Investment, as a principal driver of economic growth and a means to achieve sustainable development, constitutes a strategic pillar of the Kingdom of Saudi Arabia’s Vision 2030, which aims to diversify the Kingdom’s economic base and increase investment rates therein.
In this context, an institutional and regulatory role of great significance emerges, represented by the existence of a competent authority responsible for regulating and marketing investment opportunities in the Kingdom. This role was previously undertaken by the Saudi Arabian General Investment Authority (Invest Saudi – SAGIA), which was subsequently reorganized pursuant to the Law of the General Investment Authority issued by Royal Decree No. (M/55) dated 25/08/1442H, corresponding to 07/04/2021G, and Council of Ministers Resolution No. (659) dated 4/9/1446H.
The legal framework governing the Authority has witnessed significant development in line with global and domestic economic changes, with its role evolving from merely a licensing body for foreign investors into a comprehensive authority responsible for regulating, developing, and marketing investment opportunities in the Kingdom. This regulatory framework reflects the Saudi regulator’s recognition of the importance of establishing a governance structure that attracts capital and safeguards the rights of all relevant stakeholders.
The Authority’s Objectives and Competencies:
The Authority aims to enhance the Kingdom’s position as a leading global and domestic investment destination through the implementation of an integrated set of regulatory, marketing, and coordination tasks. These objectives may be summarized under the following main axes:
(A) Strategic Planning and the Formulation of Policies and the Regulatory Framework:
The Authority undertakes the preparation of public policies, strategies, plans, and programs related to its activities and to investment marketing, determines matters requiring regulatory measures, participates in setting performance measurement indicators, and proposes amendments to relevant laws and regulations within its competencies to improve the investment environment.
(B) Domestic and International Marketing and Promotion of Investment Opportunities:
The Authority carries out marketing activities inside and outside the Kingdom to introduce investment advantages, opportunities, and incentives. This includes managing the unified national identity, developing and implementing media plans, organizing and participating in events such as forums, conferences, and exhibitions, working to attract international conferences, and developing domestic ones.
(C) Coordination, Support, and Partnership Building:
The Authority works to coordinate efforts with the Ministry of Investment and other relevant entities and to support their marketing activities. It also encourages partnerships between local and foreign investors, cooperates and exchanges expertise with regional and international entities and similar authorities, and represents the Kingdom in relevant international forums.
(D) Knowledge Enhancement and Empowerment of the Investment Environment:
The Authority is committed to developing knowledge through the preparation of specialized studies, research, and periodic reports. It also works to collect investors’ feedback and challenges, follow up on them, and refer them to the competent authorities for resolution, and to engage experts and specialized companies locally and internationally to provide professional products and tools.
(E) Oversight and Procedural Empowerment:
The Authority grants the necessary approvals for the holding of governmental events in the field of investment marketing, assigns certain of its tasks to relevant entities when necessary, contributes to supporting the Ministry’s programs outside the Kingdom, and participates in international organizations in accordance with statutory procedures (1).
Composition of the Authority’s Board of Directors and Its Role:
The Board of Directors of the Authority is chaired by the Minister of Investment and includes the membership of the following:
1- A representative from the Ministry of Investment.
2- Representatives from government entities not exceeding four representatives, to be determined by the Prime Minister upon the proposal of the Chairman of the Authority’s Board of Directors.
3- Representatives possessing experience and expertise in the Authority’s fields of work, not exceeding three representatives, to be appointed by order of the Prime Minister upon nomination by the Chairman of the Authority’s Board of Directors (2).
To ensure effective contribution by representatives of government entities in the tasks of the Board of Directors and that they possess adequate expertise, the rank of representatives of government entities on the Board of Directors shall not be less than Grade Fifteen or its equivalent. The term of membership on the Board shall be (three) years, renewable once (3).
The Board of Directors constitutes the supreme authority supervising the management of the Authority and the conduct of its affairs, and it exercises its role through the practice of its competencies within the following axes:
1- Strategic Direction and Policy Formulation:
The Board of Directors is responsible for formulating policies through the approval of general policies related to the Authority’s activities and its executive plans and programs, and for approving the investment marketing strategy. The Board also contributes to developing the regulatory framework by proposing amendments to laws and regulations related to the Authority’s competencies.
2- Organizational and Structural Development:
The Board of Directors determines the Authority’s organizational structure and organizational manual, and approves the establishment of its branches and offices inside and outside the Kingdom. It establishes administrative and financial frameworks through the approval of internal, administrative, and financial bylaws in coordination with the competent authorities.
3- Financial and Oversight Supervision:
The Board of Directors exercises financial oversight by approving the Authority’s annual budget, final accounts, and annual report, and by appointing an external auditor and an internal financial controller. It also determines the financial consideration for the services and works provided by the Authority.
4- Representation, External Relations, and Contracting:
The Board of Directors undertakes the external representation of the Authority by approving the conclusion of agreements and contracts, accepting gifts, donations, grants, and endowments, and approving the Authority’s membership in specialized international organizations and associations.
5- Follow-up, Evaluation, and Delegation:
The Board of Directors follows up on performance by reviewing periodic reports on the progress of work. It may form permanent or temporary committees and delegate certain of its competencies to the Chairman of the Board, to any of its members, or to the Authority’s personnel to ensure effective implementation.
With these powers, the Board of Directors constitutes the principal body that ensures the Authority is led within statutory governance frameworks to achieve its objectives in investment marketing (4).
The Authority’s Financial Resources:
The Authority’s financial resources consist of several sources that ensure adequate financial support for the Authority to perform its tasks, provided that all of the Authority’s revenues are deposited into a current account of the Ministry of Finance at the Central Bank.
The Authority’s resources consist of the following:
1- Allocations designated to the Authority in the State’s general budget.
2- Financial consideration collected by the Authority in return for the services and works it provides.
3- Gifts, donations, grants, bequests, and endowment proceeds accepted by the Authority’s Board of Directors.
4- Any other resource approved by the Authority’s Board of Directors, provided that it does not contravene laws and instructions (5).
The Importance of Regulating the Authority in Supporting and Developing Investment in the Kingdom:
The regulation of the Saudi Investment Marketing Authority carries numerous advantages for investment in the Kingdom. This is confirmed by the increase in investment rates in the Kingdom, as foreign direct investment as a percentage of national income increased by 5.7% in 2024 (6). The aspects of this importance are highlighted as follows:
1- Enhancing Credibility and Transparency for Global Investors:
The Authority’s institutional regulation, as the sole officially accredited body for investment marketing, enhances trust and credibility. The existence of a statutory entity with defined responsibilities and competencies provides foreign investors with a unified and clear point of contact and reduces bureaucratic complexities. The Organisation for Economic Co-operation and Development (OECD) has indicated in its reports that the existence of an independent national authority for investment attraction is among global best practices for improving the transparency of the investment environment and attracting serious investors (7).
2- Facilitating and Simplifying the Investor Journey:
The Authority contributes to coordinating procedures and removing obstacles that may face local and foreign investors. This effective coordination role, together with the ability to engage specialists and experts, contributes to simplifying procedures and creating a smooth investment experience, which has been positively reflected in the Kingdom’s advancement in ease of doing business indicators.
3- Proactive and Institutional Promotion of Investment Opportunities:
The Authority possesses full powers to carry out proactive investment marketing activities, including the authority to organize and host international events, conclude partnerships, and build a professional image of the Kingdom as an emerging and promising market. This goes beyond the role of a traditional licensing authority to that of a marketing partner. This institutional approach has yielded tangible results in increasing foreign direct investment inflows, as documented in the World Investment Report issued by the United Nations Conference on Trade and Development (UNCTAD) (8).
4- Institutional Integration and Support of National Policies:
The Authority does not operate in isolation from other components of the economic system; rather, it is part of an integrated framework. Its regulation ensures close coordination with the Ministry of Investment and other relevant entities. This integration ensures the translation of public investment policies into actual marketing campaigns and enhances the effectiveness of incentives and regulatory reforms launched by the State, thereby making the Saudi investment environment more coherent and effective.
5- Performance Measurement and Continuous Improvement Based on Data:
The Authority’s regulation ensures a system of accountability and continuous improvement by authorizing the Authority to participate with the Ministry of Investment in determining indicators that measure investment marketing performance and in preparing studies, research, and periodic reports. This data- and evidence-based approach enables policymakers to assess the effectiveness of the Authority’s marketing campaigns and identify areas for improvement, an approach followed by leading investment marketing authorities worldwide. The foreign direct investment report issued by the Ministry of Investment constitutes one of the most important of these indicators (9).
What is the strategic pillar of Vision 2030 that the Authority aims to support through economic diversification?
According to the sources, investment serves as a principal driver of economic growth and a means to achieve sustainable development. It is this factor that constitutes a strategic pillar of the Kingdom of Saudi Arabia’s Vision 2030, which specifically aims to diversify the Kingdom’s economic base and increase investment rates
How has the role of the Authority evolved from its previous legal frameworks?
The role of the Authority has undergone a significant transformation, evolving from a traditional licensing body for foreign investors into a comprehensive authority dedicated to regulating, developing, and marketing investment opportunities. Previously, these responsibilities were managed by the Saudi Arabian General Investment Authority (Invest Saudi – SAGIA), which was reorganized through a series of legal decrees, including Royal Decree No. (M/55) in 2021 and Council of Ministers Resolution No. (659) in 1446H.
Key aspects of this evolution include:
- Shift to a “Marketing Partner”: The Authority has moved beyond administrative licensing to become a proactive partner that manages the unified national identity for investment and promotes the Kingdom’s advantages both domestically and internationally.
- Expanded Regulatory Power: It now participates in formulating public policies, strategies, and regulatory frameworks, including proposing amendments to existing laws to improve the investment climate.
- Knowledge and Data Integration: The modern framework empowers the Authority to conduct specialized research and studies, collect investor feedback, and use data-driven performance indicators to continuously improve the investment environment.
- Centralized Coordination: It now serves as the sole officially accredited body for investment marketing, ensuring institutional integration between the Ministry of Investment and other government entities to provide a clear point of contact for global investors
What are the five main axes under which the Authority’s objectives and tasks are summarized?
The objectives and tasks of the Saudi Investment Marketing Authority are summarized under the following five main axes:
- Strategic Planning and the Formulation of Policies and the Regulatory Framework: The Authority is responsible for preparing public policies, strategies, and programs related to investment marketing. It also proposes amendments to relevant laws and participates in setting performance measurement indicators to improve the overall investment environment.
- Domestic and International Marketing and Promotion of Investment Opportunities: This involves managing the unified national identity for investment and carrying out promotional activities inside and outside the Kingdom. Tasks include developing media plans and organizing or participating in forums, conferences, and exhibitions.
- Coordination, Support, and Partnership Building: The Authority coordinates efforts with the Ministry of Investment and other entities to support their marketing activities. It also encourages partnerships between local and foreign investors and represents the Kingdom in relevant international forums.
- Knowledge Enhancement and Empowerment of the Investment Environment: This axis focuses on developing knowledge through specialized research, studies, and periodic reports. The Authority also collects investor feedback and challenges to refer them to competent authorities for resolution.
- Oversight and Procedural Empowerment: The Authority has the power to grant approvals for governmental events in the field of investment marketing. It may also assign specific tasks to other relevant entities when necessary and participates in international organizations according to statutory procedures
Overview of Regulation of the Saudi Investment Marketing Authority
The text outlines the regulatory framework and strategic objectives of the Saudi Investment Marketing Authority, a key entity established to advance the goals of Vision 2030. This authority has transitioned from a traditional licensing body into a comprehensive organization focused on marketing, policy formulation, and coordination to boost the Kingdom’s economic diversity. Led by a specialized Board of Directors, the agency manages national promotional efforts, conducts specialized research, and builds partnerships between local and international investors. By acting as a unified point of contact, the authority improves transparency and efficiency, significantly simplifying the journey for global capital. Ultimately, these regulations serve to solidify Saudi Arabia’s status as a premier global investment destination through data-driven strategies and institutional integration.
Sources:
(1) Article (3) of the Regulation of the Saudi Investment Marketing Authority issued by Council of Ministers Resolution No. (659) dated 4/9/1446H.
(2) Paragraphs (1, 2, and 3) of Article (4) of the Regulation of the Saudi Investment Marketing Authority.
(3) Paragraph Four of Article (4) of the Regulation of the Saudi Investment Marketing Authority.
(4) Article (5) of the Regulation of the Saudi Investment Marketing Authority.
(5) Article (10) of the Regulation of the Saudi Investment Marketing Authority.
(6) Foreign Direct Investment Report issued by the Saudi Ministry of Investment in January 2024, p. (3).
(7) Investment Policy Perspectives in the Middle East and North Africa Report issued by the Organisation for Economic Co-operation and Development (OECD) on 30 March 2021, Investment Policy Perspectives in the Middle East and North Africa.
(8) World Investment Report issued by the United Nations Conference on Trade and Development (UNCTAD) for 2025, World Investment Report 2025: International Investment in the Digital Economy | UN Trade and Development (UNCTAD).
(9) Foreign Direct Investment Report issued by the Saudi Ministry of Investment in January 2024.
