A Royal Decree has been issued, formulating in eighteen articles the system of foreign investment that was endorsed by the Council of Ministers in yesterday's regular meeting.
[regulations governing foreign investment]
Also published are the regulations governing the Saudi Arabian General Investment Authority (SAGIA), which was created by Royal Decree yesterday.
[regulations governing SAGIA]
In a statement today, Minister of Industry and Electricity Dr. Hashim Yamani declared that these moves will contribute positively to the flow of foreign capital into the Kingdom. The system, he said, had been drafted by the Ministry of Industry and Electricity to incorporate both the experience of the world's advanced countries, and the views of the business sectors, experts, academicians and investors. He noted that the foreign investment system is aimed at eliminating existing obstacles and facilitating procedures as well as enabling Saudi Arabia to compete at the global level. He stressed the advantages of the new system over the old, saying it will grant the foreign investor greater security. Moreover, improvement in economic growth means creation of more job opportunities and a rise in individual income. Referring to the cabinet's decision to assume 15 percent of the taxes imposed on company profits over SR 100,000, he said this is a good step, since it lessens the tax burden on the foreign investor.