Foreign Retail & E-Commerce Setup Rules in Saudi Arabia

Oct 29, 2026•2 min read

Foreign investors looking to open wholesale, retail, or e-commerce companies in Saudi Arabia may hold full ownership of their businesses, but they must meet sector-specific capital and operational requirements before launching operations, Saudi Living reports.

Under the Investment Law that took effect in February 2025, foreign investors are required to register with the Ministry of Investment before beginning any investment activity. For wholesale, retail, and e-commerce activities, a minimum capital of SAR 30,000,000 generally applies. Depending on the licensed activity, additional conditions such as investment thresholds or local-manufacturing commitments may also apply.

Steps to establish the business

Investors apply first through the Ministry of Investment, then establish their entity through the Saudi Business Center and the Ministry of Commerce. Commercial Registration fees are SAR 200 for the main registration and SAR 100 for each branch. While the stated minimum capital for an ordinary commercial-registration issuance is SAR 5,000, this does not replace the higher capital requirement that applies to foreign-owned wholesale, retail, and e-commerce activities.

A municipal commercial license is obtained through Balady after selecting the activity, premises, and location. Fees vary by activity, municipality, premises, and license period, with the official fee calculator determining the exact amount. The license includes the applicable Civil Defense safety permit. Renewal fees generally equal issuance fees, and renewal can be submitted when five days or fewer remain before expiry.

Establishments must also register with the Ministry of Human Resources and Social Development, the Chamber of Commerce, the General Organization for Social Insurance, the tax authority, and the relevant passport authorities. E-commerce businesses, in particular, must comply with the Saudi E-Commerce Law, covering electronic contracting, consumer protection, privacy, invoicing, and disclosure obligations.

These requirements matter for residents and expat entrepreneurs planning to enter the Saudi market, as understanding the capital thresholds and licensing steps up front helps avoid delays and ensures compliance from day one.

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