JEDDAH, 18 May 2005 — Saudi Arabia has issued licenses for 189 international and domestic investment projects worth SR24 billion ($6.4 billion) in the first quarter of this year, Amr Al-Dabbagh, the governor of Saudi Arabian General Investment Authority (SAGIA) said.
He said the figure was 828 percent higher than the investments secured by the country during the same period last year. Some of the new projects are vital joint ventures with international companies, he said in a press statement.
Al-Dabbagh said SAGIA was making strenuous efforts for the implementation of licensed projects within 30 days. “We have also started issuing licenses through the Internet to reduce the licensing time from 30 to three days,” he said. SAGIA has developed a large database on Saudi laws and regulations, in association with several consultancy offices, he said and described it the largest database in the Kingdom.
Last year, Saudi and foreign investment in the Kingdom’s private sector stood at SR119 billion with domestic investment accounting for SR8 billion or less than seven percent of the total, Al-Dabbagh said quoting statistics published by the Saudi Arabian Monetary Agency.
SAGIA, set up five years ago to attract investment, has so far granted licenses for billions of riyals worth of projects. But analysts say only a fraction of these licenses have been translated into reality.
Al-Dabbagh said his organization was working to achieve quick implementation of licensed projects. “We have set up program to follow up implementation of the projects, providing investors with necessary support,” he added.
Al-Dabbagh said issuing license is just a preliminary step. “What is important is facilitating and speeding up measures for the operation of projects, and we have reached an agreement with government departments on the periods required for completing their procedures for the implementation of projects,” he explained.
Al-Dabbagh commended the government for supporting investors and creating an investment-friendly atmosphere in the country. He also noted the measures taken by Crown Prince Abdullah to remove the obstacles facing investors and improve investment atmosphere.
Earlier addressing a meeting with businessmen at the Riyadh Chamber of Commerce and Industry, Al-Dabbagh said SAGIA had reached agreements with government departments to find practical solutions to the difficulties facing businessmen, the Saudi Press Agency said.
Also yesterday, while addressing a seminar in Bahrain, Al-Dabbagh said his organization had set out an investment strategy after conducting field studies and personal interviews. “We provide all services and facilities in order to attract foreign investment. We also market viable investment opportunities in various parts of the country,” SPA quoted him as saying.