Issuing a temporary investment license to implement one government/semi-government contract

A definition of the service for issuing a temporary investment license to execute a government contract
The service of issuing a temporary investment license to execute a government contract is a special service provided by the Saudi Ministry of Investment. It aims to enable foreign or GCC companies to enter the Saudi market on a temporary basis to execute a government contract of a specific duration and scope. This type of license is considered a flexible tool that facilitates government agencies benefiting from the expertise of international companies in major projects, while ensuring that these companies comply with Saudi regulations during the contract execution period.

To submit the application, the foreign company must access the Ministry of Investment's platform and submit the following documents:


A copy of the government contract concluded with the Saudi entity.
A copy of the parent company's commercial registration, authenticated and translated.
The parent company's recent financial statements to prove its financial solvency.
An official authorization for the company's representative in Saudi Arabia, certified by the chambers of commerce and the embassy.
An operational plan that shows the mechanism for executing the contract within the Kingdom.
Payment of the prescribed regulatory fees.


The importance of the service for issuing a temporary investment license to execute a government contract:


Facilitating the execution of major government projects by attracting international companies with advanced expertise.
Providing regulatory flexibility for foreign companies to work temporarily without the need to establish a permanent company.
Contributing to the transfer of expertise and technologies to the Saudi market through the executed projects.
Accelerating the pace of national development by involving highly competent companies.
Enhancing strategic partnerships between Saudi Arabia and international companies.
Providing regulatory protection for both parties (the government entity and the foreign company) by documenting the license as an official reference.
Difficulties related to completing or issuing a temporary investment license to execute a government contract:


The requirement of an existing, concluded, and certified government contract, which is the essential condition and cannot be substituted.
The multiplicity of documents required for authentication, such as the foreign commercial registration and financial statements, which may prolong the duration.
The need to certify all official foreign documents from the relevant authorities (embassies - chambers of commerce).
The license duration is exclusively tied to the contract duration, which may restrict the company from expanding into other business outside the project's scope.
The possibility of the application being rejected if the applicant company does not have sufficient financial or technical qualifications.
Operational obstacles such as the necessity of adhering to Saudization ratios and registering workers in the Saudi labor systems during the contract period.
Strict restrictions on permitted activities, as the license is limited to the activity related to the contract only.