Saudi Arabia and the United Arab Emirates (UAE) have become some of the most closely watched emerging markets for K-beauty brands.
However, many brands find the barriers to entry much higher than expected, and the biggest one is the requirement for a locally registered entity.
The Saudi Food and Drug Authority (SFDA) and, in the UAE, Dubai Municipality (DM) require cosmetics to be imported and distributed through a locally registered entity, known as a Marketing Authorization Holder or Importer of Record.
Because of this, many Korean brands consider setting up a local company as their first step, and they quickly run into three practical challenges.
First, upfront investment.
Setting up an entity in Saudi Arabia or the UAE involves minimum capital, sponsor or shareholding arrangements, office leases, and licensing fees, so the initial cost is far from small. Annual license renewals, accounting and audit fees, and local hiring (work visas and salaries) add to the total cost of ownership over time.
Second, timeline.
Completing incorporation and then registering as an authorization holder with SFDA or DM often takes much longer than brands expect. This can cause brands to miss their market-entry timing, which is especially costly for seasonal beauty products.
Third, ongoing management risk.
Even after the entity is established, compliance with local labor law, tax filings, sponsorship arrangements, and regulatory changes create continuous administrative work. Managing this remotely from Korea is difficult, and without dedicated local staff the brand remains constantly exposed to compliance risk.
As a result, many brands believe that Middle East exports are impossible without a local entity, and they give up or postpone entry indefinitely. This is not the case.
Both Saudi Arabia and the UAE require a local authorization holder, but that holder does not have to be a company the brand sets up itself.
An IOR service uses an entity that is already registered locally to act as the authorization holder on the brand's behalf, so the brand can register and export its products without establishing its own entity.
Below is a comparison of the two approaches across key items.
As the comparison above shows, an IOR service is a practical alternative for reducing cost, time, and risk at the initial market-entry stage. It is particularly well suited to brands that want to test early market response, or to small and mid-sized brands that do not yet have the resources to set up a local entity.
Exporting cosmetics through an IOR service generally follows four steps. The steps are closely connected, and the overall timeline varies depending on product type, import conditions, and how ready the documents are.
First, the product is registered with SFDA in Saudi Arabia or DM in the UAE. This involves preparing ingredient analysis, label review, and safety documents. Registration documents typically include ingredient lists, safety data, and, where required, a Free Sale Certificate (FSC). Requirements vary by product.
The IOR partner handles registration under its existing import authorization and checks in advance for document or labeling issues that could lead to rejection.
Once registration is complete, the brand prepares the shipping and customs documents for the shipment and provides them to Shukran Korea. Based on these documents, Shukran Korea proceeds with customs clearance as the Importer of Record, signing the customs documents and taking responsibility for the process.
The types of documents required vary depending on the product and import conditions. The brand does not need to handle any local customs work directly.
Cleared products are received into a local warehouse or logistics center. Working with a logistics partner that maintains proper storage conditions for cosmetics, such as temperature and humidity control, is important at this stage.
A logistics linkage and stock-movement system for Amazon inbound is also set up here.
Products are then connected to the sales channel through Amazon inbound.
Shukran Korea supports the logistics base for Amazon inbound. Amazon product page creation, advertising, and channel operations are outside our scope of service.
Other channels, such as offline retail or other e-commerce platforms, are handled through separate arrangements.
Shukran Korea is a Middle East market-entry consultancy that provides services mainly centered on logistics for brands entering Amazon in Saudi Arabia and the UAE. Our support is built on three core strengths.
Direct Responsibility as the Importer of Record
Shukran Korea is not a simple intermediary. As an importer of record registered with SFDA and DM, we take direct responsibility for customs clearance based on the shipping and customs documents supplied by the brand. This helps brands move forward with fewer document-related risks.
Track Record of Licensing Approvals
Based on our experience handling product registrations for many K-beauty brands, we identify common causes of document rejection in advance. On average, license approval takes about 2 months in the UAE and around 2 to 3 weeks in Saudi Arabia (KSA). Actual timelines vary depending on product type and document readiness.
Local Partner Network
We work with local customs and logistics partners in Saudi Arabia and the UAE, supporting brands from customs clearance through local logistics intake to Amazon inbound linkage. This helps reduce the time and cost of building a local logistics network on your own.
Saudi Arabia and the UAE are attractive markets, but the requirement for a local entity leads many Korean cosmetics brands to postpone entry.
With an IOR service, brands can begin SFDA/DM registration and the import process without setting up a local entity, in a timeframe that is typically much shorter than establishing a company from scratch.
Shukran Korea supports your Middle East entry with direct responsibility as the Importer of Record and a local customs and logistics partner network.
If you are considering exporting cosmetics to Saudi Arabia or the UAE, contact Shukran Korea to discuss the entry approach that fits your brand.
