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:

• Limited Liability Company (LLC)
• One-Person Limited Liability Company
• Joint-Stock Company
• Branch of a Foreign Company
• Professional Joint-Stock Company

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:

• Agricultural License: Granted to companies operating in the agricultural sector.
• Audiovisual Media License: For companies working in the audiovisual and media industries.
• Commercial License: Issued to commercial companies. If the company is 100% foreign-owned, it must commit to training at least 30% of its Saudi workforce. If a Saudi partner is involved, the training requirement is reduced to 15%. Additionally, companies are prohibited from opening more than one store within the same neighborhood.
• Consulting License for Engineering Offices: Specifically for engineering consultancy services.
• Consulting License for Technical and Economic Liaison Offices: Issued to liaison offices representing foreign countries, focusing on technical and economic cooperation.
• Entrepreneurial License: Designed for entrepreneurs aiming to establish innovative technology and emerging companies with growth potential in Saudi Arabia.
• Scientific and Technical Office License: Allows companies to open offices providing scientific and technical support to agents, distributors, and consumers of their products. The office must not execute contracts, engage in commercial activities, or charge fees for training Saudi technicians. The Ministry of Investment reserves the right to revoke the license if the office deviates from its approved purpose.
• License for Recruitment Agents and Domestic Labor Services: Issued to companies providing domestic labor recruitment and temporary employment services.
• Industrial License: Covers all types of industrial activities, including heavy, light, and manufacturing industries. Environmental clearance from the National Center for Environmental Compliance is required.
• Mining License: For companies engaged in mining operations.
• Printing and Publishing Activities License: Issued to businesses operating in the printing and publishing sector.
• Professional License in Partnership with a Saudi Investor: Granted to companies wishing to conduct professional activities in collaboration with a Saudi partner.
• Real Estate License: For companies operating in the real estate sector.
• Service License: Covers a wide range of service activities, including contracting, investment management, IT, tourism, training, healthcare, insurance, education, advertising and media, logistics, event organization, catering, food services, financial services, aviation, and handling services.
• Transport License: For public transportation services by buses, metro trains, and other transportation activities within the Kingdom.

Foreign investment licenses in Saudi Arabia Requirements

To obtain an investment license in Saudi Arabia, only two primary documents are required:

• A copy of the company’s commercial registration in its country of origin, duly authenticated by the Saudi Embassy.
• The company’s financial statements for the most recent fiscal year, prepared by an internationally recognized law firm and authenticated by the Saudi Embassy.

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:

• Complete all post-licensing procedures within a maximum of three months from the license issuance date, including securing any additional approvals required from competent authorities for specific activities.
• Operate exclusively within the scope of the licensed investment activity.
• Use the official name of the establishment, as stated in the Ministry of Investment license, in all dealings with government authorities and across the establishment’s documents, publications, and transactions.
• Implement the investment project within the timeframe specified in the license application.
• Renew the investment license prior to its expiration date.
• Refrain from producing or marketing any products other than those covered by the license.
• Pay all applicable license fees and the financial subscription fee for the comprehensive service center for the entire validity period of the license.
• Comply with all relevant laws, regulations, and directives issued by competent ministries and government agencies.

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.