MISA eliminating multiple licenses reducing fees and simplifying regulatory processes

The Ministry of Investment of Saudi Arabia (MISA) is currently undergoing a major update of some of its licensing rules, effectively transitioning from a License Regime to a Registration Regime in line with the new Foreign Investment Law issued on 11 August 2024.

Under this new regime, all existing MISA licenses will be converted into certificates, consolidating all business activities under a single certificate and thus eliminating the current need for multiple licenses and the creation of branches to group thereunder any activity falling under different categories.

Therefore, entities holding multiple MISA licenses, such as those for trade, mining, and services, will have the option to consolidate them into a single certificate, simplifying regulatory oversight and reducing administrative burdens. Additionally, this shift is expected to bring significant cost efficiencies, as businesses will only need to pay an annual fee for one certificate rather than one fee for each of the multiple licenses they may have.

While MISA has confirmed that the regulatory requirements for trade activities remain unchanged at this stage, we understand that further updates may be introduced in the coming weeks.

However, as part of this transition, MISA is in the process of updating its electronic portal, which has led to technical difficulties and delays in submitting and processing applications.

While this shift represents a significant regulatory change aimed at streamlining investment processes, certain aspects remain unclear. Given the evolving nature of this regulatory shift, certain aspects of this client alert may change as MISA provides further clarifications and updates.

We remain in close communication with MISA and will provide further updates as new information becomes available.