100% Foreign Ownership - Definition, Eligibility, and Who Can Apply

100% Foreign Ownership refers to the ability of non-Saudi individuals or companies to fully own and control a business entity in Saudi Arabia without a local Saudi partner or sponsor. This ownership model is permitted in eligible sectors under Saudi investment regulations and is administered through approvals from the Ministry of Investment of Saudi Arabia (MISA).

This reform is part of Saudi Arabia’s broader efforts to attract foreign direct investment under Vision 2030.

The Importance of 100% Foreign Ownership

The introduction of 100% Foreign Ownership has significantly enhanced Saudi Arabia’s attractiveness as a global investment destination by providing foreign investors with full operational control, profit repatriation rights, and decision-making authority.

For international businesses, this model reduces dependency on local partners, increases transparency, and enables long-term strategic planning for global corporate structures.

Key Features of 100% Foreign Ownership

• Permitted By: Ministry of Investment of Saudi Arabia (MISA)
• Ownership Structure: Full foreign ownership with no mandatory Saudi partner
• Sector-Based Eligibility: Allowed only in approved business activities
• Legal Framework: Governed by Saudi investment and company laws
• Repatriation Rights: Allows profit and capital repatriation, subject to compliance \

What 100% Foreign Ownership Enables

Entities approved for 100% Foreign Ownership can:

• Establish wholly foreign-owned companies in Saudi Arabia
• Maintain complete control over management and operations
• Register a company without a Saudi shareholder
• Appoint foreign directors and General Managers (subject to residency rules)
• Access government incentives and investment support programs
• Operate under internationally aligned corporate governance structures

Who Is Eligible for 100% Foreign Ownership

100% Foreign Ownership is available to:

• Foreign investors and multinational companies
• Businesses operating in the eligible sectors approved by MISA
• Companies meeting capital, experience, and compliance criteria
• Investors applying through the MISA Investment License framework

Certain strategic or restricted sectors may still require local participation or special approvals.

Relationship Between 100% Foreign Ownership and Company Formation

100% Foreign Ownership is typically granted as part of the MISA Investment License approval process and directly affects the company's structure during Commercial Registration. While it allows full ownership, companies must still comply with all Saudi regulatory requirements, including ZATCA, GOSI, and Chamber of Commerce registrations.