New Saudi Investment Law: Ministry Registration Replaces Licensing

Saudi Arabia's updated Investment Law took effect on 12 February 2025, introducing a simpler path for foreign investors who want to do business in the Kingdom. The new framework replaces the previous foreign-investment licensing model with a registration process handled by the وزارة الاستثمار before an investor can begin an activity.

The registration requirement generally applies to foreign investors, with an exception for securities investments governed by the Capital Market Law. Registration is completed through the ministry's investor services portal.

What investors need to prepare

Typical documents include the foreign company's commercial registration and its financial statements for the latest fiscal year, both authenticated by the Saudi embassy, along with any activity-specific documents and partner identification where applicable. Holders of Saudi Premium Residency are exempt from submitting the foreign company commercial registration and the financial statements.

Certain activities on the excluded-activities list may require prior approval from the ministry. The registration fee is not published as a fixed amount; the ministry determines it after approving the application. Once notified, the investor must pay the approved fee within 15 business days, or the application becomes void.

Registration also requires an annual update of declarations and investor information, with a fee the ministry sets case by case. An investor whose registration lapses cannot continue the activity without submitting a new registration, though reactivation may be requested within three years after the relevant registration period expires.

For the expat and foreign business community, the shift signals a more streamlined entry point to the Saudi market in line with رؤية السعودية 2030, reducing the paperwork barrier while keeping clear compliance and annual-renewal obligations in place.

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