Foreign Firms Need MISA License to Operate in Saudi Arabia

Foreign companies wishing to conduct commercial activity in Saudi Arabia must first obtain an investment license, or investment registration, from the وزارة الاستثمار (MISA) before beginning any operations in the Kingdom. Applications are submitted entirely online through the ministry's e-services portal.

To qualify, the applicant must be an established foreign company registered outside Saudi Arabia, typically with at least one year of operations. Full 100% foreign ownership is permitted across most sectors, with exceptions for activities of strategic impact such as national security, upstream oil and gas, certain financial services, Hajj and Umrah services, and selected media and telecom activities.

The core paperwork includes a certified copy of the company's commercial registration or certificate of incorporation, its memorandum and articles of association, and audited financial statements covering at least the last fiscal year. Applicants must also submit a board resolution authorizing the investment, passport or ID copies of shareholders, directors and the proposed general manager, and a detailed business plan describing activities, planned capital and sector. All non-Arabic documents require an Arabic translation and attestation by the Saudi embassy in the home country. Financial solvency evidence, such as bank letters, may be requested.

Capital requirements vary by license type. Many service, industrial, agricultural, mining and professional licenses require a minimum capital of 25,000 ريال سعودي with full foreign ownership. Real estate development thresholds sit around 30 million ريال سعودي at the project level, while a commercial trading license with 100% foreign ownership often requires 30 million ريال سعودي in the first year, and around 26.6 million ريال سعودي at 75% foreign ownership. Entrepreneurial and innovative licenses may carry no formal minimum capital.

Sector-specific approvals from relevant regulators may also apply, for example in financial services, pharmaceuticals or aviation. For residents and expat professionals, understanding these steps early helps businesses plan timelines, budgets and documentation before entering the Saudi market.

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