SAR 30M Capital Rule for 100% Foreign Retail Firms

Foreign companies can now fully own wholesale, retail, and e-commerce businesses in Saudi Arabia, provided they meet specific capital and market-presence conditions set out through وزارة الاستثمار and other government platforms.

Under the requirements, a 100% foreign-owned commercial business must have a minimum capital of SAR 30,000,000. The foreign company must also demonstrate an operating presence in at least three international markets, supported by authenticated commercial registrations for those operations and authenticated financial statements for its most recent fiscal year. Such documents generally require Saudi Embassy authentication.

Investment commitment options

Applicants choose between two investment paths. The first requires investing at least SAR 300,000,000 in Saudi Arabia over five years from the date the investment registration is issued, including at least SAR 30,000,000 as company cash capital. The second requires at least SAR 200,000,000 over five years, including SAR 30,000,000 cash capital, plus one additional condition during the first five years: manufacturing at least 30% of locally distributed products in the Kingdom, allocating at least 5% of total sales to Saudi-based research and development, or establishing a unified logistics and distribution centre with after-sales services.

The process begins with registering the foreign investor through وزارة الاستثمار before conducting any activity, followed by applying for the investment registration and establishing the Saudi company through the Ministry of Commerce. Investors then obtain the commercial registration and the relevant municipal, e-commerce, consumer-protection, import, and sector licences, and complete tax, zakat, social-insurance, employment, and Saudization registrations through platforms including قوى. Municipal licensing is handled through Balady when premises or location-based activities require it.

The Ministry of Commerce lists a SAR 500 publication fee plus 15% VAT for the applicable company-establishment service, with other incorporation, chamber, municipal, authentication, and platform charges possibly applying. The validity of the investment and commercial registrations depends on the issued terms, with no single universal period.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving