Saudi Business Ownership for Expats: What’s Possible in 2025?

In the GCC, Saudi Arabia has one of the largest economies and is expected to emerge as a thriving place for businesses and investors. Situated strategically for conducting business across Europe, Asia, and Africa, Saudi Arabia is now on the way to becoming a key player in accessing global markets. The country’s Vision 2030 aims to diversify the economy and reduce its dependence on oil. The recent business-friendly reforms in Saudi Arabia permit 100% foreign ownership by foreign investors or expatriates to establish their businesses in the Kingdom.

New Investor-friendly Policies of Saudi Arabia  

The new Investment Law of Saudi Arabia, which came into effect in 2025, has made it more attractive for investors to start a business in Saudi Arabia. The Law protects investors, streamlines the registration process, and incentivises investors. The salient features are,

1. Investor Protection: Equal treatment for local and foreign investors, protection from expropriation, freedom to transfer funds, and safeguarding of intellectual property and trade secrets.
2. Registration Process Simplified: No need for a foreign investment license; investors can register directly with the Ministry of Investment.
3. Investment Incentives: Based on transparent criteria for eligible investors by competent authorities.
4. Applicable to all investors(including those in special economic zones)

How to start a business in Saudi Arabia with foreigners?

To start a business in Saudi Arabia, follow these steps:

• Obtain an investment license: No foreign investment license is required; investors can register directly with the Ministry of Investment.  
• Reserve a company name: Reserve a name that complies with MOCI’s guidelines.
• Draft articles of association: Draft the articles of association for your Company, outlining the Company’s internal regulations, including share capital, management structure, and operational procedures. The AOA must be notarised by a licensed attorney in Saudi Arabia and submitted to the Ministry of Commerce and Industry for approval.
• Register with the Ministry of Commerce and Industry: Register your Company with the Ministry of Commerce and Industry to obtain a commercial registration by submitting the necessary documentation to the MoCI. The documents should include details of directors and shareholders, passport copies, a trade name declaration, and notarised Memorandum of Association and Articles of Association.
• Register with the GAZT: Register your Company with the General Authority for Zakat and Tax (GAZT).  All companies in Saudi Arabia are required to file with the General Authority of Zakat and Tax (GAZT) for taxation purposes.
• Obtain necessary permits and approvals: Get the required permits and approvals, including licenses for specific industries, environmental clearances, and municipal permits.
• Issue the General Manager’s Visa: Obtain the necessary approval for your General Manager’s residence permit and visa, managing essential labour documentation through the Ministry of Labour and Social Development.
• National Address Enrolment: Establish a recognised business address for inclusion in government records.
• Filing with Qiwa Portal–Human Resources & Social Development: Filing with the Qiwa platform to optimise the Ministry of Human Resources & Social Development services is necessary to improve electronic solutions for the labour sector.
• Muqeem Portal Listing: Streamline residency data management with Muqeem, ensuring real-time coordination with Saudi authorities for efficient entry and exit processes.
• Absher Portal Filing: The Absher Portal Filing allows Saudi residents to access over 279 services, including appointments, passport renewals, ID cards, driver’s licenses, and more, all within a convenient application.
• General Organization for Social Insurance Enrolment: Enrol with the General Organization for Social Insurance to guarantee the welfare of your workers.
• Open bank accounts: Open bank accounts for your Company to conduct business transactions, pay salaries, receive customer payments, and manage financial operations.

Company formation for expats in Saudi Arabia

• Business Structure: Select a company structure, such as an LLC or a branch of a foreign enterprise, for setting up a business.
• Saudization Commitment: Foreign investors must provide a plan for Saudi nationals to hold key positions within the first five years, with a focus on senior executive management roles.
• Workforce Training: The Company must offer annual training to at least 30% of its Saudi employees. 
• Meeting Conditions: Within the first five years, foreign investors must fulfil at least one of the following three conditions: manufacturing, R&D investment, or establishing logistics centres and after-sales services. 
• Exemption for Significant Investment: Companies that invest SAR 300 million within the first five years may be exempt from the preceding conditions.
  

How does the Helpline Group help set up a business in Saudi Arabia

Helpline Group provides a seamless and hassle-free experience for clients, including foreigners, with over 25 years of experience in company formation services and obtaining business licenses in Saudi Arabia. A strong and experienced team supports the Company.

We are your dependable ally in achieving success due to our global presence and customised approach, which ensures that your business setup is managed with accuracy and professionalism.