Investment Law

Purpose and scope

• The general framework for investment in the Kingdom; it replaced the previous Foreign Investment Law and establishes equal treatment of local and foreign investors.
• It applies to Saudi and non-Saudi investors; sector laws apply to activities that need special licences.

Key rules, rights and obligations

• A foreign investor receives the same treatment as a local investor in like circumstances, except for activities excluded by this or other laws.
• The investor is guaranteed the right to manage the investment, transfer funds into and out of the Kingdom, and protection of intellectual property and confidential business information.
• An investment may be expropriated only for the public interest and against fair compensation under legal procedures.
• The traditional foreign investor licence is replaced by registration with the Ministry of Investment, while sector licensing requirements remain.
• The investor may use alternative dispute resolution such as arbitration and mediation, in addition to the courts.

Violations, penalties and common problems

• Operating before registering with the Ministry or without the necessary sector licences is a violation.
• Running the investment through a nominal Saudi partner is criminal commercial concealment.
• Not updating investment data with the Ministry or breaching declared obligations may lead to fines or measures.

Procedures and key deadlines

• Registration is online on the Ministry of Investment platform, followed by entry in the commercial register and licensing.
• Before investing, check the list of excluded or restricted activities and choose the right legal form.
• An implementing regulation details registration procedures and obligations and should be consulted.

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.