Third-Party Approvals in Saudi Arabia

Third-party approvals are a crucial component of Saudi Arabia’s regulatory framework, ensuring that projects and products meet national safety and quality standards.

When setting up a business in Saudi Arabia, there are certain licenses that you must acquire to fully establish the legal entity of your company, most notably the Commercial Registration (CR) and the MISA license. However, depending on your industry, there is also a regulatory obligation to secure what are known as third-party approvals.

These approvals are typically authorizations issued by government entities or regulatory authorities overseeing specific industries such as fintech and tourism. Without them, companies risk delays, penalties, or even being indefinitely barred from operating.

Why Third-Party Approvals Matter

Third-party approvals validate that a company complies with industry-specific regulations.

For example, a food importer will need clearance from the Saudi Food and Drug Authority (SFDA), while a fintech firm will require authorization from the Saudi Central Bank (SAMA).

In short, these approvals protect consumers, safeguard the market, and ensure businesses maintain compliance with evolving regulations across diverse industries.

Who Needs Third-Party Approvals?

In essence, every company operating in a regulated sector must obtain third-party approvals—whether it’s a Saudi-based enterprise branching out to a new activity, a startup launching a new platform, or an international company expanding in the Kingdom

For foreign investors in particular, understanding these requirements early on is crucial to avoiding commercial launch delays. Each approval comes with its own set of conditions, validity periods, and renewal processes, making it essential to plan ahead and seek assistance from local experts by right.

Key Sectors That Require Approvals

A wide range of industries in Saudi Arabia fall under regulatory supervision. These include, to name a few, food and pharmaceuticals, financial services, engineering and construction, tourism, healthcare, education, media, ICT, and transport.

Authorities such as the SFDA, SAMA, the Capital Market Authority (CMA), the Saudi Contractors Authority, the Ministry of Tourism, and the Ministry of Communications and Information Technology (MCIT) are among the most common regulators businesses must engage with.

Even physical establishments, like warehouses or training centers, often need certifications from the local municipality or Civil Defense to ensure compliance with safety and zoning standards.

By understanding and securing the right approvals from the start, businesses can operate smoothly, build trust, and leverage the full potential of operating in Saudi Arabia’s thriving economy.

Sector Spotlight: Regulatory Approvals Required from Fintech Companies Expanding in Saudi Arabia

Starting a fintech company in Saudi Arabia requires obtaining specific approvals depending on the nature of their business, whether it involves payments, investments, crowdfunding, or data processing.

Requirements for a Fintech Startup in Saudi Arabia

To start a company in KSA in the fintech sector, you must first register your company and then apply for the relevant licenses based on your business model. The key government authorities that regulate and support fintech businesses include:

• Saudi Central Bank (SAMA): Oversees payment solutions, digital wallets, and remittance services.
• Capital Market Authority (CMA): Regulates crowdfunding, securities, and investment platforms.
• Saudi Data and Artificial Intelligence Authority (SDAIA): Ensures compliance with data protection laws (PDPL).
• Zakat, Tax, and Customs Authority (ZATCA): Manages tax and VAT registration.
• Ministry of Commerce (MoC): Handles commercial registration and licensing.
• Ministry of Investment (MISA): Facilitates foreign investment and company setup for international firms.

In brief, once your CR is issued, you can apply for specialized FinTech licenses from the relevant authority (e.g., SAMA or CMA). If your business involves handling customer data, ensure compliance with SDAIA’s Personal Data Protection Law (PDPL).

After licensing, you must register with ZATCA for VAT and zakat obligations before commencing operations.

Sector Spotlight: Approvals and Business Licenses for Tourism Companies in Saudi Arabia

Saudi Arabia is one of the fastest-growing tourism destinations in the world today. In the first quarter of 2025, international tourist arrivals grew by 102% compared to 2019 figures.

Setting up a tourism business in Saudi Arabia has become an increasingly strategic and sought-after move for international travel companies aiming to take advantage of a growing market, supported by government incentives and streamlined licensing procedures.

Depending on the type of tourism activity you plan to establish in Saudi Arabia, you may be required to obtain specific licenses and permits from the relevant authorities in addition to your company registration.

After securing your Commercial Registration (CR) from the Ministry of Commerce (MoC) and, if applicable, an investment license from the Ministry of Investment (MISA), you must apply for the appropriate tourism license issued by the Ministry of Tourism (MoT).

The Ministry of Tourism regulates all tourism-related activities in the Kingdom and determines which type of license a business requires. These may include:

• Tourist Accommodation Facilities License

To operate lodging facilities, companies must hold a valid commercial registration with the correct ISIC code, obtain permits from authorities such as MoMRAH and Civil Defense, and secure any necessary approvals from entities like MEWA or the National Center for Vegetation Development. Integration with platforms such as Shomoos and NTMP is also required. The license is typically issued within five days.

• Travel and Tourism Services License

Travel agencies and tour operators must have a valid commercial registration reflecting their activity, necessary municipal permits, brand usage rights from SAIP (if applicable), and a financial guarantee—SAR 800,000 for general travel and tourism services or SAR 50,000 for tour operations. The license is generally issued within two days.

• Tourist Services Office License

Tourist service offices follow similar requirements, including valid commercial registration, approval from competent authorities, and proof of brand rights. They must also provide a financial guarantee identical to that required for travel and tourism services. The issuance process usually takes two days.

For guidance on license selection, documentation, and compliance requirements, businesses can seek assistance from professional incorporation firms or authorized business setup advisors in Saudi Arabia.