Saudi Arabia is open for business like never before. With sweeping reforms, 100% foreign ownership in Saudi Arabia and a bold Vision 2030 agenda, the Kingdom is rapidly becoming a top destination for global investors. Thanks to the new investment law and a thriving business environment, doing business in Saudi Arabia as a foreigner is now more streamlined and rewarding than ever. Here’s what every company needs to know before making the move.
Understanding the Business Environment in Saudi Arabia
As the major economy in the Arab world, Saudi Arabia is actively transforming its economic landscape to reduce dependence on oil. The government is creating a competitive and investor-friendly business environment by introducing forward-thinking regulations, simplifying business setup procedures, and offering targeted incentives across key sectors, including tourism, manufacturing, logistics, renewable energy, and technology.
Significant highlights of the Saudi business environment include:
- Political stability and global investor confidence.
- Growing population with high consumer demand.
- Modern infrastructure and industrial zones.
- Eased visa policies and regional headquarters programs.
Additionally, Special Economic Zones (SEZs) and Regional Headquarters (RHQs) offer incentives that include tax breaks, customs duty exemptions, and expedited administrative support.
100% Foreign Ownership in Saudi Arabia
In a game-changing shift, Saudi Arabia now permits 100% foreign ownership in many sectors, abolishing the earlier requirement of a local sponsor or partner. Foreign investors can do business in Saudi Arabia and entirely own companies in industries such as:
- Information technology
- Consulting
- Healthcare
- Education
- Manufacturing
- Real estate development (in selected zones)
However, trading companies are still subject to restrictions. Foreign ownership is capped at 75%, and a minimum capital requirement of SAR 20 million is imposed.
This progressive move under the new investment law enables global entrepreneurs and companies to maintain complete control over operations, profits, and strategic direction. It makes doing business in Saudi Arabia more profitable.
Key Business Structures for Foreign Investors Doing Business in Saudi Arabia
Saudi Arabia’s Companies Law allows various legal structures for foreign investors to start business in KSA. Standard options for foreign companies include:
- Limited Liability Company (LLC)
- Joint Stock Company (JSC)
- Branch Office
- Technical & Scientific Services Office (Representative Office)
New Investment Law: What’s Changed?
KSA has launched a new Foreign Investment Law, effective from February 7, 2025, replacing the previous Foreign Investment Law. The updated Investment Law broadens the scope by defining “investors” as both local and foreign, encouraging a level playing field. Key features include:
- Equal treatment of domestic and foreign investors.
- Protection of Investor Rights under Saudi Law.
- Flexibility in profit repatriation.
- Simplified licensing and dispute resolution mechanisms.
- Commitment to transparency, data privacy, and anti-corruption standards.
The law also strengthens Saudi Arabia’s alignment with international trade and investment treaties.
How to launch a business in Saudi Arabia for foreigners
How about starting your business in the heart of the Middle East? Saudi Arabia, with its booming economy, 100% foreign ownership policy, and investor-friendly reforms, is emerging as a new global hotspot for entrepreneurs.
- Choose your business activity and legal structure.
- Apply for an investment license through the Ministry of Investment (formerly the Saudi Arabian General Investment Authority, SAGIA).
- Obtain additional approvals (if required) from relevant ministries.
- Ministry of Commerce registration is mandatory, and a Certificate of Registration (CR) must be obtained by filing with government portals.
- Open a corporate bank account and complete ZATCA (tax authority) and GOSI (social insurance) registration.
- Begin operations in compliance with labour laws and Saudization policies.
Why Businesses Trust Helpline Group
With over 25 years of global expertise, with 300+ experts and 10+ global branches. Helpline Group is your trusted partner for setting up a business in Saudi Arabia. We guide foreign investors through every stage of doing business in Saudi Arabia, from pre-incorporation to licensing and post-incorporation. At Helpline Group, we don’t just set up your business in Saudi Arabia – we help you build a future in Saudi Arabia.
