A Guide to Investing in Saudi Arabia as an Expat

Can expats invest in Saudi Arabia?

Expats are allowed to invest in Saudi Arabia, whether they live in the country or are investing from abroad.

Since 2026, new laws have allowed expats to invest in:

• The Saudi Exchange (Tadawul)
• Real estate in designated areas
• Giga-projects backed by the Public Investment Fund (PIF)

The Ministry of Investment of Saudi Arabia (MISA) handles licensing and regulation for foreign investors. MISA approves investments and makes sure investors follow Saudi laws.

Why foreign investment in Saudi Arabia is growing

Interest from international investors in Saudi Arabia has grown quickly in recent years. By the end of Q3 2025, the Capital Market Authority (CMA) reported foreign investors held over SAR 590 billion ($157.3 billion) in Saudi stocks.

Several factors are driving foreign investment in Saudi Arabia.

Vision 2030

Vision 2030 is one of the main reasons Saudi Arabia is attracting more foreign investment. It is a national project which aims to reduce the country's reliance on oil.

Part of Vision 2030 involves growing sectors like:

• Tech
• Tourism
• Infrastructure
• Renewable energy

For expat investors, this offers more options and the chance to invest in giga-projects like NEOM and Qiddiya.

Regulation changes

Regulatory changes in 2026 have made investing for expats much easier.

Some of the key changes include:

• Real estate: The new Law of Real Estate Ownership and Investment by Non-Saudis allows foreign investors to own residential and commercial property in designated zones.
• Financial markets: The new Investment Law allows all foreigners to invest directly in the Saudi Exchange.

Foreign direct investment incentives

Foreign direct investment (FDI) is investing money from abroad to gain control of a local business or project.

To encourage FDI as part of Vision 2030, Saudi Arabia offers several incentives, such as:

• 100% ownership in many sectors
• Competitive tax structures
• Financial support for business projects

Thanks to these reforms, Saudi Arabia is now a leading destination for foreign investment in the Gulf. In Q3 2025, FDI reached SAR 24.9 billion ($6.6 billion), a 35% increase from the same period the previous year.

Types of investment in Saudi Arabia for expats

Expat investors can choose from several structures depending on their capital, risk appetite, and goals.

The Saudi Stock Exchange

Tadawul is the biggest stock exchange in the Middle East. By the end of 2025, its market cap was about SAR 9 trillion ($2.4 trillion).

Thanks to recent reforms, expats can now invest in Tadawul. The exchange offers several options, such as:

• Equities in public companies
• Investment funds
• Bonds and sukuk
• Real estate investment trusts (REITs)
• Initial public offerings (IPOs)

Shariah-compliant options

Shariah-compliant investments follow Islamic law. They help investors make sure their financial activities match their religious and ethical values.

For an investment to be Shariah-compliant, it must:

• Avoid interest
• Align with Islamic principles
• Focus on asset-backed investments
• Meet strict financial criteria

Real estate investments

Real estate rules have changed. Expats can now invest in residential or commercial property in approved areas.

Property investments are appealing as there is often no income tax, and rental income can provide strong returns. In Q1 2026, the average gross rental yield in Saudi Arabia was 6.84%, higher than the UK's average of 5.8%.

Business ownership

Business ownership is an attractive option for expats due to recent reforms and incentives.

Business investments can include:

• 100% foreign ownership in many industries
• Limited liability company (LLC) structures
• Joint ventures with Saudi partners

Sovereign funds

Saudi Arabia has one of the world's largest sovereign wealth funds. The Public Investment Fund (PIF) plays a key role in driving economic growth and investments in the country.

The PIF focuses on projects that support Vision 2030. For international investors, it creates co-investment opportunities in large, high-profile projects.

Saudi rules and regulations on foreign investments

For many expats and foreign investors, Saudi Arabia is a new market. It's important to understand the regulations before investing any money.

Licensing and regulation

The main bodies that regulate foreign investments in the Kingdom are:

• Ministry of Investment of Saudi Arabia (MISA): Oversees foreign direct investments and is responsible for regulating and issuing licences to foreign investors.
• Capital Market Authority (CMA): Regulates the Kingdom's financial markets, including the Saudi Stock Exchange.
• Real Estate General Authority (REGA): Regulates the property sector and manages property registration for non-Saudi real estate investors.

Restrictions

Rules for non-Saudi investors have become more relaxed, but some restrictions still apply, such as:

• Real estate: Buying property in Mecca and Medina remains off limits, and a 5% transaction fee applies.
• Shares: A foreign investor cannot hold more than 10% of a listed company's shares, and the total shares held by foreign investors must not exceed 49%.

These restrictions may be eased even further in the future.

Taxes on foreign investments

If you're a foreign investor, it's important to understand how taxes work in Saudi Arabia. There is no income tax, but that doesn't mean the country is tax-free.

Here are some key taxes to consider.

Corporate Income Tax

If you're earning business profits inside Saudi Arabia, you'll likely pay 20% tax. Foreign investors are primarily taxed through Corporate Income Tax (CIT). The standard CIT rate is 20% on profits and applies to foreign-owned companies, foreign shareholders in Saudi businesses, and joint ventures with foreign owners.

Capital Gains Tax

Capital gains are usually taxed at 20%, but there's an important exception:

• Private company shares: 20% tax on gains
• Shares in listed companies (Tadawul): usually tax-exempt for foreign investors

Withholding Tax

A Withholding Tax (WHT) applies to expats and foreign investors on income made in the Kingdom.

The rates are:

• Dividends: 5%
• Interest: 5%
• Royalties: 15%
• Management fees: 20%

You might also have to pay taxes in your home country, depending on your situation. Saudi Arabia has double tax treaties with many countries, which can help you avoid being taxed twice on the same income.

The risks for foreign investors

Like other emerging markets, the Saudi stock market carries risks that foreign investors should consider.

Restrictions and regulations

Even though it's now easier to invest in Saudi Arabia, some restrictions remain, and the rules can be complicated. Laws about foreign investment are still changing, so it's important to keep up to date.

Market volatility

Emerging markets like Saudi Arabia can have larger price swings than more developed economies. This can affect both short-term and long-term capital growth.

Global factors

Interest rate changes, world events, and international trade can all impact capital markets.

Currency changes

Changing exchange rates can directly affect your investment returns. Use our calculator below to convert one currency to another with the latest rates.

Next steps for expats

International investment opportunities in Saudi Arabia are increasing. With more relaxed rules, the market is now more attractive and accessible to foreign investors than ever before.

However, it requires:

• Understanding of rules and regulations
• Local market insight
• A strategic approach
• Careful planning

If you are an expat living in Saudi Arabia, getting expert advice can help you make better investment decisions.

Holborn Assets is a leading global financial services provider. We are one of the few Western investment companies licensed in Saudi Arabia and specialise in the expat market.

Take control of your financial future. Speak with our team now to discover tailored investment options and advice for expats.