100% Foreign Ownership in Saudi Arabia: Allowed Sectors

Foreign investors can now own 100% of businesses across most sectors in Saudi Arabia in 2026 — with no Saudi partner required — under a foreign investment license issued by the Ministry of Investment. roughly 96% of business activities are open to full foreign ownership for eligible investors.

Full ownership is available under a standard Ministry of Investment license across a wide range of activities. These include information technology (software, cloud, cybersecurity, AI and data centers), manufacturing (automotive, electronics, food, chemicals and pharmaceuticals), and healthcare (hospitals, clinics, diagnostics and medical devices), subject to relevant sector approvals.

Also open are retail and e-commerce, wholesale distribution, professional services such as consulting, accounting, engineering and architecture, construction and contracting, education and training, tourism and hospitality, entertainment, transportation and logistics, renewable energy, mining and agriculture.

Foreigners may hold 100% of a Saudi limited liability company, a branch, a joint-stock company or a regional headquarters across eligible activities under the new Investment Law, issued by Royal Decree M/19 and effective in 2025. Full ownership in retail and wholesale trade is permitted, but foreign companies in trading and e-commerce must meet a minimum paid-up capital of SAR 30,000,000.

What remains restricted

Foreign ownership is still sector-dependent, and 100% ownership is not automatic in every activity. Strategic sectors keep restrictions or require additional approvals. Restricted or prohibited areas include oil exploration, drilling and upstream production, as well as military and defense-related activities.

For the expat and business community, the reform signals a clearer, more open path to establishing companies locally — a key part of efforts to attract international investment and diversify the economy.

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