51 votes

Opening a small Sri Lankan restaurant in Saudi Arabia — is it feasible? Licensing process?

Business

I'm a chef with 9 years in Saudi. Always dreamed of opening a small Sri Lankan restaurant — authentic rice and curry, string hoppers, kottu. Jeddah has a large South Asian community and I think there's demand.

But how does one even start? I don't have a Saudi partner (I know this is required for some businesses). Is there a way to own a restaurant as a foreigner? What are the licensing costs and process in Saudi?

This is still in the dreaming stage but I want to understand the realistic path.

Chaminda Kumara 1 month ago 1244 views 5 answers

5 Answers

Accepted Answer

F&B in Saudi as a foreigner: historically you needed a Saudi partner (kafeel system) but Vision 2030 has changed a lot. Here's the current situation:

**Options for foreigners:**
1. **100% foreign ownership** — now possible in many sectors via MISA (Ministry of Investment). F&B was recently opened. You'd register a Limited Liability Company (LLC) with MISA. Capital requirement varies.
2. **Saudi partner route** — find a Saudi sleeping partner (sponsor) who takes a % equity but you run operations. Still common for smaller restaurants.
3. **Cloud kitchen** — operating from a shared commercial kitchen, no dining area. Much lower cost, fewer permits needed. Great way to test before committing.

**Licensing bodies:**
- Municipal licence (Baladiya)
- SFDA (Saudi Food and Drug Authority) — food handling permit
- Health licence
- Labour/Expat Saudisation requirements (Nitaqat)

Realistic budget for a small sit-down restaurant: SAR 150,000–300,000 for setup + licence. Cloud kitchen: SAR 30,000–60,000.

Ayasha Bandara 1 month ago

Saman that's actually brilliant. Already starting the tiffin/box meal side business informally — supplying to 2 Sri Lankan construction companies here. The response has been overwhelming. People are genuinely missing real Sri Lankan food. Building capital and customer base simultaneously.

The restaurant dream remains alive! 🍛🔥

Chaminda Kumara 22 days ago

Chaminda please keep us updated! And if/when you open in Jeddah or Dammam, put the address in the community groups — Saudi Sri Lankan community will DEFINITELY support. Our cravings for proper ambul thiyal and kiri bath are very real 😂

Iresha Hewage 17 days ago

Chaminda bro! The dream is valid. Jeddah already has Sri Lankan joints but they're usually hidden in labour areas. A proper restaurant in a nice area would stand out.

Practical tip: before investing, test the market by supplying rice & curry boxes to Sri Lankan construction camps and expat offices. No licence needed for small scale (technically grey area but widely done). This gives you cashflow AND proves demand before you commit big money.

Saman Wickramasinghe 1 month ago

The box meal idea is smart from a tax perspective too — less formal, lower regulatory requirements while you test the concept. Once you prove the model, then formalise. Classic lean startup in a restaurant context. Go for it!

Thilak Jayasinghe 12 days ago