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Saudi Arabia - DOING BUSINESS |
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Local business incentives
| The government has created industrial sites attracting foreign investors in Riyadh, Jeddah, Dammam, Qaseem, Al-Ahsa and Makkah. The set up of a subsidiary allows tax exemptions for 5 years. The State provides with electricity, water, fuel...at low prices when industrial plans are involved. The government encourages partnership with local companies, granting more aids and advantages to companies whose capital is shared with Saudis. The Department of Industry and Electricity, the Department of Finance should be contacted in order to know the various helps granted to foreign investors. The SAGIA (Saudi Arabian General Investment Authority) may be contacted for further information about investment laws and opportunities in Saudi Arabia.
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Legal forms of companies
| Form |
Number of partners/shareholders |
Minimum and/or maximum capital |
Liability |
Registration fee |
Release of financial documents |
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The Sole Proprietorship is a single-partner company.
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1 person
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No minimum capital.
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The individual entrepreneur is liable for debts the company on his personal possessions.
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No
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Sharikat Al-Mossahamah (S.A.M) is a Public Limited Company.
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Minimum 5 partners.
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Minimum SR 2 million. If the capital is open to the public, Minimum SR 10 million.
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Liability is limited to the amount contributed.
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SHARIKAT ZAT MASSOULIYYAH MAHDOOAH (S.M.M) is a Private Limited Company.
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Minimum 2 partners. Maximum 50 partners.
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Minimum SR 500,000, but in practice, rarely less than SR 1 million.
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Liability is limited to the amount contributed.
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Sharikat Tadhamou is a general partnership
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Minimum 2 partners.
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No minimum capital.
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Liability is unlimited.
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Sharikat Tawsiyah Bel-ashom - Ashom is a partnership limited by shares.
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Minimum 2 partners.
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Minimum SR 100,000. At least 50% issued at the registration.
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At least one partner must have an unlimited liability. Liability of other partners is limited to the amount contributed.
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Registration and licensing procedures
The Department of Industry has to issue a license to any new business. Banking companies depend on the Ministry of Finance. Companies must be registered with the Department of Commercial Registration which address is : Department of Commercial Registration / Agencies Section / Ministry of Trade / the PO BOX 1774 / Riyadh 11162.
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Legal framework
The Saudi authorities allow foreign investments which plans enable the development of industry, agriculture, health and certain services.
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Foreign exchange control
There is no regulation or control on capital transfers. In certain cases, dividends are transferable after the obtention of a certificate issued by tax authorities.
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Regulations concerning equity investment
A legal framework has been developed in 1979, particularly with the "Foreign Capital Investment Code", dating from December 1979, in order to open the Saudi market to non-nationals.
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FDI inflows in Saudi Arabia
| FDI inflows (millions US$) |
2000 |
2001 |
2002 |
World rank |
| Foreign Direct Investments (F.D.I.) |
453
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778
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1867
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42
/ 196 |
| Sources : UNCTAD Database FDI/TNC |
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Last modified in
December 2003
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