Foreign Ownership Rules for Saudi Investment Explained

Foreign investors can now own anywhere from a minority stake up to full 100% equity in Saudi companies across most sectors open to foreign investment, under the current investment framework introduced by the 2024 Investment Law, which took effect around February 2025.

The new law replaces the previous Foreign Investment Law regime, abolishing formal investor screening and the old “negative list” concept. Under it, foreign and local investors are to be treated on an equal footing, subject to a forthcoming list of excluded activities. Ownership limits still vary by sector, and some activities remain restricted or closed.

Where limits still apply

Full foreign ownership is not permitted in certain strategic sectors, including oil exploration, drilling and production; land and ground transportation; military equipment manufacturing; and most telecommunications services. These either require Saudi participation or remain closed to foreign investors. For listed Saudi companies, non‑resident foreign investors face a 10% cap per issuer and an aggregate foreign ownership cap of 49%

Retail, wholesale, and e‑commerce activities now allow full foreign ownership. However, foreign companies seeking 100% ownership must meet a minimum capital of SAR 30 million, along with broader commitments such as total investment of SAR 300 million over five years and a presence in at least three international markets to obtain investment registration.

Why it matters

The former investment license model has been re‑framed as investment registration through وزارة الاستثمار. Registration fees are now variable, ranging from 0 to 12,000 SAR and set by the ministry on approval, with many post‑registration changes—such as activity changes, ownership changes, and cancellation—listed as free of charge. Fixed price schedules are no longer published as standard, marking a simpler, more flexible entry point for businesses eyeing the Saudi market.

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