Foreigners allowed to build, run gas stations in KSA

Foreigners allowed to build, run gas stations in KSA
Updated 15 January 2014

Foreigners allowed to build, run gas stations in KSA

Foreigners allowed to build, run gas stations in KSA

The government would allow foreign investors to build and operate gas and service stations after they get licenses from the Saudi Arabian General Investment Authority (SAGIA), a local media outlet said quoting a government report.
Earlier, the Ministry of Municipal and Rural Affairs released a document containing 90 guidelines on where investors can build and operate these stations across the country.
According to the guidelines, eight government agencies would oversee and track violations related to gas and service centers including the Ministries of Municipal and Rural Affairs, Interior, Transport, Petroleum and Mineral Resources, Commerce and Industry, Islamic Affairs, and the Saudi Commission for Tourism and Antiquities (SCTA), the media outlet said.
The government has classified gas stations into four categories including those on international roads over an area of 10,000 square meters, on regional roads over 6,000 square meters, within cities over 3,000 square meters, and in certain localities over 2,000 square meters.
The government has also authorized the SCTA to issue licenses for the operation and supervision of hotels along the roads in accordance with its own regulations.
The Kingdom's Foreign Direct Investment law permits foreigners to invest in all sectors of the economy except for oil exploration, drilling and production. Foreign companies are eligible for low-cost funding from the Saudi Industrial Development Fund for up to 50 percent of a project's cost.
No restrictions exist on converting and transferring funds associated with an investment including remittances of investment capital, earnings, loan repayments, and lease payments into freely usable currency at legal market rates.