Investing in Saudi Arabia: check your activity · 1 / 6
Is your activity open to foreign investors in Saudi Arabia?
Many business activities in Saudi Arabia are open to foreign investors. Foreign investment is registered with the Ministry of Investment (MISA) on one of two tracks: available activities, or restricted activities, which need extra conditions or approvals. To know where yours falls, or whether it is open at all, check your exact activity against MISA’s current guidance.
Published by RAED ALI ALJOHANI COMPANY FOR Lawyership and Legal Consultations · Last updated
General information about Saudi law — not advice on your situation.
At a glance
- Who this is for
- Foreign companies and founders who have a business idea for Saudi Arabia and want to know whether foreign investors may carry it out.
- Can it be handled from outside Saudi Arabia?
- Yes. MISA publishes its guidance online, and a Saudi lawyer can check your activity without you travelling.
- What usually decides the route
- The exact description of the activity, its track at MISA, and any licence the sector’s own regulator requires.
- What you usually need first
- A precise description of what the business will do and for whom. No documents yet.
- First step with us
- Send us the activity in a few lines by WhatsApp, phone or email.
- Working languages
- Arabic and English
Can you check your business activity from outside Saudi Arabia?
Yes. MISA publishes its frequently asked questions and its Investor Guide online in English, so you can read the current guidance from anywhere. A Saudi lawyer can also check your activity for you, without you travelling.
The later application can usually be made from abroad as well. MISA’s FAQ says that no visit to the ministry is needed to apply for investment registration. The application is made online, on the Invest Saudi portal, MISA’s online platform. Your company’s documents are signed and certified in your own country. Our page on how foreign investment registration works now explains that stage.
One part needs more care from abroad: a licence from a sector regulator. If your activity needs one, that authority sets its own steps. We tell you early if any of them need someone in Saudi Arabia in person.
What do “available”, “restricted” and “closed” mean for foreign investors in Saudi Arabia?
MISA registers foreign investment on two tracks: available activities and restricted activities. An available activity follows the standard registration. A restricted activity is also open to foreign investors, but it needs extra conditions or approvals, which MISA publishes.
“Closed” is not one of MISA’s tracks, but people often ask whether an activity is closed to foreigners. MISA’s Investor Guide describes registration as available for the approved activities that are open to investment. So the first question is whether your exact activity is on that list at all. The second question is which track it falls on.
Many business activities are open to full foreign ownership. Some activities limit foreign ownership, and some need a Saudi partner. MISA’s Investor Guide sets out the current conditions for each activity. We don’t repeat them here, because they change.
You may have seen the term “MISA licence”. It is the common name for the foreign-investment licence used before 2025. Since 2025, foreign investors register their investment with MISA instead, through investment registration. Our guide explains what “MISA licence” means now.
Why can’t you rely on a list of restricted activities found online?
Because such lists go out of date, and they often name activities differently from the official list. What decides your track is how your exact activity is described in the official list of business activities. Then MISA’s current guidance says which track that entry is on.
Activity names matter more than they seem. MISA’s Investor Guide links registration to ISIC, an international system for classifying business activities. Two businesses that sound alike can match different entries. For example, a company that makes a product and a company that only sells it may be listed differently. A plan that covers several activities may need each one checked.
A list found online also leaves out the sector licence. Some activities need a licence or a letter of approval from a sector regulator. This is the authority that oversees an industry, such as health care or finance. That licence is a separate step from MISA registration.
MISA updates its guidance from time to time, and its Investor Guide is now in its 13th edition. So check the current version on the day you decide, not a copy saved months ago.
Do you need a Saudi partner for your business activity?
It depends on the activity. MISA’s FAQ says that some activities require a local partner, while others can be carried out without one. So the activity you choose answers this question, more than the company structure does.
Some restricted activities also set conditions about Saudi participation in the company. MISA’s Investor Guide sets these out for each activity. Because they change, we check them on the day rather than repeat them here.
People often say “sponsor” when they mean a Saudi partner. Our page on setting up a company answers whether a foreign company needs a Saudi partner or sponsor. If you will invest with a Saudi partner, the written terms between you matter as much as the registration.
We are writing a page on investing with a Saudi partner:
How to protect your position when you invest with a Saudi partner or hold a minority share.
Investing with a Saudi partner: joint ventures and minority stakesComing soon
What can you do if your business activity is restricted in Saudi Arabia?
You usually have more than one option. None of them comes with a promised result, and the right one depends on your plan.
- Apply on the restricted track. Meet the conditions and get the approvals that MISA lists for the activity. Then register the investment in the usual way.
- Look again at the activity. Describe only what the company will really do. A plan written too broadly can include activities the business does not need.
- Work with a Saudi partner on written terms, where the activity calls for one. Agree in writing who controls the company and how either side can leave.
- Sell through a Saudi distributor or agent instead of setting up your own company. Plan from the start how a Saudi distributor or agent agreement can end.
Never put the business in a Saudi national’s name to get around the rules. That is concealment (tasattur in Arabic), and Saudi anti-concealment rules forbid it. If a business is already run this way, talk to a lawyer about putting it right.
We are writing a page on this situation:
For a business that has been run through a Saudi national’s name.
Regularising a business run in someone else’s nameComing soon
How do you check whether your business activity is open, step by step?
Checking a business activity usually takes six steps. Do them before you apply, because the result shapes the rest of the plan.
Describe the activity precisely. Write down what the company will do, sell or provide, and for whom. Include activities you plan to add later, so they can be checked too. Where a lawyer helps: turning a business plan into the kind of activity description the authorities use.
Match it to the official list of business activities. Registration uses the activity names in that list. One plan may match more than one entry. Where a lawyer helps: finding the entry, or entries, that describe your business accurately.
Check the activity’s track in MISA’s current guidance. Read MISA’s FAQ and its Investor Guide on the day you check, not an old copy. Note whether the activity is available or restricted, and what it requires.
Check whether the activity also needs a licence from a sector regulator. Some activities need a licence or a letter of approval from the authority that oversees the industry. The regulator’s own website has its steps.
Check whether a Saudi partner or other conditions apply. Some activities need a local partner, and some restricted activities set other conditions. Decide early whether those conditions fit your plan.
Decide the route before you apply. If the activity is open, the next stage is registering the investment. If it is restricted, compare the options for a restricted activity first. Where a lawyer helps: checking the plan as a whole, including the company structure, before anything is submitted. See choosing a structure.
What changes between an available and a restricted activity in Saudi Arabia?
The track changes what you must show MISA, and sometimes who else must approve the activity. It does not change where you apply.
| Track | What it usually means | What you usually need | Where to check |
|---|---|---|---|
| Available activity | The activity is open to foreign investors and follows the standard registration. | The standard registration documents and an accurate activity description. | MISA’s FAQ and Investor Guide |
| Restricted activity | The activity is open to foreign investors, but only with extra conditions or approvals. | The standard documents, plus what MISA lists for that activity. This may include a Saudi partner or another authority’s approval. | MISA’s Investor Guide, and the sector regulator’s own website |
This is a general comparison. The track of your activity depends on its exact description and on MISA’s guidance at the time you apply.
What to prepare before you ask us
A few lines are enough for a first message. Have these facts ready, but please don’t send documents at this stage.
- What the business will do, sell or provide, and who its customers will be.
- Whether the activity needs a licence in your home country. If it does, a Saudi sector regulator may be involved too.
- Who will own the Saudi company: your company alone, or with a Saudi partner.
- Any official activity names you have already seen, and where you saw them.
- Where your company is registered now.
Frequently asked questions
Is there a limit on foreign ownership in Saudi Arabia?
It depends on the activity. Many business activities are open to full foreign ownership. Some restricted activities set conditions, such as a Saudi partner. MISA’s Investor Guide sets out the current position for each activity, and we can check how it applies to yours.
Which businesses can foreigners run in Saudi Arabia?
Many kinds of business are open to foreign investors, but the answer depends on the exact activity. We don’t choose a business for you, and we don’t give investment advice. We check whether the activity you plan is open to foreign investors, on which track, and with which approvals.
Does a restricted activity need approval from another authority?
Often, yes. Some activities also need a licence or a letter of approval from the authority that oversees the sector. MISA’s Investor Guide lists the extra requirements for each restricted activity, and the regulator’s own website has its details.
Can you add or change a business activity later?
Usually, yes. MISA’s Investor Guide lists a service for changing the activities in an investment registration. The company’s commercial registration with the Ministry of Commerce usually needs updating too. A new activity may fall on a different track, so check it before you apply for the change.
Can the business be registered in a Saudi national’s name instead?
No. Running a business under a Saudi national’s name is concealment (tasattur), and Saudi law forbids it. If a business is already run this way, talk to a lawyer about putting it right.
Official sources
This page draws on 3 official sources. Each line shows who publishes it, its language and, where recorded, the date we last checked it.
- Ministry of Investment (MISA) · Frequently Asked Questions (in English) · checked
- Ministry of Investment (MISA) · Investor Guide, 13th edition (PDF) (in English) · checked
- Ministry of Commerce · Ministry of Commerce Pending verification
What usually comes next
General information about Saudi law, not advice on your situation. Contacting us does not create a lawyer–client relationship until an engagement letter is signed.