Economy Guide in Saudi Arabia

The Cost of Living Index in Saudi Arabia is 43.6, making it affordable compared to NYC. Groceries (41.7) and restaurants (34.3) are also relatively inexpensive.

The property price to income ratio is 4.3 years, indicating a very affordable housing market. The Rent Index is also very low at 12.6.

With a Purchasing Power Index of 143.8, residents in Saudi Arabia enjoy excellent buying power, significantly higher than in NYC.

Saudi Arabia has no personal income tax on earned income. A 15% Value Added Tax (VAT) applies to most goods and services. There are no annual property taxes, but a 5% Real Estate Transaction Tax (RETT) is levied on property transfers.

Saudi Arabia's startup ecosystem is ranked #38 globally in 2025, showing significant growth. The government actively supports new businesses with streamlined registration and substantial funding, fostering a business-friendly environment.

Saudi Arabia offers free universal healthcare for citizens and residents, with mandatory private health insurance for expats typically provided by employers. A social security system provides pensions and unemployment benefits for Saudi nationals, while a voluntary pension scheme is being introduced for expats.

Saudi Arabia's banking sector is stable and well-regulated by SAMA, with strong capitalization and liquidity. A Depositor Protection Fund exists, but the exact coverage limit in local currency and USD equivalent is not publicly disclosed in recent sources.