Riyadh- The Saudi Arabian General Investment Authority (SAGIA), over the past few days has received requests from international companies looking into investing in the Saudi Kingdom. Saudi Arabia has shifted its orientation allowing international companies to invest in different sectors, its most prominent existing retail.
Sources told Asharq Al-Awsat that the triple sectorial-committee, including SAGIA, Ministry of Commerce and Industry, and Ministry of Labor, is seriously reviewing factors that hinder investment in the local market. The review will shift the current situation to a new standpoint, which eliminates all obstacles slowing down global investment. The obstacles being put to question are in a majority relevant to red-tape procedures and conditions on foreign investment.
The condition stating that a Saudi local partner being involved for a foreign investment to be granted access to the Kingdom’s direct market had resulted in a reduction on the scale of foreign investment in the Saudi market. It is anticipated that the condition on the presence of a local partner being removed after the triple-committee concludes its studies on the investment case-file.
Moreover, the committee is expected to end its study and recommendations on structures of commerce and investment during three months. The study is aimed to facilitate global companies’ investment in the Saudi market and to present them with incentives. Such an initiative supports expectations on new steps being taken on the flow of foreign investments into Saudi Arabia for the second half of 2016.
The committee will be taking into consideration many other restrictions and conditions on foreign investment entering the market such as, the benefit of reinforced market competition, lowered prices, the providing of global products of high quality, the inflowing of modern sales and exhibition approach, in addition to delivering the increased employment opportunities at well-based wages.
Also, the committee will not overlook the benefit of foreign investment helping with the Industrial localization connected to the production of direct consumer products, besides, to the diversification of investment and productive base of the Saudi economy. Present retail companies will also take advantage of increase in local quality and the corroboration on post-sale services.