Saudi Arabia is no longer just a market — it's a strategic gateway for global investors.
Under Vision 2030, bold reforms now welcome 100% foreign-owned businesses across booming sectors.
This is your chance to enter one of the world’s fastest-growing economies with confidence and ease.
Foreign Business Ownership in Saudi Arabia
Can foreigners own businesses in Saudi Arabia? Actually, yes.
Saudi Arabia now allows 100% foreign ownership in many key sectors without the need for a local partner.
This shift in Saudi policies marks a significant opportunity for international entrepreneurs and companies seeking to enter the Saudi market.
Through the “Invest Saudi” platform, foreign investors can obtain licenses, register companies, and access incentives like tax exemptions and economic zones.
With the right guidance, setting up a business in the Kingdom has never been more accessible.
How Saudi Vision 2030 Reforms Support 100% Foreign Ownership in KSA?
Saudi Arabia’s Vision 2030 has enabled 100% foreign business ownership through major legal and economic reforms introduced since 2016.
These reforms are supported by a modernized legal framework, streamlined procedures through the Ministry of Investment MISA, and a strong push toward economic diversification.
By aligning its business environment with global standards, Saudi Arabia is positioning itself as a leading investment destination in the Middle East and beyond.
One of the most impactful changes is the removal of the local partner requirement, allowing 100% foreign ownership in many key sectors.
The government has also introduced attractive incentives for international investors — including tax exemptions, reduced administrative fees, and access to special economic zones (SEZs) with relaxed regulations.
Read about: Can Foreigners Do Business in Saudi Arabia?
Top 4 Benefits and Incentives of 100% Foreign-Owned Businesses in KSA
Investing in Saudi Arabia as a 100% foreign-owned company provides international entrepreneurs with a wide array of advantages, particularly under the reforms introduced by Vision 2030.
1. Full Ownership and Strategic Control
- Complete ownership over business operations, branding, and decision-making.
- Direct access to all profits without the need for a local sponsor.
- Stronger brand credibility as a fully licensed and independent foreign entity.
2. Access to a Rapidly Growing Market
- Entry into one of the largest and fastest-growing economies in the Middle East.
- Opportunities to expand in high-potential sectors such as technology, tourism, logistics, renewable energy, education, and healthcare.
3. Streamlined Legal and Administrative Processes
- The Ministry of Investment (MISA) has streamlined the process of establishing a business, making it faster and more accessible.
- With improved legal frameworks and efficient conflict resolution, foreign investors can operate with greater confidence.
4. Incentives and Economic Privileges
- Special Economic Zones (SEZs) offer full ownership, simplified licensing, relaxed regulations, and sector-specific benefits.
- Tax incentives in selected sectors and regions, including reduced or zero corporate tax rates and exemption from withholding tax on dividends.
- Customs advantages such as duty-free imports on equipment and raw materials, accelerated customs clearance, and benefits for export-oriented businesses.
Sectors for 100% Foreign Investment in Saudi Arabia
Saudi Arabia allows foreign investors to fully own businesses in a wide range of sectors as part of its Vision 2030 economic diversification plan.
In addition to opening these sectors to 100% foreign ownership, Vision 2030 is strategically advancing their long-term growth through regulatory reforms, targeted funding, and national mega-projects.
These industries are not only eligible for international investment, but also positioned for sustainable expansion — offering foreign investors strategic entry points into the Kingdom’s rapidly evolving economy.
These are the key sectors currently open to full foreign ownership and actively prioritized under Vision 2030:
Top Sectors Eligible for 100% Foreign Ownership in Saudi Arabia
- Information Technology & Digital Services: A key enabler of Vision 2030, with rapid expansion in areas like AI, cloud infrastructure, fintech, and cybersecurity.
- Industrial & Advanced Manufacturing: Supported by localization policies and the National Industrial Development Program (NIDLP), with a focus on high-tech and sustainable production.
- Healthcare & Life Sciences: With the growing population and increasing need for modern medical services, this sector has become a key focus—especially in areas like private healthcare, advanced treatment facilities, and biotechnology production.
- Education & Workforce Development: Strong demand for international schools, vocational training, and digital learning to support human capital development.
- Logistics & Supply Chain: Central to Saudi Arabia’s goal of becoming a global logistics hub, with investment opportunities in smart warehousing and freight tech.
- Tourism, Entertainment & Hospitality: Boosted by giga-projects like NEOM and the Red Sea Project, offering vast opportunities for hotel operators, tour providers, and creative ventures.
- Engineering, Architecture & Consulting: High-value demand for foreign expertise in designing smart cities, infrastructure, and green urban planning.
- Renewable Energy & Environmental Solutions: Core to the Kingdom’s green transition, with active government backing in solar, wind, and hydrogen energy projects.
These sectors are not just open for business, they are primed for transformation, backed by national strategies and visionary reforms that make Saudi Arabia one of the most dynamic investment destinations in the region.
Requirements for 100% Foreign Ownership in KSA
To establish a fully foreign-owned business in Saudi Arabia, international investors must meet specific criteria set by the Ministry of Investment (MISA) and other regulatory bodies. Below are the key conditions and requirements:
1. Foreign Investment License from MISA
You must apply for and obtain a foreign investment license through the Invest Saudi portal.
2. Minimum Capital Requirements (if applicable)
Some sectors require a minimum share capital (e.g., industrial or real estate development). Service-based businesses may have no capital requirement.
3. Business Activity Must Be Eligible
Your intended activity must fall under the sectors approved for 100% foreign ownership (e.g., IT, logistics, healthcare). Restricted sectors may require a local partner or special approval.
4. Clean Legal and Financial Record
The parent company or individual investor must have no legal violations or insolvency history in their home country or Saudi Arabia.
5. Certified Company Documents
Foreign companies must submit notarized and legalized documents, including:
- Certificate of incorporation
- Articles of association
- Board resolution to establish a Saudi entity
6. Local Office Requirement
You must secure a physical business address in Saudi Arabia to complete the registration process.
7. Compliance with Saudization Rules
Businesses must comply with Nitaqat regulations, which require hiring a minimum percentage of Saudi nationals based on company size and sector.
8. Registration with Government Entities
This includes:
- Commercial Registration (CR) with the Ministry of Commerce
- Registering for tax purposes is handled through the Zakat, Tax and Customs Authority (ZATCA).
- General Organization for Social Insurance (GOSI) for social insurance
- Municipality and sector-specific licenses (if required).
Steps to Set Up a 100% Foreign-Owned Business in Saudi Arabia
Thinking of launching your business in Saudi Arabia as a foreign investor? Setting up a 100% foreign-owned company in the Kingdom requires a clear understanding of the legal and administrative process.
Here’s a simplified step-by-step guide to help you navigate the setup process smoothly:
1. Select Your Business Sector and Legal Structure
Choose the type of business you want to operate (such as technology, logistics, or consulting) and determine the legal form—like an LLC, branch office, or joint stock company.
2. Apply for a Foreign Investment License
Submit your application through the “Invest Saudi” platform under the Ministry of Investment (MISA).
3. Reserve a Trade Name
Register a unique company name through the Ministry of Commerce (MoC).
4. Prepare and Notarize the Articles of Association
Write the company’s founding documents in Arabic and complete the notarization process through an authorized notary in Saudi Arabia.
5. Register with the Ministry of Commerce
Complete your business registration and obtain the Commercial Registration (CR) certificate.
6. Open a Business Bank Account
Open a corporate account in a local bank and deposit the required capital (if applicable).
7. Get Municipality and Sector-Specific Licenses
Obtain any additional permits required by your business activity or location.
8. Register with Tax and Labor Authorities
Register with ZATCA (for taxes), GOSI, and apply for VAT if necessary.
9. Secure an Office and Hire Staff
Lease a physical office space and ensure your company meets Saudization requirements by hiring Saudi nationals as required by law.
Read about: Business in Saudi Arabia for Foreigners
Are There Any Considerations for 100% Foreign Ownership in KSA?
Yes, while Saudi Arabia offers exciting opportunities for fully foreign-owned businesses across many sectors, there are still a few regulatory considerations to keep in mind.
Some industries may have specific requirements, approvals, or conditions to ensure alignment with national priorities — but with the right guidance and local expertise, navigating them is straightforward and manageable.
Important considerations to ensure a smooth and successful business setup:
- Restricted Sectors: Certain industries remain closed or partially restricted to foreign ownership, such as oil exploration, military services, and real estate in Makkah and Madinah for non-GCC nationals.
- High Capital Requirements: Sectors like insurance, finance, and real estate development may require significant capital investment.
- Sector-Specific Regulations: Some industries require local partnerships, special licenses, or adherence to specific standards.
- Hiring Requirements: Companies are required to comply with Saudization regulations by meeting the Nitaqat quotas for employing Saudi nationals.
- Extended Approval Times: Sensitive sectors (like healthcare, finance, and education) may involve longer review and licensing timelines.
Launch Your 100% Foreign-Owned Business in Saudi Arabia with Motaded
At Motaded, we don’t just guide you—we partner with you to ensure your success in the Saudi market.
From obtaining your foreign investment license to finalizing every legal and regulatory detail, our experts handle the entire process with precision and efficiency.
We ensure full compliance with Saudi laws, navigate Saudization requirements with ease, and maintain direct coordination with all relevant government authorities—saving you time, minimizing risk, and accelerating your launch.
With the right guidance, entering the Saudi market with 100% foreign ownership is not just possible—it’s seamless, secure, and strategically smart.
Take the first step toward your business expansion—contact us today.
Quick Facts at a Glance: 100% Foreign Business Ownership in Saudi Arabia
- You can now establish your company in Saudi Arabia with 100% foreign ownership — no local partner required.
- Vision 2030 has unlocked real investment opportunities across strategic sectors.
- Invest Saudi, managed by MISA, provides a unified online system that guides investors through every stage of establishing a business.
- Top eligible sectors include technology, healthcare, education, tourism, logistics, and renewable energy.
- Investing in Special Economic Zones (SEZs) comes with key advantages such as tax breaks and easier business licensing.
- Saudization (Nitaqat) is a core requirement — and we’ll guide you through it with clarity and confidence.
- The legal environment is now more transparent and investor-friendly than ever before.
- With Motaded, you’re never alone — we walk with you step-by-step, from setup to successful launch.
FAQ About Foreign Business Ownership in Saudi Arabia
Is it possible for a foreign investor to fully own a business in Saudi Arabia?
Yes, foreign investors can now establish and fully own companies in Saudi Arabia, thanks to Vision 2030 reforms that removed the requirement for a local sponsor in most sectors.
Are any sectors restricted for foreign investors in Saudi Arabia?
There is no general foreign ownership cap for most sectors. Since 2015, Saudi Arabia has allowed full foreign ownership in retail and wholesale businesses, aligning with its strategy to boost foreign direct investment (FDI).
Do I need a local partner to start a business in Saudi Arabia?
In most sectors, a local partner is no longer required. However, certain strategic or restricted industries may still require partial local ownership or government approval.
Can a foreigner open a company in Saudi Arabia? How?
Yes, a foreigner can open a company in Saudi Arabia by obtaining an investment license from MISA, choosing an approved business activity, and completing the registration through the Invest Saudi platform.
Are foreigners allowed to own property for business purposes in Saudi Arabia?
Yes, foreign companies can own property for commercial use with MISA approval. However, ownership is restricted in Mecca and Medina, where only long-term leases are allowed.
Why start a 100% foreign-owned company in Saudi Arabia?
Starting a 100% foreign-owned company in Saudi Arabia gives investors full control, profit retention, and access to a fast-growing, Vision 2030-driven economy—making it a top destination for global business.
What is the 100% ownership rule in Saudi Arabia?
The 100% ownership rule allows foreign investors to establish a company in Saudi Arabia without a local partner, giving them full control and easier setup. This reform opens doors to thriving sectors like technology, healthcare, tourism, and logistics.