Foreign Investment in Saudi Arabia: Setup and Licensing

Entering the Saudi market

The firm covers Saudi matters in cooperation with an announced partner office in Saudi Arabia. That partner office is not a branch owned by the firm, and the firm does not itself hold a Saudi law practice license; local licensing and representation are assessed for each matter in the Kingdom. Foreign investors register with the Saudi Ministry of Investment (MISA) before incorporation; the commercial registration then issues from the Ministry of Commerce. The order matters: the investment registration, the articles and the commercial registration depend on each other, and sector approvals can sit on top of them.

Entity forms and the regional headquarters route

The new Companies Law (Royal Decree No. M/132 of 2022, in force January 2023) provides forms including the limited liability company, the joint-stock company and the simplified joint-stock company, and foreign companies may also register branches. A regional headquarters (RHQ) route exists for qualifying multinationals. Whether a branch, a local company or the RHQ route fits depends on the group's activity in the Kingdom and on who will actually operate it.

Approvals and how we work

We prepare the investor's file and coordinate the sequence with our partner office in the Kingdom: MISA registration, articles, commercial registration and sector approvals, before a launch date is committed. A commercial registration alone does not answer sector or operational permit questions. For the incorporation detail see Company Formation in Saudi Arabia; for the wider practice see General Commercial & Corporate; to scope a project, contact our team.

MENA coordination

The firm was founded in Kuwait in 1986 and has a branch in Cairo. It covers MENA matters in cooperation with partner offices in Saudi Arabia, the UAE and Qatar, and partner offices in Turkey and the United States. Those partner offices are not branches owned by the firm; local licensing and advice are assessed in the relevant jurisdiction.

This page is general information, not advice for a particular entity or transaction.

Frequently asked questions

Does a foreign investor register before incorporating in Saudi Arabia?

Foreign investors register with the Saudi Ministry of Investment (MISA) before incorporation; the commercial registration then issues from the Ministry of Commerce.

What is the Saudi regional headquarters route?

A regional headquarters (RHQ) route exists for qualifying multinationals. Whether it fits depends on the group's structure and activity in the Kingdom, so it is checked for each project.

Who handles Saudi investment matters at the firm?

Saudi matters are handled in cooperation with the firm's announced partner office in the Kingdom. The firm does not itself hold a Saudi law practice license, and local licensing and representation are assessed for each matter.

Other markets

Company Formation in Saudi Arabia · Foreign Investment in Egypt: Setup and Licensing · Foreign Investment in the UAE: Setup and Licensing · Foreign Investment in Qatar: Setup and Licensing · Foreign Investment in Oman: Setup and Licensing · Foreign Investment in Bahrain: Setup and Licensing