Saudi 2025 Investment Law: New Rules for Investors

Saudi Arabia's updated 2025 investment law introduces a major shift for foreign investors, replacing the previous licensing model with a simpler registration process handled through وزارة الاستثمار (MISA). The change reshapes how international companies and individuals begin doing business in the Kingdom.

Under the new framework, foreign investors no longer need to obtain a foreign investment license. Instead, they register with وزارة الاستثمار before starting any investment activity. Once the ministry confirms that registration is complete, the investor can issue a commercial registration and then obtain any other licenses required from the relevant competent authorities.

Stronger protections

The updated law grants equal treatment to local and foreign investors under similar circumstances, and guarantees fair and just treatment. It protects investors against direct and indirect expropriation, except by a final judicial ruling issued for the public interest and accompanied by fair compensation.

The law also safeguards the free transfer of funds, including profits, returns, and liquidation proceeds, subject to compliance with applicable regulations. In addition, it protects intellectual property and trade secrets, and requires competent authorities to facilitate administrative procedures.

Separately, a 2026 change for the securities market removed the requirement for foreign investors to first qualify as qualified foreign investors before investing in listed securities and investment products. Aggregate foreign ownership in a listed issuer remains capped at 49%.

For the resident and business community, the streamlined registration process signals a more open and predictable environment for setting up and operating in the Kingdom, supporting broader goals under رؤية السعودية 2030.

---

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