2000 News Story

Kingdom studyign more investmnet bids

In an interview with Al-Ahram newspaper published in Cairo today, Governor of the Saudi Arabian General

Investment Authority (SAGIA) Prince Abdullah bin Faisal bin Turki Al-Saud stated that the Kingdom is

studying more foreign bids for investment in the areas of oil, gas, minerals and related services, including

operation and maintenance of computer and telecommunications networks. SAGIA, he said, is endeavoring

to make the investment climate more attractive and more competitive at regional and international levels.
As of the end of 1999, around U.S. $50 billion was invested in Saudi Arabia from overseas. These

investments enjoy the same privileges and incentives as domestic investment, such as the provision of

land at a nominal price, right of ownership of real estate, copyright guarantees, freedom of flow of capital

and interest, right of litigation whenever disputes erupt, and waiver of confiscation except by judicial

order. These are in addition to the reduction of the maximum tax rate from 45 to 30 percent, the transfer

of losses to an unlimited deadline, and the right to receive loans from the Saudi Industrial Development

Fund. Investment regulations stipulate that the minimum capital for agricultural investment is $25 million,

for industrial investment, $5 million, and for non-industrial investment, $2 million.