Key Saudi Arabia Legal Changes Affecting Businesses in H1 2026

Saudi Arabia’s legal and regulatory landscape underwent significant changes in H1 2026, from expanded Saudization requirements across key professions to new rules governing non-Saudi real estate ownership.

Saudi Arabia’s legal and regulatory landscape shifted significantly in the first half of 2026. From sweeping Saudization expansions to the enforcement of new rules governing non-Saudi real estate ownership, these changes have implications for foreign companies operating in or entering the Kingdom.

This article breaks down the most consequential legal and regulatory developments from H1 2026—and what each means for your business.

1. Saudization Expands Across Multiple Professions

H1 2026 saw a significant expansion of profession-specific Saudization requirements. The Ministry of Human Resources and Social Development (MHRSD) issued a series of decisions targeting specific professions, in addition to broader Nitaqat requirements.

Here’s what took effect:

Procurement Professions — 70% (Effective May 31, 2026)

The MHRSD raised the Saudization rate to 70% across 12 procurement-related professions. The requirement applies to establishments employing three or more workers across procurement-related functions. This applies to roles central to supply chain operations and business efficiency.

Marketing Professions — 60% (Effective April 19, 2026)

The Saudization rate for marketing professions increased to 60%, covering roles, including marketing and advertising managers, marketing specialists, graphic designers, public relations professionals, and photographers.

Saudi employees must also earn a minimum monthly salary of SAR 5,500, registered with GOSI, to count toward the Saudization requirement.

Sales Professions — 60% (Effective April 19, 2026)

The second phase increases the Saudization quota for sales roles in the private sector to 60% for businesses with three or more employees. The mandate covers nine roles, including sales managers, retail and wholesale sales representatives, IT and communications equipment sales specialists, sales specialists, and commercial specialists.

Engineering Professions — 30% (Effective June 30, 2026)

A 30% Saudization rate now applies to 46 engineering professions, including architects, power generation engineers, and industrial engineers.

Saudi engineers must also be accredited by the Saudi Council of Engineers and earn a minimum monthly salary of SAR 8,000 to count toward the requirement.

Administrative Support—100% Saudization

An additional 69 administrative support positions are now subject to 100% Saudization. These include secretarial, clerical, translation, data entry, and administrative support roles.

The update applies to establishments with at least one employee in the covered professions.

2. CMA Tightens Governance Rules for Listed Companies

On April 2, 2026, the Capital Market Authority (CMA) approved amendments to the Implementing Regulation of the Companies Law for listed joint stock companies. The changes introduce new procedures around board member removal and profit distribution.

Board Member Removal — New Shareholder Powers

The amendments establish clearer procedures for shareholders to request the removal of board members through the Ordinary General Assembly, while introducing greater flexibility around regulatory requirements related to distributable profits.

Key changes include:

• 10% threshold for full-board removal: One or more shareholders holding at least 10% of voting shares may request the removal of all board members, provided at least six months have passed since the start of the board’s term.

• Individual member removal: Shareholders may request the removal of one or more board members where a member is unable to perform their duties in accordance with applicable regulations.

• Mandatory disclosure by board members: Board members must immediately notify the board if a final judicial ruling is issued against them in a breach-of-trust case or if a decision by a competent authority affects their eligibility to serve.

• Quorum safeguard: If a removal would reduce the board below the required minimum, the resolution must specify that the removal takes effect only after a replacement has been elected.

3. Non-Saudi Real Estate Ownership Law Enters Into Force

The Law of Real Estate Ownership by Non-Saudis took effect on January 21, 2026, representing a significant shift in the regulatory framework governing foreign property ownership in Saudi Arabia.

What the law allows

• Non-Saudi individuals and foreign entities can own real estate or acquire real property rights within geographic zones designated by the Council of Ministers, in coordination with the Real Estate General Authority (REGA).

• A non-Saudi individual residing in the Kingdom may own one residential property outside designated zones, including Makkah, Madinah, Jeddah, and Riyadh.

• Foreigners will be permitted to own residential property across Saudi Arabia, except in the four excluded cities, while specific areas may later be designated for ownership by non-residents.

In June 2026, the Real Estate General Authority (REGA) launched the Saudi Properties portal, the official digital platform for non-Saudi real estate ownership applications.

The portal allows prospective buyers from inside and outside the Kingdom to explore available ownership routes, view approved real estate opportunities, verify eligibility, submit applications, and track requests.

4. Premium Residency Holders Now Require Work Permits

Effective June 2026, Premium Residency holders must obtain a separate work permit through the Qiwa platform before beginning employment.

Previously, Premium Residency holders could work without a dedicated work permit, making the program particularly attractive to foreign executives, investors, and professionals.

What’s required now?

Premium Residency holders must now obtain a work permit through Qiwa for a SAR 100 fee, register their employment contracts on Qiwa, and complete GOSI registration where applicable.

5. GOSI Contribution Rates Increase Under Saudi Arabia’s New Social Insurance Law

Saudi nationals registered with GOSI after July 3, 2024, fall under the New Social Insurance Law. For these employees, the combined contribution rate increased from 22.5% to 23.5% on July 1, 2026, as part of an annual 0.5% increase schedule.

Current GOSI rates from July 1, 2026

• Existing-system Saudi employees contribute 9.75%, with employers contributing 11.75%, for a total contribution of 21.5%.

• For new-system Saudi employees, the rates were 10.25% for employees and 12.25% for employers, totaling 22.5%.

• From July 2026, the employee contribution increased to 10.75% and the employer contribution to 12.75%, bringing the total to 23.5%.

• For non-Saudi employees, there is no employee contribution, while employers contribute 2% for occupational hazards.

The H1 2026 reforms reflect a regulatory environment that is both opening new opportunities and increasing compliance requirements. For companies planning to set up a business in Saudi Arabia, understanding the regulatory requirements from the outset can help avoid delays, unexpected costs, and compliance issues.