Crown Prince Abdullah bin Abdulaziz, Commander of the National Guard and President of the Supreme Economic Council approved 17 agreements between the Saudi Arabian General Investment Authority (SAGIA) and investment-related governmental agencies. The agreements aim to remove investment obstacles in the Kingdom and improve the general investment climate.
The Committee of the Supreme Economic Council had recommended the adoption of mechanisms, set forth by a SAGIA study, to improve the ground for local and international investment in the Kingdom. HRH Crown Prince Abdullah commissioned SAGIA to implement the 17 agreements and to submit a quarterly progress report.
The directive by Crown Prince Abdullah was delivered to the concerned government agencies: the ministries of Defense and Aviation, Municipal and Rural Affairs, Interior, Foreign Affairs, Economy and Planning, Finance, Justice, Higher Education, Education, Commerce and Industry, Labor, Transportation, Health, and Water and Electricity, as well as the Communications and Information Technology Commission, the Court of Grievance, the King Abdulaziz City for Science and Technology, and the Council of Ministers’ Commission of Experts.
SAGIA Governor Amr Abdullah Al Dabbagh, on behalf of investors, thanked the government of the Custodian of the Two Holy Mosques, Crown Prince Abdullah and HRH Prince Sultan bin Abdulaziz, Second Deputy Prime Minister, for their efforts in improving the investment climate in the Kingdom.
These agreements strengthen the Kingdom‘s competitiveness in the regional and international arenas and add significant momentum to the Saudi economy. Given the country's strategic location and abundant natural resources, Saudi Arabia will continue to be an attractive investment destination, commented SAGIA Governor.
Governor Al Dabbagh addressed the highlights of the agreements, the implementation of which will, among other things, positively impact:
- Adopting procedures to ease the issuing of permits in the field of higher education. Such processes will encourage the private sector to launch new universities and specialized colleges in collaboration with international institutes. The Governor stressed that discussions with international universities on this matter have already begun.
- Reducing time needed for permits and commercial registration to start foreign and Saudi businesses in the Kingdom.
- Facilitating visa breaks for start-ups hoped to make sizeable contribution to the GDP, and awarding similar breaks to businesses that meet the Saudization quota.
- Adopting mechanisms to support investments in the industrial sector and granting longer customs exemptions to businesses in this field while facilitating work visas to needed workforce noting the specialized nature of this sector.
- Facilitating entry visas into the Kingdom, without the need for the customary “invitation letter.” This agreement applies to investors from all 30 countries of the Organization for Economic Cooperation and Development.
- Setting up SAGIA representative offices in select Saudi embassies to provide information and facilitation to prospective investors.
- Improving arbitration procedures in the Kingdom and enhancing transparency in the business environment.
- Boosting the role of SAGIA Comprehensive Service centers and ensuring proper implementation of the “One-Stop Shop” concept.
- Training of SAGIA and investment-related personnel to better serve prospective investors.
- Increasing women’s investments and participation in related fields.
- Setting up SAGIA investor help desks inside airports around the Kingdom.
- Speeding up of customs clearance procedures at air, land and seaports.
- Offering incentives to Saudis and foreigners investing in the Kingdom's lesser-developed regions.
- Developing a Ministry of Transportation and Ports Authority-SAGIA plan to assess the ports’ efficiency, raise capacity and capture a bigger “goods-handling and shipping” market-share.
SAGIA will periodically announce the results of the implementation of those agreements, said Governor Al Dabbagh. Improving and facilitating investments in the Kingdom is a dynamic process and not limited to the implementation of the 17 agreements, he added.
It was in 2004 when Crown Prince Abdullah bin Abdulaziz had commissioned SAGIA to probe investment obstacles and propose solutions within six months. SAGIA acted swiftly dedicating 50% of its man hours to the project. Furthermore, in a forward-thinking step, SAGIA institutionalized the unearthing of new investment impediments as previously-identified ones were being resolved. Having mapped procedures within Saudi Arabia and benchmarked them against international best practices, SAGIA submitted a comprehensive report on proposed solutions to the Supreme Economic Council suggesting solutions based on international norms.
Serious about implementation, SAGIA involved the World Bank and King Abdulaziz University Research Center to conduct an objective assessment of its processes in order to better serve local and foreign investors alike.
The directive of the Crown Prince to implement the 17 agreements is a crucial step in removing impediments to investment. It will help attract foreign investments into the Kingdom as well as repatriate Saudi capital; the results will fuel growth in the job market and those regions seen as less opportune by investors.
© 2005 Al Bawaba (www.albawaba.com)
