Saudi Arabia said to offer major incentives for Tadawul listing

A Saudi government committee comprising a number of ministries and government institutions has offered several incentives to private sector firms to encourage them to list their shares on the Saudi Stock Exchange, Al-Eqtisadiah newspaper reported.

Each incentive will be implemented by its related ministry or authority, as part of a government plan to provide an enabling environment for private sector enterprises.

The incentives that will be offered to firms upon becoming a public shareholding company include the following:

• The ability to replace Saudization quotas with a fee for a limited period of three to five years.

• Prioritized use of government land allocated for investment purposes.

• Reduced rental rates, and easier mortgage rules on land, including a shorter leasing period, in addition to studying the possibility of selling the land currently used by the company.

• Amended regulations on permits and commercial licenses to avoid canceling or suspending the firm’s activities until employment disputes are settled.

• Receiving support in commodity dumping cases.

• Obtaining the help of a relationship manager in settling zakat or income tax disputes.

• Gain oil and gas permits such as export permits, and access to technical production and performance data.

• Prioritized legal procedures in commercial and non-commercial courts.

• Accelerated process to obtain approvals to register foreign partners for joint ventures and others.

• Easier procedures to obtain all required permits from municipalities, and the submission of files related to Zakat.

• Access to visas for citizens of all countries with freedom to change.