• For the purpose of applying this Regulation, the following words and phrases shall have the meanings indicated before them, unless the context requires otherwise:

• The Council: Council of Ministers.

• The Board of Directors: Board of Directors of the Ministry of Investment.

• The Chairman of the Board of Directors: Council of Ministers.

• The Governor: Minister of Investment and the Council of Ministers.

• The Ministry: Ministry of Investment.

• The License: Approval issued by the Authority to engage in a specific activity that falls within its jurisdiction on a permanent or temporary basis.

• The License Applicant:

  • 1- The natural or legal person who does not hold Saudi Arabian nationality.

  • 2- The natural person or legal person who holds Saudi Arabian nationality and is a partner with the person mentioned in paragraph (1).

• The Foreign Investor: The natural person who does not hold Saudi Arabian nationality or the legal person in which none of the partners hold Saudi Arabian nationality.

• The Foreign Investment: The employment of foreign capital in an activity licensed under the Law and this Regulation.

• The Foreign Capital: Foreign capital refers, for example but not limited to, the following funds and rights when owned by a foreign investor:

  • 1- Cash, securities, and commercial papers.

  • 2- Profits from foreign investment when employed to increase capital or expand existing projects or establish new projects.

  • 3- Machinery, equipment, facilities, spare parts, means of transport, production supplies, and real estate related to the investment.

  • 4- Intellectual rights such as licenses, intellectual property rights, technical knowledge; management skills and production methods.

• The Law: Foreign Investment Law.

• Goods Establishments: Projects producing industrial and agricultural goods (plant and animal).

• Service Establishments: Service and contracting projects.

• The Regulation: Implementing Regulation of the Foreign Investment Law.

• The Authority's Supervisors: Individuals assigned by written authorization from the Governor or his delegate to monitor the implementation of the provisions of the Law and its Regulation from the Authority's employees or others.

• The Center: The comprehensive service center stipulated in Article Nine of the Authority's Organization.

Without prejudice to the list of activities excluded from foreign investment, to invest foreign capital in any investment activity whether on a permanent or temporary basis, a license shall be issued by the Authority in accordance with the Law, the Regulations, and the decisions issued by the Board. The license approval decision shall be issued under the signature of the Governor or his designee within a period of 30 working days from the date of completing the documents required pursuant to these Regulations and satisfying the conditions and controls for granting the license.

The Council of Ministers shall have the competence to issue a list of the activities excluded from foreign investment.

The foreign investments to be licensed under the provisions of the Law and these Regulations may take either of the following two forms:
1. firms owned by a national and a foreign investor; and
2. firms wholly owned by a foreign investor.
The legal form of such firms shall be confined to a limited liability company, a joint stock company, a foreign company branch, or any o

A project licensed under the Law and these Regulations shall enjoy all the benefits, incentives and guarantees enjoyed by a national project pursuant to laws and instructions and any amendments thereto, among which are the following examples:
1. The incentives stipulated in the Common Industrial Regulatory Law of the Cooperation Council for the Arab States of the Gulf, issued by Royal Decree no. M/20 dated 4/4/1427H;

2. A foreign investor may acquire real estate property necessary for practicing his licensed activity as need be, including property for his residence and the residence of his employees upon the prior approval of the Authority in
accordance with the provisions of the Law of Real Estate Ownership and Investment by Non-Saudis, promulgated by Royal Decree no. M/15, dated 17/4/1421H;

3. The benefits arising from agreements of avoiding double taxation and agreements of promotion and protection of investments concluded by the Kingdom;

4. Investments shall not be confiscated in whole or in part except with a judicial ruling, nor expropriated in whole or in part except for public interest and in return for a fair compensation;

5. A foreign investor may re-patriate or dispose of his share of the sale of his equity, liquidation surplus, or profits generated by the project. He may also transfer the amounts required to fulfill any contractual obligations of the project;

6. Free exchange of shares amongst partners and others upon the prior approval of the Authority;

7. Sponsoring the foreign investor and his non-Saudi staff by the licensed entity;

8. Obtaining industrial loans provided by the Saudi Industrial Development Fund in accordance with its law;

9. Carrying forward the net operating losses from the tax year following the year in which the loss was incurred, in accordance with the provisions of the Income Tax Law, issued by Royal Decree no. (M/1), dated 15/1/1425H and its implementing regulations;

10. Enjoying all tax incentives stipulated in the Council of Ministers Resolution no. (359), dated 26/11/1429H;

Conditions and Controls for Licensing Foreign Investment:
1. The investment activity to be licensed shall not be included in the list of activities excluded from foreign investment.

2. The technical specifications of the product and the method of production thereof shall conform to the Saudi, Gulf or international standards.

3. The license applicant shall not have been subject to any final judgments or decisions due to substantial violations of the provisions of this Law.

4. The license applicant shall not have been previously convicted; this shall include judgments rendered on financial or commercial violations whether inside or outside the Kingdom.

5. The license applicant shall abide by the conditions, controls, declarations and undertakings attached to the investment license application form.

6. Licensing shall fulfill the objectives of investment and the purposes of the Authority.

These conditions and controls shall apply to license renewal applications.

The license applicant or his legal representative shall fill out an electronic form of the investment license application via the official website of the Authority, along with completing the following documents in the Arabic language or translating the same into Arabic by a certified office in the Kingdom:
1. A copy of the commercial register of the company applying for license in its native country; and

2. Data of the financial statements for the last fiscal year of the company applying for license.

The foreign investor may obtain more than one license to engage in the same activity or other different activities in accordance with the following regulations:
1- The conditions stipulated in Article Six of this Regulation must apply to them.
2- The required documents specified in Article Seven of this Regulation must be fulfilled.
3- Repealed.

The Authority shall notify the license applicant or his legal representative of the receipt of his application including registration number and date. The license shall not be delivered except after the Authority obtains the required original documents for verification in the cases required by the Authority.

The Authority shall notify the license applicant or his representative of the final decision on his application, either in writing by delivery in person or by registered mail, or to his approved residence address or e-mail provided in the license application form or via any other means by which the notification shall be fulfilled.