The Ministry of Investment Saudi Arabia has released sweeping regulatory updates affecting licensing, ownership structures, and compliance requirements. Here's what changes and what you must do now.
The Ministry of Investment Saudi Arabia (MISA) has published its 2025 regulatory update, the most comprehensive revision of foreign investment rules in five years. The changes affect licensing categories, minimum capital requirements, Saudization percentages, and compliance reporting obligations.
Effective Date
All new regulations are effective from July 1, 2025. Existing licenses must be updated by December 31, 2025 to remain compliant.
Key Regulatory Changes
1. Expanded 100% Foreign Ownership Sectors
- Logistics and supply chain management
- Cloud computing and SaaS services
- Private education (K-12 and vocational)
- Medical clinics and diagnostic centers
- Architecture and engineering consultancies
- Environmental services and waste management
2. Revised Minimum Capital Requirements
- Trading companies: SAR 7 million (increased from SAR 5 million)
- Service companies: SAR 500,000 (unchanged)
- Industrial: SAR 1 million (decreased from SAR 1.5 million to attract manufacturing)
- Tech startups: SAR 50,000 (new exemption category)
3. Updated Saudization (Nitaqat) Requirements
- Micro (1–4 employees): 0% Saudi requirement, but points-based system applies
- Small (5–49 employees): 10–15% Saudi minimum (previously 5%)
- Medium (50–499 employees): 15–25% Saudi minimum (sector-dependent)
- Large (500+ employees): 25–35% with Vision 2030 alignment bonuses available
New Compliance Reporting Obligations
- Active employee headcount with nationality breakdown
- Saudization percentage (updated monthly)
- VAT registration status and filing confirmation
- Office/facility lease confirmation (no virtual offices for certain categories)
- General Manager residency confirmation
"Non-compliance with the new reporting obligations can result in license suspension within 30 days of missed filings. Act now — don't wait until December."
— BZNX Legal Advisory Team
- 1Log into the MISA portal and review your license category against the new classifications
- 2Verify your current capital meets new minimums (if applicable)
- 3Calculate your Saudization percentage under the new Nitaqat formula
- 4Register for the new quarterly compliance reporting module before October 2025
- 5Consult a qualified business setup advisor to assess impact on your specific license
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