It is the route for a non-Saudi investor to enter the market under an investment licence — whether by establishing a wholly owned entity, partnering with a local party, or opening a branch of a foreign company. The common mistake is starting operations before settling the licence and structure, which is then corrected later at greater cost.
Determining the ownership percentage permitted for your activity · Obtaining the investment licence and establishing the entity · Drafting partnership agreements with the local party · Opening foreign company branches and representative offices · Reviewing compliance and Saudisation requirements · Share transfers and investor exit.
Full foreign ownership in permitted activities · Partnership with a Saudi investor · Foreign company branch · Regional representative office · Regional headquarters · Acquisition of an existing entity · Converting a local entity into a joint venture · Foreign investor disputes with the local partner.
Before choosing the form and structure rather than after; before signing any partnership agreement; where the contract contains foreign governing law or international arbitration; and when you want to exit or sell shares — the moment it becomes clear whether the partnership agreement was well drafted in the first place.
Investment licensing through the Ministry of Investment, incorporation through the Ministry of Commerce and the commercial register, with registrations at the zakat, insurance and activity-licensing bodies. For later disputes see commercial law.
We start with the target activity because it determines the permitted ownership and the licence required, then design the structure to serve your eventual exit rather than only your entry. We draft the shareholders' agreement with clear provisions on decisions, profit distribution and dissolution.
Most joint-venture disputes that end in arbitration originate in a vague partnership agreement written hastily at entry. We write it clearly from the start, with fair and competitive fees set by the size of the project.
It depends on the activity; many activities permit full ownership under an investment licence, while some remain restricted or require a local partner.
A branch is an extension of the parent and carries its legal personality, while a new company is a separate entity with its own financial liability — a difference that matters for liability and tax.
Yes, in accordance with the shareholders' agreement, the articles, and the statutory procedure for transferring shares.
Yes, whether before the Commercial Court or through arbitration where the contract provides for it.
Send us your case details on WhatsApp and we will set out the right route and the expected fees before any commitment.
