What are the restrictions on the scope of business of Saudi companies?

In Saudi Arabia, a commercial land full of potential, foreign investors have focused their attention on this, hoping to open up the market and obtain profits by setting up companies. However, in the process of preparing for the establishment of the company, it is very important to understand the restrictions on the scope of Saudi companies, which is directly related to the feasibility and compliance of the investment plan.

Encourage foreign capital to enter the industry

1, Renewable Energy and the Green Economy

saudi Arabia plans to achieve renewable energy accounted for 50% of the energy structure by 2030. The goal includes the installation of 58.7GW of renewable energy facilities, providing huge opportunities for clean energy projects such as solar and wind energy.

2, Technology and Digitalization

including IT services, Web/App development, marketing and after-sales services, Saudi Arabia allows 100 percent foreign ownership and has low registered capital requirements (500000 Saudi riyals).

3, Tourism and Entertainment

saudi Arabia is vigorously developing tourism, such as NEOM Future City and the Red Sea project, to provide investment opportunities for foreign investors.

4, Healthcare and Education

saudi Arabia is vigorously developing vocational education and technical training, and the medical field also needs to introduce foreign investment to improve service levels.

5, Infrastructure and Logistics

saudi Arabia is investing in infrastructure on a large scale, such as smart cities and logistics hubs, to provide opportunities for foreign investors to participate.

Totally banned foreign investment in the industry

exploration and production of petroleum resources (except for services in the mineral sector under ICS 883-5115)

saudi Arabia strictly controls the oil industry, and foreign investors can only participate in non-exploration and production links (such as technical services, equipment supply, etc.).

2, military machinery and equipment and clothing production, civilian explosives production, military material supply.

Foreign investment is completely prohibited in areas involving national security.

3, Investigation and Security Areas

including private security, intelligence gathering and other sensitive industries.

4. Real estate investment in Mecca and Medina

real estate investment in the two holy cities is limited to local Saudi enterprises or individuals.

5. Guided tour services related to Hajj and Little Hajj

religious tourism services need to be monopolized by local Saudi enterprises.

6, labor services, real estate broker services.

Foreign investment is restricted in services such as human resources intermediaries and real estate brokers.

7. Specific printing and dissemination services

the printing and publishing industries involved in the management of national ideology are limited.

8, the international classification code 621 under the paid commercial agency services.

Commercial agents are required to go through a local Saudi business or obtain a special license.

9. Audio-visual service

foreign investment in film and television production, broadcast media and other fields is limited.

Nursing services, medical services and semi-medical services under International Classification Code 93191

the medical industry is subject to certification by the Saudi Ministry of Health and foreign ownership is limited.

11. Poison Center, Blood Bank and Health and Quarantine Institution

foreign participation in public health is prohibited.

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