100% Foreign Ownership: Where It's Real and Where It Isn't
Saudi Arabia allows 100% foreign ownership across most sectors — but the headline hides a negative list, minimum-Saudi activities and the SAR 30M trading rule.
“100% foreign ownership” is the line every promoter leads with, and for most activities it is genuinely true. But the exceptions are exactly where foreign investors get caught — because they attach to the activities people most often want to run.
The rule
Under the Investment Law, a foreign investor can own their Saudi company outright across the large majority of activities, with no local partner — services, IT and software, consulting, manufacturing, professional services and holding companies among them. GCC nationals and GCC-owned companies receive national treatment; US investors benefit from bilateral arrangements.
The negative list
Some activities remain excluded from foreign investment entirely — for example, upstream petroleum exploration and production, and the manufacture of military equipment. The list has been narrowed steadily over recent years, and excluded activities can sometimes be pursued through an exceptional approval from MISA. A separate set of activities requires minimum Saudi participation.
The trading exception — the one that catches people
A 100% foreign-owned wholesale, retail or e-commerce (“trading”) company carries a high bar: capital of SAR 30 million, a demonstrated presence in at least three international markets, and a multi-year investment commitment. Below that threshold, the common route is a Saudi partner (often around 25%). The SAR 30M figure has been reported as under review and may be reduced — confirm the current rule before you plan around it.
The headline holds for services, IT, consulting, manufacturing and holding — 100%, no partner. It bends for trading, and it breaks for the negative list. Your activity code decides which of the three you're in.
Capital, in practice
Many service and industrial licences carry little or no real minimum — a nominal SAR 25,000 is often written into the articles — while a foreign-owned LLC is commonly expected to show around SAR 500,000 in practice. Trading is the outlier at SAR 30 million. Capital is best set with your activity and the bank file in mind, not just the legal floor.
Getting it right
Confirm your exact activity against the current negative and minimum-participation lists before you design ownership. In Saudi Arabia, ownership is an output of activity selection — not an input you can choose freely and back-fill.
Does your activity qualify for 100%?
We'll check it against the current negative list, minimum-participation rules and capital thresholds before you commit.
Speak to an Advisor →This article is general information, current as of 2026, and is not legal or tax advice for any specific situation. Saudi rules are changing quickly — confirm current thresholds and lists with MISA or local counsel before acting.