Applications for direct foreign investment in Saudi Arabia were worth 1.3 billion dollars last year, head of the new Saudi Arabian General Investment Authority was quoted by the Gulf News daily as saying Sunday.
"Since the new foreign investment law was passed, there has been a 44 percent increase in applications," Prince Abdullah al-Saud said.
"The main reason for the increase is the improvement in the law for foreign investment, and that people see a new direction," he added.
The oil sector is not open yet, but gas is an independent program, and progressing faster than before."
According to a study by the Trade Port organization, the Saudi current foreign capital investment code specifies three conditions for foreign investments:
1. The undertaking must be a "development project."
2. The investment must generate technology transfer.
3. A Saudi partner should own a minimum of 25 percent equity (although this last stipulation can be waived).
High technology projects are generally given priority, while projects in construction, general operations, and maintenance are discouraged, said the study -- Albawaba.com
