The new Investment Law was enacted under Royal Decree No. (M/19) and Cabinet Resolution No. (40) dated 16/01/1446 AH (July 22, 2024), replacing the previous Foreign Investment Law. It officially entered into force on 09/08/1446 AH (February 8, 2025).

This new legislation reflects Saudi Arabia’s commitment to improving the investment climate, enhancing regulatory clarity, and attracting both local and foreign capital in line with Vision 2030.

Key highlights of the new law include:

• Article 1:
  Redefines both foreign and local investors under a unified legal framework, ensuring equal treatment. It also broadens the definition of capital to include tangible and intangible assets, contracts, and intellectual property rights.
• Articles 3 and 8:
  Allow investors to engage in any economic sector not listed in the excluded activities list, which is issued and periodically updated by the competent authority.
• Article 7:
  Establishes a unified national register for investors, to be maintained by the Ministry. It mandates registration prior to making any investment and provides for fully electronic procedures via a one-stop service center.

The new Investment Law represents a major step forward in aligning Saudi Arabia’s investment landscape with global standards. By unifying the treatment of local and foreign investors and enabling broader definitions of capital, the law encourages greater participation across sectors.

If you require legal consultation regarding investment licensing, sectoral compliance, or structuring under the new law, reach out to us at info@mashoralaw.com. Our expert team is ready to support your strategic goals.