General Commercial Licenses vs. Regulated or Sector Approval

The Kingdom of Saudi Arabia and our broader Impact Zone uses the United Nation's  International Standard Industrial Classification (ISIC) of All Economic Activities. 

Find the ISIC codes for your activities here:

https://unstats.un.org/unsd/classifications/Econ/isic

Search for license requirements using the the Balady.Gov.SA service.  Information is provided in English and Arabic.

https://apps.balady.gov.sa/LicenseStandard/Default?sid=0

If you wish to operate in a Regulated or Sector Approved space, feel free to contact our office for assistance.  We partner by Referral or Invitation Only.  However, we are happy to guide any Foreign Investor operating within our National Interest Priority Sectors. 

Investment reforms lead many foreign firms to believe that a MISA license and Commercial Registration are enough to do business in the Kingdom.  However, Institutional Funding drives most of the economic opportunity.  

Download the 2025 Investor Guide here:

https://misa.gov.sa/app/uploads/2025/03/Investor-Guide.pdf

Review The US Trade Administration guidance here:

 https://www.trade.gov/knowledge-product/saudi-arabia-market-challenges

The Office of the Emissary for Foreign Direct Investment is requested to enable Vision 2030 National Interest Priority Sectors.  We work on a Referral or Invitation Only Basis.  

Our opportunities are competitive and result in a Joint Venture with Regulated & Sector Approved Licenses.  Qualified Foreign Investors must be able to commit $5 Million to $20 Million in funding.

Approved Joint Ventures partner with institutional capital to scale across the Kingdom and region.

National Interest Priority Opportunities can exceed USD $500 Million in annual revenues at scale.

An example of licensure requirements is presented below.  The information provided  comes directly from the Saudi Balady service for ISIC category 536011, establishing a coffee shop.  Coffee shops are regulated enterprises as they serve foods and beverages.  There are a variety of regulations and licenses which must be acquired.

This is a basic example of the regulatory environment.

 
Activity Information

Activity Name | Coffee shops

Sector | Accommodation and food services activities

Section | Food and beverage service activities / shops

Code | 563011

Activity Description | Cafes that prepare and serve cold and hot drinks, soft drinks of all kinds, and light desserts such as cakes, pastries, sandwiches, and fruits, as well as sell coffee beans and coffee-making and serving equipment, are permitted. Serving shisha is not included unless a permit to serve tobacco products is obtained.

Is issuing a business license for the activity immediate? NO 

• Submit a valid establishment document that includes an activity(s) that allow the practice of the activity for which a license is sought (Commercial Registration / National Number 700) 2025-08-06
• Submitting a building permit/occupancy certificate for the building if the activity to be licensed will be carried out inside the building. 2025-08-06
• The investor must provide proof of land use rights (title deed, lease agreement, or investment contract from the municipality) 2025-08-06
• Activities are not permitted before being added to the license. 2025-08-06
• Meeting the spatial and technical requirements for the activity 2025-08-06
• The commitment to meeting the requirements of persons with disabilities in order to facilitate their movement and provide suitable conditions, dimensions, and spaces for their use, in accordance with the requirements of Chapter (1009) and Section (11) of the Saudi Building Code (SBC-201) and according to the simplified guide to universal accessibility standards for commercial establishments 2025-08-06
• Commercial premises are not permitted to be used for activities that disturb the peace or are harmful to public health, in accordance with the regulations governing activities that disturb the peace, are dangerous, or are harmful to health or the environment, issued by Royal Decree No. M/14 dated 8/4/1423 AH (2025-08-06).
• The location requirements included within the spatial requirements of these conditions do not apply to existing commercial licenses – if they differ from what was previously licensed – until the license expires on 2025-08-06.
• Compliance with the requirements of the executive regulations of the Municipal Licensing Procedures System 2025-08-06
• Obtain approval from the supervising authority before operation (2025-08-06)

 The restaurant must be located on a commercial street or in a commercial area. (2025-06-04)

• Minimum restaurant area (16m2) 2025-06-04
• The locations of the cloud kitchen complex must be at least 50 meters away from commercial and main street intersections. (2025-06-04)
• The minimum area for a cloud kitchen complex is 50m2, with 16m2 per kitchen within the complex. (2025-06-04)

• Compliance with commercial signage requirements in the absence of a regulatory guide for commercial signs from the municipality (2025-06-04)
• Compliance with the chimney guide requirements for commercial activities 2025-06-04
• Meeting restaurant requirements 2025-06-04
• Additional activities approved by the Ministry are permitted, provided that the total area of ​​these additional activities does not exceed 50% of the total area stated in the license, and that no additional activity area is less than 6 square meters, while maintaining the minimum area for the main activity. (2025-06-04)
• If home delivery service is offered, the municipal requirements for home delivery services must be met (2025-06-04).
• If tobacco products (shisha) are offered, the Tobacco Products Offering Requirements Regulation 2025-06-04 must be met.
• Administrative offices for restaurant management are permitted, either attached to the restaurant or in a separate location. (2025-06-04)
• In the case of licensing administrative offices for the restaurant in a separate location,  the office requirements regulation of 2025-06-04 must be applied.
• Existing establishments are given a grace period to rectify their situation until 10/18/2025 (or 06/04/2025).