The insurance sector in Saudi Arabia has undergone significant regulatory reforms, especially following the establishment of the Insurance Authority as an independent body responsible for overseeing and regulating the industry. These reforms aim to drive digital transformation, strengthen governance, and ensure the protection of stakeholders’ rights.

In this article, we will explore the different types of insurance licenses available in the Kingdom, along with their requirements, conditions, and associated fees.

Types of Insurance and Supporting Services Licenses

The Insurance Authority in Saudi Arabia grants a variety of licenses designed to regulate and support entities operating within the insurance sector — including insurance companies, brokers, and supporting service providers. These licenses include:

Insurance and/or Reinsurance Licenses

Liberal professionals Licenses

Cover individuals or entities offering one or more of the following activities:

insurance brokerage, reinsurance brokerage, electronic insurance brokerage, insurance agency, inspection and loss assessment, insurance claims settlement, insurance consulting, and actuarial services.

Conditions for Obtaining a License to Practice Insurance Business

To obtain a license to engage in insurance activities in Saudi Arabia, applicants must meet a set of regulatory conditions established by the Insurance Authority. These conditions vary depending on the type of entity applying for the license:

(1) Insurance or Reinsurance Companies

The company must be established as a joint-stock company.

Its primary purpose must be to conduct insurance and/or reinsurance business.

The paid-up capital must not be less than SAR 300 million for insurance companies. Similarly, reinsurance companies—or companies practicing both insurance and reinsurance—must also maintain a paid-up capital of no less than SAR 300 million.

The percentage of Saudi employees must comply with the minimum ratio required under the applicable regulations and must increase annually in accordance with the company’s approved business plan submitted to the Insurance Authority.

(2) Liberal professions Related to Insurance or Reinsurance

Liberal professions Related to Insurance or Reinsurance related to insurance or reinsurance must maintain a Saudi workforce of at least 50% by the end of the first year, or the percentage specified by the Authority, with a mandatory annual increase as per the submitted business plan.

The company’s capital must not be less than the minimum amount stipulated in the Implementing Regulations.

(3) Digital Insurance Brokerage

The activity must be conducted by a joint-stock or limited liability company licensed to operate in Saudi Arabia.

The company’s minimum capital must be:

SAR 500,000 for entities engaged solely in digital insurance brokerage.

SAR 3 million for traditional insurance brokers also practicing digital insurance brokerage.

Requirements for Applying for a License to Practice Insurance Business

Applicants seeking to obtain a license to conduct insurance business in Saudi Arabia must fulfill a set of fundamental requirements established by the Insurance Authority. These include:

1. Completion of the License Application Form — Submitting a duly filled application in the prescribed format.
2. Reservation of the Trade Name — Securing official approval for the company’s proposed trade name.
3. Articles of Association — Providing the company’s foundational legal document outlining ownership and governance structure.
4. Bylaws — Submitting the internal regulations that govern the company’s operations and management procedures.
5. Organizational Structure — Presenting a clear chart detailing the company’s hierarchy, departments, and key responsibilities.
6. Economic Feasibility Study — Demonstrating the financial and operational viability of the proposed insurance activities.
7. Agreements with External Parties — Disclosing any contracts or partnerships with entities outside the company.
8. Irrevocable Bank Guarantee — Providing a bank guarantee issued by a local bank in favor of the Insurance Authority, equivalent to the required capital amount. This guarantee must be automatically renewable until the full capital has been paid.

Additional Requirements Based on Applicant Type

In addition to the general requirements, applicants must meet specific conditions depending on the nature of their business activity:

(1) Insurance or Reinsurance Companies

Five-Year Business Plan: A comprehensive plan outlining projected operations, financial forecasts, and growth strategy over a five-year period.

Irrevocable Bank Guarantee: A guarantee equivalent to the required capital, issued in favor of the Insurance Authority by a local Saudi bank, and automatically renewable until the full capital amount has been paid.

(2) Liberal professions Related to Insurance or Reinsurance

Three-Year Business Plan: A detailed plan specifying the scope of operations, financial projections, and development goals for the first three years.

Irrevocable Bank Guarantee: A guarantee equivalent to the required capital, issued in favor of the Insurance Authority by a local Saudi bank, and automatically renewable until the full capital amount has been paid.

(3) Digital Insurance Brokerage

The license application for digital insurance brokerage must be submitted to the Insurance Authority and include the following:

Dedicated Business Plan for digital Operations:

The plan must detail:

The types of insurance products offered through the platform.

An analysis of the expected transaction volume for electronic insurance brokerage activities over the next three years.

An assessment of potential risks associated with online transactions, along with preventive and mitigation measures, including procedures to combat money laundering, address cyber and strategic risks, and ensure regulatory compliance.

The applicant must submit a detailed contingency plan outlining the procedures to be followed in case of system failure. The plan should:

Identify corrective actions to ensure business continuity.

Include a reporting mechanism for notifying both the Insurance Authority and the company of system disruptions or corrective measures taken.

Insurance License Fees

Applicants are required to pay an initial fee of SAR 10,000 for the review of their license application.

Upon approval, the following issuance fees apply depending on the license type:

Insurance or Reinsurance Companies

SAR 100,000 – for an insurance company.

SAR 200,000 – for a reinsurance company.

SAR 300,000 – for a company practicing both insurance and reinsurance.

Liberal Professionals

SAR 25,000 – for any self-employed professional, excluding actuaries and insurance consultants.

SAR 5,000 – for actuaries or insurance consultants.

Obtaining an insurance license in Saudi Arabia involves a detailed and highly regulated process.

If you plan to apply for an insurance or reinsurance license, our legal team can guide you through every step — ensuring full compliance, efficiency, and a hassle-free experience.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

The commercial landscape in the Kingdom of Saudi Arabia has undergone significant transformation following the enactment of the new Companies Law of 2022, which introduced greater flexibility and clearer regulations for various types of companies. Among the most notable corporate forms established under the law are the Public Joint Stock Company (PJSC) and the Simplified Joint Stock Company (SJSC) — both of which serve as key investment vehicles within the Saudi business environment.

At first glance, these two company types may appear similar due to the resemblance in their names. However, in practice, there are substantial differences between them in terms of structure, management, and establishment requirements. This article explores these distinctions in detail.

An Overview of Companies in Saudi Arabia

Companies in the Kingdom of Saudi Arabia are classified into different categories based on the laws governing their establishment and operation. Some companies are governed by the Saudi Companies Law, issued under Royal Decree No. (M/132) dated 12/01/1443 AH, and these are classified as commercial companies.

Conversely, other entities are governed by the Civil Transactions Law, issued under Royal Decree No. (M/191) dated 11/29/1444 AH, and are referred to as civil companies.

In the following sections, we will focus on commercial companies, particularly the Public Joint Stock Company (PJSC) and the Simplified Joint Stock Company (SJSC).

First: Joint Stock Company in Saudi Arabia

A Joint Stock Company (JSC) is a company established by one or more individuals, with its capital divided into tradable shares that may be bought and sold by investors. Profits are distributed among shareholders in proportion to their respective shareholdings.

The company is solely liable for its debts and obligations incurred or arising from its business activities. Shareholders’ liability is limited to the value of the shares they have subscribed to, and their personal assets are not affected by the company’s debts.

Advantages of Joint Stock Companies

• This type of company provides a strong opportunity to attract substantial capital from investors.
• It may be offered for public subscription, enabling broader investment participation.
• Joint stock companies offer greater potential for expansion and profit generation.
• They can raise funds from the public through the sale of shares.
• Dividends are distributed based on each shareholder’s ownership percentage.
• The large amount of available capital allows the implementation of major development projects.

Management of Joint Stock Companies

• A joint stock company must have a Board of Directors with solid experience in both financial and administrative fields.
• The minimum capital requirement for establishing a joint stock company is SAR 500,000. At least one-quarter of the issued capital—i.e., not less than SAR 125,000—must be paid upon incorporation.
• The company is managed by a Board of Directors consisting of no fewer than three members, elected by the shareholders for a term not exceeding four years, with the possibility of re-election for another term.
• The General Assembly has the authority to dismiss all or some members of the Board of Directors. It may also appoint a temporary replacement in the event of a vacancy or terminate the membership of any member who fails to attend board meetings without an acceptable excuse.
• The company’s bylaws specify the method and amount of remuneration for board members. The General Assembly determines the remuneration value, provided it is fair and proportionate to the member’s performance and contribution. The company is required to disclose in detail all remuneration granted to board members during the fiscal year.
• The Board of Directors holds extensive powers to manage the company, except for matters explicitly reserved for the General Assembly under the company’s Articles of Association, which remain its exclusive authority.
• The Board may delegate certain powers to one or more of its members or to others, even if the delegate holds a lower position, provided such delegation is made in good faith.
• The distribution of profits is determined by the General Assembly after deducting the required reserves, and profits are distributed proportionally among shareholders.
• If the company’s accumulated losses reach 50% of its issued capital, the Board of Directors must disclose this within 60 days and convene an extraordinary General Assembly within 180 days to discuss the company’s financial position and decide whether to continue operations or dissolve the company.

Second: Simplified Joint Stock Company in Saudi Arabia

A Simplified Joint Stock Company (SJSC) is a company established by one or more persons, whether individuals or legal entities. It is governed by the same provisions applicable to Joint Stock Companies, except where specific provisions apply.

The company’s capital is divided into tradable shares, and the company alone is responsible for any debts and obligations arising from its activities. Shareholders’ liability is limited to the value of the shares they have subscribed to or purchased, and it does not extend to their personal assets.

Advantages of a Simplified Joint Stock Company

• No minimum capital requirement is imposed for incorporation.
• The ability to issue different classes of shares with varying rights, obligations, and restrictions.
• The company may be managed by one or more directors or by a board of directors.
• General assemblies are not mandatory, as shareholders have the discretion to determine how decisions are made.
• The articles of association — the official document regulating the company’s operations — determine the required quorum for meetings and the voting thresholds for decision-making.

Structure and Management of a Simplified Joint Stock Company

• Shareholders enjoy full flexibility in defining the company’s structure and governance framework, as agreed upon and stipulated in the articles of association.
• The chairman, manager, or board of directors, as designated in the articles of association, shall exercise all powers typically assigned to the chairman and members of a joint stock company’s board, unless otherwise specified.
• The incorporation data of a simplified joint stock company shall be identical to that of a joint stock company, in accordance with Article 140 of the Companies Law.
• The company’s management mechanism is defined in its articles of association. It may be managed by a chairman, one or more managers, a board of directors, or any other structure agreed upon by the shareholders. The articles also specify the method of appointment and dismissal of those in management, as well as the scope of their authority.
• If these details are not set forth in the articles, the shareholders themselves shall determine them.
• The chairman, manager, or board of directors has broad authority to manage the company and achieve its objectives, except for matters reserved to shareholders under the law or the company’s articles.
• Within the limits of their authority, the chairman or manager may delegate specific tasks to one or more persons, provided such delegation remains within their powers.
• The chairman, manager, or chairman of the board of directors represents the company before courts, arbitration panels, and other competent authorities. They may also delegate this authority to others if permitted under the company’s bylaws.
• The company is legally bound by all acts performed by its chairman, manager, or board of directors on its behalf, even if such acts exceed their authority — unless the counterparty acts in bad faith or is aware of the excess of authority.

If you wish to learn more about company structures and regulations in Saudi Arabia, follow us to stay informed about the latest updates and legal developments.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

With the rapid growth of the legal sector in the Kingdom of Saudi Arabia, choosing the right lawyer has become an essential step to ensure accurate legal advice and high-quality professional service.
Many people begin their search online using phrases such as “Top 10 Lawyers in Riyadh” or “Foreign Judgment Enforcement Lawyer in Saudi Arabia”, or even “Corporate Lawyer” or “Best Law Firm in Riyadh”, in an effort to find the most suitable lawyer or law firm for their case.

Given the wide variety of law firms and their increasing specialization — whether in corporate law, litigation, arbitration, or enforcement of foreign judgments — it is crucial to follow a clear and professional approach when choosing your legal representative.

1. Searching Online – A Good Start but Not Enough

Most individuals begin by searching online using phrases such as:
“Lawyer in Saudi Arabia”, “Best Lawyer in Saudi Arabia”, or by specifying a city such as “Lawyer in Riyadh” or “Top 10 Lawyers in Jazan.”
Search engines will display several prominent law firms, many of which have a strong online presence. However, these results do not necessarily indicate the firm’s area of specialization or the types of cases it handles.

For this reason, some users refine their search with more specific terms such as:
“Corporate Lawyer in Saudi Arabia,” “Litigation Lawyer in Riyadh,” or “Foreign Judgment Enforcement Lawyer.”
This helps narrow down the results to firms with expertise in a particular legal field.

However, relying solely on search engine results is not sufficient, as online visibility does not always reflect professional competence or legal experience.

2. The Saudi Bar Association – The Most Reliable Source

The Saudi Bar Association is the official authority regulating the legal profession in the Kingdom. Its website provides an accurate and up-to-date directory of licensed lawyers, including their specializations, experience, and practice locations.

Through the Association’s website, you can verify:

• The lawyer’s name and license number
• Their area of specialization (e.g., litigation, corporate, enforcement, insurance, arbitration, etc.)
• The region and law firm they are associated with

This method remains the most reliable and official way to ensure the lawyer you select is properly licensed and authorized to practice in Saudi Arabia.

3. Review the Lawyer’s Articles and Professional Contributions

Another strong indicator of a lawyer’s expertise and professionalism is the content they publish.
Legal articles, commentaries, and thought pieces demonstrate a lawyer’s understanding of Saudi laws and their ability to analyze and simplify complex legal issues.

For instance, reviewing articles on topics such as:

• Foreign investment in Saudi Arabia
• The new Companies Law
• Insurance and reinsurance regulations
• Litigation procedures and enforcement of local and foreign judgments

can help you assess the depth of a lawyer’s practical knowledge and determine whether the firm’s specialization aligns with your legal needs.

4. Direct Communication with the Law Firm

After identifying a few specialized law firms and reviewing their publications and services, the next step is to contact them directly.
At this stage, it is advisable to:

1. Request a profile of the firm and its previous experience.
2. Discuss the nature of your legal matter or project.
3. Ask for a fee proposal or an Engagement Letter outlining the scope of work and costs.

This stage helps establish trust and ensures that the firm has the required expertise to handle your specific case effectively and efficiently.

Conclusion

Choosing a lawyer in Saudi Arabia should not depend solely on online rankings or advertisements. It requires a strategic and informed approach — starting with the Saudi Bar Association’s official listings, reviewing the lawyer’s publications, and then communicating directly with the firm that best matches your needs.
Given the growing specialization among law firms in the Kingdom, selecting the right firm means securing the legal expertise that protects your interests and supports your business success.

The Enforcement Court represents one of the key pillars of the Saudi judicial system. It serves as the stage where judicial decisions and regulations are put into effect to uphold justice and protect rights. The court is responsible for ensuring the execution of all judicial rulings issued by various courts across the Kingdom, in full compliance with Islamic Sharia and the laws in force in Saudi Arabia.

In this article, we will take a closer look at the Enforcement Court, exploring its role, jurisdiction, and position within the overall judicial framework of the Kingdom of Saudi Arabia.

An Overview of the Judiciary in the Kingdom of Saudi Arabia

Before defining the Enforcement Court, it is important to first understand its position within the broader judicial structure of the Kingdom of Saudi Arabia.

The regular courts in the Kingdom operate on three levels:

First-instance courts

Second-instance courts (known as the Courts of Appeal)

Third-instance courts (known as the Supreme Court)

With respect to the Enforcement Court, it falls under the first-instance courts, which are classified as follows:

General Courts

Criminal Courts

Labor Courts

Commercial Courts

Personal Status Courts

Enforcement Court

The Enforcement Judge's decisions on procedural matters are typically final and not subject to appeal, except when specific exceptions are provided by law for cases involving substantive disputes.

Definition of the Enforcement Court

In brief, the Enforcement Court is the judicial authority responsible for executing judgments issued by other courts, except for cases issued by administrative and criminal courts. It is also entrusted with enforcing executive instruments such as commercial papers, notarized contracts, and arbitration awards, in accordance with the provisions and procedures set forth in the Enforcement Law issued by Royal Decree.

The Enforcement Court operates under the supervision of an Enforcement Judge, who is vested with judicial powers that enable him to oversee enforcement procedures and issue the decisions and orders he deems necessary to ensure the effective and efficient execution of judgments.

Formation of Enforcement Courts

Given the importance of Enforcement Courts and their vital role in implementing judicial decisions and rulings, the Kingdom has ensured the establishment of an Enforcement Court in most cities. In cities where no dedicated Enforcement Court exists, an Enforcement Department is established within the local court.

Each Enforcement Court is composed of several departments, each with its own jurisdiction. Every department includes one or more judges, in accordance with the regulations and directives issued by the Saudi Supreme Judicial Council.

Jurisdiction of the Enforcement Court

As previously noted, the Enforcement Court has the authority to carry out the actual enforcement process, which represents the final stage of any legal case. The following are the enforcement instruments that fall within the jurisdiction of the Enforcement Court:

• Judgments, decisions, and orders issued by the courts.
• Arbitral awards accompanied by an enforcement order, in accordance with the Arbitration Law.
• Conciliation minutes issued by the relevant authorities or authenticated by the courts.
• Commercial papers, such as promissory notes and checks.
• Contracts and notarized documents.
• Judicial judgments, arbitral awards, and notarized documents issued in a foreign country.
• Contracts and documents that possess executory force under the law.
• Ordinary documents whose contents are recognized as partially or fully enforceable.

Obstacles Facing the Enforcement Court in Enforcing Judgments

Despite the remarkable progress achieved by the judicial system in the Kingdom, several obstacles continue to hinder the speedy and efficient execution of judgments. The following are among the key challenges that require attention and mitigation:

Lack of legal awareness among citizens: The enforcement process is often delayed due to individuals’ lack of understanding of their legal obligations once an enforcement order is issued against them, which prolongs proceedings and delays the realization of rights.

Evasion of enforcement and the use of obstructive tactics: Such practices remain among the most significant factors that consume the court’s time and resources.

Non-compliance with court orders: The refusal or failure of convicted parties to comply with judicial orders necessitates firm judicial interventions to uphold the authority of the judiciary and ensure the proper execution of rulings.

Difficulties in proving ownership and locating assets: Challenges arise when assets are registered under other persons’ names, making it difficult to trace and seize them, and thereby complicating the enforcement process.

Enforcement Court Procedures

In line with Saudi Vision 2030 and the Kingdom’s efforts toward comprehensive digital transformation across all sectors, filing an enforcement request has become an entirely electronic process through the Ministry of Justice website.

Once the application is submitted online, the applicant proceeds to the court and visits the Judicial Office to follow up on the progress of the case. The Enforcement Judge then reviews the enforcement document to ensure its validity, completeness, and compliance with all legal requirements. The judge also verifies the applicant’s information and, upon confirmation, issues the enforcement order.

For professional assistance in submitting an enforcement request or following up on related procedures, you may contact the Mohammed Al-Khliwi Law Office, where our team will handle the entire process on your behalf with professionalism and efficiency.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

If you're planning to establish a business in Saudi Arabia but are uncertain about the types of companies allowed and which structure best suits your needs, this article will help you gain a clear understanding to make the right decision.

We will focus on LLC vs SJSC in Saudi Arabia,the two most common and significant forms for entrepreneurs and investors in the Kingdom.

Since choosing the appropriate company structure is the first and most crucial step in launching any business, we’ll explore the advantages and disadvantages of each type from legal, administrative, and organizational perspectives, helping you determine the legal form that best aligns with your business needs and objectives.

Types of Companies in Saudi Arabia

Companies in Saudi Arabia vary in form and are governed by different sets of regulations. Some are subject to the Saudi Companies Law, issued by Royal Decree No. (M/132) dated 01/12/1443 AH, and these are classified as commercial companies.

On the other hand, there are companies regulated under the Civil Transactions Law, issued by Royal Decree No. (M/191) dated 29/11/1444 AH, which are referred to as civil companies.

In the following sections, we will focus on commercial companies, particularly the Simplified Joint Stock Company (SJSC) and the Limited Liability Company (LLC).

First: The Simplified Joint Stock Company (SJSC)

A Simplified Joint Stock Company may be established by one or more persons, whether individuals or legal entities. It is governed by the provisions applicable to Joint Stock Companies, except where specific rules are provided for this type.

The company’s capital is divided into tradable shares, and the company itself is solely liable for its debts and obligations. The liability of shareholders is limited to the value of the shares they have subscribed to or purchased, without extending to their personal assets.

Advantages of a Simplified Joint Stock Company (SJSC)

No minimum capital requirement: There is no legally required minimum capital to establish an SJSC.

Flexibility in share structure: The company may issue different classes of shares with varying rights, obligations, and restrictions.

Flexible management model: The company can be managed by one or more directors or by a board of directors, depending on what is stipulated in its articles of association.

No mandatory general assembly: Holding general assemblies is not required; shareholders themselves decide who will assume management and decision-making responsibilities.

Customizable governance rules: The articles of association define the quorum requirements for meetings and the voting thresholds needed to approve resolutions, providing flexibility in corporate governance.

Structure and Management of a Simplified Joint Stock Company

Full organizational flexibility: Shareholders in an SJSC have complete freedom to determine the company’s organizational and management structure, as set out in the articles of association.

Delegated powers: The chairman, director, or board of directors—as determined in the articles of association—exercises all powers granted to the chairman and board members of a traditional joint stock company, unless otherwise specified.

Incorporation requirements: The incorporation details of an SJSC are identical to those of a joint stock company, as stated in Article 140 of the Companies Law.

Defined management mechanism: The company’s articles of association must specify the management mechanism, which may include a chairman, one or more directors, a board of directors, or any other agreed-upon structure. The articles should also outline the method for appointing and removing managers and define the scope of their powers.

If these matters are not defined in the articles, they shall be determined by the shareholders.

Broad management authority: The chairman, director, or board of directors holds broad powers to manage the company and achieve its objectives, except for matters that the Companies Law or articles of association reserve for the shareholders.

Delegation of authority: The chairman or director may, within the limits of their powers, delegate specific tasks to one or more persons, provided such delegation falls within their authorized scope.

Representation before third parties: The chairman, director, or chairman of the board represents the company before courts, arbitration bodies, and other entities. The company may also authorize another party to represent it, if permitted by the articles of association.

Binding effect of management actions: The company is bound by all actions carried out in its name by its chairman, manager, or board of directors, even if such actions exceed their authority, unless the other party acted in bad faith or was aware of the misuse of authority.

Second: The Limited Liability Company (LLC)

A Limited Liability Company (LLC) is an entity established by one or more persons. It possesses a separate financial liability distinct from that of its partners or owners. The company itself is solely responsible for its debts and obligations, while the liability of the partners is limited to the value of their contributions to the company’s capital.

The owners of an LLC are referred to as members. They are partners in a business structure that provides legal protection from personal liability while allowing profits and losses to pass directly to their personal tax returns. For this reason, many businesses prefer to establish an LLC, as it provides an ideal balance between legal protection, operational flexibility, and avoidance of double taxation.

Advantages of a Limited Liability Company

Personal liability protection:

Members enjoy protection from personal liability. They are not held personally responsible for the company’s debts or legal obligations, thereby safeguarding their personal funds and assets in case the company faces legal or financial difficulties.

Flexible profit distribution:

Profits and losses are distributed among members based on mutual agreement. The distribution does not need to be equal; it follows the ratios agreed upon in the company’s articles of association or operating agreement.

Simplified establishment procedures:

Setting up an LLC involves fewer procedures and documentation compared to other business structures, making it one of the most convenient and efficient forms of incorporation.

Clear internal governance:

The written operating agreement of an LLC clearly outlines the roles, responsibilities, and powers of each member, which enhances internal organization, ensures stability, and supports the company’s long-term continuity.

Structure and Management of a Limited Liability Company

The company is managed by one or more managers, who may be partners or external appointees.

Managers are appointed by the partners—either in the articles of association or under a separate contract—for a fixed or indefinite term.

In cases where there are multiple managers, the partners may form a board of managers to supervise the company’s operations and make decisions collectively.

The articles of association or a partners’ resolution define the management mechanism, including the decision-making process and the voting majority required for resolutions, whether in appointing managers or forming a board.

Conclusion

This brings us to the end of the article.

If you would like to learn more about the Saudi corporate system or the process of establishing a company, feel free to contact us. Our team will be happy to provide you with a comprehensive package of services to support you throughout your company formation journey in Saudi Arabia.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

In 2021, the Kingdom of Saudi Arabia launched the Saudi Regional Headquarters Program to Attract Global Companies as part of its broader strategy to draw foreign investment and encourage multinational corporations to establish a physical presence in the Saudi market. The initiative aims to diversify the national economy and reduce its dependence on oil revenues.

In this article, we will explore the program’s objectives, the advantages it offers to international companies.

Program Overview

The Saudi Regional Headquarters Program (RHQ) is an initiative designed to attract international companies to establish their regional headquarters in Saudi Arabia. Its primary goal is to position the Kingdom — and particularly its capital, Riyadh — as the leading destination for regional headquarters across the Middle East and North Africa (MENA) region.

The program was first conceived in 2020, when His Royal Highness Prince Mohammed bin Salman directed the Royal Commission for Riyadh City to develop and launch the initiative in collaboration with the Ministry of Investment, under the supervision of a specialized steering committee. The program was officially launched in 2021.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

At its inception, the program set an ambitious target of attracting 500 regional headquarters of international companies by 2030. Remarkably, by 2025—well ahead of schedule—the program has already surpassed this goal, successfully attracting over 600 global companies.

It is worth noting that the program is supported by several key government partners, including the Ministry of Finance, the Ministry of Human Resources and Social Development, the Ministry of Commerce, the Ministry of Economy and Planning, the Local Content and Government Procurement Authority, the Zakat, Tax and Customs Authority, the General Authority for Foreign Trade, and the National Center for Government Resource Systems.

What is a Saudi Regional Headquarters?

A Saudi Regional Headquarters (RHQ) refers to an entity established by a global or multinational company in Riyadh to oversee and manage its operations across the Middle East and North Africa (MENA) region. This headquarters functions as a strategic hub that provides leadership, coordination, and support to the company’s offices, subsidiaries, and branches operating in other countries within the region.

To qualify for establishing a regional headquarters in Saudi Arabia, a company must be an international or multinational enterprise with active operations or branches in more than one country. Moreover, the RHQ in Saudi Arabia must carry out genuine administrative and managerial functions, such as human resources management, finance, sales, marketing, and regional strategic planning.

Objectives of the Regional Headquarters (RHQ) Program

Through the launch of the Regional Headquarters Program, the Kingdom of Saudi Arabia aims to achieve several strategic objectives:

• Position Riyadh as a leading regional hub for global companies operating in the Middle East and North Africa (MENA) region.
• Attract foreign direct investment (FDI) by enhancing the overall business environment and offering a competitive ecosystem for international enterprises.
• Draw global talent across various sectors to foster knowledge transfer and contribute to the development of the local labor market.

Services Provided by the Program to Companies

The Saudi Regional Headquarters Program offers a comprehensive range of essential services designed to support companies across all sectors as they establish and operate their regional bases in Saudi Arabia. These services are categorized as follows:

1. Business Setup Services

The program assists companies in setting up their operations by providing temporary office spaces, housing options (such as apartments and villas) tailored to each company’s needs, and support in attracting local talent. It also offers a variety of advisory and administrative services to facilitate a smooth establishment process.

2. Logistics Services

These services cover travel arrangements and reservations, event organization, and sports or recreational activities, in addition to providing personal assistant services to ensure convenience for company executives and staff.

3. Support Services

Support offerings include business setup facilitation, provision of domestic staff, issuance of work permits for spouses, and assistance with finalizing legal and administrative procedures.

4. Consulting Services

The program also provides specialized consulting, including tax advisory, bank account setup assistance, and government relations services to help companies navigate local regulations effectively.

5. Exclusive Discounts

Participating companies benefit from exclusive discounts on a variety of services, including airlines, office spaces, housing, and educational services, further enhancing the overall value of operating within the Kingdom.

Financial Incentives for Companies

To encourage multinational corporations to participate in the Regional Headquarters (RHQ) Program, the Kingdom of Saudi Arabia has introduced a range of long-term tax exemptions designed to enhance the attractiveness of establishing regional operations in Riyadh. These incentives include:

Full exemption from corporate income tax.

Full exemption from withholding tax on payments made to non-resident related parties.

Full exemption from withholding tax on dividend payments made by the regional headquarters to its foreign parent entity (or entities).

Full exemption from withholding tax on payments made to non-resident, unrelated parties for services essential to carrying out the activities of the regional headquarters.

Available Sectors within the Program

The Saudi Regional Headquarters Program targets multinational companies operating across a wide range of sectors, including:

Professional Services

Healthcare

Communications and Information Technology

Logistics

Finance

Industry and Mining

Energy

Aviation and Defense

Construction

Education

Tourism, Hospitality, and Quality of Life

Food and Beverage

Oil, Gas, and Water

Finally, The Regional Headquarters Program represents a significant strategic initiative aimed at strengthening the Kingdom’s position as a leading business hub in the region. Its vision extends beyond merely attracting multinational companies — it seeks to create an integrated and dynamic business ecosystem that enables effective regional management and informed decision-making within Saudi Arabia.

Over the next few years, Riyadh is expected to emerge as one of the most influential business centers in the Middle East, rivaling regional powerhouses such as Dubai and Singapore in attracting and hosting global corporations.

If you are interested in joining the Saudi Regional Headquarters Program, our team is ready to assist you with all necessary procedures — handled with utmost precision and professionalism.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

Saudi Arabia has recently made significant progress in diversifying its sources of income, shifting from a primarily oil-based economy to one increasingly driven by industry. This transformation is largely attributed to Vision 2030, which places industry at the core of the Kingdom’s economic strategy.

When examining the industrial sector in Saudi Arabia, the Jazan region stands out as a key area of focus. For many years, it remained outside the Kingdom’s major development plans. However, it has now emerged as one of the most important industrial hubs in Saudi Arabia, thanks to the government’s commitment to advancing its industrial and economic growth.

In this article, we will highlight the advantages of Industrial Investment in Jazan. We will also explore the opportunities available in the region and outline the steps to obtain an investment license and begin operations there.

About Jazan
Located in southern Saudi Arabia, Jazan occupies a strategic position along the Red Sea, serving as a vital gateway for global exports through its modern ports and active sea lanes. The region is also rich in natural resources, which has encouraged the government to invest heavily in developing its industrial infrastructure as part of the Kingdom’s broader economic diversification efforts.

Since the launch of these development initiatives, Jazan has made steady progress toward establishing itself as a strategic hub for advanced technologies, particularly within the industrial and energy sectors. This remarkable transformation is driven by Vision 2030, which positions Industrial Investment in Jazan as a highly attractive point for both domestic and international investors.

The Current Economic and Industrial Situation in Jazan
The ongoing transformation in Jazan—driven by strong political will—has led to remarkable economic and industrial progress. Among the most notable achievements are:

• Attracting major investments: Jazan has secured large-scale projects, most prominently Aramco’s Energy and Manufacturing Complex, valued at over $21 billion, making it one of the largest industrial ventures ever launched in the Kingdom.
• Growing industrial investments: By 2024, the total value of industrial investments in Jazan reached 71 billion SAR, reflecting the region’s rising importance as an industrial hub.
• Expanding manufacturing base: Jazan is now home to 193 operational factories, with an additional 52 factories currently under construction.
• Advancing the mining sector: To date, approximately 80 mining licenses have been issued in the region, highlighting its natural resource potential.

Together, these achievements illustrate how Jazan is rapidly evolving into a strategic center for industry and investment within Saudi Arabia.

Available Investment Areas in Jazan
The Jazan region presents a wide range of investment opportunities for those seeking a promising market with strong potential returns. Among the most attractive sectors for investment are:

1. Food Industries.
2. Metals and Mining.
3. Basic Manufacturing and Heavy Energy Industries.
4. Logistics and Export Services.
5. Supporting and Complementary Sectors.

Jazan Special Economic Zone
To further attract investors, Saudi Arabia has established the Jazan Special Economic Zone, one of the zones in the Kingdom operating under special commercial regulations. Covering mote than 24 square kilometers, the zone focuses on three key areas: food processing, metal processing, and logistics. With favorable policies and infrastructure designed to support business growth, it plays a vital role in Saudi Arabia’s economic diversification and strengthens Jazan’s position as a leading industrial hub.

Investment Privileges in Jazan
To strengthen investors’ ability to establish and expand their businesses both regionally and globally, the Kingdom has introduced a package of incentives and facilities within the Jazan Special Economic Zone. These benefits aim to create a business-friendly environment that is fully interconnected with international markets:

1. Reduced Corporate Tax: A preferential 5% corporate income tax rate up to 20 years.
2. Profit Repatriation Benefits: 0% withholding tax on profits transferred abroad from the Special Economic Zone.
3. Deferred Customs Duties: 0% deferred customs duties on some goods imported into the Special Economic Zone.
4. Talent-Friendly Regulations: Flexible and supportive policies for recruiting and employing foreign talent during the first five years.
5. VAT Exemptions: 0% value-added tax on all goods traded within the Special Economic Zone and between other special economic zones.
6. Labor Fee Exemptions: Exemptions from some operating fees for foreign employees and their families within the zone.

These privileges position Jazan as one of the most competitive destinations for industrial and commercial investment in Saudi Arabia, ensuring both cost efficiency and long-term business growth.

Licenses and Regulatory Requirements in Jazan
To establish an industrial project in Jazan or within the Special Economic Zone—investors must obtain several licenses and approvals to ensure compliance with regulatory and operational standards. The most important requirements include:

1. Industrial License (Ministry of Industry and Mineral Resources): Required to specify the project scope, type of production, technical requirements, safety measures, designs, and environmental standards.
2. Mining License: Applicable if the project involves mining or mineral exploitation.
3. Environmental Approval: A permit from the relevant authority confirming that the project meets environmental protection requirements and poses no harm to the ecosystem.
4. Operating License: Issued by local municipal authorities (e.g., utilities, water and electricity distribution, occupational health and safety) to begin operations.
5. Import Permit: Necessary for projects that rely on importing raw materials or equipment from abroad.
6. Special Economic Zone Registration: Mandatory for projects established within the SEZ, requiring compliance with logistics policies and international standards.
7. Occupational Health and Safety License: Demonstrates adherence to workplace safety standards and employee protection measures.
8. Labor Rules: Ensures compliance with Saudi labor laws, worker rights, and approved working conditions.
9. Infrastructure Readiness: Verification that essential infrastructure—such as electricity, water, sewage, and other services—is available to support the project.

These regulatory requirements are designed to provide investors with a structured, transparent framework that promotes sustainable industrial development while aligning with Saudi Arabia’s Vision 2030 goals.

Conclusion

As an investor, be sure that the Industrial Investment in Jazan offers strong potential—particularly in the mining, food, and manufacturing sectors. By meeting the necessary investment requirements and securing the appropriate licenses, you can launch your business smoothly and securely.

At the Mohammed Al-Khilwi Office, we are here to support you every step of the way. From handling regulatory procedures to simplifying complex details, our team will ensure your investment journey in Jazan is seamless and efficient.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

In recent years, the Kingdom of Saudi Arabia has undergone remarkable changes across various sectors as part of Vision 2030, which seeks to diversify the economy and establish the Kingdom as an attractive destination for investment.

Among the sectors experiencing profound transformation is the contracting industry, where the Kingdom has launched a series of Giga projects that are reshaping its economic and urban landscape. These initiatives span across smart cities, entertainment hubs, and renewable energy ventures.

In this article, we will highlight the most prominent contracting projects, outlining their objectives and scope, while also shedding light on the legal framework and litigation issues associated with the contracting sector in Saudi Arabia.

NEOM

NEOM is one of the Kingdom's most significant and renowned Giga-construction projects. Valued at $500 billion, the project aims to transform the desert in the Kingdom’s northwest into an innovative, futuristic city spanning over 26,500 square kilometers.

This ambitious city will be fully powered by renewable energy and is envisioned as a new global model for sustainable living. NEOM will feature a floating industrial complex, a global trade hub, commercial ports, advanced facilities, sports venues, diverse entertainment centers, and world-class tourist attractions.

Qiddiya City

Qiddiya City is one of Saudi Arabia’s most ambitious projects, located in the heart of Riyadh. The project aims to establish a massive entertainment city that will serve as the Kingdom’s future capital of entertainment, sports, and culture. Spanning more than 370 square kilometers, Qiddiya is designed to become a vibrant hub for both residents and visitors.

The megacity will feature expansive parks and gardens, art and cultural centers, sports stadiums, adventure venues, and a wide range of entertainment facilities, offering an unparalleled experience.

Beyond its recreational value, Qiddiya City is set to play a key role in the national economy by generating an estimated 325,000 direct and indirect job opportunities. This makes it a cornerstone of Saudi Arabia’s efforts to build a more prosperous, dynamic, and vibrant society under Vision 2030.

The Line

The Line is one of the most groundbreaking cities currently under construction in Saudi Arabia. Stretching over 170 kilometers, this futuristic linear city is designed to revolutionize urban development by prioritizing people and nature over vehicles and infrastructure. Powered entirely by renewable energy, The Line preserves 95% of its surrounding land as a nature reserve, aligning perfectly with the Kingdom’s long-term sustainability goals. With its modern outlook and innovative design, The Line represents a global benchmark for sustainable and human-centric living.

King Salman Energy Park (SPARK)

King Salman Energy Park, known as SPARK, stands out as one of Saudi Arabia’s most advanced industrial projects. Strategically designed to serve as a global energy hub, SPARK connects international markets with the Kingdom’s integrated solutions and services in the energy sector, supporting a wide range of businesses and industries.

Covering nearly 50 square kilometers, the park emphasizes clean and sustainable energy technologies. Notably, SPARK is the first and only industrial city in the world to receive the Leadership in Energy and Environmental Design (LEED) Silver certification, a prestigious recognition of its environmentally friendly and sustainable practices. This makes SPARK not only a cornerstone of Saudi Arabia’s energy strategy but also a model for industrial innovation worldwide.

Contracting Litigation in Saudi Arabia

In reality, the success of these Giga projects relies not only on visionary planning and advanced infrastructure but also on a solid legal framework. A robust legal environment ensures compliance with contracts, protects the rights of project owners, contractors, and stakeholders, and guarantees timely project delivery—all while keeping the process legally sound and transparent.

Below is a brief overview of the litigation landscape in Saudi Arabia’s contracting sector:

1. The Most Common Contracting Disputes

Contracting disputes in Saudi Arabia differ depending on the nature of the disagreement, the contract type, and the circumstances of the contracting parties. The most prominent cases include:

Breach of Contract: Cases involving alterations to project specifications or the use of materials not agreed upon in the contract.

Delay Cases: Disputes arising from the failure to deliver projects within the agreed timeline or delays in financial payments.

Compensation Claims: Cases seeking financial redress for damages caused by halted work, or for losses resulting from delayed delivery.

Quality and Defect Cases: Claims made for defects or quality issues discovered upon project handover.

Termination and Cancellation: Filed when one party ends the contract due to the other’s non-compliance with agreed terms.

Interpretation and Modification: Cases brought forward to clarify ambiguous contract clauses or to modify terms that were not adequately defined or documented.

This legal structure provides assurance that the massive investments in the Kingdom’s contracting sector are safeguarded, while also ensuring fairness and accountability for all parties involved.

2. The Most Important Legal Systems for Contracting Projects in Saudi Arabia

Saudi Arabia’s legal framework is continuously evolving to strengthen the investment climate across all sectors, with special attention to the contracting industry. The most important developments include:

Enhanced Tendering and Contracting Systems: Reforming government procurement processes to ensure transparency and fair competition.

Stricter Safety Standards: Imposing higher safety requirements at construction sites and enforcing fines on violators.

Sustainability and Green Technologies: Introducing regulations that align contracting projects with the Sustainable Development Goals by integrating eco-friendly standards and practices.

Improved Payment Mechanisms: Establishing clear systems to protect contractors’ financial rights and minimize payment delays.

Specialized Contracting Courts: Setting up dedicated courts to expedite the resolution of contracting disputes.

Mandatory Training Programs: Requiring companies to conduct staff training programs aimed at enhancing efficiency, ensuring safety, and improving overall project quality.

These reforms reflect the Kingdom’s commitment to building a robust legal and regulatory environment that not only safeguards rights but also accelerates the success of its giga projects.

3. Judicial Authorities Specialized in Contracting Sector Disputes

Commercial Courts: Handle disputes between contractors or between contractors and suppliers, particularly in matters related to commercial transactions.

General Courts: Consider non-commercial disputes, such as conflicts between individuals and contractors in personal construction projects.

In conclusion, the contracting sector in Saudi Arabia is among the most vital pillars of the Kingdom’s economy. The giga projects currently underway are not only building cities, infrastructure, and world-class developments, but also fostering a legal environment that safeguards investments and encourages innovation and growth in line with Vision 2030.

For professionals working in the contracting field, it is crucial to consult with a lawyer specializing in contracting disputes. A legal expert ensures that the other party complies with Saudi regulations, drafts precise contracts, and protects both financial and legal rights.

If you require advice or assistance in litigation related to the contracting sector in Saudi Arabia, do not hesitate to contact us at the Mohammed Al-Khliwi Law Firm. We will handle the process for you and streamline all pending procedures.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

Saudi Arabia has recently made significant progress in diversifying its sources of income, shifting from an oil-dependent economy to one increasingly driven by industry. This transformation is largely attributed to Vision 2030, which places industry at the heart of the Kingdom’s economic development.

When discussing the industrial sector in Saudi Arabia, Jubail Industrial City stands out as one of the most important industrial hubs—not only in the Kingdom but globally. This prominence is the result of the government’s strong focus on enhancing its industrial and economic infrastructure.

In this article, we will explore the advantages of Investment in Jubail and its importance for investors interested in the Saudi industrial sector. We will also highlight the investment opportunities available in the city and the licenses required to begin operations there.

About Jubail

Located in Saudi Arabia’s Eastern Province, Jubail is the largest industrial city in the world, spanning more than 1,000 square kilometers. Established in 1975 as a modern industrial hub, it has since become home to some of the world’s most prominent companies, including SABIC—the fourth-largest petrochemical company globally and the largest in the Middle East—as well as the IWPP project, the world’s largest independent water and power project.

Jubail’s strategic location near abundant energy sources and raw materials essential for the petrochemical and refining industries gives it a competitive advantage. This proximity not only supports industrial operations but also ensures seamless access to global markets, making Jubail one of the most attractive destinations for investors in Saudi Arabia’s industrial sector.

Why Investment in Jubail is an Excellent Choice for Foreign Investors?

Since its establishment in 1975, and with continuous development aimed at transforming it into a premier industrial hub, Jubail has achieved remarkable milestones, including:

• Global leadership in petrochemicals: Jubail is often described as the world’s largest single industrial development project , hosting leading companies such as the Northern Petrochemical Company, Aramco Jubail Refinery Company, Eastern Petrochemical Company, Saudi Aramco Total Refining and Petrochemical Company (SATORP), Advanced Petrochemical Company, and Jubail United Company.
• A hub for innovation: The city houses the SABIC Research and Technology Center along with around 13 SABIC-affiliated plants.
• World-class infrastructure: Jubail boasts comprehensive infrastructure and industrial facilities essential for global companies, including gas and feedstock networks, road and railway systems, industrial and commercial ports, water treatment facilities, as well as modern residential units, schools, and hospitals.
• Massive expansion under Vision 2030: The Royal Commission for Jubail and Yanbu has allocated SAR 67.5 billion to double the city’s industrial capacity as part of Saudi Arabia’s Vision 2030.
• Residential and educational growth: Plans are underway to expand housing areas with more than 50,000 new units under construction, alongside the opening of a university scheduled for 2026.
• Strong investment volumes: Industrial investments in Jubail reached approximately SAR 525 billion in 2022.
• Strategic development projects: The Royal Commission has launched the Jubail Industrial City Economic Hub, a key initiative to advance national industry and logistics services.
• Global recognition: In 2021, Jubail Industrial City received the UNESCO Learning Cities Award, honoring its outstanding efforts in advancing education and lifelong learning opportunities.

Available Investment Sectors in Jubail

Jubail offers a diverse range of investment opportunities across several key sectors. For investors, the following areas present significant potential:

• Petrochemical and Mineral Industries
  This sector forms the backbone of Jubail’s economy. Its proximity to abundant energy resources and raw materials required for the petrochemical and refining industries makes it an ideal location for manufacturing and mineral-based investments.
• Real Estate
  The city’s rapid industrial expansion has fueled strong demand for both residential and commercial properties. Opportunities include housing for workers and professionals, as well as office spaces and commercial complexes to support the growing number of companies.
• Hospitality and Hotels
  With the presence of numerous corporations in the region, there is a high demand for hotel apartments and business accommodations. This is driven by the constant flow of official visits, meetings, and international delegations.
• Vocational Training and Education
  As industries in Jubail require specialized skills, there is a growing need for institutions that provide training and equip employees with the technical and technological expertise essential for industrial operations.
• Logistics and Supply Chain
  Strategically located on the Arabian Gulf and connected to major ports, Jubail holds a competitive edge in transportation and distribution. Investments in warehouses, transport services, and distribution centers can serve both local and regional markets.
• Healthcare
  The city’s expanding population and workforce have created a pressing need for modern medical facilities, including hospitals, clinics, and specialized healthcare centers.

Investment in Jubail Conditions

To support the establishment and growth of businesses in Jubail, the Kingdom has outlined clear conditions and specific criteria that investors must meet. The most notable requirements include:

• Submitting a comprehensive feasibility study that details the project concept, market analysis, and operational plans.
• Demonstrating financial capability and proof of the ability to successfully implement the project.
• Ensuring full compliance with the environmental, industrial, and regulatory standards set by the Royal Commission.
• Obtaining all necessary licenses from the Royal Commission, the Ministry of Investment, and other relevant authorities.

Requirements for Obtaining an Industrial License for Investment in Jubail

To launch an industrial project in Jubail, investors are required to provide a specific set of documents and meet the following conditions to obtain an industrial investment license:

Issuance of an investment license for foreign investors.

• The chosen investment activity must not be included in the list of activities excluded from foreign investment.
• All product specifications must comply with Saudi, Gulf, or international standards.
• The applicant must not have any final legal decisions issued against them for violations of laws inside or outside the Kingdom.
• The applicant must fully comply with the conditions and commitments attached to the investment license application form.
• The license must serve the intended investment objectives, with the same conditions applying to license renewal requests.
• The foreign investor must already hold a commercial activity license in Saudi Arabia.
• Submission of the commercial register and the articles of association of the company in its home country, duly certified by the competent authorities and the Saudi embassy.
• Availability of a commercial register to prove professional activity or an extract from the Civil Status Department.
• Submission of the articles of association for limited liability or joint-stock companies, depending on the entity type.
• A valid passport of the general manager.
• A national ID and family card if one of the partners is a Saudi citizen.
• Submission of a partners’ resolution, confirming their intent to invest in the Kingdom, including details such as partners’ names, capital contributions, ownership percentages, facility headquarters, and nature of activity.
• Preliminary approval from relevant ministries or authorities, if the activity requires it.
• A detailed business plan outlining operations and growth strategy.
• Submission of a three-year budget for the facility applying from abroad, demonstrating financial soundness, certified by an accounting firm and authenticated by the relevant authority and the Saudi embassy.
• Proof of financial capacity to invest, aligned with the project’s capital, each partner’s share, and the submitted business plan.
• Registration of a trade name with the Ministry of Commerce.

Finally, Jubail stands out as a promising region with enormous investment opportunities. All you need is to ensure compliance with the required conditions, obtain the necessary licenses, and you can launch your business with confidence and ease.

If you need support, don’t hesitate to contact Mohammed Al-Khliwi’s Office. Our team will help you navigate these procedures smoothly and handle the details on your behalf.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.

Trade names are undoubtedly the cornerstone of any business identity. They create the first impression in customers’ minds and serve as the primary way for them to recognize the nature and scope of a company’s activities.

Recognizing this importance, the Saudi Ministry of Commerce has developed a comprehensive system to regulate trade names. This framework outlines the process of selecting and registering a trade name while setting clear guidelines to protect it from duplication or misleading practices.

In this article, we will take an in-depth look at the trade name system in Saudi Arabia, covering its types, the registration steps, and the applicable fees.

About the Trade Names Law
The new Trade Names Law was issued on 19/03/1446 AH (corresponding to September 22, 2024), replacing the previous law issued by Royal Decree No. (M/15) dated 12/08/1420 AH. The law covers several key areas: general provisions; regulations governing trade names, their reservation and registration; cases of cancellation and deletion; violations; and concluding provisions.

A quick comparison between the new law and the previous one highlights several important changes:

• Under the new law, a trade name may be registered in a language other than Arabic or include letters and numbers, unlike the old law.
• The new law allows a trade name to be transferred independently from the business entity, whereas under the old law it was inseparably linked to the institution or company.
• The new law establishes clear and precise criteria for prohibited names, while the old law relied on vague and general standards.
• Under the new system, it is no longer permissible to reserve or register a trade name for an existing company, even if the business activity differs. By contrast, the old system required registering an identical or similar name for an existing company if the activity was different.

It is worth noting that the Trade Names Law and its implementing regulations came into effect on Thursday, April 3, 2025 (Shawwal 5, 1446 AH).

The Ministry of Commerce has also clarified the proper method for writing trade names under the new system when submitting applications electronically via the Saudi Business Center platform. Applicants are now allowed to reserve a trade name without specifying the company’s legal entity or commercial activity, with the aim of simplifying procedures for starting a business.

Overall, the new system seeks to enhance the business environment and support entrepreneurs by streamlining the process of reserving trade names, ensuring their legal protection, and safeguarding related rights.

Trade Name Registration Mechanism in Saudi Arabia

Whether you are an individual entrepreneur or a company, registering a trade name in Saudi Arabia can be done seamlessly through the Saudi Business Center platform.

Simply Select the service: From "Doing Business" > "Ministry of Commerce" > "Reserve a Trade Name" - or from "Public Services" > "Manage Reserved Trade Names" > "Reserve a Trade Name".

Start the service: Review the terms and requirements, then agree and click "Apply for the service".

Enter data: Select the reservation type and language of the trade name - Enter up to 5 suggested trade names.

Review and submit the application: Review the application summary, modify names, if necessary, then approve the declaration and submit the application.

Processing and payment: After approval by the Ministry of Commerce, the invoice is issued and paid through the central payment system.

Complete the application: After payment, the trade name is published and the application status changes to "Complete". The application can be printed or modified in the event of a return or rejection.

Trade Name Fees

The fees for trade name services in Saudi Arabia vary depending on the type of request:

• Reserving a trade name in Arabic: 200 SAR
• Reserving a trade name in English: 500 SAR
• Extending the trade name reservation period: 100 SAR
• Disposing of a trade name: 100 SAR

By adhering to the requirements outlined in the Saudi Trade Names Law, you ensure full protection of your trade name. Meeting these conditions not only guarantees compliance with regulations but also strengthens the credibility and legal standing of your brand.

Alternatively, you may contact us to manage the entire process on your behalf. This way, you can rest assured that all procedures will be handled legally and professionally, allowing you to focus on growing your business with confidence.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.