Document background
The Designated Investment Agreement is a key document used in Saudi Arabia to facilitate and regulate significant foreign investments in the Kingdom. This agreement type is particularly relevant for investments aligned with Saudi Vision 2030 objectives and requires approval from relevant Saudi authorities, including SAGIA and potentially the Capital Market Authority. The document sets out the complete investment framework, including capital commitments, ownership structures, governance rights, and regulatory compliance requirements. It is specifically designed to protect both foreign investor interests and Saudi national interests while ensuring alignment with Saudi laws, regulations, and Shariah principles. The agreement becomes necessary when foreign investors seek to make substantial investments in Saudi Arabia, particularly in strategic sectors or when special investment licenses or privileges are involved. The document must comply with Saudi Foreign Investment Law, Companies Law, and other relevant regulations while incorporating any sector-specific requirements.
