Saudi Investment Law 2025: Equal Rights for Investors

A new Investment Law issued by Royal Decree M/19 dated 16/1/1446H (22 July 2024) entered into force in February 2025, 180 days after its publication in the Official Gazette on 16 August 2024. The law repeals the earlier 2000 Foreign Investment Law and brings both local and foreign investors under a single regime.

The core principle of the new framework is equal treatment. Foreign and Saudi investors in similar circumstances are treated equally, with discrimination prohibited except for limited exceptions specified on national-interest grounds. This equal treatment covers access to investment opportunities, protections, incentives, and dispute-resolution mechanisms under the same conditions.

One of the most significant changes for foreign investors is the end of the separate foreign investment licence. Instead, the regime shifts to registration with the Ministry of Investment (MISA) for most activities. Foreign investors must register with the Ministry of Investment before making any investment, except for investments in listed securities, debt instruments, and investment funds subject to the Capital Market Law.

For activities on the excluded (negative) list, foreign investors must obtain prior approval from the Ministry of Investment before investing. That list is to be issued by the ministry and applies only to foreign investors. As a general rule, an investor may invest in any sector or activity available for investment unless it is on the excluded list or subject to specific legal restrictions such as national security.

Why it matters

The law guarantees protection against expropriation except pursuant to a final judicial ruling, due legal procedures, and fair compensation, applied equally to foreign and local investors. It also protects intellectual property and trade secrets, ensures fair competition, and provides access to effective dispute-resolution mechanisms. The Ministry of Investment retains powers to suspend foreign investments for national security reasons, subject to objective grounds and international treaty obligations. The Implementing Regulations, which entered into force alongside the law, set out the registration procedures in detail.

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