A number of Saudi government-owned entities provide several stimulus packages to encourage companies to go public and list shares on the Saudi Stock Exchange (Tadawul).
This includes securing approvals for firms to register foreign partners in joint ventures (JVs).
A foreign investor is defined as a natural person of non-Saudi nationality or otherwise a body corporate, where all partners are non- Saudi nationals.
Attracting foreign investors to pump cash into the Saudi economy is one of the key pillars of Vision 2030, and also contributes to the improvement of business climate in the Kingdom.
The terms and regulations pertaining to doing business in Saudi Arabia are being upgraded, which has boosted investments, commercial activities, and further bolstered trust of local, foreign as well as corporate investors in the Saudi economy.
The Ministry of Investment plays a fundamental role in attracting foreign investors to inject cash in partnership projects.
Based on the investment act in the Kingdom, foreign partners get a number of privileges including:
- The ministry provides foreign investors with the necessary detailed data and statistics, in addition to other services to facilitate investment deals.
- JVs are entitled to have all privileges, incentives and guarantees of Saudi projects as per the applied law.
- Ensuring equality between Saudi and non-Saudi investors on one hand, as well as among the local investors.
- Facilitating entry permits for non-Saudi employees in the technical and administrative field, as well as their dependents.
- A foreign investor can transfer stake sale proceeds, earnings or liquidation proceeds abroad and is also entitled to settle any contractual payments related to the company’s projects.
- Licensed foreign partners are entitled to own properties for commercial or staff housing purposes as per the property ownership regulations for non-Saudis.
- Foreign investors are free to transfer equity ownership among partners, upon obtaining the necessary approvals.
- Foreign investors can benefit of the tax stimulus packages.
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