Please note the factors that influence this decision are multi-fold such as your timeline to launch operations / raise capital / cost sensitivity etc. In our experience, most clients would start parallel applications in ADGM and KSA and then do a share transfer from their individuals names in the KSA LLC to the SPV once the KSA company has completed all requirements with the local authorities and in the meantime the ADGM SPV is set up and the internal arrangements of the shareholders (founders) and investors are finalised through agreements done by their legal counsel.

However, some clients prefer to set up the SPV first and then the KSA entity as this may be a more cost effective option since no further administrative charges are incurred to do a follow on share transfer but this option takes longer as the process in KSA cannot be initiated until such time the SPV documents are issued / attested for use in KSA.

You may choose the best approach depending on your business plan and equity raise timelines or speak to an advisor to understand the requirements and decide on the best approach financially and logistically.