The Kingdom of Saudi Arabia is undergoing a profound economic transformation under its national strategic blueprint which is Saudi Vision 2030. A central pillar of this vision is the diversification of the economy away from its historical dependence on hydrocarbons by fostering a dynamic private sector driven by innovation and entrepreneurship. Startups and small and medium-sized enterprises (SMEs) are identified as critical engines for this change, essential for job creation and increasing the private sector's contribution to the gross domestic product.

To achieve these ambitions, a coherent and modern legal framework is indispensable. Such a framework provides the legal certainty and operational predictability required to attract both domestic entrepreneurs and significant foreign direct investment. In response, Saudi Arabia has executed a series of targeted legislative reforms, moving from a traditionally conservative legal posture to a proactive, globally benchmarked strategy, designed to engineer a thriving, venture-backed startup ecosystem. This Practice Note provides a technical overview of this evolving legal landscape for practitioners.

• CMA: Capital Market Authority.

• CR: Commercial registration.

• IP: Intellectual property.

• JSC: Joint stock company.

• LLC: Limited liability company.

• MOC: Ministry of Commerce.

• MOH: Ministry of Health.

• Monsha’at: General Authority for Small and Medium Enterprises.