JEDDAH, 9 May — The Gulf Cooperation Council (GCC) countries seeking to establish a common market by 2005 have announced plans to scrap a list identifying 15 types of businesses that, until now, have been restricted to the citizens of each country. Economic activities restricted to the citizens of the six countries range from pilgrimage and Umrah services and employment and insurance to custom clearance, airport handling and cargo and construction of theaters and art galleries.
A circular by the Council of Saudi Chambers of Commerce and Industry (CSCCI) addressed to local chambers asked them to identify the economic activities and professions which should be scrapped. The chambers have been requested to list the reasons justifying such cancellation.
The circular said the GCC financial and economic cooperation committee, made up of the six states’ ministers of finance and economy, will review the revised list and recommend further cuts for the subsequent cancellation of those activities. The activities included in the current list also cover commercial agencies, the car rental business, real estate and rent of buildings, all types of transport services including travel agencies, advertising, cultural and social activities.
The list of cultural activities cover the construction of printing presses and publishing houses, newspapers and magazines and photo studios and cinema production units.
The social services include caring homes for the handicapped, rehabilitation centers, senior citizens homes and clubs and society service centers.
On Monday, Saudi Arabia eased restrictions on imports of goods from other GCC states under preferential tariffs and the Council of Ministers passed a decision dropping a requirement that called for imports to be made by firms owned by Gulf citizens if they were to qualify for preferential treatment. Under the Cabinet decision products imported into the Kingdom from GCC states must have at least 40 percent local added value to enjoy preferential tariffs. Under the single trade bloc planned by the six states it was agreed in 1999 to initiate a 5.5 percent to 7.5 percent tariffs union starting in three years time.
Last year GCC leaders approveda resolution allowing Gulf citizens to practice retail trade in all six countries. The decision obliged the GCC citizens practicing retail trade to become personally responsible for the business and not to allow fellow citizens to do retailing through subcontracting.
To be able to practice retailing business in the Kingdom, a GCC citizen must be a resident of Saudi Arabia.
They must register in the commercial register if the business has a capital of SR100,000 or more. The trader must also subscribe to the chamber of commerce where the business is located.
Under the resolution, the country, where the retail business is being practiced, may demand that its citizens have a share in the ownership of the company. A maximum of 50% ownership has been set. (A.W.B.)
