How Can Foreigners Invest in Saudi Arabia?

From opening a brokerage account to establishing a company or buying property, international investors now have several routes into Saudi Arabia. The first decision is not where to put your money, but how involved you want to become.

Your first Saudi investment may begin before you book a flight.

It could be a listed company appearing on your investment platform, a Saudi start-up looking for its next round of financing, or a new residential development presented at an event in London. All three may offer exposure to the Saudi economy, but they involve very different levels of control, commitment and risk.

This distinction matters because there is no single activity called “investing in Saudi Arabia”. Buying a few listed shares is not the same as establishing a company, taking a strategic stake in a private business or owning an apartment in Riyadh.

The encouraging part is that each route has become more accessible. The less exciting, but equally important, part is that accessibility does not guarantee a good investment.

First, look at what the figures actually say

Saudi Arabia is attracting substantial foreign capital, although the numbers do not describe an uninterrupted rush into the Kingdom.

Foreign direct investment inflows reached SAR26.6 billion in the first quarter of 2026, an increase of 2.4 per cent from the same period in 2025. Net inflows, after accounting for outward movements, stood at SAR23.1 billion, down 2.4 per cent year on year and 51.9 per cent from the unusually strong final quarter of 2025.

The figures suggest continuing interest, but also considerable quarterly variation. They are more useful than the familiar claim that every part of the Saudi economy is booming. The official GASTAT publication provides the full comparison.

It is also worth understanding what statisticians mean by foreign direct investment. GASTAT generally classifies an investment as FDI when the foreign investor owns at least 10 per cent of the voting power and can exercise a degree of influence over the business. Buying a small collection of Saudi shares is therefore an international investment, but not necessarily FDI.

Once you know how active you want to be, three main routes come into view.

No. 1

Buying Saudi shares and investment funds

For many overseas investors, the simplest starting point is the Saudi capital market.

Since 1 February 2026, Saudi Arabia’s Main Market has been open to all categories of foreign investors for direct investment. The reform removed the old Qualified Foreign Investor framework, which had largely restricted consistent direct access to large institutions meeting specific eligibility requirements.

The change means that an individual or institution abroad can approach an authorised financial institution and open an investment account, subject to identity, compliance and account-opening requirements. Foreign ownership restrictions may still apply to particular companies or sectors, so an open market should not be mistaken for a market without limits.

By the end of May 2026, the value of foreign holdings on the Saudi Exchange stood at approximately SAR457.18 billion, or $121.9 billion, according to Saudi Exchange data.

This route allows you to invest in banking, telecommunications, energy, healthcare, industry and other listed sectors without operating a business yourself. Real estate investment trusts can also provide property exposure without requiring you to purchase and manage a building.

Investment funds offer another route. Depending on their mandate, they may invest in listed securities, private companies, venture capital, real estate or particular industries. A fund can provide professional management and access to opportunities that may be difficult for an individual investor to reach directly.

It can also reduce your control over individual decisions. Before subscribing, examine the fund’s licence, investment mandate, fees, valuation policy, use of borrowing and rules governing withdrawals. Private and venture funds may require your capital to remain committed for several years, with no public market through which to exit early.

Convenience does not remove risk. A listed company can be profitable while its share price falls, and a growing industry does not guarantee that every company within it is fairly valued. Examine earnings, debt, governance, dividends and foreign ownership limits before buying.

No. 2

Establishing, acquiring or joining a Saudi business

If you want more control, you may decide to establish a Saudi company, acquire part of an existing business or enter a joint venture with a local partner.

Saudi Arabia’s updated Investment Law replaced the previous foreign-investor licensing model with a registration-based system. A foreign investor must register with the Ministry of Investment, known as MISA, before beginning business activities. Once registration is completed, the investor can obtain a commercial registration and any sector-specific licences required.

The law guarantees foreign and domestic investors equal treatment under similar circumstances. It also protects the right to manage and dispose of an investment, transfer funds through legal channels, protect intellectual property and seek dispute resolution through courts or agreed alternatives such as arbitration and mediation. MISA’s explanation of the updated Investment Law sets out these rights and procedures.

In practice, company formation is only the administrative beginning.

You still need to understand whether your activity falls within a restricted sector, what level of capital is required, whether professional or municipal licences are needed and what employment, localisation and reporting obligations apply. A structure suitable for a technology consultancy may be unsuitable for a manufacturing project, medical business or financial service.

Acquiring  stakes

Acquiring a stake in an established company may offer a faster route into the market, especially when the business already has employees, customers and local knowledge. It introduces a different set of questions, however.

Who controls the company? What voting rights accompany your investment? Can new shares dilute your position? How are profits distributed? What information must management provide? And how can you sell your stake if there is no public market for it?

Those answers should appear in audited accounts, the company’s constitutional documents and a carefully drafted shareholders’ agreement. They should not depend on personal assurances or an impressive presentation.

The same caution applies to project-based partnerships in tourism, logistics, technology, healthcare, manufacturing, mining and food production. These sectors may benefit from considerable demand and public investment, but a persuasive national story cannot repair weak management, unrealistic revenue forecasts or an unclear exit strategy.

The tax position must also be calculated before choosing the structure. The non-Saudi share of a Saudi company’s taxable profit is generally subject to corporate income tax at 20 per cent, while the standard rate of VAT is 15 per cent where applicable. Withholding taxes may also arise on certain payments to non-residents.

The final treatment depends on the activity, ownership structure and applicable tax treaty, so it should be modelled before incorporation or acquisition rather than discovered after the first profitable year. ZATCA publishes the applicable income-tax framework and VAT guidance.

No. 3

Buying Saudi property

Real estate provides the most tangible route. You can visit the property, walk through its rooms and imagine who might live there. Yet it is not necessarily the simplest investment.

Saudi Arabia’s updated rules allow non-Saudi individuals and companies, including those based abroad, to own property in approved geographical areas. Applications are processed through the official «Saudi Properties» platform, while the eligibility of the buyer and the precise location of the property remain important.

Makkah and Madinah have additional restrictions: foreign ownership there is limited to Muslim individuals and qualifying Saudi companies with non-Saudi shareholders. Off-plan buyers should also verify the project through the official «Wafi» licensing system. REGA’s foreign-ownership guide explains the main framework.

For British investors, as well as foreign investors who live in or visit the UK, part of that research can now take place in London. The UK-Saudi Real Estate Exhibition will bring Saudi developers and British legal, financial and property advisers together at The Chancery Rosewood from 2 to 4 August 2026.

The exhibition is being convened by International Investment Gate, or IIG, with support from the Saudi British Joint Business Council. It offers prospective investors an opportunity to compare Saudi projects without having to begin by travelling from one development to another across the Kingdom.

The useful part of an exhibition is not the number of brochures you collect. It is the opportunity to ask each developer the same questions: Is the project licensed? Can a non-resident own this exact unit? Who holds the deposit? Are the advertised returns guaranteed or merely projected? What are the annual service charges? And how easily could you sell?

An exhibition can begin your due diligence. It cannot replace it.

IIG’s House of Lords Reception

Choosing your route

Your decision should begin with three practical questions.

How much control do you want? Listed shares and funds require little personal involvement, while running or acquiring a company may demand management time, employees and a physical presence.

How long can your money remain invested? Publicly traded securities are generally easier to sell than a private-company stake or an off-plan property.

Finally, how much uncertainty can you accept? Early-stage businesses and new developments may offer greater potential returns, but they rely more heavily on forecasts, future demand and successful execution.

Saudi Arabia is becoming easier for foreigners to invest in, but that does not mean every route suits every investor. The public market offers speed and liquidity, a company offers control and partnership, and property offers something you can see and use.

The best investment will not necessarily be the one attached to the largest project or the boldest national ambition. It will be the one whose ownership, costs, risks and exit terms remain clear after the presentation has ended.

This article provides general information and does not constitute legal, tax or investment advice.