5 conditions for foreign investment in the KSA

The Kingdom of Saudi Arabia signed 26 memorandums of understanding with Brazil to support investment and trade between the two countries, as part of the promotional tour that Saudi Investment Minister Khaled Al-Falih is conducting to the largest country in Latin America, to introduce the opportunities offered by the Kingdom's Vision 2030 projects.

Investment in the Kingdom of Saudi Arabia 

Conditions for foreign investment in the Kingdom of Saudi Arabia A foreign investor is a natural person who does not hold Saudi nationality, or not all of his partners hold Saudi nationality.

The system includes new conditions for foreign investments in the Kingdom of Saudi Arabia, definitions, issuance of licenses, and regulation of foreign investment in terms of conditions, guarantees, licenses, and procedures in the Kingdom and funds that did not enter into investment activity.

The new foreign investment law also includes the rights, immunities, obligations, tax treatment of the foreign investor, penalties for violating the investment law, powers and duties of the General Investment Authority, and provisions for dispute settlement.

Conditions for foreign investment in the Kingdom of Saudi Arabia

- Those wishing to invest in the Kingdom must be qualified and experienced.

- He should not have a previous criminal offense, or any judgments contrary to laws and regulations, or any judicial judgment in financial or commercial crimes and violations in his country of origin or abroad.

- The existence of work licenses in the Kingdom that allow person to carry out his investment activity, and he obtains all permits from the General Investment Authority for Foreigners “GOV.SA”, and all its requirements such as the minimum acceptable capital, as well as the maximum foreign partnership percentage.

- The investment activity must be included in the list of authorized activities in the Kingdom of Saudi Arabia, and the scope and conditions of foreign investment in the Kingdom of Saudi Arabia and the investor in it must comply with all international and regional agreements signed by the Kingdom and other countries.

- Approval of product specifications and raw materials used with the Kingdom’s regulations, and the investor’s commitment to all regulations, regulations, instructions, and agreements concluded between other countries with the Kingdom.

Conditions for foreign investment in the Kingdom for the wholesale and retail sector

- The minimum capital for the company wishing to establish an investment in the Kingdom of Saudi Arabia upon its incorporation is thirty million Saudi riyals, and it must invest no less than two hundred million Saudi riyals over a period of five consecutive years starting from the date of granting the investment license, and it must also own three markets other international.

- The company must employ Saudi nationals in its various departments, and ensure that the Saudi employee continues to work, obtaining a leadership position, and the company trains him in various fields for free.

Papers for submitting an investment application in Saudi Arabia

An application must be submitted to obtain a license from the General Investment Authority, and in the event that the conditions for foreign investment in the Kingdom of Saudi Arabia are met, a copy identical to the original articles of association and articles of association, and the documents are verified by the Saudi embassy and the official authority in the country of origin of the applicant.

Submitting a copy of the trade name held at the Ministry of Commerce and Industry, submitting the decision regarding the investment partnership in the Kingdom of Saudi Arabia with the capital, the names of the partners, and the nature of the company’s activity, and verifying it. From the Embassy of the Kingdom of Saudi Arabia and the official authority in his home country.

Bring a copy of the passport of the general manager of the company, and in the event that the Saudi citizen is one of the partners, he must submit a copy of his personal card and a copy of the commercial register.

Submitting all physical data and submitting a certificate from the ministries and competent authorities in the Kingdom if the activity requires that.

Investment policies and principles in the Kingdom of Saudi Arabia

1. Not to differentiate between Saudi and non-Saudi investors, and between foreign investors, and to ensure that the investor’s property is insured according to Saudi regulations, and to adopt transparent and clear procedures for dealing with complaints.

2. Providing conditions for foreign investment in the Kingdom of Saudi Arabia and investment incentives for the investor, when necessary, with transparency and reliability when providing incentives, preparing a list of these incentives according to clear and non-racist criteria, and transferring technologies and sciences resulting from foreign investments. 

3. Facilitating entry procedures for expatriate workers, including technicians and managers, and the entry and residence of their families in the Kingdom in order to effectively participate in foreign investments in accordance with the Kingdom's regulations and international obligations.

4. Regulations, regulations, policies and international agreements with the Kingdom provide for the maintenance of social and environmental standards to ensure that foreign and Saudi investors adhere to health, labor and environmental safety rules.