Here’s a practical, Saudi-specific list of affordable ERP options for startups — with key Saudi compliance points you must check (e‑invoicing / “Fatoora”, VAT, Arabic/RTL, payroll & Saudization) and a quick buying checklist.

Key compliance note (must-read)

• Saudi Arabia requires ZATCA e‑invoicing (Fatoora). Phase 1 (generation) has been mandatory since Dec 4, 2021 and Phase 2 (integration with ZATCA/Fatoora) has been rolled out in waves by taxpayer revenue — many taxpayers (including smaller thresholds in later waves) must integrate by dates announced by ZATCA. Any ERP you choose needs Saudi localization or a reliable integration for ZATCA. (Zoho.com)

Affordable ERP options for startups in Saudi Arabia (organized by lowest cost / easiest startup fit → more feature-rich / slightly higher cost)

1. Odoo (Community or Online / Enterprise)

• Why consider: modular (start with accounting + sales + inventory), strong Middle East / Saudi localization modules (l10n_sa, Fatoora e‑invoicing add‑ons), full Arabic/RTL support and many local integrators. Community edition is open-source (no license fee) — pay for hosting, implementation and add‑ons; Enterprise SaaS provides faster setup. Good balance of price vs capability for growing startups. (Odoo.com)

2. ERPNext (Frappe / open-source)

• Why consider: open-source ERP with Saudi marketplace apps (ZATCA Phase‑1/2 e‑invoicing apps available), lower license cost (often just hosting + implementation), good for startups that want to avoid heavy license fees and still get full ERP modules. Active developer community and local implementers. (frappe.io)

3. Zoho (Books + Inventory + People or Zoho One)

• Why consider: SaaS pricing geared to SMEs/startups, easy to adopt, and Zoho Books has announced ZATCA e‑invoicing (Phase 2) compliance for Saudi customers; strong for service companies and simple product businesses. Less “full ERP” than Odoo/ERPNext but highly affordable and fast to deploy. (Zoho.com)

4. Focus Softnet (regional/mid‑range)

• Why consider: widely used in GCC, regional presence and local support teams; positioned as cost‑effective for SMEs with prebuilt industry templates and Saudi operations. Good choice if you want a vendor with local offices/support. (itp.net)

5. Tally / TallyPrime (with localization partners)

• Why consider: popular accounting/ERP in the region for small trading/manufacturing firms; lower TCO for basic accounting + inventory, but you’ll need a Saudi localization or integrator for e‑invoicing. (Confirm current ZATCA support with a reseller.) (gulfnews.com)

6. Microsoft Dynamics 365 Business Central (SMB tier)

• Why consider: robust ERP capabilities in a cloud SaaS model. More expensive than the open-source options but available via local partners who can handle Saudi fiscal localization and Fatoora integration. Good if you expect rapid scale and need enterprise features. (Budget accordingly.)

7. QuickBooks Online + add-ons (for very small startups)

• Why consider: If you only need core accounting, invoicing and payroll integration, QuickBooks (with local payroll/invoicing add-ons or middleware) can be the cheapest entry point. Not a full ERP — consider only for very small teams and when you plan to migrate later.

How to evaluate “affordable” for your startup (practical checklist)

• Mandatory compliance: confirm vendor supports ZATCA e‑invoicing Phase 1 and Phase 2 (or has a tested connector to Fatoora). (This is non‑negotiable.) (Zoho.com)
• Arabic / RTL UI and Arabic invoices.
• VAT and Zakat reporting support, plus payroll calculations (GOSI, EOSB) and Saudization reporting if you’ll hire locally.
• Deployment model: cloud SaaS reduces upfront cost; on‑prem increases setup cost.
• Total Cost of Ownership (TCO): include license/subscription, implementation (local partner), customizations, hosting, maintenance, and training. Open-source can be low on license cost but needs integration/implementation budget.
• Integration: bank feeds, POS, e‑commerce, local payment gateways, HR systems, and ZATCA (Fatoora).
• Ask vendors for a demo showing a Saudi invoice that includes the ZATCA XML/QR output and the real-time submission workflow.

Quick buying guide by startup stage

• Very small (1–10 people, simple invoicing): Zoho Books or QuickBooks + ZATCA connector. (Zoho.com)
• Small, growing (10–50 people, inventory/trading): Odoo Community or ERPNext (hosted) with Saudi localization & a local integrator. (Odoo.com)
• Ready to scale / hire regionally: Odoo Enterprise, Dynamics 365 Business Central, or Focus Softnet via local partner for SLA and payroll/HR compliance. (itp.net)

Implementation tips to keep cost down

• Start with 2–3 core modules (Accounting, Sales/CRM, Inventory) and add others later.
• Use standard workflows where possible to avoid custom dev.
• Choose a local implementation partner experienced with ZATCA/Fatoora to avoid rework.
• Negotiate a phased rollout and fixed‑price implementation for the first phase.

If you want, I can:

• shortlist 3–4 vendors (from the options above) tailored to your company size, industry and budget and include estimated monthly/annual cost brackets and local partners; or
• prepare a short RFP template (3–5 pages) you can send to local integrators to compare pricing and ZATCA compliance.

Which would you prefer?