For business leaders and executives eyeing opportunities in Saudi Arabia, the landscape has never been more inviting. The Kingdom has undergone significant reforms in recent years, aligning with its Vision 2030 goals to diversify the economy and attract international investment. A key part of this transformation is the ability for foreigners to establish and operate businesses with 100% ownership, thanks to policies overseen by the Ministry of Investment of Saudi Arabia (MISA). This shift answers a critical question many executives ask: Can you own a business in Saudi Arabia? The answer is a resounding yes, and the MISA licence is your gateway to making it happen.
For executives, the ability to retain full control of a company is often a top priority. Historically, Saudi Arabia required foreign businesses to partner with local stakeholders, diluting ownership and complicating decision-making. Today, the MISA licence flips that narrative, allowing 100% foreign ownership in most sectors. This is a game-changer for leaders seeking to expand without the constraints of mandatory local partnerships.
The MISA licence framework categorises businesses into four primary types: Trading, Industrial, Professional, and Service. Each comes with its own rules and opportunities for foreign ownership. Below, we’ll explore these categories, focusing on how they apply to business setup for foreigners and where full ownership is possible.
Trading companies cover wholesale, retail, and e-commerce activities—sectors that are vital to Saudi Arabia’s growing consumer market. Under Vision 2030, the Kingdom is keen to boost these areas, making them attractive for foreign investors. The good news? Trading companies can be 100% foreign-owned under a MISA licence. However, there’s a catch: this category comes with a significant share capital requirement.
To qualify for full foreign ownership, MISA mandates a minimum capital of SAR 30 million, with a commitment to invest at least SAR 200 million over the first five years. For executives, this threshold signals the Kingdom’s focus on attracting serious players capable of driving substantial economic impact.
While the capital requirement is steep, it’s a strategic opportunity for well-resourced firms. If your business model thrives on scale and market penetration, a trading entity with 100% foreign ownership could be your entry point to one of the Middle East’s most dynamic markets.
Industrial companies focus on manufacturing and production, another cornerstone of Saudi Arabia’s diversification efforts. From petrochemicals to consumer goods, this sector offers vast potential for foreign investors. Under the MISA licence, industrial companies can be established with 100% foreign ownership, and unlike trading entities, there’s no hefty capital barrier beyond the standard SAR 500,000 minimum for LLCs (which can often be used as working capital).
Professional companies encompass specialised services like law, engineering, consultancy, and architecture. These fields often require deep expertise and credibility, which foreign firms can bring to the table. However, there’s a key limitation: professional companies cannot be 100% foreign-owned under a MISA licence. Saudi regulations typically require at least a 25% local shareholder, often someone licensed in the relevant profession.
For executives in professional services, this restriction reflects the Kingdom’s intent to protect local expertise while still welcoming foreign talent. While full foreign ownership isn’t an option here, the trade-off is access to a market hungry for specialised skills, particularly in infrastructure and urban development projects tied to Vision 2030.
Service companies span a wide range of activities, from IT and tourism to logistics and healthcare. This category is one of the most flexible under the MISA licence, allowing 100% foreign ownership with a relatively low entry barrier—typically the SAR 500,000 minimum capital for an LLC. For business leaders, this is where the Saudi market shines as an accessible yet high-growth opportunity.
The Kingdom’s push to become a regional hub for services makes this category particularly appealing for agile, service-oriented businesses.
Saudi Arabia’s reforms have turned a once-restrictive market into a welcoming hub for foreign investment. The MISA licence is your key to unlocking this potential, offering 100% foreign ownership across trading, industrial, and service companies—each with its own advantages and requirements. While professional companies remain an exception, the broader trend is clear: the Kingdom wants your business, and it’s making it easier than ever to set up shop.
For executives, this is more than a regulatory update—it’s a strategic opportunity. Whether you’re scaling a multinational or launching an SME, understanding these company types can shape your next move in one of the world’s fastest-growing economies. At Peninsula, we’re not just advisors; we’re your partners in turning opportunity into action. With our 15 years of regional expertise, we’ll guide you through the process, ensuring your business thrives in Saudi Arabia’s dynamic landscape.
Let’s start the conversation. Contact Peninsula today, and let’s explore how 100% foreign ownership can work for your business in Saudi Arabia.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which Saudi market entry strategy is best suited to your business.
Email: Alistair@peninsulacs.com
