To achieve the desired liberalisation and reform, policies focused on privatisation and investment promotion. Private investment was encouraged and the KSA turned to Foreign Direct Investment ("FDI") as an appropriate vehicle that could revitalise its economy and diversify its productive base.

Tax Incentives

In order to increase FDI and raise the skills of the Saudi national work force, in 24 November 2008 Council of Ministers had issued its decision No. 359 (the "Council of Ministers Decision") to grant conditional 10-year tax incentives commencing from the date on which the project enjoys the tax credit (the "Tax Incentives") on investment in designated underdeveloped provinces of KSA, namely: Hai'l, Northern Borders, Jazan, Najran, Al Baha and Al Jouf.