The political environment of Saudi Arabia:

government system :
Saudi Arabia's government and administration are based on the unitary Islamic monarchy and
hereditary dictatorship. The country is ruled by the Wahhabi conservative religious movement
within the Sunni faith. Saudi Arabia's current King and Crown Prince is Muhammed-bin-Salman
(MBS).The constitution of Saudi Arabia prohibits the formation of any political party. The King,
on the other hand, must adhere to Islamic Sharia law.

Political stability :

Saudi Arabia has a stable political environment, thanks to the monarchy's leadership. Many
detractors, however, debate about the term political climate in Saudi Arabia. They assert that
because there are no political parties in the country, there is no political climate. It's just absolute
monarchy and totalitarianism, with the King wielding absolute power.

Foreign investment in Saudi Arabia :

The Saudi General Investment Authority was founded in April 2000 as a central body for inward
investment, with the purpose of assisting investments in supporting the Saudi economy's
development goals and diversification. SAGIA (Saudi General Investment Authority) is in
charge of monitoring and evaluating investment performance, resolving investor difficulties,
conducting studies and research, and formulating executive programs to encourage local
investment.
Company setup :
Foreign investors can operate in Saudi Arabia by the establishment of legal entities but not
limited to the following:
1-Limited Liability Corporation (LLC)
An LLC is a type of private equity founded by two or more partners (up to fifty) or shareholders
who are responsible for the company's debts based on the amount of cash they contributed.
2-A single member limited liability
is a single-member limited liability company (LLC) formed by a single person. This person has
full authority and can serve on the board of directors, as well as the general shareholders'
assembly. The owner is responsible for the amount of capital invested in the business.
3. Foreign company branch 
Foreign corporations can open a branch office in Saudi Arabia, with the parent company taking
full responsibility for the conduct of the office.
4-joint-stock corporation
A JSC is a company with negotiable shares as its capital. A JSC will be given a name that
reflects its mission, and it will be governed by a board of directors. Members of the JSC are
limited to a minimum of three and a maximum of eleven, according to the JSC's memorandum of
association.

License requirements:
underlines the necessity of foreign enterprises operating under the appropriate license activities.
One of the following activities will be covered by the investment license:

license for services:

Management consulting, information technology, tourism, training, health, insurance and
reinsurance, education, advertising and media, logistic services, organizing exhibitions, catering
and food services, financial services, aviation and handling services are all covered by the
service activity license.
Industrial business license:
All industrial licenses, including heavy and light industries, as well as transformational
industries, are eligible for this service.
license to operate a scientific and technological office is required:
This service is available to foreign firms that have a Saudi agent marketing their products in the
Kingdom, as well as companies that want to build an office to provide scientific and technical
services to their agents, distributors, and customers.

Temporary certificate to submit a proposal to government projects:

Entities that need to bid on government projects can submit an application to SAGIA (Saudi
General Investment Authority), asking a temporary certificate to bid on government projects, in
compliance with the Council of Ministers' resolution.

Real estate license:

This service is provided to international firms in the property field if the whole cost of the
project, including land and building, is not less than 30 million Saudi riyals, and the investment
is located beyond the cities of Mecca and Medina.
Entrepreneur licenses:
This service is available to entrepreneurs who want to start experimental projects that are
approved by Saudi universities or business incubators.

License to trade:

This service is provided to foreign entities engaged in wholesale and retail trading activities in
the Kingdom of Saudi Arabia.
With a Saudi stakeholder, a commercial license has been granted.
• A license for international business activity that is 100 percent foreign

Audiovisual media licensing:

Foreign companies that want to undertake audio and visual activities might use this service.