The Kingdom of Saudi Arabia continued its ambitious legislative overhaul throughout 2025, introducing sweeping reforms across virtually every sector of the economy and public life. Guided by the principles of Vision 2030, Saudi regulators and lawmakers pushed forward with new laws, executive regulations, and strategic policies that collectively reshape the business environment, strengthen governance, and enhance the protection of rights for citizens, residents, and investors alike.
This special newsletter edition provides a comprehensive, sector-by-sector overview of the most significant legislative and regulatory developments enacted during 2025. Each entry has been rewritten in original language and enriched with supplementary context to help legal practitioners, business leaders, and interested observers understand both the letter and the spirit of these reforms.
Whether you are a corporate counsel monitoring compliance obligation, an investor evaluating market entry, or a professional tracking policy trends, this roundup is designed to serve as your essential reference guide to the year’s most impactful legal changes in the Kingdom.
Saudi Arabia introduced a completely revised set of executive regulations governing the practice of law, replacing the older framework dating back to 1423H. The updated regulations consolidate various scattered subsidiary rules into a single, cohesive legal instrument. Among the most noteworthy changes is the inclusion of clear licensing procedures for international law firms seeking to operate in the Kingdom, reflecting Saudi Arabia’s growing integration with the global legal market.
The revised rules also strengthen disciplinary mechanisms for legal practitioners and introduce explicit conflict-of-interest restrictions targeting former members of the judiciary who transition into private practice. These provisions are embedded within a broader Professional Conduct Code that now accompanies the regulations, establishing a higher standard of ethics and accountability for all licensed lawyers.
▶ Editor’s Insight: This reform is a significant step in the Kingdom’s strategy to build a world-class legal services sector. International firms now have a clearer pathway to establish operations, while domestic practitioners face more rigorous conduct standards.
In a move that strengthens dispute resolution within the sports industry, the Ministry of Justice partnered with the Saudi Sports Arbitration Centre to formally recognize the Centre’s arbitral awards as enforceable instruments. This means that parties to sports-related disputes—including those arising from investment deals, sponsorship contracts, and athlete agreements—can now pursue enforcement directly through the Kingdom’s courts without additional procedural hurdles.
This recognition aligns with global best practices in sports arbitration and signals Saudi Arabia’s ambition to become a leading hub for sports business and governance in the region.
The Kingdom amended its Traffic Law by eliminating the previously imposed fines for late renewal of driving and vehicle licenses under Article 71. In its place, a new traffic offense (Violation No. 16) was introduced under Schedule 2, which specifically penalizes operating a vehicle whose registration certificate (commonly known as the Sair license) has expired. This change simplifies the penalty structure and focuses enforcement on the most safety-relevant infractions.
A Royal Order issued in October 2025 reshaped the composition of the Supreme Judicial Council, the Kingdom’s highest body overseeing the judiciary. The newly constituted Council now includes the Chief of the Supreme Court, the Attorney General, and the Vice Minister of Justice, alongside members selected by Royal Order. This restructuring underscores the leadership’s commitment to judicial modernization and reflects a broader effort to enhance coordination among the key pillars of the justice system.
The implementation of updated Commercial Register and Trade Names laws brought notable changes to how businesses register and protect their identities. The new framework permits trade names to incorporate non-Arabic terms (in transliterated form), reflecting the increasingly international character of the Saudi marketplace. Additionally, the scope of trade name protection has been expanded to cover the entire Kingdom, rather than being limited to specific geographic areas.
Recognizing the critical role that small and medium-sized enterprises play in economic diversification, the government launched a multi-year initiative to reimburse certain government fees paid by new businesses during their first three years of operation. The program aims to reduce the financial burden on startups and encourage broader private sector participation in the national economy. The regulations spell out eligibility criteria, reimbursable fee categories, and penalties for misuse.
▶ Editor’s Insight: This initiative directly supports Vision 2030’s goal of increasing SME contribution to GDP. Entrepreneurs establishing new ventures should review the eligibility requirements carefully to maximize available benefits.
Minister of Commerce Decision No. 99 introduced a comprehensive overhaul of the rules governing the identification and registration of Ultimate Beneficial Owners. The new regulations replace earlier provisions and establish clear criteria for determining who qualifies as a UBO, the obligations for maintaining up-to-date records, and the consequences of non-compliance. This reform is part of the Kingdom’s ongoing efforts to enhance corporate transparency and align with international anti-money laundering standards.
New governance rules now guide the handling of requests submitted to the Ministry of Finance involving entity formation, ownership changes, ownership transfers, and adjustments to regulatory classifications. Applicants must provide comprehensive analyses and supporting documentation, and the Ministry is required to render a decision within 90 days. This framework ensures that significant corporate actions align with the Kingdom’s broader national strategy.
A new set of rules governs the issuance of Social Impact Investment certificates, designed to stimulate private sector investment in socially beneficial projects. The framework aims to bolster investor confidence by ensuring that approved organizations meet defined standards and that the investment process is transparent and well-regulated.
In a parallel development to the commercial UBO regulations, a separate set of rules was introduced for civil associations, foundations, and family funds. These entities are now required to collect and report accurate beneficial ownership information to the National Center and must notify the Center of any changes within 10 days. This regulation is a key component of the Kingdom’s anti-money laundering and counter-terrorism financing strategy.
The Kingdom enacted a major new Financial Oversight Law that replaces the long-standing Financial Representatives Law of 1960. The new legislation is designed to usher in a modern era of transparency, integrity, and accountability in the management and administration of public funds. It establishes enhanced reporting requirements, clearer oversight mandates, and stronger enforcement mechanisms.
Significant amendments were made to the Capital Market Institutions Regulations, revising the standards for licensing and minimum capital requirements. The updated rules set a minimum paid-up capital threshold of SAR 50 million for firms engaged in dealing and custody services, and SAR 20 million for management activities. A new tiered client classification system was also introduced, dividing clients into retail, qualified, and institutional categories—each with tailored regulatory requirements.
The executive regulations governing the supervision of finance companies underwent extensive revision, with approximately 94 articles amended and 6 new articles added. These changes strengthen the regulatory oversight of the non-bank lending sector and ensure that finance companies operate within a more robust compliance framework.
New rules were established to facilitate foreign participation in Saudi capital markets. The regulations set out procedures for opening investment accounts for both foreign residents and non-residents, enabling them to invest in listed securities, debt instruments, and investment funds. The Capital Market Authority (CMA) retains supervisory authority over these investments, ensuring that market integrity is maintained.
A comprehensive guide to the fee schedule for financial institution services was approved, specifying which services may carry fees, setting requirements for fee disclosure and transparency, and prohibiting the collection of undisclosed charges. The guide standardizes the fee reference framework in line with Saudi Central Bank directives. Several related regulatory provisions were also revised, including provisions in the Consumer Finance Regulations and the Code of Conduct for Protecting Customers of Financial Institutions.
In a streamlining move, the authorities cancelled both the Rules Governing Microfinance Activities (issued under Decision No. 80/M Sh T of 1441 AH) and the Rules Regulating Micro Consumer Finance Companies (issued under Decision No. 82/M Sh T of 1441 AH). This consolidation reflects the evolving structure of the Kingdom’s financial services regulatory landscape.
New regulations were introduced to govern employment relationships in the maritime sector. Aligned with Vision 2030 objectives, these rules clarify the respective obligations of employers and maritime companies, set standards for workplace safety, and bring Saudi maritime labor practices closer to international norms. The regulations address key issues including contract terms, dispute resolution, and the welfare of seafaring workers.
A dedicated regulatory framework was established for agricultural workers, private herders, and similar occupational categories that were previously underserved by labor protections. The new rules address employment agreements, leave entitlements, healthcare access, and the conditions under which employment may be terminated. This represents a notable expansion of labor rights in the Kingdom.
The most sweeping labor reform of the year saw the introduction of two entirely new articles, the amendment of 38 existing provisions, and the repeal of seven others. Among the most significant changes, the law now formally defines the concepts of “Secondment” and “Resignation” for the first time, and establishes differentiated notice periods: 30 days when a worker initiates the departure, and 60 days when the employer does.
▶ Editor’s Insight: The 2025 labor reforms also introduced formal classifications for fixed-term, part-time, seasonal, and remote work arrangements. Employers must now authenticate all contracts through the Qiwa platform for full legal enforceability, and foreign entities operating branches in the Kingdom face new obligations including Arabic-language contracts and data localization of HR records.
The government issued a comprehensive national policy aimed at eradicating forced labor within the Kingdom. The policy outlines concrete measures to promote fair employment practices and establishes a coordinated, whole-of-government approach to preventing labor exploitation. This initiative reinforces Saudi Arabia’s commitments under international labor conventions.
Through integration of the Qiwa platform (operated by the Ministry of Human Resources) and the Najiz platform (operated by the Ministry of Justice), the wage provision contained in authenticated employment contracts has been made directly enforceable as an executive instrument. This eliminates the need for employees to pursue lengthy court proceedings to recover unpaid wages, representing a major enhancement in worker protection.
▶ Editor’s Insight: This reform is being rolled out in three phases: new contracts from October 2025, existing fixed-term contracts from March 2026, and existing open-ended contracts from August 2026. Employers should ensure all employment contracts are authenticated through Qiwa to maintain their legal standing.
Detailed executive regulations were issued for the Real Estate Transaction Tax, specifying which property transactions trigger a tax obligation, the methodology for calculating the tax, payment procedures, and the process for determining fair market value. The regulations also establish a three-year statute of limitations for verification, calculated from the date of document completion.
One of the year’s most significant reforms, the new Non-Saudi Real Estate Ownership Law fundamentally restructures the legal framework governing foreign property ownership. Under the new regime, non-Saudi residents may purchase one residential property for personal use, with the exception of Makkah and Madinah, where ownership remains restricted to Muslims. Foreign-invested companies that are not publicly listed may acquire real estate provided they are registered under applicable Saudi corporate law.
▶ Editor’s Insight: This landmark reform took effect in January 2026. It introduces a zone-based ownership model and, for the first time, explicitly recognizes digital fractional ownership. A transaction fee of up to 5% of the property value may apply to foreign purchases. Investors should monitor REGA’s implementing regulations for detailed zone designations and procedural requirements.
Executive regulations now govern the annual levy on undeveloped urban land, setting the fee at up to 10% of the property’s assessed value. The rules detail the registration process, specify available exemptions, and outline the procedures for challenging assessments. This initiative is designed to discourage land hoarding and promote productive development within city boundaries.
In response to rising housing costs, new regulatory provisions impose a five-year moratorium on rent increases in Riyadh for both existing and new lease contracts. For properties with prior tenancy histories, rental rates are capped at the most recent contractual value. For newly leased properties, rates are determined by mutual agreement within the boundaries set by regulatory guidelines. A corresponding violation table with escalating penalties for repeat offenses was subsequently issued by the Real Estate General Authority (REGA).
The new Law of Eminent Domain and Temporary Seizure of Real Estate replaces the existing legislation under Royal Decree M/56. It standardizes and improves the procedures for government expropriation of private property and temporary acquisition for public purposes, with enhanced protections for property owners and greater transparency throughout the process.
Updated executive regulations for contractor classification replace earlier rules and organize classification categories according to the National Directory. Contractors must now submit financial, technical, and administrative documentation to demonstrate their qualifications, ensuring that only capable firms participate in construction projects.
Amendments to the housing support framework revise eligibility rules to limit housing benefits to the beneficiary’s legal heirs, regardless of whether those heirs were included in the original application. If installment obligations are relinquished, property ownership is distributed among all heirs in accordance with their Sharia-based entitlements.
New rules and procedures were established for the State Property Register, creating a centralized system to authenticate government ownership of real estate and track all modifications and transactions involving state-owned properties. This enhances transparency in public asset management.
Amendments to the Real Estate In-Kind Registration Law make registry information publicly accessible, with exceptions for owner personal details and properties classified as confidential. One year after publication, the “First In-Kind Registration” becomes final and irreversible; affected parties may only seek financial compensation rather than challenge the registration itself.
The Schedule of Penalties for Municipal Violations was updated to include a new infraction for subdividing a building into units that violate the terms of the building permit. New executive rules supersede the 2021 framework and specify that one or more designated penalties may be applied for municipal violations. Additional requirements were issued for advertising and billboards, central kitchens, warehouses, and bakeries, with a 180-day corrective period provided for existing investors.
A new mechanism was introduced to incentivize citizens to report municipal violations through the Certified Monitor program. The system leverages digital technologies to improve city monitoring and offers financial rewards to individuals who help identify regulatory breaches.
New legislation governs the petroleum and petrochemical sector, with Article 15 establishing penalties for the unlicensed export of petroleum products priced under regulated frameworks, as well as goods containing such products. Complementary inspection controls for dry gas and LPG distribution were also issued, distinguishing between serious violations (no correction period) and less serious infractions (up to 90 days to remedy).
Executive regulations were issued requiring organizations involved in water extraction, production, transportation, or distribution within urban areas to comply with established efficiency and conservation standards. Amendments to the environmental service provider regulations outline licensing requirements, procedures, and penalties.
The Council of Ministers enacted a comprehensive law to regulate and develop land transportation operations across the Kingdom. The legislation encourages investment through inter-agency collaboration while balancing social progress, economic development, environmental protection, and safety requirements. Accompanying regulations address taxi services, with a one-year exemption from financial penalties granted to currently licensed operators.
The Zakat, Tax and Customs Authority (ZATCA) authorized changes to the Unified GCC Customs Tariff, featuring revised duty rates across multiple product categories. In a protective measure for domestic industry, the elevated customs duty rates on rebar and iron coils (increased from 5% to 10%) were extended for an additional year.
The General Authority for Endowments introduced several new regulatory instruments, including rules governing the establishment or funding of endowments through fundraising, standards for identifying beneficial owners of endowments, and a comprehensive set of governance principles for the sector. These reforms aim to expand the waqf sector, protect endowment assets from depletion, ensure a transparent regulatory environment for donors, and mitigate risks related to money laundering and terrorist financing.
The National Cybersecurity Authority (NCA) published its regulatory enablers, identifying seven categories of violations subject to penalties, including engaging in cybersecurity-related activities without proper authorization. The framework provides for an appeals process before a designated committee and stipulates that NCA’s provisions take precedence over any conflicting regulations.
Executive regulations for the Personal Status Law were issued, providing the detailed procedural framework necessary for the implementation of this landmark legislation governing family matters, marriage, divorce, custody, and inheritance.
The new Statistics Law designates the General Authority for Statistics as the sole entity authorized to produce official statistics in compliance with international standards. Public bodies must cooperate with statistical processes, and commercial statistical services require licensing. Separately, the Geographical Indications Protection Law grants comprehensive protection to products associated with specific Saudi regions, prohibiting unauthorized use or imitation that could mislead consumers about genuine geographical origins.
Nazaha (the Oversight and Anti-Corruption Authority) was empowered to enter into financial settlement agreements with individuals or entities involved in corruption offenses committed before 15/2/1439H. Settlements require the return of illicit proceeds plus an annual fee of 5% from the date of the offense, though this fee is waived if the settlement is concluded within one year of the rules’ issuance date. Settlements are final and legally binding.
In a major boost for the industrial sector, the Council of Ministers abolished the “Financial Fee” (commonly known as the Expatriate Levy) for foreign workers employed in industrial facilities that hold valid industrial licenses. This measure aims to support domestic manufacturing, enhance competitiveness, and contribute to building a sustainable industrial economy in alignment with Vision 2030.
Numerous other regulatory actions were taken throughout the year, including: controls for government entities leasing real estate abroad; licensing rules for tourism activities in the King Abdulaziz Royal Reserve; a comprehensive suite of technical manuals from the National Waste Management Center (MWAN); controls for vehicle purchasing and leasing by government entities; implementation of the Infrastructure Projects Code; regulations for the Medical Referral Center; updated controls for publication in the Official Gazette (Umm Al-Qura); scientific research controls; and regulatory frameworks for outdoor camps and distance learning.
As 2026 unfolds, several key developments warrant close attention. The implementing regulations for the Non-Saudi Real Estate Ownership Law are expected to provide crucial details on zone designations, registration procedures, and transaction fees. The phased rollout of authenticated employment contracts as enforceable instruments will continue to reshape employer-employee dynamics. The Financial Oversight Law will take full effect 120 days after its December 2025 publication. And the ongoing implementation of UBO regulations across both commercial and non-profit sectors will require entities to ensure full compliance with beneficial ownership disclosure requirements.
Saudi Arabia’s regulatory trajectory remains firmly oriented toward greater transparency, international integration, and economic diversification. For businesses and investors operating in the Kingdom, staying current with these evolving requirements is not merely advisable—it is essential.
Disclaimer: This newsletter is provided for general informational purposes only and does not constitute legal advice. Readers should consult their legal counsel for advice tailored to their specific circumstances. All information is current as of the date of publication.
Sources: Official Gazette (Umm Al-Qura), Saudi Council of Ministers, Ministry of Justice, Ministry of Commerce, Ministry of Human Resources and Social Development, Capital Market Authority, ZATCA, REGA, NCA, and various regulatory bodies of the Kingdom of Saudi Arabia.