Saudi passes new law encouraging foreign investment
(MEBG) – The new Saudi Arabian investment law, which authorizes foreign investors’ full ownership of projects, will create increased investments for the country in various economic sectors.
In a report by the Gulf times, Prince Abdullah bin Faisal bin Turki, head of the General Investment Authority (GIA), stated that the industrial sector would likely be one of the fields fully opened to foreign ownership.
According to Prince Abdullah, an official announcement by the GIA with full details of the sectors open to foreign investors is expected within the month.
In an effort to reform the Saudi economy, diversify away from oil and attract badly-needed foreign investments, the GIA was set up in April to provide the tools for a new investment law approved by the cabinet.
The law allows, for the first time, full ownership of projects by foreign investors and also relaxes rules of sponsoring by foreign employees. In addition, it ratifies foreign ownership of related property and lowers tax on company profits.
Foreign investors and diplomats have expressed optimism with regards to increased investment potential by foreigners as a result of the new law, yet it is still unknown which sectors are most likely to benefit from it.