Saudi Arabia: Sectors Open to 100% Foreign Ownership

Foreign investors in Saudi Arabia can now fully own businesses across most commercial, industrial, and service sectors. Under a license from the Ministry of Investment (MISA), both foreign individuals and companies are allowed to hold 100% ownership in a wide range of activities, without needing a local partner.

The change is anchored in the 2025 Investment Law (Royal Decree M/19), which made 100% foreign ownership the default across most services, industrial, professional, hospitality, logistics, technology, and e-commerce activities.

Sectors open to full ownership

Full foreign ownership is currently available in information technology and communications (software, cloud, cybersecurity, AI, and data centers); manufacturing and industrial projects such as automotive, electronics, food, chemicals, and pharmaceuticals; and healthcare, including hospitals, clinics, diagnostics, and medical devices. Education and training, professional services (consulting, accounting, engineering, and many legal advisory activities), and construction are also open.

Investors can also fully own businesses in transportation and logistics, retail and wholesale trade including e-commerce and franchising, hospitality and tourism, entertainment and media, renewable energy, mining, and agriculture and food processing. Financial services such as fintech, insurance, and asset management are permitted but require separate licensing from the relevant regulators.

What remains restricted

Some activities stay on the negative list. These include oil exploration, drilling, and production (reserved for the national sector, with foreign involvement only through joint ventures); military and security services and equipment manufacturing; and most telecommunications services. Real estate ownership and development in Makkah and Madinah are restricted, as are tourist services tied directly to Hajj and Umrah. Fisheries and marine hunting activities, and some land transportation services, also carry ownership limits.

For expats and international companies eyeing the local market, the reforms cut a long-standing barrier to entry, making it faster and simpler to establish and grow a business in the Kingdom.

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