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Digital Transformation Licenses for IT and Software Companies in KSA

A Digital Transformation License KSA is required for IT and software companies that want to operate legally in Saudi Arabia. Under Vision 2030, the Kingdom is rapidly expanding its digital economy, creating strong demand for software development, IT consultancy, SaaS, and AI-driven services.

Saudi Arabia is investing heavily in digital growth under Vision 2030. To operate legally, IT and software companies must obtain a Digital Transformation License in KSA. This license allows local and foreign companies to offer software, IT, and digital services.


What Is a Digital Transformation License?

A digital transformation license allows companies to provide services such as:

  • Software development
  • IT consultancy
  • SaaS platforms
  • AI and data solutions

The license is regulated by Saudi authorities to support secure and compliant digital activities

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Authorities Involved

  • MISA – Issues licenses for foreign investors
  • Ministry of Commerce – Issues Commercial Registration
  • MCIT – Approves digital and technology activities

Most IT activities allow 100% foreign ownership

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License Types for IT Companies

IT & Software Service License

Suitable for:

  • Software development
  • IT consulting
  • Digital transformation services

Minimum capital: SAR 25,000
Foreign company age: At least 1 year

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MCIT Digital License

Required for:

  • AI solutions
  • SaaS platforms
  • Big data services

Application Process

  1. Apply through the MISA e-services portal
  2. Submit attested documents and business plan
  3. Reserve company name with MOC
  4. Receive MISA approval (5–10 business days)
  5. Issue Commercial Registration
  6. Register with ZATCA, GOSI, and Chamber of Commerce

The process is fully digital

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Requirements and Costs

Key Requirements

  • Attested foreign documents
  • SAR 25,000 minimum capital
  • Saudization compliance

Estimated Costs

  • Government fees: SAR 12,000–25,000
  • Document attestation: SAR 3,000–12,000
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Benefits of This License

  • 100% foreign ownership
  • Access to government digital projects
  • Eligibility for funding programs
  • Residency visa options
  • Multiple activities under one license (2025–2026 update)
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Conclusion

A Digital Transformation License in KSA is essential for IT and software companies entering Saudi Arabia. The process is fast, digital, and investor-friendly. With the right setup, companies can scale quickly in the Saudi tech market.


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