Company Formation in Saudi Arabia: Understanding MISA Registration

Investment in Saudi Arabia is administered by the Ministry of Investment (MISA), formerly known as SAGIA. Under the Investment Law issued by Royal Decree No. M/19 in 2024, which came into force in 2025 and replaced the Foreign Investment Law of 2000, the former foreign investment licence has been replaced by registration with MISA. The change simplifies market entry, but it does not remove the need to plan the route carefully.

Some activities remain restricted or prohibited for foreign investment, and certain sectors carry their own conditions or require approval from the relevant sector regulator, while many are open to full foreign ownership. Identifying the position at the outset matters: an entity set up for the wrong activity or structure may later need to be restructured.

Once MISA registration is complete, the entity still needs commercial registration and, depending on the activity, other registrations such as municipal licensing and Chamber of Commerce membership before it is fully operational. Structuring the shareholding and governance correctly from the start avoids a second round of paperwork later, particularly for investors who plan to bring in additional partners or capital down the line.

This article is general information current as of the review date above and is not legal advice for any specific matter. Laws and regulations referenced may change — contact us to confirm current requirements before acting on this content.