permit based on your menu and operating model. Before construction or fit-out, you must also get your kitchen and dining layout approved. The layout must show cooking zones, washing areas, storage, waste disposal and staff flow. Only approved designs can move forward.

Catering kitchens and food trucks follow a slightly different process. These need municipal clearance for the location, plus mobile unit approvals. The layout must still meet food safety standards but may have extra requirements for mobility, loading access and off-site delivery.

If you’re planning to produce and sell packaged food or drinks, you’ll also need SFDA approval. This involves registering both the facility and the individual products, with safety checks and lab testing where applicable.

Each step depends on the one before it, so missing a permit or submitting the wrong layout can cause delays across the board.

Kitchen planning and setup

You need layout approval before any construction begins. Your plan must show clear zones for prep, storage, dishwashing and waste. Most setups also require a HACCP plan to show how food is handled safely from delivery to service. Civil Defence may inspect the space for fire safety before you open, especially if cooking is involved. Getting this right early prevents delays and avoids costly changes later.

Zoning and premises rules

Restaurants, cafés and other food businesses must be set up in approved commercial zones. You can’t lease or fit out a site until the location is verified for F&B use. Balady handles this as part of the municipal licensing process. If the site doesn’t meet zoning rules, your application will stall. In some cases, you may need a letter of no objection or additional clearance if the property is in a mixed-use or residential block. Always check the zoning status before signing a lease or beginning any work on site.

Staffing and Saudisation

All expat food handlers need valid work visas and health cards before starting. Medical screening is part of the visa process, but you also need to register staff with the local health authority to handle food. Under the Nitaqat system, you must employ a minimum number of Saudi nationals, even at early stages. The quota varies by company size and activity, but small food businesses are no longer exempt. You’ll need to register Saudi staff with GOSI and report salaries through the Wage Protection System. Failure to meet Saudisation targets can block new visa applications and delay licence renewals.

Tax and ongoing compliance

Once your annual revenue reaches SAR 375,000, you must register for VAT. From then on, you’re required to issue e-invoices through a ZATCA-approved system. This applies to all food businesses, whether you run a restaurant, café, or manufacturing unit. If you produce packaged goods, you’ll also need to follow SFDA rules on labelling, expiry tracking and traceability. Licences must be renewed each year, including your commercial registration, municipal licence and food activity approval. Expect routine inspections as part of the renewal process. Set aside budget for ongoing compliance such as pest control, staff health checks and permit updates, especially if you operate a production site or multiple outlets.

Common setup issues

Many delays come down to preventable mistakes. These include starting a fit-out without layout approval, choosing the wrong licence type, hiring staff without a Saudisation plan in place, or failing to register products with the SFDA. Each of these issues can stall your launch and increase costs. Getting it right from the start saves time, money and hassle.