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Company Law & Governance

Contracts and investment

Foreign investment lawyers in Saudi Arabia

Short answer

Foreign investors entering Saudi Arabia now register with the Ministry of Investment (MISA) under the Investment Law that took effect in February 2025, rather than applying for the old foreign investment licence. Al-Fahal Law Firm advises on structure, registration, sector rules and the documents that protect a foreign owner's position.

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Situations we help with

  • Your company wants to enter the Saudi market and needs to choose between a subsidiary, a branch or a joint venture.
  • You plan to partner with a Saudi company and want a joint venture agreement that protects your investment.
  • You held a MISA licence under the old Foreign Investment Law and are unsure what changed.
  • Your activity may be on the list of activities excluded from foreign investment.
  • You need to buy or lease property for the business as a foreign-owned company.

What the work covers

  • Market-entry structuring — subsidiary, branch, joint venture or regional headquarters
  • Ministry of Investment registration and later updates
  • Checking the excluded activities list and sector-specific licensing
  • Incorporation, articles of association and commercial registration
  • Joint venture and shareholder agreements with Saudi partners
  • Real estate acquisitions and leases by foreign-owned companies
  • Compliance with the Anti-Concealment Law

The 2025 Investment Law in brief

The Investment Law was issued by Royal Decree M/19 on 11 August 2024 and took effect 180 days after publication, in February 2025. It applies to both local and foreign investors and replaces the Foreign Investment Law of 2000. Its main features are:

  • Registration instead of licensing. Foreign investors register with MISA through a simplified process; MISA keeps a national register of investors.
  • Excluded activities. Investment is open except for activities on a list published by MISA.
  • Investor protections. Equal procedural treatment, protection from confiscation without a final judgment, and free transfer of funds.
  • Dispute resolution. Investors may use the courts or alternative methods including arbitration.
  • Penalties. Violations can lead to warnings, fines of up to SAR 300,000 (doubled for repeat violations) or cancellation of registration, with a right of appeal to the court within 30 days.

Choosing a structure

Limited liability company. The usual vehicle for a wholly foreign-owned or joint venture business.

Joint stock or simplified joint stock company. Suits larger ventures, investors who want share classes, or plans for a later listing.

Branch of a foreign company. Lets the parent operate directly, but the parent remains exposed to the branch's liabilities.

Joint venture with a Saudi partner. Useful for local market access; the shareholder agreement and articles must reflect who controls what, and must not be used to disguise concealment.

Steps after registration

Once registered with MISA and incorporated, a foreign-owned company still needs a commercial registration, ZATCA registration for zakat, tax and VAT, labour and social insurance registrations, and any licences required for its sector. Real estate is subject to separate rules, including the Law of Real Estate Ownership by Non-Saudis that took effect on 22 January 2026.

How a consultation works

  1. 1

    Tell us what you need

    Send a short enquiry or call the office. Describe the matter in general terms — no confidential documents yet.

  2. 2

    Conflict check and call-back

    The firm checks that it can act for you, then contacts you to understand the matter.

  3. 3

    Consultation

    You meet a lawyer in Jeddah or online. You get an initial view of your position and options.

  4. 4

    Scope and fees in writing

    If you instruct the firm, you receive the scope of work and fees in writing before work begins.

Questions clients ask

Do foreign investors still need a MISA licence?
The Investment Law issued by Royal Decree M/19 in August 2024, which replaced the Foreign Investment Law of 2000, removed the licensing requirement. Foreign investors now register with the Ministry of Investment before starting their investment activity. Sector regulators may still require their own licences.
Are any activities closed to foreign investors?
Yes. The Investment Law allows investment in any sector except activities on an excluded list published by MISA. A foreign investor who wants to carry on an excluded activity can ask MISA for prior approval.
What protections does the Investment Law give foreign investors?
It provides equal procedural treatment for local and foreign investors in similar circumstances, protection against confiscation except by a final court judgment, expropriation only for the public interest with fair compensation, and the right to transfer funds into and out of the Kingdom. Disputes can go to the courts or to arbitration, mediation or conciliation.
Can a foreign investor use a Saudi partner's name to run a business?
No. Running a business through a Saudi's licence or registration is commercial concealment under the Anti-Concealment Law, with penalties of up to five years' imprisonment and fines of up to SAR 5 million.

Official sources

Laws change. We cite the official text so you can check the current version.

This page is general information, not legal advice for your situation.

Lawyers who handle this work

A question about your company, a contract or a dispute?

Send a short enquiry and a lawyer from Al-Fahal Law Firm in Jeddah will contact you. Please don't send confidential documents until the firm has confirmed it can act for you.