Article 7 of the Saudi Investment Law
المادة 7 من نظام الاستثمار
The article creates a national register of investors, requires the foreign investor to register with the Ministry before investing (except in securities), and regulates the one-stop service center for approval applications.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تنشئ الوزارة سجلاً وطنيًّا للمستثمرين، وتقيَّد فيه جميع المعلومات والبيانات المتعلقة باستثماراتهم، وتتولى إدارته وتحديثه والمحافظة على سريته.
2- على المستثمر الأجنبي التسجيل لدى الوزارة قبل القيام بأي استثمار؛ وفقًا لما تحدده اللائحة. ولا يسري ذلك على الاستثمار في الأوراق المالية الخاضعة لأحكام نظام السوق المالية.
3- على الجهة المختصة تزويد الوزارة بما تحتاجه من معلومات أو بيانات لإنشاء السجل المنصوص عليه في الفقرة (1) من هذه المادة أو تحديثه، ووفقًا للآلية التي تحددها اللائحة، وللوزارة التواصل مع الجهة المختصة في سبيل استكمال أي متطلبات لإنشاء ذلك السجل أو تحديثه.
4- للوزارة، من خلال مركز الخدمة الشاملة المنشأ فيها، استقبال طلبات المستثمر لإصدار أي من الموافقات النظامية اللازمة لممارسة نشاط استثماري بما في ذلك أي تراخيص أو تصاريح. وتتولى الوزارة التنسيق مع الجهة المختصة بإصدار أي من تلك الموافقات للتأكد من استيفاء المستثمر للاشتراطات النظامية لها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 7 explained in plain English
This article regulates the registration of investments in four paragraphs:
- The national register of investors: the Ministry of Investment establishes it and records in it all information and data on investors' investments, and manages and updates it and keeps it confidential.
- Registration of the foreign investor: the foreign investor must register with the Ministry before making any investment, as determined by the Implementing Regulations. Investment in securities subject to the Capital Market Law is excepted. The article does not impose this advance registration on the local investor.
- The role of other authorities: the competent authorities must provide the Ministry with the information it needs to establish and update the register, according to a mechanism set by the Implementing Regulations, and the Ministry may contact them to complete the requirements.
- The one-stop service center: through the one-stop service center established within it, the Ministry may receive the investor's applications for the legal approvals needed to carry on the activity, including licenses and permits, and the Ministry coordinates with the authority that issues them to ensure the investor meets its requirements.
In addition to registration, if the activity is on the list of excluded activities, Article 8 requires the foreign investor to apply to the Ministry for approval before investing in it. Article 6, which regulates the granting of investment incentives, comes before it.
The details of the registration procedures and documents are set by the Implementing Regulations. A foreign investor can consult a lawyer who specializes in foreign investment and commercial matters before starting.
Practical example
A foreign company wants to establish a subsidiary in Riyadh to provide technology services. It must first register with the Ministry of Investment before any investment, and it can submit the license applications it needs through the one-stop service center. A foreign investor who buys listed shares subject to the Capital Market Law is not subject to this registration.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 7 of the Saudi Investment Law
Must a foreign investor register with the Ministry of Investment?
Yes. It must register with the Ministry before making any investment, as determined by the Implementing Regulations, except for investment in securities subject to the Capital Market Law.
Does a foreigner need to register to buy Saudi shares?
The registration requirement does not apply to investment in securities subject to the Capital Market Law.
Is an investor's data in the national register confidential?
Yes. The Ministry manages and updates the register and keeps it confidential.
What is the role of the one-stop service center?
It receives the investor's applications for the legal approvals needed to carry on its activity, including licenses and permits, and the Ministry coordinates with the authority that issues them.
More articles on Registering a Foreign Investor
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.