Foreign investment fees in Saudi Arabia: cost and conditions

Are you looking for an exceptional investment destination for the future Saudi Arabia has become the first destination for investment in the Middle East the kingdom of Saudi Arabia is considered one of the most prominent investment destinations in the Middle East, thanks to its strategic location, its strong economy, and its enormous natural resources, and this has made many wonder about Foreign investment in Saudi Arabia. In the framework of Vision 2030, and with the growing interest of foreign investors in the Saudi market, it has become necessary to understand Foreign investment fees in Saudi Arabia, In addition to the required legal and procedural conditions. In this article, we will review the cost and conditions of foreign investment in Saudi Arabia.

Foreign investment in the industrial sector

After the issuance of the kingdom's updated investment system, the industrial sector has become one of the most attractive sectors  For foreign investment in Saudi Arabia, Especially with the presence of specialized industrial cities such as Jubail Industrial City and Yanbu Industrial. The cost of investment in this sector varies depending on the nature of the industrial activity, the size of the project, the number of employees, the location of the company.  

Foreign investment fees in Saudi Arabia-industrial sector

• Initial capital: The capital required to start an industrial project ranges from 1 million to 10 million Saudi riyals, depending on the size of the project.
• Land costs: The Saudi authority for industrial cities (MODON) offers industrial lands at competitive prices, starting from 50 riyals per square meter per year.
• Equipment and infrastructure: Includes infrastructure costs such as electricity, water and sanitation, which may amount to 20% of the total cost.
• Government fees: Includes license and permit fees, which range from SAR 10,000 to SAR 50,000 depending on the type of activity.

Conditions of investment in the industrial sector

1. Obtaining an industrial license: The investor must obtain a license from the Saudi authority for industrial cities.
2. Compliance with environmental standards: The project must comply with the environmental standards imposed by the General Authority of Meteorology and Environmental Protection.
3. Employment of Saudis: A certain percentage of Saudis are required to be employed in accordance with the Emiratization policies (domains).
4. Compliance with quality standards : The project must comply with the quality standards imposed by the Saudi Standards, Metrology and quality organization.

Foreign investment in the real estate sector

Saudi Arabia has launched many new laws and regulations within the framework of Vision 2030, in order to revive foreign investment and facilitate the steps of obtaining a trade license. The new commercial register system was one of the most important steps. The real estate sector in Saudi Arabia has witnessed remarkable growth in recent years, especially with major development projects such as NEOM, the line, and the Qiddiya project. Therefore, this project is a powerful attraction tool Foreign investment in Saudi Arabia, andInvesting in this sector requires an understanding of the initial costs and legal requirements.

Foreign investment fees in Saudi Arabia-real estate sector

• Purchase of land: Land prices vary by location, ranging from 500 to 5,000 riyals per square meter in major cities such as Riyadh and Jeddah.
• Designs and constructions: The cost of building real estate ranges from 1,500 to 3,000 riyals per square meter, depending on the quality of materials and type of construction.
• Government fees: Includes real estate registration fees, which amount to 5% of the property value.
• Annual taxes and fees: It includes municipal service fees, which range from 1% to 2% of the property value per year.

Conditions of foreign investment in the real estate sector

1. Obtaining a real estate license: The investor must obtain a license from the Ministry of municipal and Rural Affairs.
2. Compliance with urban regulations: The project must comply with the urban and construction regulations in force in the kingdom.
3. Registration of the property in the real estate register: The property must be registered in the land registry with the Ministry of Justice.
4. Compliance with safety standards: The project must comply with the safety standards imposed by the Civil Defense.

Foreign investment in the tourism sector

Companies in Saudi Arabia vary between a limited liability company, a Joint Stock Company, and individual companies. This diversity has led to the growth of the tourism sector in Saudi Arabia, especially after the launch of the e-Tourist Visa, and many types of visas have become attractive for investment in this sector For foreign investment in Saudi Arabia. Investment opportunities in this segment include hotels, resorts and entertainment projects.

Fees for foreign investment in Saudi Arabia-tourism sector

• Initial capitalIt ranges from 5 million to 50 million riyals, depending on the size of the project and its location.
• Construction costs: The cost of building hotels ranges from 3,000 to 6,000 riyals per square meter.
• Government fees: Includes tourist license fees, which start from SAR 100,000.
• Operation and maintenance: It includes labor and service costs, which may amount to up to 20% of annual revenue.

Conditions of foreign investment in the tourism sector

1. ATo obtain a tourist license: The investor must obtain a license from the Saudi Commission for tourism and national heritage.
2. Compliance with service standards: The project must comply with the service standards imposed by the QTA.
3. Employment of Saudis: A certain percentage of Saudis are required to be employed in tourist facilities.
4. Sanitary standards: The project must comply with the sanitary standards imposed by the Ministry of Health.

Foreign investment in the technology sector

The technology sector in Saudi Arabia is witnessing rapid growth, especially with the increasing reliance on modern technologies in various sectors. Investment opportunities include software development, artificial intelligence, and Information Technology.To become one of the biggest attractions of this sector Foreign investment in Saudi Arabia.

Fees for foreign investment in Saudi Arabia-technology sector

• Initial capital: It ranges from 500,000 to 5 million Saudi riyals, depending on the nature of the project.
• Infrastructure costs:  It includes the purchase of hardware and software, which may amount to 30% of the total cost.
• Government fees:  Includes registration and licensing fees, which start from SAR 10,000.
• Research and development costs: It may reach up to 40% of the total cost in advanced technological projects.

Conditions of foreign investment in the technological sector

1.Obtaining a technological license:  The investor must obtain a license from the communications and Information Technology Commission.

2.Compliance with data protection standards:  The project must comply with the data protection standards imposed by the authority.

3.Recruitment of local competencies: Encourages investment in the recruitment of Saudi competencies in the field of technology.

4.Compliance with cyber security standards: The project must comply with the cybersecurity standards imposed by the National Cyber Security Authority.

Foreign investment in the agricultural sector

Saudi Arabia seeks to enhance food security by attracting Foreign investment In the agricultural sector. Investment opportunities include hydroponics, cattle breeding, food production.

Foreign investment costs-agricultural sector

• Initial capital: It ranges from 1 million to 10 million reais, depending on the size of the project.
• Land costs: Prices for agricultural land range from 100 to 500 reais per square meter.
• Equipment and infrastructure: It includes the costs of irrigation and greenhouses, which may amount to 30% of the total cost.
• Government fees: Includes agricultural license fees, which start at SR 20,000.

Conditions of investment in the agricultural sector

1-obtaining an agricultural license: The investor must obtain a license from the Ministry of Environment, Water and agriculture.

2-compliance with environmental standards: The project must comply with the environmental standards imposed by the ministry.

3-the use of modern technologies: It encourages investment in the use of modern technologies such as hydroponics.And different water saving technologies.

4-commitment to quality standards: The project must comply with the quality standards imposed by the Saudi Standards, Metrology and quality organization.

Foreign investment in the renewable energy sector

The renewable energy sector is one of the sectors that has received the largest share of development since the beginning of achieving Vision 2030. Saudi Arabia seeks to diversify energy sources by investing in solar, wind and all renewable energy sources. These opportunities are attractive for foreign investment in Saudi Arabia due to the support provided by the Ministry of investment .

Start-up costs of investing in renewable energy

• Initial capitalIt ranges from 10 million to 100 million riyals, depending on the size of the project.
• Equipment costs: Includes the purchase of solar panels or wind turbines, which may amount to 50% of the total cost.
• Government fees: Includes license and permit fees, which start at SR 50,000.
• Maintenance costs: It may be up to 10% of the total cost per year.

Terms of investment in the renewable energy sector

1-Obtaining a license from the Ministry of energy: The investor must obtain a license from the Ministry of energy.

2-Compliance with technical standards: The project must comply with the technical standards imposed by the ministry.

3-Cooperation with local companies: Encourages investment in cooperation with local companies for the development of projects.

4-Compliance with safety standards: The project must comply with the safety standards imposed by the competent authorities.

Foreign investment in the financial services sector

With the development of the financial sector in Saudi Arabia, investment opportunities in this sector have become attractive For foreign investment in Saudi Arabia, Investment opportunities include the creation of finance companies, insurance, banking services.

Start-up costs of investing in financial services

• Initial capital: It ranges from 10 million to 50 million reais, depending on the type of activity.
• Government fees: Includes license fees from the Capital Market Authority, which start from SAR 100,000.
• Operating costs: Includes labor and technology costs, which may amount to 30% of the total cost.

Terms of investment in the financial services sector

1-Obtaining a license from the Capital Market Authority: The investor must obtain a license from the Capital Market Authority.

2-Compliance with financial regulations: The project must comply with the financial regulations imposed by the authority.

3-Recruitment of local competencies: Encourages investment in the recruitment of Saudi competencies in the financial sector.

4-Compliance with transparency standardsThe project must comply with transparency and financial disclosure standards :