In 2000, Saudi Arabia implemented the Foreign Investment Law, Saudi Arabia Royal Decree No. M1/1421 dated 05/01/1421 H (corresponding to 10/04/2000 AD), which liberalised the foreign investment laws in the Kingdom. The Saudi Arabian General Investment Authority (SAGIA) was created under this law, which is responsible for licensing all new foreign investments in Saudi Arabia. Under Saudi Arabia Royal Decree No. M1/1421, foreign persons and entities are permitted to invest in all industries and services except for those which are specifically excluded from foreign investment. Under Article 2 of Saudi Arabia Royal Decree No. M1/1421, regarding taxation and tariffs, the Saudi authorities give preferential treatment to Foreign Direct Investment (FDI). The impact of these laws has been seen in the constant progress the country has shown in attracting foreign investments and the socio-economic changes that are taking place across the nation.
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Middle-East Legislative Insight Saudi Arabia Foreign Investment-Law.pdf