Foreign Ownership Rules Under Saudi 2024 Investment Law
Saudi Arabia now permits full foreign ownership across most economic sectors under the 2024 Investment Law, which has been in force since February 2025. The law replaced the previous requirement for a separate foreign investment licence with a simpler process of investor registration with the Ministry of Investment.
As a general rule, 100% foreign ownership is allowed in every sector that does not appear on the Ministry of Investment's list of excluded activities, known as the negative list. This includes retail, wholesale and e-commerce, where full foreign ownership is formally permitted, subject to a minimum capital requirement of 30,000,000 Saudi Riyal (about USD 8 million).
What remains restricted
A limited number of activities stay closed to foreign investors. These include the exploration, prospecting and production of petroleum substances; the manufacturing of military equipment, uniforms and civil explosives; providing services to the military; security and detective services; labor recruitment agencies; and tourist services for Hajj and Umrah. Real estate investment in Mecca and Medina is subject to separate rules. Further excluded activities may be set by the Permanent Ministerial Committee for the Examination of Foreign Investments.
On real estate, from 22 January 2026 foreign-owned private companies incorporated in the Kingdom may own property throughout Saudi Arabia, subject to controls issued by the Council of Ministers. Non-Saudis may also own residential and commercial property under a new ownership law, with special conditions in Makkah and Madinah, while property bought for speculation remains restricted.
For companies listed on Tadawul's Main Market, non-resident foreign investors — excluding Foreign Strategic Investors — are limited to a maximum of 10%, while aggregate foreign ownership in any listed issuer is capped at 49% of shares or convertible debt instruments.
The 2024 law applies equally to local and foreign investors, guarantees equal treatment, protects against expropriation and allows the transfer of funds — a shift that matters to the many residents and business owners weighing new ventures in the Kingdom.
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