Foreign Retail & E-Commerce Capital Rules in Saudi Arabia

Oct 28, 2026•2 min read

Foreign investors looking to enter Saudi Arabia's wholesale, retail, and e-commerce sectors face clearly defined capital and registration requirements depending on the ownership structure they choose. Saudi Living breaks down the key figures and steps for businesses planning to set up shop in the Kingdom.

For a fully foreign-owned commercial activity covering both wholesale and retail, the minimum capital requirement is SAR 30,000,000. If the company is established with a Saudi partner, the minimum capital drops to SAR 26,666,667, with the Saudi partner holding at least 25% and the foreign investor contributing a minimum of SAR 20,000,000.

E-commerce is treated differently. The available requirements do not set a separate minimum capital amount for online commercial activity. Instead, the e-commerce activity must be listed in the Commercial Registration, and the online store must comply with the E-Commerce Law.

How to register

Investors apply through the Ministry of Investment's electronic services using an authenticated foreign company application alongside constitutional documents and the required financial and ownership details. Once investment registration is approved, the company is incorporated through the Saudi Business Center. Listed fees include SAR 1,200 for an LLC, SAR 1,600 for a joint-stock or simplified joint-stock company, SAR 1,000 for a partnership, plus SAR 500 publication fees and 15% VAT.

Newly incorporated foreign companies must generally have issued capital of at least SAR 500,000, with at least one-quarter paid up, though higher activity-specific thresholds apply to commercial activities. Firms with 100% foreign commercial ownership must also train at least 30% of their Saudi employees and meet applicable localization conditions.

For the community, these clear thresholds matter: they give entrepreneurs, expat business owners, and international brands a transparent framework for planning market entry, budgeting, and compliance when expanding into one of the region's fastest-growing retail markets.

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