How to Obtain Foreign Investment Licenses in Saudi Arabia?

The Kingdom of Saudi Arabia provides a broad range of investment licenses determined based on the nature of the activities; hence, in order to decide which foreign investment license you need to obtain, you must first clarify the nature of the activities.

These licenses are duly regulated under Saudi law, which outlines the eligibility criteria, required documents, and applicable limitations for each license.

In this article, we will clarify the main types of investment licenses available and some examples of the activities that fall under those licenses, so that the reader of this article can learn how to Obtain Foreign Investment Licenses in Saudi Arabia.

First: What are the main types of Foreign Investment Licenses in Saudi Arabia?

1. Services License
2. Industrial License
3. Real Estate License
4. Commercial Licenses
5. Transport Sector Licenses
6. Entrepreneur License
7. License for Labor Supply and Worker Services
8. Printing and Publishing License
9. Agricultural License
10. Scientific and Technical Office License
11. Temporary Certificate for Government Project Proposals
12. Temporary License for Government Contracts

1. Services License

You need to obtain a service license if your activities cover one or more of those fields: construction, tourism, health, education, information technology, logistics, insurance, media, and financial services.

The service license could be granted after submitting the duly certified corporate documents and financial records, and meeting the requirements related to capital thresholds and shareholder structure, which differ from one activity to another.

2. Industrial License

This license shall be granted for all activities engaging in manufacturing, including light, heavy, and transformative industries. This license requires environmental approval and industrial training compliance. Moreover, the Investor shall demonstrate operational capacity and submit certified financial documentation. Regulatory authorities assess alignment with national industrial development standards.

3. Real Estate License

This license is designed for foreign entities interested in investment in mega real estate projects with an investment value of at least thirty million Saudi Riyals, and under this license, the foreign entities are entitled to practice their activities in the entire kingdom territory, excluding Mecca and Medina. The foreign companies interested in this license shall meet capital and ownership structure conditions applicable to real estate ventures.

4. Commercial Licenses

The foreign companies may obtain this license in partnership with a national Saudi investor or they can fully own their companies in Saudi Arabia and obtain the commercial license with 100% foreign ownership.

a. Commercial License with Local Shareholder

This license allows foreign entities to engage in wholesale and retail trade in partnership with a Saudi national holding not less than 25% of the equity.

b. 100% Foreign-Owned Commercial License

This license permits full foreign ownership subject to strict conditions, including 1- a minimum capital of thirty million Saudi Riyals,2-  operational presence in at least three international markets, 3- a minimum five-year investment commitment exceeding two hundred million Saudi Riyals. Additional obligations include employment localization and development of in-country manufacturing, R&D, or logistics infrastructure.

5. Transport Sector Licenses

Licenses are available for public land transport operations, including city buses, metro systems, and specialized transport services (e.g., taxis, pilgrim transportation, vehicle rentals). Each license type requires demonstrable financial capacity, international operational experience, compliance with safety and labor regulations, and asset thresholds proportionate to service scope.

6. Entrepreneur License

This license is designed for innovative startups supported by accredited local incubators, venture capital funds, or universities. Conditions include project validation, ownership disclosure, and a deferred fee structure linked to reclassification after five years.

7.License for Labor Supply and Worker Services

This license is designed for  foreign companies providing  domestic labor recruitment or temporary employment services. Conditions include a clean legal record, supervisory authority certification, and adherence to local employment laws and ethical recruitment standards.

8. Printing and Publishing License

This license is designed for companies with proven experience in publishing across at least three international markets. The companies must meet Saudization standards and demonstrate three years of sector-specific operations.

9. Agricultural License

Separate licenses are granted for agricultural ventures subject to documentation requirements, capital consistency, and shareholder criteria in line with activity-specific regulations.

10. Scientific and Technical Office License

This license shall be granted to foreign companies with authorized distributors in Saudi Arabia. This license entitles the office to engage in the operation of a representative office for technical support and market studies only. Moreover, the office is prohibited from engaging in any commercial transactions or providing any service that could generate income within the country.

11. Temporary Certificate for Government Project Proposals

This certificate is only designed for foreign companies that intend to participate in the public procurement tenders for government projects, but they don’t have a registered entity in Saudi Arabia. The government grants foreign companies a certificate valid for one year, and under this certificate, they are not entitled to establish a commercial presence or perform the contract without registering an entity in Saudi Arabia, thus, once the contract is awarded, the foreign entity shall register its entity in Saudi Arabia and securing the investment license designed for his activity in Saudi Arabia.

12.  Temporary License for Government Contracts

This license is granted to foreign companies interested in performing specific contracts made with government or semi-government entities; thus, instead of registering a company in Saudi Arabia, the foreign companies may obtain a temporary license to perform government contracts. This license is valid till the completion of the contract, and the activity of the foreign company in Saudi Arabia is limited only to the scope mentioned in the awarded contract.

Conclusion

The above-mentioned content is a summary of the applicable licenses in Saudi Arabia and you can contact Sadany& Partners Law Firm to know the convenient license that covers your activity and get any further information required on how to get a Foreign Investment License in Saudi Arabia

For legal advisory and representation in Saudi Arabia, please contact Sadany& Partner law firm, and we can surely assist you to start your business in Saudi Arabia in compliance with the applicable laws.