If you're planning to establish a business in Saudi Arabia but are uncertain about the types of companies allowed and which structure best suits your needs, this article will help you gain a clear understanding to make the right decision.
We will focus on LLC vs SJSC in Saudi Arabia,the two most common and significant forms for entrepreneurs and investors in the Kingdom.
Since choosing the appropriate company structure is the first and most crucial step in launching any business, we’ll explore the advantages and disadvantages of each type from legal, administrative, and organizational perspectives, helping you determine the legal form that best aligns with your business needs and objectives.
Types of Companies in Saudi Arabia
Companies in Saudi Arabia vary in form and are governed by different sets of regulations. Some are subject to the Saudi Companies Law, issued by Royal Decree No. (M/132) dated 01/12/1443 AH, and these are classified as commercial companies.
On the other hand, there are companies regulated under the Civil Transactions Law, issued by Royal Decree No. (M/191) dated 29/11/1444 AH, which are referred to as civil companies.
In the following sections, we will focus on commercial companies, particularly the Simplified Joint Stock Company (SJSC) and the Limited Liability Company (LLC).
First: The Simplified Joint Stock Company (SJSC)
A Simplified Joint Stock Company may be established by one or more persons, whether individuals or legal entities. It is governed by the provisions applicable to Joint Stock Companies, except where specific rules are provided for this type.
The company’s capital is divided into tradable shares, and the company itself is solely liable for its debts and obligations. The liability of shareholders is limited to the value of the shares they have subscribed to or purchased, without extending to their personal assets.
Advantages of a Simplified Joint Stock Company (SJSC)
No minimum capital requirement: There is no legally required minimum capital to establish an SJSC.
Flexibility in share structure: The company may issue different classes of shares with varying rights, obligations, and restrictions.
Flexible management model: The company can be managed by one or more directors or by a board of directors, depending on what is stipulated in its articles of association.
No mandatory general assembly: Holding general assemblies is not required; shareholders themselves decide who will assume management and decision-making responsibilities.
Customizable governance rules: The articles of association define the quorum requirements for meetings and the voting thresholds needed to approve resolutions, providing flexibility in corporate governance.
Structure and Management of a Simplified Joint Stock Company
Full organizational flexibility: Shareholders in an SJSC have complete freedom to determine the company’s organizational and management structure, as set out in the articles of association.
Delegated powers: The chairman, director, or board of directors—as determined in the articles of association—exercises all powers granted to the chairman and board members of a traditional joint stock company, unless otherwise specified.
Incorporation requirements: The incorporation details of an SJSC are identical to those of a joint stock company, as stated in Article 140 of the Companies Law.
Defined management mechanism: The company’s articles of association must specify the management mechanism, which may include a chairman, one or more directors, a board of directors, or any other agreed-upon structure. The articles should also outline the method for appointing and removing managers and define the scope of their powers.
If these matters are not defined in the articles, they shall be determined by the shareholders.
Broad management authority: The chairman, director, or board of directors holds broad powers to manage the company and achieve its objectives, except for matters that the Companies Law or articles of association reserve for the shareholders.
Delegation of authority: The chairman or director may, within the limits of their powers, delegate specific tasks to one or more persons, provided such delegation falls within their authorized scope.
Representation before third parties: The chairman, director, or chairman of the board represents the company before courts, arbitration bodies, and other entities. The company may also authorize another party to represent it, if permitted by the articles of association.
Binding effect of management actions: The company is bound by all actions carried out in its name by its chairman, manager, or board of directors, even if such actions exceed their authority, unless the other party acted in bad faith or was aware of the misuse of authority.
Second: The Limited Liability Company (LLC)
A Limited Liability Company (LLC) is an entity established by one or more persons. It possesses a separate financial liability distinct from that of its partners or owners. The company itself is solely responsible for its debts and obligations, while the liability of the partners is limited to the value of their contributions to the company’s capital.
The owners of an LLC are referred to as members. They are partners in a business structure that provides legal protection from personal liability while allowing profits and losses to pass directly to their personal tax returns. For this reason, many businesses prefer to establish an LLC, as it provides an ideal balance between legal protection, operational flexibility, and avoidance of double taxation.
Advantages of a Limited Liability Company
Personal liability protection:
Members enjoy protection from personal liability. They are not held personally responsible for the company’s debts or legal obligations, thereby safeguarding their personal funds and assets in case the company faces legal or financial difficulties.
Flexible profit distribution:
Profits and losses are distributed among members based on mutual agreement. The distribution does not need to be equal; it follows the ratios agreed upon in the company’s articles of association or operating agreement.
Simplified establishment procedures:
Setting up an LLC involves fewer procedures and documentation compared to other business structures, making it one of the most convenient and efficient forms of incorporation.
Clear internal governance:
The written operating agreement of an LLC clearly outlines the roles, responsibilities, and powers of each member, which enhances internal organization, ensures stability, and supports the company’s long-term continuity.
Structure and Management of a Limited Liability Company
The company is managed by one or more managers, who may be partners or external appointees.
Managers are appointed by the partners—either in the articles of association or under a separate contract—for a fixed or indefinite term.
In cases where there are multiple managers, the partners may form a board of managers to supervise the company’s operations and make decisions collectively.
The articles of association or a partners’ resolution define the management mechanism, including the decision-making process and the voting majority required for resolutions, whether in appointing managers or forming a board.
Conclusion
This brings us to the end of the article.
If you would like to learn more about the Saudi corporate system or the process of establishing a company, feel free to contact us. Our team will be happy to provide you with a comprehensive package of services to support you throughout your company formation journey in Saudi Arabia.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
In 2021, the Kingdom of Saudi Arabia launched the Saudi Regional Headquarters Program to Attract Global Companies as part of its broader strategy to draw foreign investment and encourage multinational corporations to establish a physical presence in the Saudi market. The initiative aims to diversify the national economy and reduce its dependence on oil revenues.
In this article, we will explore the program’s objectives, the advantages it offers to international companies.
Program Overview
The Saudi Regional Headquarters Program (RHQ) is an initiative designed to attract international companies to establish their regional headquarters in Saudi Arabia. Its primary goal is to position the Kingdom — and particularly its capital, Riyadh — as the leading destination for regional headquarters across the Middle East and North Africa (MENA) region.
The program was first conceived in 2020, when His Royal Highness Prince Mohammed bin Salman directed the Royal Commission for Riyadh City to develop and launch the initiative in collaboration with the Ministry of Investment, under the supervision of a specialized steering committee. The program was officially launched in 2021.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
At its inception, the program set an ambitious target of attracting 500 regional headquarters of international companies by 2030. Remarkably, by 2025—well ahead of schedule—the program has already surpassed this goal, successfully attracting over 600 global companies.
It is worth noting that the program is supported by several key government partners, including the Ministry of Finance, the Ministry of Human Resources and Social Development, the Ministry of Commerce, the Ministry of Economy and Planning, the Local Content and Government Procurement Authority, the Zakat, Tax and Customs Authority, the General Authority for Foreign Trade, and the National Center for Government Resource Systems.
What is a Saudi Regional Headquarters?
A Saudi Regional Headquarters (RHQ) refers to an entity established by a global or multinational company in Riyadh to oversee and manage its operations across the Middle East and North Africa (MENA) region. This headquarters functions as a strategic hub that provides leadership, coordination, and support to the company’s offices, subsidiaries, and branches operating in other countries within the region.
To qualify for establishing a regional headquarters in Saudi Arabia, a company must be an international or multinational enterprise with active operations or branches in more than one country. Moreover, the RHQ in Saudi Arabia must carry out genuine administrative and managerial functions, such as human resources management, finance, sales, marketing, and regional strategic planning.
Objectives of the Regional Headquarters (RHQ) Program
Through the launch of the Regional Headquarters Program, the Kingdom of Saudi Arabia aims to achieve several strategic objectives:
Services Provided by the Program to Companies
The Saudi Regional Headquarters Program offers a comprehensive range of essential services designed to support companies across all sectors as they establish and operate their regional bases in Saudi Arabia. These services are categorized as follows:
1. Business Setup Services
The program assists companies in setting up their operations by providing temporary office spaces, housing options (such as apartments and villas) tailored to each company’s needs, and support in attracting local talent. It also offers a variety of advisory and administrative services to facilitate a smooth establishment process.
2. Logistics Services
These services cover travel arrangements and reservations, event organization, and sports or recreational activities, in addition to providing personal assistant services to ensure convenience for company executives and staff.
3. Support Services
Support offerings include business setup facilitation, provision of domestic staff, issuance of work permits for spouses, and assistance with finalizing legal and administrative procedures.
4. Consulting Services
The program also provides specialized consulting, including tax advisory, bank account setup assistance, and government relations services to help companies navigate local regulations effectively.
5. Exclusive Discounts
Participating companies benefit from exclusive discounts on a variety of services, including airlines, office spaces, housing, and educational services, further enhancing the overall value of operating within the Kingdom.
Financial Incentives for Companies
To encourage multinational corporations to participate in the Regional Headquarters (RHQ) Program, the Kingdom of Saudi Arabia has introduced a range of long-term tax exemptions designed to enhance the attractiveness of establishing regional operations in Riyadh. These incentives include:
Full exemption from corporate income tax.
Full exemption from withholding tax on payments made to non-resident related parties.
Full exemption from withholding tax on dividend payments made by the regional headquarters to its foreign parent entity (or entities).
Full exemption from withholding tax on payments made to non-resident, unrelated parties for services essential to carrying out the activities of the regional headquarters.
Available Sectors within the Program
The Saudi Regional Headquarters Program targets multinational companies operating across a wide range of sectors, including:
Professional Services
Healthcare
Communications and Information Technology
Logistics
Finance
Industry and Mining
Energy
Aviation and Defense
Construction
Education
Tourism, Hospitality, and Quality of Life
Food and Beverage
Oil, Gas, and Water
Finally, The Regional Headquarters Program represents a significant strategic initiative aimed at strengthening the Kingdom’s position as a leading business hub in the region. Its vision extends beyond merely attracting multinational companies — it seeks to create an integrated and dynamic business ecosystem that enables effective regional management and informed decision-making within Saudi Arabia.
Over the next few years, Riyadh is expected to emerge as one of the most influential business centers in the Middle East, rivaling regional powerhouses such as Dubai and Singapore in attracting and hosting global corporations.
If you are interested in joining the Saudi Regional Headquarters Program, our team is ready to assist you with all necessary procedures — handled with utmost precision and professionalism.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
Saudi Arabia has recently made significant progress in diversifying its sources of income, shifting from a primarily oil-based economy to one increasingly driven by industry. This transformation is largely attributed to Vision 2030, which places industry at the core of the Kingdom’s economic strategy.
When examining the industrial sector in Saudi Arabia, the Jazan region stands out as a key area of focus. For many years, it remained outside the Kingdom’s major development plans. However, it has now emerged as one of the most important industrial hubs in Saudi Arabia, thanks to the government’s commitment to advancing its industrial and economic growth.
In this article, we will highlight the advantages of Industrial Investment in Jazan. We will also explore the opportunities available in the region and outline the steps to obtain an investment license and begin operations there.
About Jazan
Located in southern Saudi Arabia, Jazan occupies a strategic position along the Red Sea, serving as a vital gateway for global exports through its modern ports and active sea lanes. The region is also rich in natural resources, which has encouraged the government to invest heavily in developing its industrial infrastructure as part of the Kingdom’s broader economic diversification efforts.
Since the launch of these development initiatives, Jazan has made steady progress toward establishing itself as a strategic hub for advanced technologies, particularly within the industrial and energy sectors. This remarkable transformation is driven by Vision 2030, which positions Industrial Investment in Jazan as a highly attractive point for both domestic and international investors.
The Current Economic and Industrial Situation in Jazan
The ongoing transformation in Jazan—driven by strong political will—has led to remarkable economic and industrial progress. Among the most notable achievements are:
Together, these achievements illustrate how Jazan is rapidly evolving into a strategic center for industry and investment within Saudi Arabia.
Available Investment Areas in Jazan
The Jazan region presents a wide range of investment opportunities for those seeking a promising market with strong potential returns. Among the most attractive sectors for investment are:
Jazan Special Economic Zone
To further attract investors, Saudi Arabia has established the Jazan Special Economic Zone, one of the zones in the Kingdom operating under special commercial regulations. Covering mote than 24 square kilometers, the zone focuses on three key areas: food processing, metal processing, and logistics. With favorable policies and infrastructure designed to support business growth, it plays a vital role in Saudi Arabia’s economic diversification and strengthens Jazan’s position as a leading industrial hub.
Investment Privileges in Jazan
To strengthen investors’ ability to establish and expand their businesses both regionally and globally, the Kingdom has introduced a package of incentives and facilities within the Jazan Special Economic Zone. These benefits aim to create a business-friendly environment that is fully interconnected with international markets:
These privileges position Jazan as one of the most competitive destinations for industrial and commercial investment in Saudi Arabia, ensuring both cost efficiency and long-term business growth.
Licenses and Regulatory Requirements in Jazan
To establish an industrial project in Jazan or within the Special Economic Zone—investors must obtain several licenses and approvals to ensure compliance with regulatory and operational standards. The most important requirements include:
These regulatory requirements are designed to provide investors with a structured, transparent framework that promotes sustainable industrial development while aligning with Saudi Arabia’s Vision 2030 goals.
Conclusion
As an investor, be sure that the Industrial Investment in Jazan offers strong potential—particularly in the mining, food, and manufacturing sectors. By meeting the necessary investment requirements and securing the appropriate licenses, you can launch your business smoothly and securely.
At the Mohammed Al-Khilwi Office, we are here to support you every step of the way. From handling regulatory procedures to simplifying complex details, our team will ensure your investment journey in Jazan is seamless and efficient.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
In recent years, the Kingdom of Saudi Arabia has undergone remarkable changes across various sectors as part of Vision 2030, which seeks to diversify the economy and establish the Kingdom as an attractive destination for investment.
Among the sectors experiencing profound transformation is the contracting industry, where the Kingdom has launched a series of Giga projects that are reshaping its economic and urban landscape. These initiatives span across smart cities, entertainment hubs, and renewable energy ventures.
In this article, we will highlight the most prominent contracting projects, outlining their objectives and scope, while also shedding light on the legal framework and litigation issues associated with the contracting sector in Saudi Arabia.
NEOM
NEOM is one of the Kingdom's most significant and renowned Giga-construction projects. Valued at $500 billion, the project aims to transform the desert in the Kingdom’s northwest into an innovative, futuristic city spanning over 26,500 square kilometers.
This ambitious city will be fully powered by renewable energy and is envisioned as a new global model for sustainable living. NEOM will feature a floating industrial complex, a global trade hub, commercial ports, advanced facilities, sports venues, diverse entertainment centers, and world-class tourist attractions.
Qiddiya City
Qiddiya City is one of Saudi Arabia’s most ambitious projects, located in the heart of Riyadh. The project aims to establish a massive entertainment city that will serve as the Kingdom’s future capital of entertainment, sports, and culture. Spanning more than 370 square kilometers, Qiddiya is designed to become a vibrant hub for both residents and visitors.
The megacity will feature expansive parks and gardens, art and cultural centers, sports stadiums, adventure venues, and a wide range of entertainment facilities, offering an unparalleled experience.
Beyond its recreational value, Qiddiya City is set to play a key role in the national economy by generating an estimated 325,000 direct and indirect job opportunities. This makes it a cornerstone of Saudi Arabia’s efforts to build a more prosperous, dynamic, and vibrant society under Vision 2030.
The Line
The Line is one of the most groundbreaking cities currently under construction in Saudi Arabia. Stretching over 170 kilometers, this futuristic linear city is designed to revolutionize urban development by prioritizing people and nature over vehicles and infrastructure. Powered entirely by renewable energy, The Line preserves 95% of its surrounding land as a nature reserve, aligning perfectly with the Kingdom’s long-term sustainability goals. With its modern outlook and innovative design, The Line represents a global benchmark for sustainable and human-centric living.
King Salman Energy Park (SPARK)
King Salman Energy Park, known as SPARK, stands out as one of Saudi Arabia’s most advanced industrial projects. Strategically designed to serve as a global energy hub, SPARK connects international markets with the Kingdom’s integrated solutions and services in the energy sector, supporting a wide range of businesses and industries.
Covering nearly 50 square kilometers, the park emphasizes clean and sustainable energy technologies. Notably, SPARK is the first and only industrial city in the world to receive the Leadership in Energy and Environmental Design (LEED) Silver certification, a prestigious recognition of its environmentally friendly and sustainable practices. This makes SPARK not only a cornerstone of Saudi Arabia’s energy strategy but also a model for industrial innovation worldwide.
Contracting Litigation in Saudi Arabia
In reality, the success of these Giga projects relies not only on visionary planning and advanced infrastructure but also on a solid legal framework. A robust legal environment ensures compliance with contracts, protects the rights of project owners, contractors, and stakeholders, and guarantees timely project delivery—all while keeping the process legally sound and transparent.
Below is a brief overview of the litigation landscape in Saudi Arabia’s contracting sector:
1. The Most Common Contracting Disputes
Contracting disputes in Saudi Arabia differ depending on the nature of the disagreement, the contract type, and the circumstances of the contracting parties. The most prominent cases include:
Breach of Contract: Cases involving alterations to project specifications or the use of materials not agreed upon in the contract.
Delay Cases: Disputes arising from the failure to deliver projects within the agreed timeline or delays in financial payments.
Compensation Claims: Cases seeking financial redress for damages caused by halted work, or for losses resulting from delayed delivery.
Quality and Defect Cases: Claims made for defects or quality issues discovered upon project handover.
Termination and Cancellation: Filed when one party ends the contract due to the other’s non-compliance with agreed terms.
Interpretation and Modification: Cases brought forward to clarify ambiguous contract clauses or to modify terms that were not adequately defined or documented.
This legal structure provides assurance that the massive investments in the Kingdom’s contracting sector are safeguarded, while also ensuring fairness and accountability for all parties involved.
2. The Most Important Legal Systems for Contracting Projects in Saudi Arabia
Saudi Arabia’s legal framework is continuously evolving to strengthen the investment climate across all sectors, with special attention to the contracting industry. The most important developments include:
Enhanced Tendering and Contracting Systems: Reforming government procurement processes to ensure transparency and fair competition.
Stricter Safety Standards: Imposing higher safety requirements at construction sites and enforcing fines on violators.
Sustainability and Green Technologies: Introducing regulations that align contracting projects with the Sustainable Development Goals by integrating eco-friendly standards and practices.
Improved Payment Mechanisms: Establishing clear systems to protect contractors’ financial rights and minimize payment delays.
Specialized Contracting Courts: Setting up dedicated courts to expedite the resolution of contracting disputes.
Mandatory Training Programs: Requiring companies to conduct staff training programs aimed at enhancing efficiency, ensuring safety, and improving overall project quality.
These reforms reflect the Kingdom’s commitment to building a robust legal and regulatory environment that not only safeguards rights but also accelerates the success of its giga projects.
3. Judicial Authorities Specialized in Contracting Sector Disputes
Commercial Courts: Handle disputes between contractors or between contractors and suppliers, particularly in matters related to commercial transactions.
General Courts: Consider non-commercial disputes, such as conflicts between individuals and contractors in personal construction projects.
In conclusion, the contracting sector in Saudi Arabia is among the most vital pillars of the Kingdom’s economy. The giga projects currently underway are not only building cities, infrastructure, and world-class developments, but also fostering a legal environment that safeguards investments and encourages innovation and growth in line with Vision 2030.
For professionals working in the contracting field, it is crucial to consult with a lawyer specializing in contracting disputes. A legal expert ensures that the other party complies with Saudi regulations, drafts precise contracts, and protects both financial and legal rights.
If you require advice or assistance in litigation related to the contracting sector in Saudi Arabia, do not hesitate to contact us at the Mohammed Al-Khliwi Law Firm. We will handle the process for you and streamline all pending procedures.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
Saudi Arabia has recently made significant progress in diversifying its sources of income, shifting from an oil-dependent economy to one increasingly driven by industry. This transformation is largely attributed to Vision 2030, which places industry at the heart of the Kingdom’s economic development.
When discussing the industrial sector in Saudi Arabia, Jubail Industrial City stands out as one of the most important industrial hubs—not only in the Kingdom but globally. This prominence is the result of the government’s strong focus on enhancing its industrial and economic infrastructure.
In this article, we will explore the advantages of Investment in Jubail and its importance for investors interested in the Saudi industrial sector. We will also highlight the investment opportunities available in the city and the licenses required to begin operations there.
About Jubail
Located in Saudi Arabia’s Eastern Province, Jubail is the largest industrial city in the world, spanning more than 1,000 square kilometers. Established in 1975 as a modern industrial hub, it has since become home to some of the world’s most prominent companies, including SABIC—the fourth-largest petrochemical company globally and the largest in the Middle East—as well as the IWPP project, the world’s largest independent water and power project.
Jubail’s strategic location near abundant energy sources and raw materials essential for the petrochemical and refining industries gives it a competitive advantage. This proximity not only supports industrial operations but also ensures seamless access to global markets, making Jubail one of the most attractive destinations for investors in Saudi Arabia’s industrial sector.
Why Investment in Jubail is an Excellent Choice for Foreign Investors?
Since its establishment in 1975, and with continuous development aimed at transforming it into a premier industrial hub, Jubail has achieved remarkable milestones, including:
Available Investment Sectors in Jubail
Jubail offers a diverse range of investment opportunities across several key sectors. For investors, the following areas present significant potential:
Investment in Jubail Conditions
To support the establishment and growth of businesses in Jubail, the Kingdom has outlined clear conditions and specific criteria that investors must meet. The most notable requirements include:
Requirements for Obtaining an Industrial License for Investment in Jubail
To launch an industrial project in Jubail, investors are required to provide a specific set of documents and meet the following conditions to obtain an industrial investment license:
Issuance of an investment license for foreign investors.
Finally, Jubail stands out as a promising region with enormous investment opportunities. All you need is to ensure compliance with the required conditions, obtain the necessary licenses, and you can launch your business with confidence and ease.
If you need support, don’t hesitate to contact Mohammed Al-Khliwi’s Office. Our team will help you navigate these procedures smoothly and handle the details on your behalf.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
Trade names are undoubtedly the cornerstone of any business identity. They create the first impression in customers’ minds and serve as the primary way for them to recognize the nature and scope of a company’s activities.
Recognizing this importance, the Saudi Ministry of Commerce has developed a comprehensive system to regulate trade names. This framework outlines the process of selecting and registering a trade name while setting clear guidelines to protect it from duplication or misleading practices.
In this article, we will take an in-depth look at the trade name system in Saudi Arabia, covering its types, the registration steps, and the applicable fees.
About the Trade Names Law
The new Trade Names Law was issued on 19/03/1446 AH (corresponding to September 22, 2024), replacing the previous law issued by Royal Decree No. (M/15) dated 12/08/1420 AH. The law covers several key areas: general provisions; regulations governing trade names, their reservation and registration; cases of cancellation and deletion; violations; and concluding provisions.
A quick comparison between the new law and the previous one highlights several important changes:
It is worth noting that the Trade Names Law and its implementing regulations came into effect on Thursday, April 3, 2025 (Shawwal 5, 1446 AH).
The Ministry of Commerce has also clarified the proper method for writing trade names under the new system when submitting applications electronically via the Saudi Business Center platform. Applicants are now allowed to reserve a trade name without specifying the company’s legal entity or commercial activity, with the aim of simplifying procedures for starting a business.
Overall, the new system seeks to enhance the business environment and support entrepreneurs by streamlining the process of reserving trade names, ensuring their legal protection, and safeguarding related rights.
Trade Name Registration Mechanism in Saudi Arabia
Whether you are an individual entrepreneur or a company, registering a trade name in Saudi Arabia can be done seamlessly through the Saudi Business Center platform.
Simply Select the service: From "Doing Business" > "Ministry of Commerce" > "Reserve a Trade Name" - or from "Public Services" > "Manage Reserved Trade Names" > "Reserve a Trade Name".
Start the service: Review the terms and requirements, then agree and click "Apply for the service".
Enter data: Select the reservation type and language of the trade name - Enter up to 5 suggested trade names.
Review and submit the application: Review the application summary, modify names, if necessary, then approve the declaration and submit the application.
Processing and payment: After approval by the Ministry of Commerce, the invoice is issued and paid through the central payment system.
Complete the application: After payment, the trade name is published and the application status changes to "Complete". The application can be printed or modified in the event of a return or rejection.
Trade Name Fees
The fees for trade name services in Saudi Arabia vary depending on the type of request:
By adhering to the requirements outlined in the Saudi Trade Names Law, you ensure full protection of your trade name. Meeting these conditions not only guarantees compliance with regulations but also strengthens the credibility and legal standing of your brand.
Alternatively, you may contact us to manage the entire process on your behalf. This way, you can rest assured that all procedures will be handled legally and professionally, allowing you to focus on growing your business with confidence.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
The administrative judiciary in Saudi Arabia has established a fair and reliable legal framework that safeguards the interests of both Saudi and foreign business owners and investors. Ensuring that government and administrative bodies are subject to the rule of law provides a transparent environment that fosters trust and investment.
In this guide, we will explore the key aspects of the administrative judiciary in Saudi Arabia, including the role of the Board of Grievances in protecting rights, the conditions for filing lawsuits before the Board, the statute of limitations, and strategies to avoid the lapse of a claim.
What is the Administrative Judiciary in Saudi Arabia?
The administrative judiciary in Saudi Arabia is a specialized branch of the judicial system that resolves disputes involving the government or any of its institutions. Its primary role is to protect both individuals and organizations from unlawful decisions, actions, or violations that may infringe upon their rights. The administrative judiciary is represented by the Board of Grievances, which serves as the cornerstone of administrative justice in the Kingdom.
What is the Board of Grievances?
The Board of Grievances is an independent judicial authority dedicated to administrative judicial matters, with its headquarters in Riyadh. It is directly affiliated with the King, ensuring its full independence from executive bodies. The Board is composed of a President, one or more Vice Presidents, a panel of judges, as well as legal researchers and administrative staff.
Established more than 70 years ago, the Board was created to address citizens’ complaints against government agencies and to serve as a safeguard against administrative abuse. It reinforces the principle of legality by ensuring that government bodies are also subject to the law, thereby promoting justice and equality between individuals and public authorities.
To regulate its framework and procedures, the Kingdom issued the Board of Grievances Law under Royal Decree No. (M/78) dated 19/9/1428 AH, which defines its formation, courts, and the appointment of judges. Additionally, the Board of Grievances Procedure Law, issued by Royal Decree No. (M/3) dated 22/1/1435 AH, governs all aspects related to the filing and processing of administrative lawsuits.
What are the jurisdictions of the Board of Grievances?
The Board of Grievances exercises jurisdiction over several areas, including:
Administrative Judiciary: Covers appeals against administrative decisions, disciplinary cases involving public employees, compensation claims against administrative bodies, and disputes related to administrative contracts.
Commercial Judiciary: Handles commercial disputes in which one of the parties is a government entity.
Summary Judiciary: Disciplinary Judiciary: Handles disciplinary cases filed by the competent authority against public employees for breaches of duty or professional misconduct.
Judicial Enforcement: Enforces its own judgments as well as those issued by other bodies if referred to it.
What are the conditions for litigation in the Board of Grievances?
For a case to be accepted before the Board of Grievances, certain conditions must be met. These conditions determine whether the case can proceed or should be rejected. The key requirements include:
Jurisdiction: The case must fall under the jurisdiction of the Board. Otherwise, it will be transferred to the competent court.
Personal Harm: The case must be filed by the harmed party, whether a natural person or a legal entity, that has suffered actual harm .
Final Administrative Decision: The contested decision must have been issued by a competent administrative authority and must be final.
No Previous Final Judgment: The case must not have been previously adjudicated with a final ruling.
Respecting Deadlines: In annulment cases, the claim must be filed within 60 days of becoming aware of the decision.
In compensation or damages cases, the claim must be filed within ten years from the occurrence of the damage.
Prior Administrative Grievance: In certain cases, the claimant must first file a grievance with the administrative authority itself and wait for a response before escalating the matter to the Board.
Filing Requirements: When submitting a claim through the Board of Grievances’ online platform, all required information must be provided, including the details of the parties, facts of the case, evidence, and supporting documents.
What is the Statute of Limitations?
The statute of limitations refers to the expiration of the right to file a claim after a specific period of time determined by law, during which the right holder fails to exercise or claim it. In practical terms, if you have a legal right against a government entity—or even an individual—and you do not claim it within the legally prescribed timeframe, your case will be dismissed.
The statute of limitations plays an important role in maintaining legal stability, as disputes and cases cannot remain open indefinitely. It also encourages rights holders to claim their rights within a specific and reasonable timeframe.
Why is Administrative Justice Important for Investors and Business Owners?
Administrative justice provides a fair, transparent, and secure legal framework that protects the rights of both Saudi and foreign investors and business owners. Its importance is highlighted in the following ways:
Protection from Arbitrary Decisions: If an unjust or discriminatory administrative decision is issued—such as the withdrawal of a work permit or the unjustified refusal of a license—the investor can appeal before the Board of Grievances to restore their rights.
Safeguarding Contractual Rights: When investors enter into contracts with government entities—whether through tenders, partnerships, or major projects—the administrative judiciary ensures that these contracts are honored. If a government body breaches the contract, the Board of Grievances provides a legal pathway for redress.
Right to Compensation: Investors can claim full compensation if any unlawful administrative decision or action causes them financial losses.
Ensuring Rule of Law: The administrative judiciary guarantees that investors are treated according to the law and established regulations, rather than the personal discretion of individual employees or administrative bodies.
Oversight of Government Agencies: By subjecting government bodies to judicial oversight, administrative justice reduces arbitrary decisions that may negatively impact investors and business owners, thereby fostering a healthier business environment.
Finally, the Administrative Judiciary in Saudi Arabia is more than just a legal framework—it is a safeguard of justice, transparency, and trust. For investors and business owners, it ensures protection, accountability, and a stable environment for confident growth.
If you have questions about filing a case with the Board of Grievances, are concerned about a case approaching its statute of limitations, or need assistance in submitting your claim, please contact the Mohammed Al-Khliwi Office. Our team will guide you through every step with clarity and professionalism.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
As part of the Kingdom of Saudi Arabia's efforts to improve the living and working environment and attract talent and investors from around the world, the Kingdom has made available several types of residencies permit that provide individuals and their families with legal, social, and economic stability.
Below, we will review all the conditions and requirements set by the Kingdom for each type of residency.
First: Limited Duration and Unlimited Duration Premium Residency
The Premium Residency program is designed for individuals who wish to reside in Saudi Arabia either temporarily or permanently. It offers a distinctive environment with a wide range of benefits for the resident and their family, including:
Requirements:
- Submitting proof of the applicant's financial solvency.
Duration and Fees:
- Specific Residency: This is valid for one to five years, renewable, and costs SAR 100,000 per year.
- Permanent Residency: This is an indefinite residency, and costs SAR 800,000 per year.
Second: Investor Residency
The Business Investor Residency is tailored for investors who wish to establish and manage their businesses and projects in Saudi Arabia. It is designed to create a supportive and attractive working environment by granting a wide range of privileges to investors and their families, including:
Requirements:
- The applicant must have an investment license.
Duration and Fees:
Investor residency is granted permanent residency for a fee of 4,000 Saudi riyals, subject to two conditions:
Third: Special Talent Residency
This residency targets academic, administrative, and scientific professionals, as well as distinguished talents and experts capable of making a lasting contribution to Saudi society. It reflects the Kingdom’s commitment to investing in human capital.
Key Benefits:
Eligibility Requirements:
The total monthly salary must be no less than 14,000 SAR. They must also hold a bachelor's degree or higher, have more than 3 years of work experience in a related field, and have met the points system requirements.
Fee and Duration:
Special Talent Residency is granted for a fee of 4,000 SAR, whether permanent or renewable, subject to the following conditions:
Specific Residency: For a period of up to five years, renewable once upon meeting the criteria and compliance with the requirements.
Permanent Residency: Subject to meeting all criteria and requirements, and a 30-month residency period within five consecutive or non-consecutive years.
Fourth: Gifted Residency
The Talent Residency is designed for distinguished individuals in the fields of sports, culture, and the arts. It aims to foster cultural and social development in Saudi Arabia while encouraging the exchange of expertise and knowledge.
Key Benefits:
Requirements:
This residency offers two application tracks, each with its own conditions:
Track One:
Track Two:
Duration and Fees:
Fifth: Entrepreneur Residency
The Entrepreneur Residency targets founders and innovators who seek to establish their projects across various sectors. It reflects Saudi Arabia’s commitment to enhancing the business ecosystem, supporting entrepreneurship, and creating a more flexible environment for small and medium-sized enterprises.
Key Benefits:
Eligibility Requirements:
Entrepreneur Residency is divided into two categories:
Category 1:
Category 2:
Duration and Fees:
Sixth: Real Estate Owner Residency
The Property Owner Residency is designed for individuals who own real estate in Saudi Arabia. This residency aligns with the Kingdom’s vision to position three of its cities among the world’s top 100 destinations for quality of life. Holders of this residency enjoy a wide range of benefits, including:
Key Benefits:
Eligibility Requirements:
Duration and Fees:
Final Note:
If you are an investor, entrepreneur, property owner, or qualified professional seeking permanent residency in Saudi Arabia, contact the Mohammed Al-Khilwi Office. Our team will assist you in completing all residency procedures smoothly and efficiently.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
In recent years, the Kingdom of Saudi Arabia has undergone a remarkable economic transformation driven by Vision 2030, which aims to diversify income sources and attract greater foreign investment. As part of this transformation, the Kingdom has introduced a series of reforms that have made the investment climate more flexible, transparent, and appealing—providing investors with clear and regulated pathways to enter the Saudi market.
To facilitate this process, the Ministry of Investment has established several types of licenses that enable a wide range of economic activities, each governed by specific regulations. For any foreign investor looking to seize the abundant opportunities within the Kingdom, understanding these licenses and their requirements is a crucial first step.
In the following sections, we will outline in detail the Types of Foreign investment licenses and the conditions required to obtain them.
Companies Eligible for Investment Licenses
All investment licenses in Saudi Arabia are granted under the principle of fair and equal treatment, ensuring that foreign investors enjoy the same rights and obligations as local investors. The following types of companies are eligible to obtain investment licenses in the Saudi market:
Types Foreign investment licenses in Saudi Arabia
The Kingdom of Saudi Arabia offers a wide range of investment licenses; each tailored to specific sectors and business activities. Below are the main types of licenses available for foreign investors:
Foreign investment licenses in Saudi Arabia Requirements
To obtain an investment license in Saudi Arabia, only two primary documents are required:
Depending on the type of activity and license requested, additional documents may also be required.
The Ministry of Investment issues all investment licenses within one business day, allowing you to obtain your license quickly and begin operating with ease.
General Restrictions and Conditions for Obtaining Foreign investment licenses in Saudi Arabia
Foreign investors must comply with the following restrictions and conditions in order to obtain and maintain an investment license in Saudi Arabia:
Partner with Us for a Seamless Licensing Journey
Selecting the right license as a foreign investor in Saudi Arabia is a critical step toward a secure and successful market entry. Since legal procedures can often seem complex and require in-depth knowledge of regulatory frameworks, allow us at Mohammed Al-Khliwi Law Office to guide you. We provide expert legal support to help you obtain the most suitable investment license and assist you through every stage of establishment and registration — so you can launch your business with confidence and full compliance with Saudi laws.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
A brand is not merely a logo; it is much more comprehensive. It reflects a company’s identity and conveys its vision, values, and mission. No business can successfully launch without first establishing and defining its brand.
In this article, we will explore everything you need to know about trademarks in Saudi Arabia — from the process of obtaining and registering a trademark to the applicable fees, protection duration, and other essential details you should consider when creating your brand identity.
How is a Trademark Defined in Saudi Arabia?
The Saudi Authority for Intellectual Property (SAIP) defines a trademark as any sign that takes a distinctive form — such as names, signatures, words, letters, numbers, drawings, symbols, seals, embossed engravings, or any other visually perceptible mark. A trademark must be capable of distinguishing industrial, commercial, craft, or agricultural products, as well as projects related to the exploitation of forests and natural resources. It also serves to indicate that a product belongs to the trademark owner due to its manufacture, invention, or trade, or to identify the provision of a particular service.
What Services Does the Saudi Authority for Intellectual Property Offer for Trademarks?
SAIP provides a comprehensive range of trademark-related services, including:
Registration of trademarks
Renewal of trademarks
Modification of trademark data
Modification of trademark design
Transfer of ownership
Requesting or canceling a license
Cancellation of a trademark or product
Object to the acceptance of a trademark
Additional related services
What Are the Requirements for a Trademark in Saudi Arabia?
The Saudi Authority for Intellectual Property (SAIP) has established clear requirements for registering a trademark in the Kingdom. These include:
Meeting these conditions is the essential first step toward securing the legal registration and protection of your trademark in Saudi Arabia.
How to Register Your Trademark in Saudi Arabia ?
Whether you are an individual entrepreneur or a company, registering a trademark in Saudi Arabia is done entirely online through the Saudi Authority for Intellectual Property (SAIP) portal. The process is straightforward and includes the following steps:
Step 1 – Access the Service
Log in to the SAIP website and select the trademark registration service.
Step 2 – Navigate to Trademarks
Go to the designated trademarks section to begin your application.
Step 3 – Complete the Application
Fill in all required details about your trademark. Review the information carefully to avoid errors or delays.
Step 4 – Pay the Examination Fee
After submission, the system issues an invoice of SAR 1,000 for the trademark examination. Payment is required for the application to proceed.
Step 5 – Examination and Response
SAIP reviews your application and may:
Accept the trademark as filed, accept it conditionally with required modifications, or reject it (with or without the possibility of resubmission).
Step 6 – Publication
If the trademark is accepted, you must pay a publication fee of SAR 500. The mark will then be published for 60 days, allowing for third-party opposition.
Step 7 – Final Registration
If no opposition is filed (or opposition is resolved in your favor), you will receive a final invoice of SAR 5,000. This must be paid within 30 days. Upon payment, you can print the official certificate of registration.
The Certificate Includes:
Trademark registration number
Application filing date and registration date
Trade name of the applicant
Name and nationality of the trademark owner
Image of the registered trademark
Description of the product or service covered
Duration of Protection:
Once issued, your trademark enjoys legal protection for 10 years (renewable) in Saudi Arabia.
Finally, ensure your trademark is registered in full compliance with the requirements outlined above to safeguard your intellectual property rights as a business owner. If you’re planning to launch a trademark in Saudi Arabia—whether as an individual or a company—contact the Mohammed Al-Khliwi Law Office. Our team will guide you step by step until your mark is successfully registered.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
The Saudi Labor Law guarantees the rights of Saudi and foreign employees, covering the entire employment journey—from the application process to the duration of employment, and through to resignation or termination.
With Saudi Arabia’s growing integration into the global economy under Vision 2030, the increasing presence of foreign workers, the rising focus on Saudization, the rapid launch of thousands of startups, and the expanding demand for employees across diverse roles, understanding the Saudi labor system has become more essential than ever for both local and foreign employees.
In this article, we will explore the key provisions of the Saudi Labor Law, which sets out the regulations governing the relationship between employers and employees, and clearly defines the rights and obligations of each party—whether in the private or public sector.
Employee Rights under the Saudi Labor Law
The Saudi Labor Law ensures comprehensive protection for all employees working in the Kingdom, regardless of nationality. It establishes a clear framework of rights and obligations between employers and workers, fostering fairness, stability, and productivity in the workplace.
Key Employee Rights
Conclusion
After outlining the rights of both Saudi and foreign employees under the Saudi Labor Law, an important question naturally arises: What should an employee do in the event of a labor dispute?
In such situations, seeking the assistance of a certified lawyer specializing in labor cases is crucial. A skilled lawyer can guide you toward the most effective legal solution, safeguard your rights, and ensure the proper application of the law.
At Mohammed Al-Khliwi Law Firm, we are committed to handling labor disputes with the highest level of professionalism and precision. Contact us today, and let our team support you in resolving your labor issues efficiently and effectively.
Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.
Mohammed Alkhliwi Law Firm is a Saudi legal practice that serves individuals, institutions, and corporations, drawing on extensive experience in litigation and legal consultancy. The firm believes that law is not merely a set of regulations and procedures, but a powerful tool to protect rights and ensure justice. For this reason, the firm is dedicated to serving its clients with the utmost professionalism and responsibility.
