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Foreign investment

  • 4 Feb, 2024

The Kingdom of Saudi Arabia is considered an ideal destination for foreign investment, and has great
potential for growth and prosperity. The Kingdom’s openness to receiving foreign investment came
after a series of economic reforms that were launched in recent years that aim to diversify the
economy and shift from dependence on oil to dependence on other sectors such as tourism.
Industry and technology

Which companies are allowed to engage in business activity as a foreign investor?
Limited liability companies.
contribution companies .
Branches of foreign companies.
You can learn about the laws of these companies in the steps for establishing companies in Saudi
Arabia
Who should sponsor the foreign investor and his non-Saudi employees?
Their guarantee is on the licensed facility.

Advantages of foreign investment in Saudi Arabia
Freedom of investment: Foreign investors enjoy the freedom to invest in all sectors in the Kingdom
of Saudi Arabia.
Investor Protection: The Kingdom of Saudi Arabia protects the rights of foreign investors through a
stable legal system.
Tax incentives: The Kingdom of Saudi Arabia offers many tax incentives to foreign investors, such as
temporary tax exemptions.
The Saudi Ministry of Investment provides many services to foreign investors, including:
Providing advice on the legal entity.
Coordinating with government agencies and providing advice on applying for the required licenses,
services and visas.
Coordination with agencies specialized in assisting in starting work in the Kingdom.

Conditions for foreign investment in the Kingdom of Saudi Arabia:
The investment activity for which a license is requested must not be on the list of activities excluded
from foreign investment.
The license applicant must not have had final rulings or decisions issued against him due to
fundamental violations of the provisions of this system.
The license applicant must achieve the investment goals and objectives of the Authority.

Some examples of foreign investment conditions in Saudi Arabia according to the type of investment
activity:
Investment in the industrial sector: It is required to obtain approvals from the relevant government
agencies, such as the Public Authority for Industry and Mineral Resources, and the Industrial Cities
and Technology Zones Authority.
Foreign investment in Saudi Arabia in the real estate sector: approval from the Ministry of Housing is
required.

Investment in the financial sector: approval from the Central Bank of Saudi Arabia is required.

Foreign investors can apply for an investment license through the website of the Saudi Ministry of
Investment

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