Yes, Saudi law explicitly allows partners or shareholders to contribute capital in cash, in-kind (non-cash assets), or a combination of both (Article 13). In-kind contributions can include physical assets such as equipment, real estate, or intellectual property rights. However, it is important to note that joint-stock companies and simplified joint-stock companies have additional specific rules governing in-kind contributions that must be followed carefully.
If your contribution involves a right of ownership, usufruct, or another in-kind right, you are legally obligated to deliver it to the company in accordance with the terms applicable to sales contracts, and you bear liability for any defects in the asset (Article 14). This means that if an in-kind asset you contribute turns out to be defective or overvalued, you could be held personally liable for the resulting loss to the company.
Failure to provide your agreed contribution on time is taken seriously under Saudi law — the company has the right to pursue legal action to compel payment, seek compensation, or even expel a non-contributing partner under certain conditions (Article 15). As a practical safeguard, expats should ensure all in-kind contributions are properly valued and documented in the Articles of Incorporation before registration to avoid future disputes.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Saudi Arabia.