Guide
100% foreign ownership in Saudi Arabia: capital and commitments
Updated
Full foreign ownership is available, and it is the most expensive route in the Investor Guide. The capital number is only the entry ticket.
The capital floor
For a wholly foreign commercial activity the Investor Guide sets minimum capital at SAR 30,000,000, with an additional requirement of presence in at least three regional or global markets. Taking a Saudi partner for at least 25% reduces the minimum capital to SAR 26,666,667, which is the same SAR 20 million of foreign capital seen from the other side of a 75:25 split.
The five year commitments
A 100% foreign commercial licence attaches obligations for the first five years. The company must train 30% of its Saudi employees annually, meet the localisation rates determined by the Ministry of Human Resources and Social Development, and develop and implement a plan to place Saudis in senior management posts and ensure their continuation. On top of that it must meet one of two investment options.
| Option | Investment over five years | Extra condition |
|---|---|---|
| Option 1 | At least SAR 300 million, including SAR 30 million as cash capital | None |
| Option 2 | At least SAR 200 million, including SAR 30 million as cash capital | Plus at least one of: 30% or more of locally distributed products manufactured in the Kingdom; 5% or more of total sales allocated to establishing a research and development programme in the Kingdom; or a unified logistics and distribution centre providing after-sales services |
The five years run from the date of obtaining the investment licence (Ministry of Investment, Investor Guide, section 5.1.2).
Where full ownership is easier
- Engineering consulting: no minimum capital is stated, but the applicant must show presence in four countries and at least ten years of experience.
- Legal activity: no minimum capital is stated, but a letter of approval from the Ministry of Justice is required.
- Entrepreneurial establishments: a separate filing category for start-ups, requiring a letter of support or proof of project approval from a Saudi university or an accredited business incubator.
Where a Saudi partner is compulsory
Some activities set a minimum Saudi participation rather than a capital floor: communications activities require at least 40% Saudi participation and supportive communications activities at least 30%. Professional activities with a Saudi partner require 25%, with both partners licensed in the same field and any non-professional partner limited to 30%.
Requirements are set per activity and change. Check section 05.00 of the current Investor Guide for your ISIC4 activity before committing to a structure.