RIYADH, 1 June — Prince Abdullah ibn Faisal ibn Turki, governor of the General Investment Authority (GIA), said a maximum of 20% duty to protect domestic industries did not conflict with the Kingdom’s efforts to join the Word Trade Organization (WTO), particularly when the authorities are working on the anti-flooding regulations which are to be announced shortly.

Speaking at a press briefing on Wednesday at the end of a conference on the future of Saudi investments in Riyadh, Prince Abdullah said both  the telecommunications and insurance sectors will be removed from the list of areas banned for foreign investment in compliance with the decisions of the Shoura Council. The insurance regulations, particularly the health insurance where foreign investment will be allowed, are currently examined by the consultative council.

Prince Abdullah stated that a General Telecoms Authority will be set up which will draw up the executive statutes and  telecom strategy. Permission for foreign companies to operate in the sector will be based on the authority’s strategy which will be announced later. The Kingdom’s policies will aim primarily at creating a utility climate appropriate for customers, as competition would offer better services at a lower price with an emphasis on creating more employment opportunities for young Saudis. Since the Kingdom’s economic foundation is solid, the GIA will strive to benefit from the global developments along with domestic and foreign investments for developmental projects, the governor said.

He also reiterated the GIA’s priorities such as creating investment opportunities and support and creation of a congenial investment climate. Licenses for investments worth $30 billion have been issued by the GIA in the past 10 months.

The foreign investment in the construction of new school buildings will be greatly beneficial to national contracting companies as the money will be invested by those foreign companies.

The specialized private companies in the Kingdom will benefit from carrying out the construction works, the prince said.