Database

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SAUDI ARABIA

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Saudi Arabia has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

SAUDI ARABIA

Since June 2020

Pillar Cross-border data policies  |  Indicator Ban to transfer and local processing requirement
National Data Governance Interim Regulations
Saudi Arabia’s National Data Management Office published the National Data Governance Interim Regulations, which requires firms to store and process personal data within Saudi Arabia “in order to ensure the preservation of the digital national sovereignty over such data.” Data Controllers may only process or transfer personal data outside the Kingdom after obtaining written approval from the relevant regulatory authority (Art. 5.4.16).
Coverage Horizontal

SAUDI ARABIA

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Saudi Arabia has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

SAUDI ARABIA

Since February 2024

Pillar Intellectual Property Rights (IPRs)  |  Indicator Mandatory disclosure of business trade secrets such as algorithms or source code
Regulations for Licensing of Telecommunications and Information Technology Equipment
تنظيمات تراخيص أجهزة الاتصالات وتقنية المعلومات
Art. 13.8 of the Regulations for Licensing of Telecommunications and Information Technology Equipment provides a general requirement to disclose details of encryption systems contained in telecommunications and IT equipment intended to be supplied and used in the kingdom.
Coverage Telecommunications and information technology equipment

SAUDI ARABIA

Since May 2005

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Regulations for the Protection of Confidential Commercial Information issued by Ministry of Commerce and Industry Decision No. 3218 (as amended)
Trade secrets are governed by the Regulations for the Protection of Confidential Commercial Information (Trade Secrets Regulations). A commercial secret is defined under the Trade Secrets Regulations as information not known in its final form or where information is not usually easily obtainable by those engaged in this type of business, as well as where the information is of commercial value due to its confidentiality, and where the rightful owner takes reasonable measures to maintain its confidentiality. However, the Trade Secrets Regulations do not protect commercial secrets which are inconsistent with Shariah, public order and/or public morals (Art. 7). Obtaining, using or disclosing any commercial secret in a manner that is inconsistent with "honest commercial practices" and without the consent of the rightful owner is deemed an abuse of the commercial secret under the Trade Secrets Regulations.
Coverage Horizontal

SAUDI ARABIA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in Saudi Arabia to deliver telecom services to end users. It is practised in both the mobile and fixed sectors based on commercial agreements.
Coverage Telecommunications sector

SAUDI ARABIA

Since January 2016, last amended in 2024

Pillar Telecom infrastructure & competition  |  Indicator Maximum foreign equity share for investment in the telecommunication sector
Ministry of Investment Services Manual
Pursuant to Section 11.03 of the Ministry of Investment Services Manual, foreign ownership in the telecommunications sector is generally permitted, subject to specific restrictions depending on the nature of the activity. For telecommunications services, foreign ownership is limited to a maximum of 60%, whereas for value-added communications services, the cap is set at 70%.
Coverage Telecommunications sector

SAUDI ARABIA

Reported in 2021, last reported in 2024

Pillar Telecom infrastructure & competition  |  Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
The Saudi telecommunications market is dominated by three operators holding unified licences: Saudi Telecom Company (STC), Etihad Etisalat Company (Mobily) and Mobile Telecommunication Company Saudi Arabia (Zain KSA). It is reported that the State holds 62% of STC’s shares through the Public Investment Fund (PIF), a further 6.9% through the General Organization for Social Insurance (GOSI), and 4.9% of Zain KSA’s shares through GOSI. Although Saudi Arabia has reportedly pursued a limited privatisation programme for state-owned enterprises and assets since 2002, open to both domestic and foreign investors, this has so far resulted only in the partial privatisation of state-owned operators in the telecommunications sector.
Coverage Telecommunications sector

SAUDI ARABIA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
According to Saudi Arabia's Accounting Separation Regulatory Framework, accounting separation is applied and required by law for operators with significant market power. However, functional separation for operators with significant market power is not required by law.
Coverage Telecommunications sector

SAUDI ARABIA

Since November 2022

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Implementing Regulations of the Telecommunication Act
According to Art. 6 of the Implementing Regulations of the Telecommunication Act, the Communications, Space and Technology Commission (CST) Board of Directors may decide to cap the number of licences, registrations or permits in a given telecom/ICT market.
Coverage Telecommunications sector

SAUDI ARABIA

Since February 2024

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Regulations of Localization Obligations for telecommunications Service Providers
According to Section 5.1.5 of the Regulations of Localization Obligations for Telecommunications Service Providers, service providers must submit localisation and replacement plans to the CST. These plans must include, at a minimum, a career path detailing the courses and training programmes offered to Saudi personnel, the number of such programmes, the entities providing them, and the names, numbers and targets of employees trained, together with related data. They must also specify the total annual spending on training in SAR and its percentage of total revenues, as well as the percentage of spending on local content relative to the company’s total expenses.
Coverage Telecommunications sector

SAUDI ARABIA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Signature of the WTO Telecom Reference Paper
Lack of appendment of WTO Telecom Reference Paper to schedule of commitments
Saudi Arabia has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

SAUDI ARABIA

Since July 2024

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Investment Law
According to Art. 7 of the Investment Law of 2024, the Ministry of Investment is required to establish a national register of investors and to receive investors’ applications for the legal approvals necessary to engage in investment activities, including the issuance of any licences or permits. Under Art. 8, the competent authority must issue and update a list of excluded (negative list) activities, which the Ministry must publish, and any foreign investor wishing to engage in an activity included in this list must first obtain prior approval from the Ministry of Investment. It is reported that the negative list covers, inter alia, audiovisual and media services, electronic mail services, the provision of online information and database retrieval services, as well as several telecommunications services.
Coverage Horizontal

SAUDI ARABIA

Reported in 2021, last reported in 2024

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Local employment requirement
Foreign investors must comply with Saudi Arabia’s Saudization policy, implemented through the Nitaqat programme, which aims to increase the proportion of Saudi nationals (including women) employed in the private sector. The programme requires companies to employ a minimum percentage of Saudi citizens, with quotas that vary by sector, company size, and occupation and are periodically revised by the Ministry of Human Resources and Social Development. Under current practice, foreign investors are expected to submit an investment and Saudization plan when applying for registration or an investment licence with the Ministry of Investment (MISA), indicating their projected Saudization levels over time; this plan is taken into account when assessing the investment project.
Coverage Horizontal

SAUDI ARABIA

Since October 2015

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the application process for patents
Implementing Regulations of the Law of Patents, Layout-Designs of Integrated Circuits, Plant Varieties, and Industrial Designs (as amended up to Decision of the Board of Directors of Saudi Authority for the Intellectual Property No. 5/8/2019 of 4 Ramadan 1440H
Arabic اللائحة التنفيذية لنظام براءات الاختراع والتصميمات التخطيطية للدارات المتكاملة والأصناف النباتية والنماذج الصناعية (المعدلة بقرار مجلس إدارة الهيئة السعودية للملكية الفكرية رقم (5/8/2019) وتاريخ 04/09/1440هـ الموافق 9 مايو 2019م)
According to Art. 8(4) of the Implementing Regulations of the Law of Patents, Layout-Designs of Integrated Circuits, Plant Varieties, and Industrial Designs, any patent applicant residing outside the Kingdom must appoint an authorised agent within Saudi Arabia.
Coverage Horizontal

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