SAGIA: Fast track service in KSA for foreign investors

Updated 08 June 2014
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SAGIA: Fast track service in KSA for foreign investors

Saudi Arabian General Investment Authority (SAGIA) has introduced a ‘fast track service’ to process applications from foreign investors within five days under a streamlined program.
The new measures have been announced in an administrative decision issued by Abdullatif Al-Othman, governor of SAGIA and chairman of the board.
This follows the Council of Ministers’ decision (No. 2 of 5/1/1421H), the Foreign Investment Law by Royal Decree (No. M/1 of 5/1/1421H) and its Implementing Regulations issued by the board’s decision No. 2/74 of 12.5.1435H.
“Overseas investors looking to launch businesses in the Kingdom of Saudi Arabia will now be able to benefit from a faster and simpler application process with the launch of the new fast track service by SAGIA,” said an official from the authority.
“This new application process guarantees application decisions within five working days, once SAGIA has received all required documentation.”
The fast track is available to potential investors who meet one of the following requirements:
1 Multinational companies publicly listed in the capital market of their countries or in international stock exchanges
2. Firms manufacturing products that are classified and approved by independent agencies, and employ certified process technology
3. Small and medium size enterprises which will be operating in the area of the IPRs registered in their names, or which are classified as innovative enterprises.
4. An international company aiming to set up regional centers in Saudi Arabia.
5. A construction company classified under ‘first class’ in their countries, or which have implemented a project with a value of not less than SR500,000,000 and have a manpower of not less than 2,000 employees and total assets of not less than SR50 million.
6. A company entering into partnership with other companies qualified by Saudi government agency, or by a state-owned entity or an entity in which the government has a shareholding, or with a company listed in the Saudi Capital Market.
7. The aim of SAGIA’s fast track service is to facilitate foreign direct investment (FDI) into target sectors in the Saudi economy, namely ICT, downstream petrochemical and mining, industrial manufacturing, health care and life science, transportation and infrastructure, human capital development, and energy and petrochemicals.
Documents required to complete applications under the fast track service include:
1. Shareholders Resolution to invest in the Kingdom, listing the names of shareholders, capital share of each shareholder, company headquarters, type of activity, name of the general manager and authorized representative, duly legalized by the competent authorities and the Saudi mission.
2. Copies of enterprise Memorandum of Association and commercial registration, duly authenticated by the competent authorities and the Saudi Consulate.
3. Filling out the autobiography form and provision of a company profile, duly stamped by company’s seal.
Eligible applicants providing the necessary information should make their applications to: [email protected] in the interim, while an online application process is developed.


China’s Xi promotes building initiative amid debt worries

Updated 57 sec ago
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China’s Xi promotes building initiative amid debt worries

  • Xi says Beijing wants “open, green and clean cooperation” with “zero tolerance for corruption”
  • High costs have prompted complaints some are falling into a “debt trap”
BEIJING: President Xi Jinping has promised to set high standards for China’s Belt and Road infrastructure-building initiative, seeking to dispel complaints the many billion dollars in projects leave developing countries with too much debt.
Xi avoided mentioning debt complaints in a speech opening a forum attended by leaders from some three dozen countries to celebrate his signature foreign initiative. But he said Beijing wants “open, green and clean cooperation” with “zero tolerance for corruption.”
Developing countries welcome the initiative to expand trade by building roads, ports and other facilities across Asia and Africa to Europe. But high costs have prompted complaints some are falling into a “debt trap.”
The United States, Russia, Japan and India also worry Beijing is trying to build a trade and political network centered on China and expand its strategic influence at their expense.
Xi’s government is trying to revive the initiative’s momentum after the number of new projects plunged last year. That came after Chinese officials said state-owned banks would step up scrutiny of borrowers and some governments complained projects do too little for their economies and might give Beijing too much political sway.
Countries including Malaysia and Thailand have canceled or scaled back projects while Ethiopia and others have renegotiated debt repayment.
Xi noted China’s finance ministry on Thursday issued guidelines for assessing debt risks for borrowers. The ministry said those “debt sustainability guidelines” are based on the standards of the International Monetary Fund and other international institutions.
The president tried to allay complaints about lack of economic benefits and political influence, saying Belt and Road is “not an exclusive club” and promotes “common development and prosperity.”
“We need to pursue open, green and clean cooperation,” Xi said. “Everything should be done in a transparent way and we should have zero tolerance for corruption.”
His audience at a Beijing conference center included Prime Ministers Aung San Suu Kyi of Myanmar, Lee Hsien-Loong of Singapore and Adiy Ahmed of Ethiopia and leaders or envoys from Greece, Serbia and Malaysia.
Xi said Beijing also wants to expand the scope of its initiative by encouraging cooperation among Belt and Road countries on health, water resources, agriculture and science and technology. He promised to fund scholarships for students from Belt and Road countries.