Entering the Gulf: a guide for Norwegian, Swedish and Finnish companies
Key facts
| Written for | Norwegian, Swedish and Finnish companies in energy, healthcare and technology |
| Markets covered | United Arab Emirates, Saudi Arabia, Qatar |
| Rules checked | November 2026, against government and adviser sources listed at the end |
| Author | Alan Talib, Founder and CEO, NordGulf Alliance |
I have spent most of my working life between Scandinavia and the Gulf. Over that time I have watched excellent Nordic companies arrive with the right product, the right price and a perfect presentation, and leave a year later with nothing signed. Almost none of them failed on the rules. They failed on how the region decides.
This guide covers both. The first half is the practical part: how to set up, what tax you will pay and how public buying works. The second half is what my posts on LinkedIn keep coming back to: presence, trust and who really makes the decision. If you only read one half, read the second.
Start with the right question
European boards often ask me whether the GCC is a good market. It is the wrong question. The Gulf is not simply booming. It is restructuring, and the governments, sovereign funds and family offices driving that change now assess the companies that arrive. The better question is whether you are ready to be judged as a long-term partner rather than a supplier passing through.
Pick one country to start. The UAE is usually the easiest first base. Saudi Arabia is the largest market and the most demanding. Qatar is smaller, with clear rules for financial and professional firms. Trying all three at once is the most common way to do none of them well.
Setting up a company
The rules have opened up a great deal in the last five years. Here is where they stand today.
| Item | UAE | Saudi Arabia | Qatar |
|---|---|---|---|
| Foreign ownership | Up to 100% onshore for most activities since Federal Decree-Law 26 of 2020, and 100% in free zones | Foreign investors register with the Ministry of Investment (MISA) under the Investment Law of August 2024 | 100% ownership possible in the Qatar Financial Centre (QFC) |
| Typical set-up time | About 10 working days in a free zone such as DMCC. Two to three months onshore | Varies by activity. Allow for registration, commercial licence and local requirements | Varies. QFC licensing for eligible firms |
| Selling to local customers | A free zone company usually sells in the wider UAE through a local distributor or an onshore branch. In Dubai, eligible free zone companies can also apply for a Free Zone Mainland Operating Permit, introduced in October 2025 | Direct presence expected for government work (see regional headquarters below) | QFC firms serve the QFC and permitted activities |
| Corporate tax | 0% up to AED 375,000 of profit and 9% above, for financial years from 1 June 2023. 15% top-up for large groups (EUR 750m+ revenue) from 2025 | 20% on the foreign-owned share of profit. 2.5% zakat on the Saudi or GCC-owned share | 10% for QFC firms |
| VAT | 5% | 15% (since July 2020) | No VAT in force |
| Local hiring rules | Emiratisation: private companies with 50 or more staff raise the share of Emiratis in their skilled jobs by 2% each year (Ministerial Resolution 279 of 2022) | Nitaqat: Saudi hiring quotas by sector and company size | Qatarisation rules under Law No. 12 of 2024 |
A note on free zones: some free zone companies can still pay 0% corporate tax if they meet the conditions for a Qualifying Free Zone Person, including keeping non-qualifying income below the lower of 5% of revenue or AED 5 million. Check this with a tax adviser before you rely on it.
Selling to government in Saudi Arabia
For many Nordic companies the real prize in Saudi Arabia is public work: energy, water, health and infrastructure. Three rules matter.
First, the regional headquarters rule. Since 1 January 2024, government bodies generally do not award contracts to foreign companies that have no regional headquarters in the Kingdom. Companies that do set one up can qualify for a long-term tax package, including 0% corporate tax on qualifying income for 30 years.
There are exceptions to the regional headquarters rule, for example for small contracts or where no other supplier exists. Confirm whether one applies to you before deciding.
Second, local content. The Local Content and Government Procurement Authority (LCGPA) gives national products a price preference of 10% in public tenders. If your offer has no local content, you are competing with a handicap.
Third, the platform. Public tenders run through Etimad, the government procurement portal. A new Government Tenders and Procurement Law was approved by the Cabinet in August 2026 and published on 4 September 2026. It takes effect 120 days after publication, in early January 2027, and sets the direct purchase threshold at SAR 1 million. Read the final text with your adviser, because details will change how you bid.
Help from home
Each Nordic country has people on the ground in the Gulf and an export credit agency that can back deals. Use them early. They are free or low cost, and Gulf buyers notice when your government stands behind you.
| Country | Who can help on the ground | Export finance | Tax treaty or trade deal |
|---|---|---|---|
| Norway | Innovation Norway in Dubai. NORWEP for energy suppliers | Eksfin (Export Finance Norway) | EFTA-GCC free trade agreement, in force since 1 July 2014 |
| Sweden | Business Sweden in Dubai and Riyadh. The Swedish Business Council in the UAE, active since 1994 | EKN (export credit) | Sweden-Saudi Arabia tax treaty, in force since 2016 |
| Finland | Business Finland in Dubai and Riyadh | Finnvera | Finland-UAE tax treaty, signed 1996 |
Norway is in EFTA, so it is covered by the EFTA-GCC trade agreement. Sweden and Finland are covered by EU trade policy instead. The EU and the UAE formally launched talks on a free trade agreement on 28 May 2025, so watch that space if you are Swedish or Finnish.
The part the rules do not cover
Everything above can be handled by lawyers and accountants. What follows cannot. It is drawn from my own posts and the lessons I see repeated with every delegation.
Trust is built differently. In the Nordics, trust is earned on paper before you travel: certificates, references, a clean annual report. In the Gulf, people decide who you are by sitting with you, again and again. Your documents get you into the room. Your presence keeps you there.
The person in the meeting is rarely the person who decides. The director you present to will carry your case upstairs, often in two minutes and without your slides. Before every meeting, write the three lines you want repeated in a room you will never see. If they are not clear, your deck does not matter.
Silence is not a verdict. Gulf family offices and government buyers seldom say a direct no, so learn to tell three things apart. A phrase such as "we will look into this" is usually the polite no. True silence often means your proposal is moving through shura, a quiet round of consultation between trusted people you will never meet, and no email will speed it up. And sometimes nothing is moving at all. You will not find out which by writing again. Offer a dinner during a visit of several days and see whether it is accepted.
Bargaining depends on the deal. A public tender, a negotiated contract and a deal you can walk away from all call for different behaviour. Know which one you are in before you decide how hard to push.
Budget for the trips. Plan for several visits a year, for at least the first two years, and for senior people to make them. Sending a junior team to save money tells your partner how important they are to you.
Choose your local partner as carefully as you would choose a co-founder. The right partner opens doors you cannot see from Oslo, Stockholm or Helsinki. The wrong one can close them for years.
Where to start
If you are a Norwegian, Swedish or Finnish company thinking about the Gulf, start with three steps. Decide which one country fits your business. Talk to your own trade agency and export credit agency before you spend money on set-up. Then go, in person, and plan to keep going.
At NordGulf Alliance we help Nordic and European companies with exactly this: choosing the market, meeting the right ministries, sovereign funds and partners, and staying present until the deal is done. I am always happy to talk it through.
This guide gives general information and is not legal or tax advice. Rules change, so check the current position with a qualified adviser before you act.