Introduction: Investment as a Strategic Tool for Saudi Vision 2030

Investment represents one of the core pillars of Saudi Arabia’s Vision 2030, as the Kingdom seeks to diversify its economy and reduce reliance on oil by encouraging domestic and foreign investments across various sectors.

Under this framework, the **New Investment Law of 1446 AH (2024)** was issued as a major legislative shift aimed at regulating the investment environment, enhancing competitiveness, and attracting capital in line with the national vision.

Main Features of the New Investment Law (1446 AH):

The new law replaces the Foreign Investment Law and applies comprehensively to all investors—Saudi and foreign—based on equality and fair treatment. Key features include:

• Freedom of Investment and Ownership: Foreign investors may own 100% of projects in most sectors.
• Fairness and Equality: Equal rights and obligations for Saudi and foreign investors.
• Transparency: Government entities must disclose licensing requirements and procedures.
• Legal Guarantees: Protection from expropriation except for public interest and with fair compensation; access to arbitration is permitted.

How the Law Supports Vision 2030 Objectives

The law contributes to Vision 2030 through:

• Facilitating Business Setup: Faster licensing and digital platforms such as “Invest Easily”.
• Encouraging Strategic Sectors: Including renewable energy, technology, logistics, and industrial fields.
• Supporting Innovation and Entrepreneurship: Allowing intellectual property assets to be used as investment capital.

Investor Guarantees and Incentives:

• Freedom to transfer profits abroad.
• Right to appeal decisions or resort to courts.
• Tax and customs incentives.
• Ability to obtain multi-activity permits under one entity.

Conclusion and Investor Guidance

The new law represents a transformative step for Saudi Arabia’s investment environment, enhancing trust among local and global investors.

Practical Guide for New Investors

1. Identify the desired economic activity based on the Ministry’s official guide.
2. Submit a license request through the “Invest Easily” platform.
3. Fulfill commercial registration and regulatory licensing requirements.
4. Begin operations immediately upon registration.
5. Maintain accurate legal and financial records to ensure compliance.

Frequently Asked Questions (FAQ)

1- What is the scope of the new Investment Law?
It applies to all investors, Saudi and foreign, across all non-excluded sectors.

2- Does the law allow 100% foreign ownership?
Yes, in most sectors without the need for a local partner.

3- Which authority issues investment licenses?
The Ministry of Investment, in coordination with relevant sectoral regulators.

4- Can an investor appeal a rejected license?
Yes—first before the Ministry within 30 days, then before the courts if necessary.

5- What incentives are available?
Tax incentives, financing support, and real estate ownership facilitation depending on sector and location.