Key points
- Registration with MISA replaces the old foreign investment licence.
- The same law covers local and foreign investors, with equal procedural treatment.
- Investment is open except for activities on MISA's excluded list.
- Investors can transfer funds freely and are protected against confiscation without a final judgment.
- Fines can reach SAR 300,000, doubled for repeat violations.
From licensing to registration
Under the Foreign Investment Law of 2000, a foreign investor needed a licence from the investment authority before investing. The new Investment Law removes that requirement. Foreign investors register with MISA through a simplified process before starting their activity, and MISA keeps a national register of local and foreign investors.
What is open and what is excluded
The law lets investors enter any sector except activities on an "excluded activities" list prepared by a ministerial committee and published by MISA. A foreign investor who wants to carry on an excluded activity can ask MISA for prior approval. MISA can also suspend a foreign investment on national security grounds. Sector regulators — for banking, insurance, healthcare and so on — still apply their own licensing rules.
Protections for investors
- Equal treatment. Local and foreign investors are treated the same procedurally in similar circumstances.
- No confiscation without judgment. Investments cannot be confiscated, in whole or part, except under a final court judgment.
- Expropriation only for public interest. Any expropriation must follow legal procedures and include fair compensation.
- Transfer of funds. Investors may transfer money into and out of the Kingdom, including profits and sale or liquidation proceeds.
- Property and IP. Investors may manage and dispose of their investments, own the property they need, and have their intellectual property protected.
Disputes and penalties
Investors may resolve disputes through the courts or by agreement through arbitration, mediation or conciliation. Violations are classed as material or non-material; penalties include warnings, fines of up to SAR 300,000 (doubled for repeat violations) and cancellation of registration. Decisions can be appealed to the court within 30 days.
Related laws foreign investors should know
The Investment Law is one part of market entry. Investors also deal with the Companies Law, the Commercial Register Law, the Anti-Concealment Law, zakat and tax rules, and — for property — the Law of Real Estate Ownership by Non-Saudis in force since 22 January 2026.
Questions clients ask
When did the Saudi Investment Law take effect?
Do existing foreign-owned companies need to do anything?
Can I appeal a MISA decision?
Does the Investment Law cover investments in listed shares?
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.