SAGIA aims to get Kingdom in top 20 for ease of doing business by 2020

Saudi Arabia is introducing measures to improve the speed and ease of doing business in the Kingdom. (Getty)
Updated 03 May 2018
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SAGIA aims to get Kingdom in top 20 for ease of doing business by 2020

  • Kingdom has introduced new laws on arbitration and insolvency and plans to speed up the business visa process
  • “We are a model for the whole world in how to improve the business environment," says SAGIA chief

RIYADH: Saudi Arabia wants to be in the top 20 countries measured by “ease of doing business” by 2020, the head of the Kingdom’s investment promotion agency, the Saudi Arabian General Investment Authority (SAGIA) said on Thursday.

Ibrahim Al-Omar, SAGIA governor, said that there were a lot of reforms that would have to be accomplished if it were to achieve top 20 status as measured annually by the World Bank, which put the Kingdom at number 92 in the world out of 190 countries.

But he said that there was a “great interest” among international investors to get more involved in business in the Kingdom and reforms were being pushed through fast.

“We are a model for the whole world in how to improve the business environment”, he said, highlighting the new arbitration and insolvency laws, the efficiency of the Kingdom’s ports, and the ease and speed of getting a business visa.

“There has been some negative feedback on the insolvency laws, but really they are a protection tool for any business. It will give you the opportunity to reschedule your liabilities,” Al-Omar said.

He met around 400 companies in the UK and US when he accompanied the royal tour of those countries, and told them of the Kingdom’s investment potential.

But he said there were risks perceived by international investors because of the limited clarity and awareness of reforms in the Kingdom. “It is hard to communicate when we’re going so fast,” he said.

Al-Omar, who described SAGIA as a provider of “VIP concierge services” for potential investors, also said that there was only limited market information about the investment opportunities available, and that SAGIA was setting up an online portal listing all potential deals on offer.


BP and SOCAR sign new Azeri oil deal

Updated 46 min 46 sec ago
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BP and SOCAR sign new Azeri oil deal

  • The Azeri Central East (ACE) platform, the latest phase of Azerbaijan’s giant Azeri-Chirag-Guneshli (ACG) oilfields extension program, is expected to produce 100,000 barrels of oil a day
  • BP and the government of Azerbaijan extended their agreement to continue developing the ACG fields until 2050 in a major deal in 2017

BAKU: Oil major BP and Azerbaijan’s state energy company SOCAR signed an agreement on Friday to build a new exploration platform for the South Caucasus nation’s three major oilfields, BP-Azerbaijan said in a statement.
The Azeri Central East (ACE) platform, the latest phase of Azerbaijan’s giant Azeri-Chirag-Guneshli (ACG) oilfields extension program, is expected to produce 100,000 barrels of oil a day and cost $6 billion to build, the company said.
The project is one of the biggest upstream investment decisions to have been signed in Azerbaijan so far this year.
The ACG fields, which to date have produced around 3.5 billion barrels of oil, are estimated to have the potential to yield another 3 billion barrels.
BP’s main aim now would be to maximize the extraction of remaining reserves, Robert Morris, senior analyst at Wood Mackenzie, said in a statement.
“ACE is central to those plans, adding 100,000 barrels per day of production at peak in the mid-2020s,” he said.
BP and the government of Azerbaijan extended their agreement to continue developing the ACG fields until 2050 in a major deal in 2017.
Separately, SOCAR and its partners at the BP-led ACG consortium plan to participate in a tender to acquire stakes being sold by two of its members, ExxonMobil and Chevron.
SOCAR President Rovnag Abdullayev made the announcement to reporters following a meeting of senior SOCAR figures on Friday.