New Investment & CR Laws: What Foreign Investors Face in 2025

Saudi Arabia has introduced sweeping changes for foreign investors through a new Investment Law and an updated Commercial Registration Law, the latter taking effect on 3 April 2025. Together the two frameworks redefine the rights investors enjoy and the obligations they must meet when registering and operating businesses in the Kingdom.

Under the Investment Law, foreign investors are granted equal treatment with local investors in similar circumstances, along with fair and just treatment. The law protects against confiscation and expropriation except by a final judicial ruling or for public interest with fair compensation. Investors also gain the right to manage and dispose of their investment, own property needed for the activity, protect intellectual property and trade secrets, and receive support in completing administrative procedures.

Before starting any activity, a foreign investor must register with the Ministry of Investment. Reporting duties are ongoing: financial strength and standing must be disclosed quarterly within 14 days, and information must be updated annually within 60 days of the proposed update deadline. Non-serious violations must be corrected within the specified period, while serious violations can bring a warning, a fine of up to SAR 300,000 (doubled for repeat offences), or cancellation of registration.

Commercial registration changes

The updated Commercial Registration Law replaces the old renewal model with an annual confirmation system. Merchants must verify and confirm their CR data once a year, counted from the original registration date. Failure to update within 90 days of the due date can lead to a one-year suspension of the commercial register.

Importantly, a foreign investor no longer needs a separate foreign investment license, and no license fee is payable for it. In 2026, commercial registration fees are commonly reported between SAR 1,200 and 2,000 plus VAT, with some estimates showing an LLC initial registration at SAR 6,000 and annual confirmation at SAR 1,200. Foreign investor registration and reporting run through the Ministry of Investment, while commercial registration matters are handled by the Ministry of Commerce.

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