New Royal Directives regarding foreign trade and investment restrictions in the Kingdom
Type
E-journal
Date
15 Sep 2015
Jurisdiction
Saudi Arabia
Taxonomy
General Commercial Law, Companies & Corporate Bodies
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
The Kingdom of Saudi Arabia ("Kingdom"), on Friday September 04 2015, announced the issuance of Royal Directives addressed to the Saudi Arabian General Investment Authority (“SAGIA”) and the Ministry of Commerce & Industry (the MoCI) to examine all trade and investment regulations, in order to facilitate the business of international companies in the Kingdom and provide them with the necessary incentives including unrestricted foreign direct investment in certain sectors in the Saudi market.
In light of the new Royal Directives, a joint statement was issued by the Minster of MoCI and the Governor of SAGIA which highlights the Saudi government's desire to encourage foreign direct investment in the wholesale and retail sector. Such plan is proposed to be implemented by lifting the foreign ownership limitation imposed by the Kingdom's commitment to the World Trade Organization (WTO) which would allow international companies to own (100%) of the business. This incentive would be subject to the international companies' future plans to manufacture their products in the Kingdom, the technology transfer, and the employment and training of the Kingdom's citizens.