FDI in Saudi Arabia is rapidly reshaping the Kingdom’s economic landscape, attracting global investors to diverse sectors such as manufacturing, retail, and construction. With strategic reforms under Vision 2030, Saudi Arabia offers a transparent regulatory environment, investment incentives, and a thriving business ecosystem that enables international companies to expand their presence in the Middle East.
Understanding the legal, financial, and operational aspects of FDI in Saudi Arabia is essential for any investor seeking sustainable growth.
المحتويات
What is FDI in Saudi Arabia?
FDI in Saudi Arabia is a process in which a foreign investor or entity injects capital into a company or project in another country with the aim of gaining effective control or managerial influence, typically by owning at least 10% of the company’s shares.
This type of investment seeks to establish new projects or develop and expand existing operations, and may include setting up branches or acquiring stakes in local companies. FDI contributes to the economic growth of the host country by transferring expertise, advanced technologies, and capital.
FDI in Saudi Arabia Chart
The Foreign Direct Investment (FDI) Plan in Saudi Arabia represents the national investment strategy aimed at increasing foreign direct investment inflows to $106 billion annually by 2030. This strategy focuses on enhancing the investment environment, offering attractive incentives, attracting regional headquarters of global companies, and supporting the growth of local businesses.
The plan prioritizes key sectors such as manufacturing, retail, and construction, and has already demonstrated success by attracting investments totaling SAR 119.2 billion in 2024, surpassing the Kingdom’s annual target for that year.
Read also: Best 7 Advantages of Foreign Investment in Saudi Arabia
What are The Requirements for Foreign Investment License in Saudi Arabia?
The Foreign Investment License in Saudi Arabia is a key opportunity for international investors to engage in FDI in Saudi Arabia and take advantage of the Kingdom’s diverse economic prospects. To ensure sustainable growth and alignment with national development goals, the Saudi government has established a set of conditions and requirements for FDI in Saudi Arabia, which include:
- Compliance with Permitted Activities: Investment activities must align with the approved sectors under Saudi regulations, ensuring that FDI in Saudi Arabia targets authorized and strategic industries.
- Added Value to the Local Economy: Projects must generate value for the local economy by employing Saudi talent or transferring technology, which is a core principle of successful FDI in Saudi Arabia.
- Legal Compliance: Full adherence to Saudi laws and regulations, including public order and ethical standards, is mandatory for any FDI project.
- Minimum Capital and Documentation: Proof of minimum required capital, commercial registration of the parent company, financial reports, and business plans must be submitted to comply with licensing regulations for FDI in Saudi Arabia.
- Security Approvals and Alignment with Vision 2030: Obtaining necessary security approvals and focusing on projects that support Vision 2030 objectives ensures that FDI in Saudi Arabia contributes to long-term sustainable development.
Meeting these requirements not only secures the legal license but also strengthens project performance, builds investor confidence, and ensures the long-term success of any FDI in Saudi Arabia venture.
Check out: How to Start a Business in Saudi Arabia in 2025?
Best FDI Saudi Arabia lawyers
Etqan Law Firm is a leading legal office specializing in Foreign Direct Investment (FDI) in Saudi Arabia, providing comprehensive legal solutions for international investors and global companies seeking to enter the Saudi market.
The firm is recognized as one of the top FDI Saudi Arabia lawyers in Jeddah and also provides expert services as FDI Saudi Arabia lawyers in Dammam, covering key commercial and investment hubs in the Kingdom.
Etqan Law Firm’s FDI Services:
- Licensing and Legal Registration:
Etqan assists investors in fulfilling all requirements for obtaining a Foreign Investment License in Saudi Arabia, including preparing the necessary documents and liaising with government authorities such as the Ministry of Investment and other regulatory bodies. - Regulatory Compliance:
The firm ensures full compliance with all Saudi laws and regulations related to foreign investment, including taxation, commercial registration, and intellectual property protection. - Drafting Investment Contracts and Agreements:
Etqan’s team carefully drafts investment contracts to safeguard investors’ rights and clearly define obligations, ensuring alignment with Saudi Vision 2030 objectives and providing reliable support for clients working with FDI Saudi Arabia lawyers in Jeddah or FDI Saudi Arabia lawyers in Dammam. - Financial Advisory and Investment Planning:
The firm provides guidance on minimum capital requirements, value addition to the local economy, and funding plans to ensure the success and sustainability of FDI in Saudi Arabia projects. - Dispute Resolution and Legal Representation:
Etqan represents investors before judicial authorities and arbitration bodies in Saudi Arabia, ensuring full protection of their rights in any disputes related to foreign direct investment.
Learn about: How to Start Business in Saudi Arabia for Foreigners?
Conclusion
FDI in Saudi Arabia presents a significant opportunity for international investors to benefit from the Kingdom’s economic diversification and Vision 2030 initiatives. Whether you are establishing a new venture, expanding operations, or managing complex investment agreements, Etqan Law Firm offers comprehensive legal solutions for all aspects of FDI in Saudi Arabia, helping investors achieve sustainable growth and long-term success.
The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +96656113776, +966541110440, +966504315333.
Additionally, feel free to visit our branches located at:
- Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
- Riyadh: King Abdulaziz Street, across from the Kingdom Tower
- Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.
FAQ
Which country invests the most in Saudi Arabia?
The United States is the largest source of foreign direct investment (FDI) in Saudi Arabia.
What is the net FDI of Saudi Arabia?
Saudi Arabia’s net FDI reached approximately $19.4 billion in 2024.
What is the target of FDI in Saudi Arabia?
FDI stands for Foreign Direct Investment, which is an investment made by a foreign entity in a company or project within another country.
What is the target of FDI in Saudi Arabia?
Saudi Arabia aims to attract $106 billion in FDI annually by 2030.