Documente Academic
Documente Profesional
Documente Cultură
IN SAUDI ARBIA
SAGIA.GOV.SA 1
sagia.gov.sa
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CONTENTS
Address of His Excellency the Governor of The General Authority for investment ............ 6
Contact ..................................................................................................................................... 42
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ABOUT
SAGIA
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Based on its vision to be a pioneer in developing quality investments that facilitates sustainable development,
the Saudi Arabian General Investment Authority (SAGIA) is responsible for following up and assessing investment
performance, alleviating the difficulties encountered by investors, conducting studies and research and drafting
executive plans to stimulate local investments.
Under a resolution of the Council of Ministers, SAGIA was created as a vehicle for investment in Saudi Arabia,
including foreign investment, by improving the local investment environment and making it more attractive to
foreign investments.
SAGIA utilizes its full capacities to improve the investment climate and enhance support structures. It also seeks
to constantly elevate services through its human resources, effective partnerships and continuous interaction with
investors.
In line with Vision 2030 and its initiatives within the National Transformation Program 2020, SAGIA has been
giving special attention to the provision of quality services to investors through business centers that include
representatives of investment-related government entities. It has also focused on attracting leading companies
in promising sectors to invest in Saudi Arabia, on effectively and rapidly implementing the program of improving
the investment environment, developing businesses and raising their international competitiveness as well as on
holding local and international investment conferences and seminars.
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ADDRESS OF HIS EXCELLENCY THE GOVERNOR OF THE GENERAL AUTHORITY FOR INVESTMENT
Eng. Ibrahim bin Abdul Rahman Al-Omar
Since its establishment, the Saudi Arabian General Investment Authority (SAGIA) has been
facilitating business and improving the investment environment to attract foreign investments,
localize local investments, encourage the local and foreign private sectors to become basic
partners in the economic and social development, achieve the pursued economic diversification,
improve the level of services provided to investors and reduce the time taken to decide on
license applications.
In this context, SAGIA has been giving special attention to providing quality services to investors. To attract leading
companies in promising sectors to invest in Saudi Arabia, SAGIA’s business centers include representatives of
investment-related government entities. In addition to effectively and rapidly implementing the program of improving
the investment environment, developing businesses and raising their international competitiveness and holding local
and international investment conferences and seminars.
In the course of improving the investment environment, SAGIA has intensified its efforts with its governmental
partners to complete the legislative and regulatory structure that would contribute to providing a safe and stimulating
investment environment. To this purpose, it has produced the Doing Business manual to define how to start and
operate businesses in Saudi Arabia, including its strengths, features and incentives in addition to defining, classifying
and highlighting the types of investments and licensing services.
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Based on Vision 2030 and the initiatives of the National Transformation Program 2020, SAGIA is responsible for
following up and assessing investment performance, alleviating the difficulties encountered by investors, conducting
studies and research and drafting executive plans to stimulate local investments. In this context, SAGIA utilizes its
capacities in order to improve the investment climate and enhance support structures. It also seeks to constantly
elevate services through its human resources, effective partnerships and continuous interaction with investors.
Saudi Arabia has many geographical, historical and cultural features that enable it to assume a pioneering political
and economic position at all levels. Sitting at the heart of the Arab and Islamic region linking Europe, Asia and Africa
together, Saudi Arabia is ideally situated at the crossroad of the world, making it an exceptional country and a global
investment-attracting destination with vast lands rich in natural resources and multiple sources of renewable energy
that are in line with its strategic vision and make it an important economic and investment destination.
Finally, I wish to extend my thanks and gratitude to the Custodian of the Two Holy Mosques and His Highness the
Crown Prince for their continued support to SAGIA. I would also like to thank my colleagues on the Board of Directors
as well as SAGIA staff for the tangible efforts they are making to achieve outstanding results, all confident that
our great achievements will contribute, God willing, to building a sustainable economy that achieves the highest
standards of well-being for our nation and citizens.
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INVESTMENT IN
SAUDI ARABIA
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INVESTMENT IN SAUDI ARABIA
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KSA Strengths and Features
Incentives and Support
Saudi Arabia features many strengths that are in line with The Saudi economy has been based on
its strategic vision and make it an important economic and its strengths, supported by a competitive
investment destination. Surrounded by key waterways, environment for all economic activities that
Saudi Arabia is a bridge for peoples and products, serving allowed the average annual growth rate to
as a unique logistic center linking global trade routes and increase by 4% over the past seven years.
allowing the expansion of commercial activities.
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FINANCIAL SUPPORT
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TAX SUPPORT
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EMPLOYMENT SUPPORT
05 “Doroob” Program
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HOW TO START
YOUR BUSINESS ?
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HOW TO START YOUR BUSINESS
A. Overview
When starting a business in Saudi Arabia, it is important to consider many factors with regard to the type of
investment, legal entity and activity to be invested in. Saudi Arabia welcomes all investments that add value to
Saudis and non-Saudis in all sectors.
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Regulation of foreign investment comprises
three main components:
Foreign
Investment
01 Licenses and
Procedures
Foreign
International
Investment
02 Financial
03 Trade
Agreements
System
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Foreign
Investment
01 Licenses and
Procedures
In order to start business in Saudi Arabia, investors must first obtain an investor
01 license. SAGIA is the authority concerned with improving the investment environment
and providing all services to investors.
02
Types of investment licenses vary, each with its own requirements, such as the
minimum acceptable capital and the maximum foreign capital.
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Foreign
Investment
02 Financial
System
The four key components of the financial system that are of interest to any foreign investor:
01 Corporate Income Tax: charged at 20% on the foreign shares of a resident company,
the lowest among the G20.
02 Corporate tax is 20% of foreign shares net profit, and 2.5% Zakat of local shares.
03 Application of VAT.
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International
03 Trade
Agreements
Saudi Arabia is a member of Saudi Arabia is a member of Saudi Arabia has signed
the World Trade Organization the Gulf Cooperation Council treaties to avoid double
and is committed to further and the Greater Arab Free taxation of income and capital
liberalizing trade systems and Trade Area. with 29 countries, as well as
accelerating integration into agreements to promote and
the global economy. protect the investments of
one contracting party in the
territory of the other with
23 countries.
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C. Forms of Legal Entities:
SAGIA seeks to facilitate the entry of foreign value-added enterprises to discover and take part in various activities in the
Saudi market by the establishing the following legal entities:
A company in which the number of shareholders does not exceed 50. An LLC shall have a name that is creative or
derived from its purpose. If the LLC is owned by one person, the name shall indicate that it is single member LLC. The
LLC’s memorandum of association shall be signed by all shareholders. The contract shall include in particular the data of
shareholders, capital, management, authorities and others. The LLC shall appoint one or more auditors.
A company that is established by one person who owns all its shares and whose liability shall be limited to the money
they allocated to be the capital of the company. The owner shall have the authority and power of the company’s
Director, Board of Directors and General Shareholder Assembly. The shareholder may appoint one or more directors to be
representative(s) before courts, arbitral tribunals and third parties and responsible for the management of the company
before the shareholder. In all cases, a natural person shall not establish or own more than one SMLLC. A (natural or
corporate) single member LLC may not establish or own another SMLLC.
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03 Joint Stock Company (JSC)
A company whose capital is divided into negotiable shares of equal value. Each JSC shall have a name indicating its
purpose and shall be managed by a board of directors. The JCS’s memorandum of association shall set the number of its
members to be between three and eleven.
A company operating in Saudi Arabia through a branch, office, agency or any other form that is based in the kingdom to
represent, direct, or coordinate work carried out outside it. Each branch of a foreign company shall use Arabic in all its
papers, documents and publications printed in Saudi Arabia, as well as in the company’s name, address, head office and
name of agent.
The branch of a foreign company within Saudi Arabia shall serve as its home with regard to its activities and businesses
within the kingdom subject to all applicable regulations.
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TYPES OF
INVESTMENTS
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Service
01 Investments
Entrepren-
Industrial
02 Investments
04 eurial
Investments
Commercial
03 Investments
Engineering
Real Estate
05 Investments
06 Consultancy
Offices
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SERVICE INVESTMENTS
Service investments comprise licensing the activities of contracting, public transport, manpower recruitment
agencies, domestic labor hiring, university colleges and regular universities*.
APPLICATION
• Application for licensing of service activities shall be made through SAGIA website – E-services page.
• Ensuring that the percentage of Saudi shareholding and the capital comply with the minimum specified for this
type of activity.
• Payment of the SAR 2,000 annual license fee for a maximum of 5 years in addition to SAR 10,000 as a first one-year
subscription to services of SAGIA Business Centers, to be followed by the service subscription fee in later years.
*Taking into account the documents and conditions set forth for all types of activity.
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LICENSING SERVICES
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INDUSTRIAL INVESTMENTS
They refer to the activities falling under the production processes of importing raw materials, production
lines of manufacturing products for export or local sale as well as the provision of products’ warranty,
maintenance and installation.
APPLICATION
• Application for licensing of industrial activities shall be made through SAGIA website – E-services page.
• A statement that “The licensee must refer to the Ministry of Energy, Industry and Mineral Resources to obtain the
industrial license, and the General Authority for Meteorology and Environmental Protection for environmental
approval” shall be added to all licenses issued in the industrial field.
• Payment of the SAR 2,000 annual license fee for a maximum of 5 years in addition to SAR 10,000 as a first one-year
subscription to services of SAGIA Business Centers, to be followed by the service subscription fee in later years.
*Taking into account the documents and conditions set forth for all types of activity.
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LICENSING SERVICES
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COMMERCIAL INVESTMENTS
Given the importance of commercial businesses in Saudi Arabia and the Saudi efforts to facilitate the
entry and engagement of foreign enterprises in wholesale and retail activities in the Saudi market according to specific
terms and conditions set for ambitious foreign companies, SAGIA has started granting commercial licenses with Saudi
shareholders in addition to issuing 100% foreign commercial licenses.
APPLICATION
• Application for licensing of commercial activities shall be made through SAGIA website – E-services page.
• Ensuring that the percentage of Saudi shareholding and the capital comply with the minimum specified for this type
of activity.
• In the case of a commercial license with a Saudi shareholder, the Saudi share shall not be less than 25%. In the case of
a 100% foreign commercial license, the entity shall comply with the criteria and conditions specified for such activity.
• Payment of the SAR 2,000 annual license fee for a maximum of 5 years in addition to SAR 10,000 as a first one-year
subscription to services of SAGIA Business Centers, to be followed by the service subscription fee in later years.
*Taking into account the documents and conditions set forth for all types of activity.
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LICENSING SERVICES
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ENTREPRENEURIAL INVESTMENTS
Given the importance of entrepreneurs to Saudi Arabia and their effective impact on its economy, SAGIA
works to provide its services to entrepreneurs who wish to establish pilot enterprises accredited by Saudi
universities or business incubators.
APPLICATION
• Application for licensing of entrepreneurial activities shall be made through SAGIA website – E-services page.
• Applications for licensing of entrepreneurial businesses shall be supported by accrediting resident universities or
business incubators.
• In case the applicant is a KSA-resident, a non-objection letter from their Saudi sponsor shall be provided.
• License at issuance shall be valid for a period of 5 years.
• Payment of the SAR 2,000 annual license fee for a maximum of 5 years in addition a payment for obtaining services
from SAGIA Business Center according to the entity’s classification rather than entrepreneur license at the end of the
5th year.
*Taking into account the documents and conditions set forth for all types of activity.
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LICENSING SERVICES
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REAL ESTATE INVESTMENTS
They include investment in property provided that the total cost of the project, in terms of both land
and construction, is not less than SAR 30 million in terms of land and construction and the investment is
carried out outside the borders of the cities of Mecca and Medina.
APPLICATION
• Application for licensing of real estate activities shall be made through SAGIA website – E-services page.
• The total cost of both land and construction shall not be less than SAR 30 million.
• The property shall be outside the borders of the cities of Mecca and Medina.
• Ensuring that the percentage of Saudi shareholding and the capital comply with the minimum specified for this
type of activity.
• Payment of the SAR 2,000 annual license fee for a maximum of 5 years in addition to SAR 10,000 as a first one-year
subscription to services of SAGIA Business Centers, to be followed by the service subscription fee in later years.
*Taking into account the documents and conditions set forth for all types of activity.
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LICENSING SERVICES
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ENGINEERING CONSULTANCY OFFICES
Saudi Arabia seeks to attract consultancy-related investments of all types including 100% ownership
Saudi-based engineering offices.
APPLICATION
• Application for licensing of engineering consultancy activities shall be made through SAGIA website – E-services page.
• The applicant foreign company or one of its subsidiaries shall be licensed in the same field in four countries at least.
• An experience certificate for the company shall be submitted for the last 10 years at least.
• Payment of the SAR 2,000 annual license fee for a maximum of 5 years in addition to SAR 10,000 as a first one-year
subscription to services of SAGIA Business Centers, to be followed by the service subscription fee in later years.
*Taking into account the documents and conditions set forth for all types of activity.
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LICENSING SERVICES
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TYPES OF LICENSES
AND MINIMUM
ACCEPTABLE
CAPITAL AND SAUDI
SHAREHOLDING
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Minimum Saudi
No. Type of License Minimum Acceptable Capital (SAR)
Shareholding (%)
2 Communications – 70%
4 Insurance – 40%
5 Reinsurance – 40%
*Related to the limit of the cost of a single project to be constructed. There is no minimum limit for the capital of property development projects.
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INVESTOR
JOURNEY
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The Journey of the Foreign Investor in
Establishing an Investment Entity
Signing up on SAGIA website
Foreign
Company
Branches
Issuance of Issuance of Commercial
Investment License Registration
Issuance of Issuance of
Online File Reading
Municipal License Director General’s Visa
(Optional)
issuance of
Opening of a Bank Account
Commercial Registration
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Contact
Details
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CONTACT US:
Email us at InvestorCare@sagia.gov.sa
For inquiries about the status of transactions and applications registered at SAGIA, please log in to
the establishment online account on SAGIA website (www.sagia.gov.sa) or visit the inquiries section
for applications submitted through business centers.
For complaints, inquiries, proposals and objections, please visit SAGIA website (www.sagia.gov.sa),
log in to the Entity online account and submit your application. If you have no account, you can use
the general inquiry form on the contact us page.
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For investment opportunities, visit INVESTSAUDI.SA
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