Trading investment route
Trading Company Setup (Wholesale, Retail and E-commerce) for Foreign Investors
The conditions for foreign investors entering wholesale and retail in Saudi Arabia, with full ownership or a Saudi partner.
Trading activities
Wholesale and retail
Import and export
Commercial distribution
Showroom and store chains
E-commerce selling goods
Capital options
- Option 1 (100% foreign ownership): the parent company present in 3 regional or global markets (3 attested commercial registrations) + attested financial statements + minimum capital of SAR 30,000,000 + a commitment to invest SAR 300 million within 5 years, reduced to SAR 200 million within 5 years when one of three criteria is met: manufacturing 30% of products locally, spending 5% of sales on R&D, or setting up a logistics and after-sales service centre.
- Option 2 (with a Saudi partner of at least 25%): one parent company commercial registration + minimum capital of SAR 26,666,667, with the foreign partner’s share no less than SAR 20 million and no more than 75%.
E-commerce and the Entrepreneur licence
Wholesale and retail trading (including online stores selling goods directly) is subject to the rules and capital of the trading activity (SAR 30 million for 100% ownership, or SAR 26,666,667 with a 25% Saudi partner). The Entrepreneur licence is reserved for technology and innovation startups and innovative digital platforms holding an endorsement letter from a licensed Saudi incubator or accelerator, a Saudi university, or a patent. It is not granted for conventional trading.
Government fees
Under the previous system, the investment licence cost SAR 2,000 as a basic licence fee plus a SAR 10,000 Investor Services subscription in the first year, rising to SAR 60,000 in the following years. Under the current Investment Law: the process has become registration in the National Investor Register, collection of the former high annual subscriptions (SAR 10,000 and SAR 60,000) has been suspended, and the registration fee is set officially by the Ministry of Investment in the payment notice issued when the application is approved, according to the activity classification.
Commercial Registration for an LLC: SAR 1,200 a year + SAR 500 to publish the articles of association + 15% VAT, through the Saudi Business Center. Under the new Commercial Registration Law, branch registrations and the traditional expiry date were abolished and replaced by an annual data confirmation.
Staff and Saudization
The company must meet the Saudization quotas for wholesale and retail. The 100% route requires training 30% of Saudi employees each year and preparing them for leadership roles; the partnership route carries the hiring and training commitments set out in the Investor Guide.
Sources: Ministry of Investment Investor Guide (13th edition, 2026), the Commercial Registration Law, the Saudi Business Center, the Ministry of Industry and Mineral Resources and the Saudi Industrial Development Fund. Last checked: 3 November 2026.
Frequently asked questions
Can I open a 100% foreign-owned online store without SAR 30 million?
Wholesale and retail trading (including online stores selling goods directly) is subject to the rules and capital of the trading activity (SAR 30 million for 100% ownership, or SAR 26,666,667 with a 25% Saudi partner). The Entrepreneur licence is reserved for technology and innovation startups and innovative digital platforms holding an endorsement letter from a licensed Saudi incubator or accelerator, a Saudi university, or a patent. It is not granted for conventional trading.
What are the conditions for 100% foreign-owned trading?
The parent company present in 3 regional or global markets, attested financial statements, minimum capital of SAR 30,000,000, and a commitment to invest SAR 300 million within 5 years, or SAR 200 million when one of the three criteria is met.
How much capital is needed with a Saudi partner?
A minimum of SAR 26,666,667, with the Saudi partner holding at least 25% and the foreign partner’s share no less than SAR 20 million.
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