The legal regulation of the Saudi Investment Marketing Authority has evolved in a manner consistent with global and domestic economic developments. Its role has shifted from being merely a licensing body for foreign investors to a comprehensive authority responsible for regulating, developing, and marketing investment opportunities in the Kingdom.
- Objectives and Functions of the Authority:
The Authority aims to enhance the Kingdom’s position as a leading global and domestic investment destination by carrying out an integrated set of regulatory, marketing, and coordination tasks. These objectives may be summarized under the following principal pillars:
(A) Strategic planning, policy-setting, and the regulatory framework:
The Authority undertakes the preparation of public policies, strategies, plans, and programs relating to the Authority’s activities and to investment marketing, and determines what requires statutory procedures. It also participates in developing performance indicators and proposes amendments to laws and regulations relevant to its functions in order to improve the investment environment.
(B) Domestic and international marketing and promotion of investment opportunities:
The Authority conducts marketing activities inside and outside the Kingdom to introduce the advantages, opportunities, and incentives of investment. This includes managing the unified national identity, developing and implementing media plans, convening and participating in events such as forums, conferences, and exhibitions, and working to attract international conferences and to develop local 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, exchanges expertise with regional and international entities and counterpart authorities, and represents the Kingdom in relevant international fora.
(D) Enhancing knowledge and enabling the investment environment:
The Authority is committed to developing knowledge through the preparation of studies, research, and specialized periodic reports. It also gathers investors’ views and challenges, follows them up and refers them to the competent entities for resolution, and engages experts and specialized firms to deliver professional products and tools.
(E) Oversight and procedural enablement:
The Authority grants the necessary approvals for holding governmental events in the field of investment marketing, assigns certain of its functions to relevant entities when needed, contributes to supporting the Ministry’s programs outside the Kingdom, and participates in international organizations in accordance with statutory procedures (1).
- Composition of the Board of Directors and Its Role:
The Board of Directors of the Authority is chaired by the Minister of Investment, with the membership of the following:
1- A representative of the Ministry of Investment.
2- Representatives of governmental entities not exceeding four representatives, to be designated by the Prime Minister, based on a proposal by the Chairman of the Board of the Authority.
3- Representatives with expertise and specialization in the Authority’s fields of work not exceeding three representatives, to be appointed by an order of the Prime Minister, based on a nomination by the Chairman of the Board of the Authority (2).
To ensure effective participation by governmental entities in the Board’s functions and to ensure sufficient expertise, the rank of the governmental representatives on the Board must not be less than Grade Fifteen or its equivalent, and the term of membership on the Board shall be three years, renewable once (3).
The Board of Directors is the supreme authority overseeing the Authority’s management and the conduct of its affairs. It performs its role by exercising its powers within the following pillars:
1- Strategic direction and policy-setting:
The Board is responsible for setting policies by approving the public policies relating to the Authority’s activities and its plans and executive programs, and by approving the investment marketing strategy. The Board also contributes to developing the statutory framework by proposing amendments to laws and regulations relevant to the Authority’s functions.
2- Organizational and structural development:
The Board determines the Authority’s organizational structure and organizational manual, approves the establishment of its branches and offices inside and outside the Kingdom, and sets administrative and financial frameworks by approving internal, administrative, and financial bylaws in coordination with the competent entities.
3- Financial and supervisory oversight:
The Board 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 fees for the works and services provided by the Authority.
4- Representation, external relations, and contracting:
The Board represents the Authority by approving the conclusion of agreements and contracts, accepting donations, gifts, and grants, and approving the Authority’s membership in specialized international organizations and associations.
5- Follow-up, evaluation, and delegation:
The Board monitors performance by considering periodic reports on the progress of work. It may form permanent or temporary committees and may delegate certain of its powers to the Chairman, to any member it deems appropriate, or to the Authority’s staff to ensure effective implementation (4).
- Financial Resources of the Authority:
The Authority’s financial resources consist of several sources that ensure sufficient financial support for the Authority to perform its functions, provided that all the Authority’s revenues are deposited into the Ministry of Finance’s current account at the central bank. The Authority’s resources consist of the following:
1- Amounts allocated to the Authority in the State’s general budget.
2- Fees collected by the Authority in consideration for the services and works it provides.
3- Donations, gifts, grants, bequests, and endowment proceeds accepted by the Board of Directors of the Authority.
4- Any other resource approved by the Board of Directors, provided that it does not contravene laws and instructions (5).
- The Significance 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 increased levels of investment in the Kingdom, as the ratio of foreign direct investment to national income increased by 5.7 percent in 2024 (6). The aspects of this significance are 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 confidence and credibility. The existence of a legally established entity with clearly defined responsibilities and functions provides the foreign investor with a unified and clear point of contact and reduces bureaucratic complexity. The Organisation for Economic Co-operation and Development (OECD) has indicated in its reports the importance of having an independent national authority to attract investment and improve the transparency of the investment environment (7).
2- Facilitating and simplifying the investor journey:
The Authority contributes to coordinating procedures and overcoming 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 reflected in the Kingdom’s progress in ease of doing business indicators.
3- Proactive and institutional promotion of investment opportunities:
The Authority possesses full powers to undertake proactive investment marketing. It has 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 body to the role of a marketing partner. This institutional approach has produced 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 for national policies:
The Authority does not operate in isolation from the rest of the economic system; rather, it is part of an integrated ecosystem. Its regulation ensures close coordination with the Ministry of Investment and other relevant entities. This integration ensures that public investment policies are translated into effective marketing campaigns and enhances the effectiveness of incentives and statutory reforms launched by the State, thereby making the Saudi investment environment more effective.
5- Performance measurement and continuous improvement based on data:
The Authority’s regulation establishes a system of accountability and continuous improvement by authorizing the Authority, in coordination with the Ministry of Investment, to participate in determining indicators that measure investment marketing performance, and to prepare 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 authorities globally in the field of investment marketing. The foreign direct investment report issued by the Ministry of Investment is considered one of the most important of these indicators (9).
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 (4) 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, 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.
