In the Context of Saudi Arabia’s Rapid Economic Reforms and Vision 2030, the Kingdom has become one of the most attractive investment destinations in the region and globally. Opportunities are no longer limited to local investors, as the doors are now wide open for foreign investors to enter various promising sectors, with regulatory facilitation, economic incentives, and a modern legal framework that supports transparency and sustainability.
This guide provides foreign investors with everything they need to know to start a successful venture in Saudi Arabia, from legal requirements and incentives to permitted activities and key legal recommendations to ensure compliance.
Conditions for Opening a Company in Saudi Arabia for Foreigners:
The Saudi Ministry of Investment (MISA), based on relevant laws and regulations, has established a set of requirements to establish a foreign company in the Kingdom, which include:
Obtaining an investment license: Granted after verifying the investor’s eligibility and proposed activity, along with a detailed business plan.
Determining the legal form of the company: Such as a Limited Liability Company (LLC), a Joint Stock Company (JSC), or a branch of a foreign company, in accordance with the Saudi Companies Law.
Compliance with Saudi regulations: Especially labor law, commercial law, tax law, and anti-money laundering regulations.
Registration in the commercial registry: The foreign company must register with the Ministry of Commerce after receiving the investment license and complete all registration requirements.
Providing sufficient capital: The minimum capital depends on the type of activity and is set by the executive regulations or relevant authorities.
Hiring a licensed accountant: To ensure compliance with accounting and tax requirements.
Obtaining additional permits for certain sectors: Such as banking, healthcare, and media.
Avoiding prohibited activities: Listed by the Ministry of Investment.
Some activities require a Saudi partner (Saudization), while full foreign ownership (100%) is allowed in most sectors, especially industrial, service, and technology sectors.
Saudi Ministry of Investment (MISA) and Its Regulatory Role:
The Saudi Ministry of Investment is the official body responsible for regulating, developing, and supervising the foreign investment environment in the Kingdom. Its main tasks include:
Issuing investment licenses for foreign investors after evaluating applications.
Monitoring regulatory compliance of foreign companies operating in Saudi Arabia.
Proposing policies and legislation that enhance market competitiveness.
Overseeing the “Invest in Saudi Arabia” initiatives to globally promote investment opportunities.
Facilitating government procedures in coordination with relevant authorities, such as the Ministry of Commerce, Ministry of Human Resources, and Zakat, Tax and Customs Authority.
Through its digital platform (investsaudi.sa), MISA provides a range of services to foreign investors, including application submission, electronic tracking, and connecting investors with government support entities.
Investment Incentives in Saudi Arabia:
Saudi Arabia provides a competitive investment environment through an integrated system of regulatory and economic incentives designed to attract high-quality foreign investments, including:
Tax and customs exemptions in some special economic zones.
Support for training and employment costs in partnership with the Human Resources Development Fund.
Access to affordable financing via the Industrial Development Fund and the Saudi Export-Import Bank.
Simplified incorporation procedures through the unified window at MISA.
Foreign companies can also secure government contracts under a “reciprocity principle,” provided they comply with legal requirements.
Permitted Activities for Foreign Investors in Saudi Arabia:
Under the updated investment law, foreign investors can operate most economic activities, except for a limited list of restricted activities published periodically by the Ministry of Investment in coordination with the Council of Economic and Development Affairs.
Permitted activities include:
Industrial sector: Food, chemical, pharmaceutical industries, etc.
Services sector: Consulting, IT, logistics, and more.
Commercial sector: Wholesale and retail trade, including e-commerce.
Tourism sector: Hotels, events, and destination management.
Private education and training sector.
Minimum Investment Amount for Foreigners in Saudi Arabia:
The updated investment law does not set a fixed minimum investment amount. However, the executive regulations give MISA the authority to determine the minimum capital based on the selected economic activity.
MISA’s guidelines indicate:
Service activities: Usually do not require high capital; minimum often starts from SAR 500,000 in some fields.
Industrial activities: May require at least SAR 1,000,000, especially if benefiting from government support.
Joint activities with Saudi partners: Lower capital may be allowed with a local partner.
Feasibility studies and business plans are more influential than nominal capital in ensuring project sustainability and credibility.
Conclusion and Recommendations for Foreign Investors:
Saudi Arabia is today one of the most attractive Arab countries for foreign investments, thanks to a transparent legal framework and economic incentives aligned with a clear national strategic vision.
Key recommendations for international companies and foreign investors entering the Saudi market:
Understand the Saudi legislative environment carefully and avoid relying on international assumptions.
Choose the most suitable legal entity according to activity type and capital size.
Consult licensed Saudi lawyers before signing contracts or incorporating a business.
Keep up with continuous updates in company, investment, and tax laws.
Build strategic local partnerships to enhance expansion and regulatory compliance.
At “Sareeh – Lawyers & Consultants,” we guide you step by step to understand the legal environment, select the optimal legal entity, and establish your company securely and fully compliant.
Frequently Asked Questions (FAQ):
Can a foreigner establish a company without a Saudi partner?
Yes, the new investment law allows full foreign ownership in most sectors, except for restricted activities.
الترخيص الاستثماري يصدر من وزارة الاستثمار، ويسمح بمزاولة النشاط، بينما السجل التجاري يصدر من وزارة التجارة ويُعد التسجيل النظامي للشركة.
- هل تُفرض ضرائب على المستثمر الأجنبي بالمملكة؟
نعم، يخضع المستثمر الأجنبي لضريبة دخل بنسبة 20٪ على صافي الأرباح، مع التزام بالتسجيل في هيئة الزكاة والضريبة.
- هل يمكن تحويل الأرباح إلى خارج المملكة؟
نعم، يسمح نظام الاستثمار بتحويل الأرباح ورأس المال إلى خارج المملكة بحرية، بشرط الالتزام الضريبي والقانوني.
- هل هناك قيود على تملك العقار من قبل المستثمر الأجنبي؟
يمكن للمستثمر الأجنبي تملك العقار المرتبط بالنشاط التجاري، بشرط موافقة الجهات المختصة، ويُمنع التملك لأغراض غير تجارية أو سكنية.
