14th August 2025
How to Start a Restaurant in Makkah and Madinah: A Complete Guide
Makkah and Madinah, Islam’s holiest cities, welcome millions of pilgrims and tourists annually. This high footfall creates significant demand for food and hospitality, making it a prime opportunity for entrepreneurs exploring business formation in Saudi Arabia. Here’s a concise yet complete guide to opening a restaurant in Makkah and Madinah, focusing on market insights, legal setup, and key strategies for success in the Saudi restaurant industry.
- 1. Know the Local Market
Religious tourism and a growing local population fuel strong demand. Concepts can include Saudi cuisine, fast food, or international fusion, depending on your target audience. Locations near Masjid Al-Haram or Masjid An-Nabawi promise high returns but come with premium rents.
Tip: Use multilingual menus (Arabic, English, Urdu, Bahasa) to attract global pilgrims.
- 2. Choose the Right Location
Location determines profitability:
- Close to mosques = high traffic & high rent
- Hotel partnerships = steady clients
- Residential areas = stable local base
Utilize business office solutions or tailored office solutions to handle back-end administration, especially if opening multiple branches.
- 3. Legal & Licensing Checklist
To operate legally, secure the following:
- Commercial Registration (CR) from Ministry of Commerce
- Baladiya (Municipality) License
- Zakat & Tax Registration
- Fire Clearance from Civil Defense
- SFDA Certification for food safety
For foreign investors:
- Apply for a MISA License
- Benefit from 100% foreign ownership under Vision 2030
- Form a Saudi LLC to structure operations
- 4. Interior and Kitchen Setup and Safety
Your restaurant must meet strict design codes:
- Fireproofing & hygiene standards
- Separate waste areas
- Stainless steel kitchen
- Halal-certified food
This ensures smooth company registration in Saudi Arabia.
- 5. Hiring and Saudization
Follow labor laws:
- Hire Iqama-holding staff with food safety training
- Fulfill Saudization quotas
- Train staff for hygiene and multilingual service
These measures align with business incorporation in Saudi Arabia.
- 6. Marketing for Visibility
Use:
- HungerStation, Jahez, Talabat listings
- Google Maps presence
- Bilingual social media
- Loyalty deals for Hajj/Umrah groups
This is vital to your business setup in Saudi Arabia.
- 7. Budgeting Wisely
Main costs include:
- Prime-location rent
- Kitchen/dining setup
- Salaries and Saudization
- Licensing and consultancy
Arabian Business Quest, leading company formation consultants in Saudi Arabia, help streamline your financial and legal planning for successful Saudi company formation.
- 8. Respect Local Norms
Follow cultural expectations:
- Halal food only
- Prayer time closures
- Gender segregation where applicable
- Modest interiors
Respecting these norms is key to smooth company formation in Riyadh, Makkah or Madinah.
- Next Steps for Restaurant Investors
With Saudi Arabia’s F&B sector booming under Vision 2030, now is the perfect time to enter. Forming an LLC in Saudi Arabia provides flexibility, control, and investor security.
Arabian Business Quest—a trusted partner in company formation services in Saudi Arabia—offers full support for:
- CR & MISA registration
- LLC incorporation
- Office setup solutions
- Ongoing compliance & PRO services
Let Arabian Business Quest simplify your journey. Whether you’re focused on restaurant company formation in KSA or broader business incorporation in Saudi Arabia, we’ll help you succeed every step of the way.
Contact us today to launch your restaurant with confidence in one of the world’s most rewarding markets.
- Ready to Launch?