Saudi Arabia continues to accelerate its economic transformation by opening its doors wider to foreign investors. As of 2025, obtaining a business license in the Kingdom is a concrete opportunity for international companies looking to access one of the most dynamic markets in the region. This guide provides an overview of the main types of licenses available to foreign investors, along with the specific requirements outlined by the Ministry of Investment of Saudi Arabia (MISA).
Industrial License
Designed for companies involved in manufacturing—whether heavy, light, or transformative—this license permits 100% foreign ownership. Approval is required from both the Ministry of Industry and Mineral Resources and the National Center for Environmental Compliance. Applications are submitted via the MISA e-Services portal and are typically processed within 2 to 4 business days.
Commercial License
This license offers two routes:
- Full foreign ownership: Requires a minimum capital of SAR 30 million, active operations in at least three countries, and a commitment to invest SAR 200–300 million over five years. Companies must also meet targets in R&D investment and local manufacturing.
- Joint venture with a Saudi partner: Requires a minimum capital of SAR 26.6 million and at least 25% Saudi ownership. This option waives the global presence requirement but mandates compliance with Saudization policies.
Service License
Ideal for sectors such as logistics, IT, education, media, healthcare, and catering. This license allows for 100% foreign ownership, provided that:
- The company has at least one year of operating history abroad;
- A minimum capital of SAR 25,000 is in place;
- A notarized commercial registration and certified financial statements are submitted;
- The business complies with Saudi shareholder transparency regulations.
Entrepreneur License
This license targets high-potential startups supported by venture capital or approved institutions such as KAUST, the Tourism Development Fund (TDF), or MISA. Eligible entities must demonstrate innovation or hold proprietary intellectual property. Capital requirements are assessed on a case-by-case basis, and for residents, Saudi sponsorship is optional.
Professional License
This license is tailored to firms in legal, engineering, architectural, and consulting services, and can be granted under two structures:
- Full foreign ownership, if the company operates in at least four countries and allocates SAR 10 million in capital per branch;
- Joint ownership with a Saudi-licensed partner, with a minimum 25% Saudi stake.
Foreign law firms must obtain approval from the Ministry of Justice and comply with Companies Law provisions.
Specialized Licenses
Scientific and Technical Office License
Allows foreign companies to set up liaison offices to conduct market feasibility studies and report to their global headquarters. These offices are strictly prohibited from engaging in commercial activities, generating revenue, or investing within the Kingdom. The license is valid for five years and requires an annual report submission to MISA.
Real Estate License
Available to foreign property firms undertaking projects valued at SAR 30 million or more, excluding Mecca and Medina. Required documentation includes certified financials and a Saudi-embassy attested commercial registration.
Regional Headquarters (RHQ) License
Designed for multinational companies with a presence in at least two countries outside both their home jurisdiction and Saudi Arabia. RHQs must be registered as a legal entity in Saudi Arabia and must commence core strategic and management functions within six months. At least three support functions (e.g., HR, legal, R&D) must be launched within the first year, and a minimum of 15 full-time employees, including three senior executives, must be hired.
Sector-Specific Licenses
- Agriculture & Mining: Require a minimum capital of SAR 25,000 and follow standard MISA documentation.
- Transport: Divided into buses, metro systems, and general transport (taxis, rentals, freight), this license requires SAR 500,000 in capital, 10–15 years of global experience, and a presence in at least three countries. Applicants are also evaluated on revenues, assets, traffic safety records, and Saudization compliance.
Temporary Licenses
These licenses are ideal for short-term engagement in the Saudi market:
- Public Project Proposal Certificate: Valid for one year, it allows companies to bid on public tenders without engaging in direct commercial activity. Requires ISO certification and a revenue history of at least SAR 500 million.
- Temporary Performance License: Issued to foreign companies executing specific contracts. Valid only for the duration of the awarded project.
Application Process and Compliance
All license applications must be submitted through the MISA e-Services Portal. Common requirements include:
- Certified commercial registration of the foreign company;
- Last year’s certified financial statements;
- Details on shareholders, capital structure, and business activities.
Service fees must be paid within 30 days of invoice issuance; otherwise, the application will be cancelled.
Conclusion
Saudi Arabia’s evolving regulatory framework offers a wide range of entry points for foreign investors—from global corporations to innovative startups. Each license under MISA is tailored to different business models, ensuring that investors can find the right path to enter the market effectively.
At Kelmer Group, we support international clients at every stage of their expansion journey—from selecting the appropriate license to managing regulatory compliance and administrative procedures.
Contact us today to explore the best licensing solution for your business in Saudi Arabia.