As part of Saudi Arabia’s transformative Vision 2030, the Kingdom has introduced a significantly updated Investment Law, effective from February 2025. This reform marks a major step forward in opening up the economy to global investors and enhancing the ease of doing business in the region.

Whether you’re planning a market entry or expanding operations in the Kingdom, understanding the new legal framework is critical. Below, we address the most frequently asked questions regarding the 2025 Saudi Investment Law and explain how Fircroft can support your investment journey with comprehensive workforce solutions.

1. What is the Saudi Investment Law, and when did it come into effect?

The new Investment Law is a unified framework regulating both foreign and domestic investments in Saudi Arabia. It officially came into force in February 2025, replacing the previous Foreign Investment Law (2000). The law aligns with the goals of Vision 2030—diversifying the economy, enhancing competitiveness, and enabling greater private sector participation.

2. What are the key changes introduced in the 2025 Investment Law?

The key enhancements include:

• Equal treatment of foreign and Saudi investors

• A streamlined investment registration process via the Ministry of Investment (MISA)

• Stronger legal protections against expropriation

• Greater access to incentives in strategic sectors like energy, tech, healthcare, and manufacturing.

3. How does the new investment registration process work?

The previous licensing model has been replaced with a registration-based approach. Foreign investors must now register with MISA by submitting accurate documentation and declarations, with annual renewal requirements. Domestic investors may also register voluntarily to benefit from government support and services.

4. Are there restrictions on foreign ownership?

The updated law allows 100% foreign ownership in most sectors. However, a small number of industries remain restricted or conditionally available to foreign investors. MISA maintains a list of these sectors, and joint ventures or local partnerships can help investors access restricted industries.

5. What incentives are offered under the new law?

Registered investors may be eligible for:

• Tax exemptions and deductions in high-priority sectors

• Customs duty relief on imports tied to strategic projects

• Streamlined licensing and operations support through MISA’s Investor Services Center

• Priority access to economic zones and infrastructure initiatives

6. How does the law protect investor rights?

The law provides comprehensive protections, including:

• Equal legal treatment for Saudi and foreign investors

• Freedom to transfer profits and capital abroad

• Due process in expropriation, with fair compensation

• Dispute resolution mechanisms, including access to local courts and international arbitration

7. What are the priority sectors for investment?

Saudi Arabia is actively encouraging investment in sectors that support Vision 2030, including:

• Renewable Energy

• Information & Communication Technology

• Mining & Industrial Manufacturing

• Tourism & Entertainment

• Healthcare & Pharmaceuticals

• Transportation & Logistics

8. How does the law support Vision 2030?

The new Investment Law is a core enabler of Vision 2030, designed to:

• Attract high-quality foreign direct investment

• Increase the private sector’s GDP contribution

• Enhance innovation, sustainability, and localization

• Create high-skilled employment opportunities for Saudis

9. What is the role of the Ministry of Investment (MISA)?

MISA acts as the central authority for investment regulation, providing:

• Investment registration and advisory

• Sectoral guides and incentives

• Coordination with government stakeholders

• Support through the Comprehensive Service Center

MISA’s role is to streamline investor entry, resolve bottlenecks, and improve investor confidence.

10. How can companies entering Saudi Arabia access talent and stay compliant?

This is where Fircroft plays a vital role.

With decades of experience in technical staffing and workforce mobilization, we support investors and multinational organizations in navigating the local labor market and regulatory framework. Our services include:

• Permanent & Executive Recruitment

• Contract & Freelance Staffing Solutions

• Visa, Relocation & Onboarding Support

• Recruitment Process Outsourcing (RPO)

• Payroll Management & Compliance

• Mobilization

We ensure your operations are fully compliant, cost-effective, and equipped with the right talent, whether you are launching a greenfield investment or scaling an existing business in Saudi Arabia.

Ready to Invest? Let’s Build Your Team Together.

Fircroft is your trusted recruitment partner in Saudi Arabia, supporting you from setup to full-scale operations.

Contact us today to discuss how we can align your workforce strategy with the new Investment Law and Vision 2030.