In a bid to attract foreign investment into Saudi Arabia, the government approved a new bill on Monday, which slashes the tax rate imposed on foreign investors from 45 to 20 percent.
According to Culture and Information Minister Fouad Al-Farsy, the new law will come into effect 90 days after its publication in the official gazette, SPA reported. He said foreign companies and individuals doing business in Saudi Arabia, excluding Gulf Cooperation Council (GCC) investors, would benefit from the tax cut.
Direct foreign investment into Saudi Arabia is estimated at $11 billion. International cash flow into the Kingdom appeared to be in jeopardy this past May when three compounds housing Saudi expatriates came under attack in Riyadh. Foreign businessmen were concerned that the bombings would change the way international firms do business in the Kingdom. — (menareport.com)
© 2004 Mena Report (www.menareport.com )