Foreign Investment

A foreign investor's entry into the Saudi market, from registration to operation

Legal support for foreign investors in Saudi Arabia: market-entry structuring, investment registration, forming the entity, agreements, licences and operational compliance.

A foreign investor's entry into the Saudi market, from registration to operation

Entering the Saudi market is not a single step. Under the updated law, investment registration comes before activity for a foreign investor; then comes forming the entity and obtaining the approvals or licences the activity requires; and after that the real operating obligations begin.

Choosing the entry structure

We start with the type of activity, the partners or owners, the nature of the customers, the need for employees or assets in the Kingdom and the funding method, and then identify the most suitable entry structure under the relevant laws.

Investment registration and formation

The updated investment law relies on registration of the foreign investor before the investment is made, after which the commercial registration steps and the approvals needed to carry on the activity are completed. We therefore separate registration itself from the sector licences that may still be required.

Contracts and governance

Where there is a local partner or several investors, we focus on the partners' agreement, authority, funding, profit distribution, transfer of ownership, intellectual property, exit and dispute resolution.

Operational compliance

After formation, obligations begin that relate to the activity, employees, contracts, the register, data and governance, depending on the sector. So we prepare a Legal Launch Checklist showing the authorities, procedures and documents that must be followed.

Expansion or acquisition

An existing investor may need to restructure, add an activity, buy an existing company or enter a joint venture; here we connect the investment with due diligence, transactions and governance.

Next step

If the project is at the planning stage, send a description of the activity, the proposed ownership structure, the nationality of the investors and whether there is a local partner. This information is usually enough to build the initial map of procedures.

Mistakes we see most often in this kind of matter

  • Thinking registration is enough to start. Registration is one step; forming the entity and the sector licences are separate steps that may still be required.

  • Choosing the structure before understanding the activity. The type of activity and the nature of the customers determine the right structure, not the reverse.

  • Neglecting the agreement with the local partner. Having a partner without an agreement on authority, funding and exit brings the same problems back later.

  • Delaying operational compliance. Employees, contracts, records and data carry obligations from day one of operation.

How the work runs

  1. 01

    Studying the activity and structure. We identify the entry structure that best suits your activity, partners and funding.

  2. 02

    Registration and formation. We put the procedures in the right sequence.

  3. 03

    Licences and approvals. We identify the authorities and requirements according to the activity.

  4. 04

    Contracts and employment. We draft the core contracts and arrange the contractual side of operation.

  5. 05

    The launch checklist. We hand you a list of the procedures and documents to follow after formation.

What we need to start

You do not need every document before you contact us, but having the following shortens the first assessment:

  • Description of the proposed activity
  • The proposed ownership structure
  • Investor details
  • Parent-company documents, if any
  • The funding plan

Frequently asked questions

Do I need a Saudi partner?

It depends on the activity and the chosen structure, and we determine it when we study the case.

How long does entering the market take?

It varies with the activity, the licences and how ready the documents are. We set an estimated timetable after studying the case.

Do you follow up the licences?

We prepare a list of authorities and procedures and follow up with you what is needed.

The information on this page is general and is not a legal opinion on a specific matter; the answer depends on the facts and on the law in force at the time.