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Commercial (Trading) License in Saudi Arabia

Start Trading Legally and Strategically in the Kingdom

A Commercial (Trading) License is essential for any business looking to conduct trading activities in Saudi Arabia. This license enables companies to operate legally, gain access to government services, protect their intellectual property, and compete in public tenders and contracts.

Why Choose Saudi Arabia for Trading?

Strategic Global Position

  • Located at the crossroads of Europe, Asia, and Africa
  • 13 major ports* handling 13% of global trade
Powerful Port Network
  • 70% of imports and 95% of exports move through Saudi ports
  • 291 operational docks serving as vital trade gateways
Free Trade Agreement
    Saudi Arabia enjoys strong trade ties through agreements with:
  • Greater Arab Free Trade Area (GAFTA)
  • European Free Trade Association (EFTA)
  • Singapore

    The Trade Sector: A Pillar of Saudi Arabia’s Economy

      Saudi Arabia is the largest economy in the Middle East and North Africa (MENA) region. Its trade sector is a core driver of economic activity, fueled by:
    • Abundant natural resources
    • Advanced infrastructure
    • Continuous government investment and policy reform
    Government Initiatives & Business Opportunities
      The Saudi government actively promotes the trade sector, offering support to industries such as:
    • Retail & Wholesale
    • Import & Export
    • E-Commerce

    Whether you’re a local entrepreneur or a global investor, Saudi Arabia presents a highly attractive and supportive environment for trading businesses. Demographics & Market Reach

    • Large, young population with rising consumer demand
    • Access to a regional market of over 424 million consumers
    • Exceptional geographic location ideal for global distribution
    Get Your Commercial License with Neotecniq
      Neotecniq guides you through every step of the licensing process—from document preparation to final approval—ensuring full compliance with Saudi regulations.
    • Establish your trading presence in Saudi Arabia confidently and efficiently.

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    A Glance at

    Saudi Arabia’s Trade Sector

    Importance of Saudi Arabia’s Trade Sector

    Saudi Arabia’s trade sector is overflowing with business opportunities, making it a prime choice for investment.

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    A Pillar of Saudi Arabia’s Economy

    Saudi Arabia is the largest economy in the Middle East and North Africa (MENA) region. Its trade sector is a core driver of economic activity, fueled by:

    • Abundant natural resources
    • Advanced infrastructure
    • Continuous government investment and policy reform.

    img

    Government Initiatives & Business Opportunities

    The Saudi government actively promotes the trade sector, offering support to industries such as:

    • Retail & Wholesale
    • Import & Export
    • E-Commerce
    Whether you’re a local entrepreneur or a global investor, Saudi Arabia presents a highly attractive and supportive environment for trading businesses.

    img

    Demographics & Market Reach

    • Large, young population with rising consumer demand
    • Access to a regionalmarket of over 424 million consumers
    • Exceptional geographic location ideal for global distribution

    img

    Get Your Commercial License with Neotecniq

    Neotecniq guides you through every step of the licensing process—from document preparation to final approval—ensuring full compliance with Saudi regulations.

    Commercial Licensing Requirements in Saudi Arabia

    Recognizing the vital role of commercial activities in economic growth, the Kingdom of Saudi Arabia offers attractive opportunities for foreign investors in the wholesale and retail sectors—subject to specific regulatory conditions. With expert guidance from *Neotecniq*, entrepreneurs can navigate the licensing process efficiently and establish their businesses with confidence.

    Licensing Options Available
    Saudi Arabia provides two primary commercial licensing pathways for foreign investors:

    • 100% Foreign-Owned Commercial License: Allows full foreign ownership without a local partner, subject to certain eligibility and capital requirements.
    • Commercial License with a Saudi Shareholder: Facilitates joint ventures between foreign investors and Saudi partners, offering greater flexibility for selected business models and activities.

    Licensing Requirements for Entrepreneur License in Saudi Arabia

    100% Foreign-Owned Commercial License

    Commercial License with a Saudi Shareholder

    100% Foreign-Owned Commercial License — Requirements & Compliance

    Foreign investors can obtain a 100% foreign commercial license*to operate in wholesale, retail, and e-commerce sectors within the Kingdom of Saudi Arabia. This license enables full foreign ownership, offering a powerful opportunity to expand into one of the region’s most dynamic markets.

    Required Documents:

    1. Commercial Registrations: An authenticated copy of the commercial registration from at least three regional or global markets where the company operates, certified by the Saudi Embassy in each respective country.
    2. Financial Reports: Audited financial statements from the most recent fiscal year, certified by the Saudi Embassy.

    Rules and Restrictions

    1. International Presence Requirement: The license is exclusively available to foreign companies operating in at least three international or regional markets.
    2. Minimum Capital Requirement: The minimum capital required to operate in the wholesale and retail sector under this license is 30 million Saudi Riyals, as set by the Ministry of Investment.
    3. Localization and Training Obligations: During the first five years, companies must:
      • Comply with localization (Saudization) targets issued by the Ministry of Human Resources and Social Development.
      • Implement a localization plan that includes appointing Saudis to senior management roles.
      • Annually train at least 30% of their Saudi workforce.
    4. Previous Licensing Disclosure: If any partner has previously obtained a license from the Ministry of Investment, this must be disclosed in the partner’s information during the electronic application process.
    5. Investment Commitment Options: Companies must meet one of the following investment criteria within five years of obtaining the license:
      • Option 1: Invest at least 300 million SAR, including 30 million SAR as cash capital.
      • Option 2: Invest a minimum of 200 million SAR, including 30 million SAR as cash capital, and meet one or more of the following strategic objectives:
        Category Minimum Requirement
        Local Manufacturing At least 30% of products distributed locally must be manufactured in Saudi Arabia.
        R&D Investment Allocate 5% or more of total sales to research and development within the Kingdom.
        Logistics & After-Sales Establish a centralized logistics center with full after-sales service capabilities.

    Launch Your Business in Saudi Arabia with Neotecniq

    At Neotecniq, we help you simplify the process of obtaining a 100% foreign-owned commercial license in Saudi Arabia. Our team ensures full compliance with regulatory requirements and supports you through every stage—from documentation to strategic planning.

    Contact us today to begin your expansion into the Saudi market with confidence.

    Commercial License with a Saudi Shareholder — Requirements & Compliance

    A commercial license with a Saudi shareholder allows foreign investors to establish their business in Saudi Arabia in partnership with a Saudi national or entity. This structure provides added flexibility and access to local networks, while complying with investment regulations in the Kingdom.

    Required Documents:

    To apply for this license, the following documents are required:

    1. Commercial Registration: A copy of the commercial registration of the Saudi shareholding partner, certified by the Saudi Embassy.
    2. Identification Documents: A copy of the national identity of the Saudi or GCC partner (if the partner is a natural person and not registered in the ABSHAR system).
    3. Financial Statements: Audited financial statements for the most recent fiscal year of the foreign company, certified by the Saudi Embassy.

    Rules and Restrictions

    1. Saudi Shareholder Requirement: The investment license must reflect a Saudi shareholder holding a minimum of 25% ownership in the company.
    2. Premium Residency (Special Privilege Iqama) Exemption: Premium Residency holders are exempt from submitting the above documentation requirements.
    3. Previous Licensing Disclosure: If any partner has previously received a license from the Ministry of Investment, this must be disclosed during the partner data entry in the electronic application process.
    4. Additional Submission Requirements: Applicants must submit:
      • Saudi National ID or Premium Residency ID (if applicable)
      • Commercial registration details for any participating Saudi entities

    Get Your Commercial License with Neotecniq

    Securing a commercial license in Saudi Arabia can be complex, but with Neotecniq by your side, the process becomes simple and efficient. Our expert team will guide you through each step—from documentation to final approval—ensuring full compliance with local regulations.