Saudi Arabia is no longer just a promising frontier for global investors, it’s a fully open marketplace. Reforms under Vision 2030 have redefined the investment landscape. A key part of this transformation is the ability for foreigners to establish and operate businesses with 100% ownership, thanks to policies overseen by the Ministry of Investment of Saudi Arabia (MISA). This shift answers a critical question many executives ask: Can you own a business in Saudi Arabia? The answer is a resounding yes, and the MISA licence is your gateway to making it happen.
For international businesses seeking to establish or expand their footprint, this guide explores the updated regulations, licensing structures, and strategic insights to equip business leaders with the clarity and confidence to succeed in the Kingdom.
As part of its economic diversification strategy, Saudi Arabia has removed many of the barriers to full foreign ownership across key sectors:
This shift eliminates the legacy requirement for a local sponsor in these industries, opening direct pathways for global expansion.
To legally operate a foreign-owned entity in the Kingdom, businesses must obtain a license from the Ministry of Investment of Saudi Arabia (MISA).
The process includes:
Peninsula recommends early-stage legal structuring advice to ensure alignment with operational goals and compliance obligations.
The MISA licence framework categorises businesses into four primary types: Trading, Industrial, Professional, and Service. Each comes with its own rules and opportunities for foreign ownership. Below, we’ll explore these categories, focusing on how they apply to business setup for foreigners and where full ownership is possible.
Trading companies cover wholesale, retail, and e-commerce activities—sectors that are vital to Saudi Arabia’s growing consumer market. Under Vision 2030, the Kingdom is keen to boost these areas, making them attractive for foreign investors. The good news? Trading companies can be 100% foreign-owned under a MISA licence. However, there’s a catch: this category comes with a significant share capital requirement.
To qualify for full foreign ownership, MISA mandates a minimum capital of SAR 30 million, with a commitment to invest at least SAR 200 million over the first five years. For executives, this threshold signals the Kingdom’s focus on attracting serious players capable of driving substantial economic impact.
While the capital requirement is steep, it’s a strategic opportunity for well-resourced firms. If your business model thrives on scale and market penetration, a trading entity with 100% foreign ownership could be your entry point to one of the Middle East’s most dynamic markets.
Industrial companies focus on manufacturing and production, another cornerstone of Saudi Arabia’s diversification efforts. From petrochemicals to consumer goods, this sector offers vast potential for foreign investors. Under the MISA licence, industrial companies can be established with 100% foreign ownership, and unlike trading entities, there’s no hefty capital barrier beyond the standard SAR 500,000 minimum for LLCs (which can often be used as working capital).
Service companies span a wide range of activities, from IT and tourism to logistics and healthcare. This category is one of the most flexible under the MISA licence, allowing 100% foreign ownership with a relatively low entry barrier—typically the SAR 500,000 minimum capital for an LLC. For business leaders, this is where the Saudi market shines as an accessible yet high-growth opportunity.
The Kingdom’s push to become a regional hub for services makes this category particularly appealing for agile, service-oriented businesses.
Professional companies encompass specialised services like law, engineering, consultancy, and architecture. These fields often require deep expertise and credibility, which foreign firms can bring to the table. However, there’s a key limitation: professional companies cannot be 100% foreign-owned under a MISA licence. Saudi regulations typically require at least a 25% local shareholder, often someone licensed in the relevant profession.
For executives in professional services, this restriction reflects the Kingdom’s intent to protect local expertise while still welcoming foreign talent. While full foreign ownership isn’t an option here, the trade-off is access to a market hungry for specialised skills, particularly in infrastructure and urban development projects tied to Vision 2030.
Businesses must meet nationalisation quotas for Saudi citizens in their workforce. Non-compliance can impact license renewal and immigration procedures. For more on this topic, read our Saudization guide.
A flat 20% tax applies to foreign-owned entities. Additional levies may apply depending on services or sector. For more on the topic of Tax in Saudi Arabia, read our helpful taxation guide.
For senior executives and investors, the Premium Residency scheme allows long-term stay without a local sponsor, streamlining talent mobility and property ownership. Peninsula ensures all regulatory filings and labour compliance matters are managed in parallel with setup to avoid downstream complications.
Our Premium Residency Guide covers this topic in greater detail.
Saudi Arabia’s reforms have turned a once-restrictive market into a welcoming hub for foreign investment. The MISA licence is your key to unlocking this potential, offering 100% foreign ownership across trading, industrial, and service companies, each with its own advantages and requirements. While professional companies remain an exception, the broader trend is clear: the Kingdom wants your business, and it’s making it easier than ever to set up shop.
Saudi Arabia's foreign investment framework allows international investors to fully own companies across most sectors, including commercial, industrial, and service-related activities. The legal reforms under Vision 2030 abolished the need for a Saudi partner in many cases, particularly in sectors aligned with the Kingdom’s strategic development goals. However, regulated sectors such as legal services or security-related industries may still require partial Saudi ownership or additional approvals.
To open a company, a foreign investor must first secure a license from the Ministry of Investment (MISA). This process involves choosing an appropriate business structure, reserving a trade name, preparing financial and incorporation documents, and completing the registration with other relevant ministries. The entire journey can take several weeks, depending on the complexity of the business activity and completeness of documentation. A local expert can help navigate the process efficiently and ensure compliance at every stage.
In most sectors, foreign investors are entitled to own 100% of a business entity. This includes limited liability companies and branches of foreign firms. For certain regulated fields, such as consultancy, engineering, and healthcare, there may be minimum Saudi ownership requirements or professional licensing conditions that apply. Understanding the nuances of sectoral regulation is critical to structuring ownership correctly from the outset.
Yes, foreign nationals and companies can open a business in Saudi Arabia without requiring a Saudi partner, provided they secure the appropriate MISA license and meet capital, experience, and regulatory requirements. The government actively encourages foreign direct investment and has simplified many of the bureaucratic hurdles. With the support of a local expert like Peninsula, companies can navigate legal, labour, and tax obligations effectively, enabling a smooth and compliant market entry.
Historically, Saudi Arabia required foreign businesses to partner with local stakeholders, diluting ownership and complicating decision-making. Today, the MISA licence flips that narrative, allowing 100% foreign ownership in most sectors.
The opportunity in Saudi Arabia is real, but so are the complexities. Our role at Peninsula is to bring clarity to that complexity, managing every detail of your market entry so you can focus on what matters: growing your business.
If you're considering expansion into Saudi Arabia, now is the time to act. Book a free consultation with our regulatory specialists and get a tailored entry roadmap.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
