Saudi Arabia: Government Allowed Exemptions for Contracting with Firms Lacking Regional HQ

Saudi Gazette, 19 February 2026: Saudi Arabia has introduced a formal exemption mechanism permitting government entities to contract with international companies that do not maintain a regional headquarters in the Kingdom.

The decision, announced by the Local Content and Government Procurement Authority, aims to balance the Kingdom’s strict “Relocation of Headquarters” policy—effective since early 2024—with the practical needs of major projects requiring specialised technical expertise or strong financial competitiveness. Under the earlier rule, all government bodies, funds, institutions, and affiliated agencies had been prohibited from contracting with foreign companies whose regional headquarters were located outside Saudi Arabia.

The authority confirmed that government entities may now request an exemption for specific projects, groups of projects, or defined periods, provided the request is submitted before issuing a tender or initiating direct contracting. The electronic service for submitting such exemption requests went live on the “Etimad” digital platform in November 2025, offering an official channel for regulated applications. Requests for older tenders or tenders issued outside the platform will continue under the previous mechanism.

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Saudi Arabia: New Musaned Service Enables Legal Termination of Worker Contracts

Arab News, 15 February 2026: Saudi Arabia has launched a new Musaned “work interruption” service allowing employers to legally terminate contracts when domestic workers are absent, clarifying procedures and strengthening contractual protections.

The Ministry of Human Resources and Social Development introduced the service through the national unified recruitment platform, Musaned, as part of its efforts to improve contractual relationships and enhance transparency in the domestic‑labour sector. The system covers two core procedures: contract termination due to work interruption and labour mobility. Authorities stated that the service is designed to ensure rights are protected and contractual obligations remain clear for both employers and workers.

Under the new framework, workers whose contracts are terminated within the first two years of arrival must complete final‑exit procedures within 60 days, with failure to do so constituting a violation of law. Workers who have resided in the Kingdom for more than two years must either transfer to a new employer or obtain a final exit visa within the same 60‑day window. Noncompliance is treated as an absence from work and a breach of regulations.

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Saudi Arabia: Commerce Ministry Issues Nearly 2,000 Licences for Ramadan Sales

Saudi Gazette, 9 February 2026: Saudi Arabia’s Ministry of Commerce has issued 1,987 licences for Ramadan sales and promotional offers across the Kingdom

The Ministry of Commerce has announced the issuance of 1,987 licences authorising discounts and promotional offers for the Ramadan sales season, which began on 1 February and will continue until after Eid al‑Fitr. The licences apply to both commercial establishments and online stores across the Kingdom.

According to the Ministry, the approved promotions cover more than five million products, including food and consumer goods, electrical and electronic appliances, perfumes and cosmetics, clothing and fashion items, and other Ramadan and Eid essentials.

Authorities also urged online shoppers to place orders early in anticipation of peak demand in the parcel‑delivery sector as Ramadan approaches. The Ministry, along with the Transport General Authority and the E‑Commerce Council, highlighted that early ordering improves shipping flow, reduces delays and enhances consumer experience.

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Saudi Arabia: CMA Fully Opens Capital Market to Foreign Investors

Saudi Gazette, 1 February 2026: Saudi Arabia has taken a major regulatory step by fully opening its capital market to all categories of foreign investors, reshaping access to the Kingdom’s main stock exchange.

Saudi Arabia has approved a new regulatory framework allowing all foreign investors to access the capital market directly, and the changes took effect on 1 February. The Capital Market Authority announced that overseas institutions, funds and other foreign entities could now trade directly on the Tadawul All Share Index without meeting prior qualification requirements.

The reform abolished the long‑standing Qualified Foreign Investor regime and removed the regulatory structure governing swap agreements, which had previously limited non‑resident investors to economic exposure rather than direct share ownership. Under the new framework, foreign investors are permitted to invest directly in shares listed on the main market, aligning Saudi Arabia’s access rules more closely with international standards.

The CMA confirmed that foreign ownership limits remained in place. Non‑resident foreign investors, excluding strategic investors, are prohibited from holding 10% or more of any listed company, while total foreign ownership in a listed issuer is capped at 49%. The authority stated that these limits were intended to balance market openness with stability and regulatory oversight.

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Saudi Arabia: New Rules on Foreign Property Ownership

Gulf News, 23 January 2026: Saudi Arabia has begun enforcing a new regulatory framework governing how non‑Saudis can acquire real estate, marking the formal rollout of rules that channel foreign property ownership through a single digital system.

The Real Estate General Authority have confirmed that the Regulation on Real Estate Ownership by Non‑Saudis under Saudi Arabia Cabinet Decision No. 42/1447 have officially taken effect, bringing into force a system that standardises applications and approvals for property ownership by foreigners. Under the regime, all requests must now be processed through Saudi Properties, the government’s unified digital portal for real‑estate services.

The rules apply to residents holding valid residency permits, non‑residents, and foreign companies and entities, with each category subject to a distinct administrative pathway. Resident applicants are permitted to apply directly through the portal, while non‑residents were required to initiate the process through Saudi diplomatic missions abroad to obtain a digital identity before completing applications electronically. Foreign companies without a physical presence in the Kingdom must register first with the Ministry of Investment and obtain a unified identification number before seeking ownership approval.

The regulation allows non‑Saudi ownership across multiple regions of the Kingdom, but introduces heightened controls for strategically sensitive locations. Ownership in Riyadh and Jeddah, as well as in the holy cities of Mecca and Medina, will be governed by a separate geographic zoning framework that authorities indicated is expected to be published in the first quarter of 2026. In Mecca and Medina, ownership remains restricted to Saudi companies and Muslim individuals.

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Saudi Arabia: AI‑Enabled Sustain Platform to Drive Cross‑Sector Collaboration

Saudi Gazette, 19 January 2026: Saudi Arabia is to launch the SUSTAIN Platform in 2026 to accelerate AI‑enabled collaboration across government, business and civil society for sustainable‑development initiatives.

The Ministry of Economy and Planning confirmed that the platform will launch in a beta form. It has been designed as an AI‑powered matchmaking network to help entities identify credible partners, build coalitions and move sustainability projects from planning to implementation more efficiently.

The platform aims to address the global challenge of fragmented partnership opportunities, which often delay or weaken impact. SUSTAIN will also operationalise Saudi Arabia’s aim for stronger public‑private coordination and will support national goals on sustainable growth, economic diversification and long‑term development outcomes.

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Saudi Arabia: Commerce Ministry Bans Use of Religious Names on Bags and Packaging

Saudi Gazette, 12 January 2026: Saudi Arabia’s Ministry of Commerce has prohibited printing the names of God on bags and packaging to preserve respect for religious expressions.

The Ministry announced a directive banning the inclusion of divine names on commercial packaging and shopping bags. The measure aims to prevent misuse and improper disposal of items bearing sacred references. Officials confirmed that the ban applies to all retailers and manufacturers, with compliance checks to follow.

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Saudi Arabia: Cabinet Approves Regulatory Frameworks for Four Special Economic Zones

Asharq Al-Awsat, 2 January 2026: Saudi Arabia’s Cabinet approved regulatory frameworks for four Special Economic Zones, initiating a major step to bolster the Kingdom’s investment ecosystem.

In a decision on 2 January 2026, the Saudi Cabinet approved new regulations governing the special economic zones (SEZs) in Jazan, Ras Al-Khair, King Abdullah Economic City, and the Cloud Computing & Informatics Zone in Riyadh. The move marked the transition of these SEZs into their operational and legal phase, offering investors a clear roadmap on incentives, licensing regimes, and ownership flexibility.

Minister of Investment confirmed that the regulations will come into force in early April 2026, describing the approval as a major leap in developing the Kingdom’s regulatory ecosystem and enhancing global investment competitiveness in line with Vision 2030.

Each zone targets strategic sectors aligned with its regional strengths:

• Jazan: a hub for food processing, mining, and manufacturing, leveraging its port and links to African markets.
• Ras Al-Khair: a centre for maritime, shipbuilding, offshore rigs, and marine support.
• King Abdullah Economic City: a logistics, high-value manufacturing, and automotive hub.
• Cloud Computing & Informatics Zone (Riyadh): a data-driven economy zone, facilitating local data storage and processing by global tech firms.

The regulations include incentives like flexible licensing, tax and customs exemptions, streamlined operational procedures, foreign ownership rights, multilingual trade naming, and exemptions from select provisions of Saudi Arabia Cabinet Decision No. 678/1443 on the Approval of the Companies Law. Tailored Saudisation frameworks will align workforce policies to each zone’s economic activity, balancing local talent development with investor needs.

The unified governance model will provide clear mandates across government entities, accelerating licensing processes and ensuring a fast, flexible business environment. As a result, firms will have enhanced regulatory clarity and operational agility when entering or scaling within Saudi Arabia’s SEZs

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