Starting a Technology Company in Saudi Arabia

The Updated Investment Law (1446H/2024G) was issued by Royal Decree M/19. MISA's own published profile of the law states that it replaces “the foreign investment law issued by Royal Decree No. (M/1) dated 5/1/1421H”. It was issued on 22 July 2024, published on 16 August 2024, and came into force around February 2025.

In its place is a single registration process applying equally to local and foreign investors, with MISA maintaining a national investor register.

The Implementing Regulations came via Ministerial Decision 1086 of 7 February 2025. They provide for one registration covering multiple sectors, an annual update due within 60 business days, and — a change worth noting — foreign investors may now be natural persons as well as entities.

MISA's own FAQ describes the practical route: an “Investment Registration” submitted via investsaudi.sa and reviewed in up to 10 days, with two tracks — available activities and restricted activities. Professional activities are registered separately, and an Entrepreneur Registration exists as its own route.

The Ministry of Commerce issues the commercial registration (CR). Articles of association are authenticated and the CR issued electronically.

The new Commercial Register Law and Trade Names Law took effect on 3 April 2025. They abolish branch-level registrations in favour of a unified national commercial register: one registration per merchant regardless of activities or branches, with an annual electronic confirmation replacing renewal, and a five-year grace period running to April 2030. The unified platform is the Saudi Business Center.

The Regional Headquarters programme was announced in February 2021. The rule that matters: from 1 January 2024, eligible companies must establish their MENA headquarters in Saudi Arabia in order to contract with Saudi government entities, with an exception for contracts of SAR 1 million or less. Licensing is by MISA together with the Royal Commission for Riyadh City.

Obligations

Operations must start within six months, with 15 full-time employees in the first year including three at C-level.

Incentives

0% corporate income tax and 0% withholding tax on qualifying activities for 30 years, plus a 10-year Saudization exemption.

The Garage

Grants of around SAR 100,000, with potential investment above SAR 500,000. Facilities and workspace are free of charge and open to all nationalities.

NTDP

MCIT's technology development programme, with product families spanning innovation, financing, talent, growth and market access.

SVC — Saudi Venture Capital

Founded in 2018, a subsidiary of the SME Bank under the National Development Fund. It states it has invested in 65 private capital funds reaching more than 1,000 startups and SMEs.

Sanabil 500 MENA Seed Accelerator

A 12-week Riyadh programme reported to provide $100,000 per startup. We could not confirm the programme terms on Sanabil's own site — verify before relying on the figure.

TAQADAM

Run by KAUST with Saudi Awwal Bank over six months, providing $40,000 plus up to $100,000 at showcase.

Monsha'at

Sector accelerators, Monsha'at Academy, Business Atlas, and the Kafalah loan guarantee programme.

SAMA Regulatory Sandbox

For fintech, operating since 2018.

Saudization is not a later-stage problem. ICT-specific localisation rules apply to establishments from a low headcount threshold, with minimum wage floors attached and percentages that have risen over time. The rules change by ministerial resolution, so treat any published percentage as a starting point for verification, not a settled fact.

Budgeting for a licence that no longer exists

The separate foreign-investment licence was abolished. The route is a single investment registration applying equally to local and foreign investors.

Assuming branch-level commercial registrations still exist

Since 3 April 2025 there is one registration per merchant, regardless of activities or branches, with annual electronic confirmation instead of renewal.

Treating the RHQ rule as universal

It governs eligibility to contract with government entities, with an exception for contracts of SAR 1 million or less — not market entry in general.

Copying licence-category lists from stale posts

Category lists and endorsement-letter requirements circulate widely and do not appear on MISA's pages. Check the source before building a plan on it.

Leaving Saudization until after the first hires

ICT localisation applies from a low headcount threshold and carries minimum wage floors. Build it into the hiring plan, and verify current percentages with HRSD or on Qiwa.