The sequence for establishing a family office presence in Riyadh, from defining its purpose and structure to governance, licensing questions, staffing and first investments.
A family office in Riyadh starts with a clear mandate, a legal structure chosen with advisers, and a governance framework, before any investment is made. Interest has grown as families look for proximity to Saudi deal flow and as the capital hosts more financial institutions and regional headquarters. The regulatory treatment of family offices depends on what they do, so the licensing question is part of the design, not an afterthought.
Before stage one
Before choosing an office or a structure, the family should agree what the office is for: managing the family's wealth, investing directly in Saudi businesses, running a property portfolio, supporting philanthropy or all of these. The mandate determines the structure, the licences that may be needed and the team.
- A written mandate agreed by the family.
- The expected size and type of assets to be managed.
- Whether the office will manage only family money or outside capital too.
- The family members who will govern the office.
- Legal and tax advisers experienced with Saudi structures.
Stage 1: Define the mandate and scope
Decide which assets the office will manage, whether it will invest directly or through funds, and what services it will provide to family members. Set investment objectives, risk tolerance and the time horizon.
- Deliverable: A family office charter describing purpose, scope and objectives.
- Owner: Family council.
- Approval gate: The family agrees the charter in writing.
Stage 2: Choose the structure
Work with advisers on the legal form and location, which may involve a Saudi company, a holding company abroad or a combination. Consider how the structure interacts with Zakat and income tax, succession and the family's other jurisdictions.
- Deliverable: A structure memo with the recommended entities and their roles.
- Owner: Legal and tax advisers.
- Approval gate: Advisers confirm the structure is available and appropriate under current rules.
Stage 3: Clarify regulatory treatment
Ask whether any of the planned activities, such as managing outside money, advising or arranging investments, would fall under CMA regulation. A single-family office managing its own wealth is usually treated differently from one managing third-party money.
- Deliverable: A regulatory note on which activities require licences.
- Owner: Legal adviser.
- Approval gate: Licensing needs are identified before operations begin.
Stage 4: Establish governance
Set up an investment committee, decision rules, reporting and conflict of interest policies, and define the role of family members and professional staff. Include rules for how the next generation participates.
- Deliverable: A governance framework and investment policy.
- Owner: Family council with the chief executive.
- Approval gate: Decision rights and reporting are documented.
Stage 5: Hire the team
Recruit a chief executive or chief investment officer and core staff in finance, legal and investment. Consider which functions to outsource, such as custody, accounting or legal work.
- Deliverable: A core team and service provider agreements.
- Owner: Family council.
- Approval gate: Key roles are filled with people who understand both the family and the Saudi market.
Stage 6: Set up operations
Open bank and custody accounts, select an office, often in a business district such as KAFD, and put in place accounting, reporting and cybersecurity systems.
- Deliverable: An operational office with systems and accounts.
- Owner: Chief executive.
- Approval gate: Reporting systems produce consolidated family wealth reports.
Stage 7: Make the first investments
Start with investments that fit the mandate and can be managed with the team in place, and review the process after the first few decisions.
- Deliverable: Initial investments with documented decisions.
- Owner: Investment committee.
- Approval gate: Each investment follows the approved policy and process.
Handovers between stages
The weakest link is often between structure and governance. Families spend time on the legal entities and then rush governance, leaving unclear who decides. Governance should be settled before the first hire, because the chief executive needs to know whom they report to and what authority they have.
How you know it is finished
The family office is established when it has an agreed charter, a structure confirmed by advisers, clarity on any regulatory requirements, documented governance, a team and systems in place, and first investments made in line with the policy. From then on, the office is judged on how well it serves the family's long-term goals.
If a Vision 2030 programme or market trend is shaping your investment case, Domira can test it against real land, construction costs and local demand in the city you are considering before you commit capital.
Frequently Asked Questions
Do family offices need a licence in Saudi Arabia?
It depends on what the office does. A single-family office managing only its own family's wealth may be treated differently from an office that manages outside money or provides regulated services such as asset management or advice, which can require CMA authorisation. Take legal advice on your planned activities before starting operations.
Why are family offices moving to Riyadh?
Families cite proximity to Saudi deal flow, including private companies, property and listed markets, the growth of the financial sector under the Financial Sector Development Program, and the presence of regional headquarters and institutions in the capital. Personal factors, such as family ties and residency options, also play a role. Each family should weigh these against its own needs.
Can a foreign family office invest in Saudi Arabia?
Yes. Foreign family offices can invest in Saudi companies, property, listed securities and funds through various routes, including direct investment registered with MISA, QFI status for listed securities, or investment in funds. Each route has its own requirements. Advisers can help choose the route that suits the family's structure and objectives.
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