Saudi Laws Update

 Gulf states and India sign Terms of Reference for Free Trade Agreement The six-member Gulf Cooperation Council and India signed on Thursday the Terms of Reference (ToR) to formally begin negotiations on a free trade agreement. February 5, 2026 Saudi Gazette report NEW DELHI — The six-member Gulf Cooperation Council—which includes Saudi Arabia and the United Arab Emirates— and India signed on Thursday the Terms of Reference (ToR) to formally begin negotiations on a free trade agreement. This marks a major step in strengthening economic ties with the six-member Gulf bloc, including Bahrain, Kuwait, Oman, and Qatar. The Terms of Reference (ToR) for the India-GCC Free Trade Agreement (FTA) were signed between Ajay Bhadoo, Additional Secretary and Chief Negotiator, Department of Commerce and Dr. Raja Al Marzouqi, Chief Negotiator, Secretariat General of the Gulf Cooperation Council, at Vanijya Bhawan, New Delhi on Thursday. The signing took place in the presence of India’s Minister of ...

 Education Ministry revokes licenses of 74 private schools for violations Inspection visits conducted over the past period revealed that several schools had failed to renew their licenses or comply with updated regulatory requirements, prompting the implementation of necessary measures to protect student safety and maintain the quality of the educational environment. February 5, 2026 - Saudi gazette report RIYADH — The Saudi Ministry of Education has revoked the licenses of 74 private schools across several cities in the Kingdom, as part of its efforts to safeguard student safety and uphold the quality of the educational environment. The decision followed the detection of multiple regulatory violations, including breaches related to student safety, educational standards, and compliance with approved requirements. Inspection visits conducted over the past period revealed that several schools had failed to renew their licenses or comply with updated regulatory requirements, prompting...

  Ministry of Commerce Clarifies the Key Benefits of the Ultimate Beneficial Owner (UBO) Rules  09 Dec 2025   The Ministry of Commerce revealed the key benefits of the Ultimate Beneficial Owner (UBO) Rules, which define the UBO as the person — or persons of natural capacity — who has final, actual, direct or indirect control over the company. The rules enhance corporate transparency and compliance with international requirements, in addition to establishing an accurate database that preserves the information of ultimate beneficial owners in the business sector. The rules also contribute to facilitating disclosure procedures related to the UBO’s data by aligning them with the procedures for company incorporation requests or the annual confirmation of the commercial registry. The rules additionally provide a guidance manual to help companies comply with identifying the UBO, disclosing the required information, and retaining it. The rules further ensure the confidentiality o...

 Ministry of Commerce Clarifies Those Responsible for Preparing and Filing Companies’ Financial Statements  16 Dec 2025   The Ministry of Commerce clarified the parties responsible for preparing and filing companies’ financial statements, as part of efforts to enhance companies’ awareness of statutory requirements and enable them to clearly understand their responsibilities, thereby contributing to higher levels of transparency, governance, and the quality of financial disclosure. The Ministry explained that, in joint-stock companies (unlisted), the Board of Directors is responsible for preparing the company’s financial statements, which must be prepared at the end of each financial year. The financial documents must be made available to the auditor (if any) at least 45 days prior to the date of the General Assembly meeting. The financial statements must be signed by the Chairman of the Board, the Chief Executive Officer, and the Chief Financial Officer (if any), and a co...

The Ministry of Investment, represented by the "Invest in Saudi Arabia" platform, called on non-Saudi companies and entities to register their real estate investments through the "Invest in Saudi Arabia" platform. The Ministry of Investment, represented by the "Invest in Saudi Arabia" platform, called on non-Saudi companies and entities to register their real estate investments through the "Invest in Saudi Arabia" platform. January 29, 2026 -Saudi Gazette report RIYADH — The Ministry of Investment, represented by the "Invest in Saudi Arabia" platform, called on non-Saudi companies and entities to register their real estate investments through the "Invest in Saudi Arabia" platform. This follows the implementation of the new law allowing non-Saudis to own real estate effective from January 22. The Law of Real Estate Ownership by Non-Saudis allows non-Saudis to benefit from approved investment pathways and available incentives, a...

  Strategy targets over 220 public-private partnership contracts, more than SR240 billion in private investment by 2030, and tens of thousands of jobs across 18 sectors The strategy targets 18 priority sectors and aims to raise satisfaction levels with public services while creating tens of thousands of specialized jobs.  The strategy targets 18 priority sectors and aims to raise satisfaction levels with public services while creating tens of thousands of specialized jobs.  January 29, 2026 - Saudi Gazette report RIYADH — Saudi Arabia has begun implementing its National Privatization Strategy following Cabinet approval, Finance Minister Mohammed Al-Jadaan announced. This marks a new phase aimed at improving infrastructure quality, upgrading public services and expanding private sector participation in economic development. Al-Jadaan, who also chairs the board of the National Center for Privatization, said the strategy received Cabinet approval on Nov. 25, 2025, and aligns...

 The Ministry of Commerce announced on Thursday the results of three evaluations covering car dealerships, electrical and electronic appliance dealers and distributors, and online stores. The Ministry of Commerce announced on Thursday the results of three evaluations covering car dealerships, electrical and electronic appliance dealers and distributors, and online stores. January 29, 2026 - Saudi Gazette report RIYADH — The Ministry of Commerce announced on Thursday the results of three evaluations covering car dealerships, electrical and electronic appliance dealers and distributors, and online stores. The ministry explained that these second phases of evaluations aimed to raise the quality of services provided, enhance establishments' compliance with approved standards, and improve the customer experience. It clarified that the car dealership evaluation included 24 dealerships and comprised four main criteria: inventory and reservation data, after-sales services, compliance level...

 The Ministry of Municipalities and Housing had issued 1,239 new group housing licenses and more than 1,000 licenses compliant with Saudi architectural standards during the year 2025. The Ministry of Municipalities and Housing had issued 1,239 new group housing licenses and more than 1,000 licenses compliant with Saudi architectural standards during the year 2025. January 29, 2026 -Saudi Gazette report RIYADH — The Ministry of Municipalities and Housing had issued 1,239 new group housing licenses and more than 1,000 licenses compliant with Saudi architectural standards during the year 2025. The ministry revealed that the municipal licensing system continued to develop its procedures through digital channels and approved pathways, with the average license issuance time during 2025 reaching approximately 24 hours. Around 87 percent of licenses were issued within 24 hours or less, according to the approved licensing procedures. This is within the approved municipal licensing system as...

General manager position restricted to only Saudis; Qiwa clarifies January 29, 2026 - Okaz/Saudi Gazette RIYADH — The Qiwa platform, under the Ministry of Human Resources and Social Development, has removed the general manager profession from its records for expatriates, confirming that this profession is restricted to Saudi citizens only. It explained that establishments with employees holding the general manager profession can change this to other professions, such as CEO or chairman of the board, provided that the employee is registered in the commercial registration with the same profession and that there are no other employees with the same profession within the establishment. The Qiwa platform has also begun suspending the service of changing certain professions for expatriate workers. The most prominent of these professions include general manager, sales representative, marketing specialist, and purchase manager. A message, appears for establishments wishing to change their empl...

 Saudi Arabia opens capital market to all foreign investors from Feb. 1, 2026 January 06, 2026, Saudi Gazette report RIYADH — The Capital Market Authority (CMA) announced the opening of Saudi Arabia’s capital market to all categories of foreign investors, allowing them to invest directly across all market segments starting Feb. 1, 2026. The decision follows the CMA board’s approval of a new regulatory framework permitting non-resident foreign investors to invest directly in the Main Market, making the capital market accessible to a broad range of global investors. The approved amendments aim to expand and diversify the investor base in the Main Market, support investment inflows and enhance market liquidity. Under the new framework, the CMA has eliminated the concept of the Qualified Foreign Investor (QFI) in the Main Market, enabling all categories of foreign investors to access the market without the need to meet qualification requirements. The amendments also abolished the regul...

 Public Prosecution warns against cyber harassment crimes Saudi Gazette report RIYADH — Saudi Arabia’s Public Prosecution warned against the crime of cyber harassment, stressing that any statement, act or gesture of a sexual nature directed at another person that violates their body, honor or modesty constitutes a criminal offense under the law. In a post on its official X account, the Public Prosecution said the crime of harassment includes acts committed through modern technological means, including social media platforms and digital applications, emphasizing the need to comply with regulations and respect societal values. The authority said the Anti-Harassment Law safeguards individual privacy, dignity and personal freedom, as part of broader efforts to protect society and promote positive behavior in the digital space.

 New Saudi Arabia real estate law: Foreigners can own property from January 2026 Real estate ownership will be allowed in defined zones, initially in Riyadh and Jeddah; purchases in Makkah and Madinah will be subject to tighter regulations In a landmark decision on July 8, the Saudi Cabinet approved an updated system that will allow non-Saudis to own properties in the Kingdom from January 2026. The new system is part of ongoing reforms aimed at boosting the real estate sector and attracting foreign direct investment. The announcement was made following a Cabinet session chaired by King Salman bin Abdulaziz Al Saud, with the Crown Prince also extending support for the decision. The update is designed to increase real estate supply and encourage international developers and investors to enter the Saudi market. Foreign ownership will be permitted within defined geographic zones, particularly in Riyadh and Jeddah, subject to specific conditions in sensitive areas such as Makkah and Med...

 Saudi Arabia bans Sharia-violating names for public facilities under new rules January 02, 2026 RIYADH — Saudi Arabia has issued new binding regulations governing the naming of public facilities across the Kingdom, introducing unified standards, governance frameworks, and clear religious and administrative restrictions, according to rules published in the Umm Al-Qura official Gazette. The “Rules and standards for naming public facilities,” recently approved by the Saudi Cabinet, will come into force 120 days after publication and apply to all publicly owned facilities nationwide. The regulations define public facilities broadly to include municipal, educational, cultural, sports, religious, health, transportation, and other government-owned assets. Each government entity will be responsible for naming facilities within its jurisdiction in accordance with the new framework and relevant laws. Under the rules, government entities must issue their own executive bylaws regulating the n...

 Hexagon boasts a capacity of up to 480 megawatts, spans more than 30 million square feet. (SPA) RIYADH — Saudi Arabia has formally entered the global race to build hyperscale data centers with the launch of Hexagon, the world’s largest Tier IV government data center, marking a major milestone in the Kingdom’s ambition to lead the data- and AI-driven economy. The Hexagon data center, unveiled in Riyadh, reflects Saudi Arabia’s strategic push to harness data as a core engine of national development, as digital infrastructure becomes central to economic growth in the age of artificial intelligence. The project is driven by the national data and AI strategy led by Saudi Data and Artificial Intelligence Authority (SDAIA) and aligned with the objectives of Vision 2030. A strategic asset for data sovereignty and economic diversification The launch reflects the vision of Mohammed bin Salman, Crown Prince and Prime Minister, and Chairman of SDAIA, to position Saudi Arabia as a global hub f...

 Minister of Investment Khalid Al-Falih said the regulations will come into force in April 2026.  Saudi Gazette report- January 02, 2026 RIYADH — Saudi Arabia has taken a major step toward strengthening its position as a global investment destination after the Cabinet approved the regulatory frameworks for four special economic zones (SEZs), covering Jazan, Ras Al-Khair, King Abdullah Economic City, and the Cloud Computing and Information Technology Zone. The newly approved regulations mark the formal start of the operational and legal phase for the zones, providing investors with clear guidance on incentives, eligibility requirements, and regulatory mechanisms designed to enhance competitiveness and attract high-quality investments. Minister of Investment Khalid Al-Falih said the regulations will come into force in April 2026, describing the move as a significant milestone in the Kingdom’s efforts to modernize its investment framework and strengthen its regional and internati...

 Foundation stone laid for Hexagon, world's largest government data center, in Riyadh January 01, 2026 Saudi Data and Artificial Intelligence Authority President Dr. Abdullah Alghamdi and  senior government officials attended the ceremony of laying the foundation for “Hexagon” Data Center in Riyadh on Thursday. Foundation stone laid for Hexagon, world's largest government data center, in Riyadh RIYADH —The foundation stone was laid for the Saudi Data and Artificial Intelligence Authority (SDAIA) “Hexagon” Data Center, the world’s largest government data center by megawatt capacity, in Riyadh on Thursday. President of SDAIA Dr. Abdullah Alghamdi, SDAIA officials as well as senior officials from various government entities attended the foundation laying ceremony. Director of the National Information Center at SDAIA Dr. Issam Alwagait made an introductory presentation on the occasion. He outlined the project’s details, technical and engineering specifications, and the operational...

 The mandatory electronic salary transfer service for all domestic workers by their employers through the Musaned platform documents wage payments via approved banks and digital wallets.  The mandatory electronic salary transfer service for all domestic workers by their employers through the Musaned platform documents wage payments via approved banks and digital wallets. RIYADH —The Ministry of Human Resources and Social Development announced that its decision for the mandatory electronic transfer of salaries for all domestic workers by their employers came into effect on Thursday, Jan.  The electronic salary transfer service through the Musaned platform documents wage payments via approved banks and digital wallets. The ministry said that this initiative marks a significant step toward safeguarding the salary-related rights of domestic workers and enhancing transparency in the contractual relationship between employers and their domestic workers. The fifth and final phas...

 The Transport General Authority said that fines, ranging between SR5,000 and SR50,000, will be slapped on non-compliant parcel delivery companies, contributing to higher levels of compliance, smoother operational processes, and improved sector quality.  The Transport General Authority said that fines, ranging between SR5,000 and SR50,000, will be slapped on non-compliant parcel delivery companies, contributing to higher levels of compliance, smoother operational processes, and improved sector quality. RIYADH —The Transport General Authority (TGA) started enforcing on Thursday, Jan. 1 its decision mandating parcel delivery companies not to accept or transport any postal shipment that does not include a national address. The authority emphasized that regulatory penalties will be slapped on companies that fail to comply with the decision, according to a press statement issued by the TGA on Thursday. The authority explained that implementing this decision is part of its efforts t...

 ZATCA urged all taxpayers to take advantage of the extension of the initiative to waive fines and financial penalties that ends on June 30, 2026. Saudi Gazette report - January 01, 2026 RIYADH — The Saudi Zakat, Tax and Customs Authority (ZATCA) announced that the minister of finance has issued a decision to extend the initiative to waive fines and financial penalties for taxpayers subject to all tax systems for another period of six months, starting from January 1, 2026. The decision was taken following the expiry of the six-month period of the tax penalty waiver on Dec. 31, 2025. ZATCA clarified that the initiative gives exemption for taxpayers from payment of fines for late registration in all tax systems, late payment, and late filing of returns in all tax systems, in addition to fines for correcting VAT returns, fines for field inspection violations related to the application of electronic invoicing regulations, and other general VAT provisions. The authority cited the requir...

 Riyadh issues over 60,000 White Land Fees invoices in first billing cycle of 2026 January 01, 2026 Saudi Gazette report RIYADH — The Ministry of Municipalities and Housing has begun issuing more than 60,000 invoices for White Land Fees in Riyadh, marking the first billing cycle for 2026 under the White Land Fees and Vacant Properties Program. The annual fees, imposed on undeveloped vacant land within urban areas, are part of broader directives issued by Crown Prince Mohammed bin Salman to regulate the real estate market and ensure a better balance between housing supply and demand. The ministry said the issuance follows the completion of all regulatory and technical requirements and is being implemented in line with the White Land Fees and Vacant Properties Law and its executive regulations. The fees apply to approved geographic zones and designated land categories within a framework aimed at ensuring fairness, transparency, and market efficiency. Under the program, landowners sub...