In August 2024, Saudi Arabia issued Royal Decree M/19 replacing the 2000 Foreign Investment Law. The new Investment Law and its implementing regulations came into effect in February 2025, marking a significant leap in the Kingdom’s Vision 2030 strategy
Key Features and Amendments
- Equal treatment: Local and foreign investors receive the same treatment under “similar circumstances,” with clearly defined exceptions for national security
- Investor protections: Rights now include intellectual property, trade secrets, indirect expropriation safeguards, and unrestricted fund repatriation
- Investment freedom: The law expands permissible investment activities, subject to excluded activity lists which investors can now apply to enter
- Simplified registration: Licensing replaced by a unified 5‑day registration process, eliminating lengthy approvals
- One-stop service: A central “service centre” in MISA now handles all necessary approvals and coordination with other authorities
- Dispute resolution: Options including arbitration, mediation, and internal complaints procedures are now formalized
Investment Stimuli
Article 6 and related regulations introduce incentives such as tax breaks, customs privileges, and property ownership facilitation to attract both local and foreign investors
Why It Matters
Whether you’re planning a new business, expanding operations, investing in strategic regions (like Mecca/Medina), or safeguarding investor rights, this law delivers enhanced confidence and streamlined pathways
Saudi Arabia as an Investment Hub
With goals to boost FDI to USD 100 billion annually (up from 25.6 billion in 2023), and backed by PIF-fueled projects like NEOM, the Kingdom is positioning itself as an investment leader in the region
Conclusion
Saudi Arabia’s 2025 Investment Law represents a strategic overhaul, offering transparency, fairness, and global competitiveness. It’s an open invitation for local and international investors to confidently participate in the Kingdom’s economic renaissance.
