SAUDI ARABIAN GENERAL INVESTMENT AUTHORITY
( SAGIA )
SAGIA, the nodal agency for investment promotion in Saudi Arabia
was established in June 2000, pursuant to the passage of Foreign
Investment Law (FIL) in April
2000, with a view to promote Saudi Arabia as an investment destination
for domestic entrepreneurs as well as to attract foreign direct
investment. Salient features of the FIL are:
·
Right of full (100 %) ownership to foreign investors of their
projects, including land, plant and buildings (residential as well as
commercial) ·
Right to foreign investors to receive the full benefits and
incentives normally available for Saudi investors, including favourable
funding from the Saudi Industrial Development Fund (SIDF). ·
Right to foreign investors to hire and sponsor foreign employees ·
Right to full repatriation and prohibition of confiscation or
expropriation of investment projects. ·
Right to allocate financial losses of foreign joint ventures to
future financial years, with a free hand to companies in determining the
number of years those losses can be allocated. ·
Current rate of corporate tax on profits are as follows: SAR
1 to SAR 100,000
:
25% SAR
100,001 to SAR 500,000
:
20% SAR
500,001 to SAR 1,000,000
:
25%
More than SAR 1,000,001
:
30%
SAGIA has been entrusted with the task of formulating and
implementing policies for enhancing local as well as foreign
investments, issue of licenses to foreign investors, facilitating to
complete all formalities, issue of various documents to foreign
investors to enable them to obtain visas and other permits etc.
Towards this end, SAGIA has established three Investment Service
Centers at Riyadh, Dammam and Jeddah, which serves as “one stop
shops” for prospective investors from pre-investment assistance upto
the beginning of the project.
Saudi
Arabia is a member of the Multilateral Investment Guarantee Agency (MIGA)
and other regional institutions. All approved ventures are entitled to
the same treatment, protection, and incentives accorded to national
capital, including: ·
Pre-Investment
Assistance:
In terms of the Foreign Investment Law, SAGIA provides assistance to
foreign investors for investment in Saudi Arabia. ·
Land:
Land is provided at different industrial cities at nominal charges. Land
for other uses is also available on lease or sale. ·
Services:
The industrial parks are equipped with public utilities such as roads,
desalinated water, sewage and other communication facilities. ·
Customs
Duties:
Duties range from 5 percent to 20 percent on some imports. All
commodities entering the Kingdom as input for industrial production,
along with some basic food items, are exempted from customs duties. ·
Utilities:
Electricity, water, gas, and fuel are available at reasonable, low
prices. ·
Industrial
Loans:
The Saudi Industrial Development Fund provides soft medium and long-term
loans to industrial establishments amounting up to 50 percent of the
total cost of the project, repayable within 15 years, with a two-year
grace period after production commences. ·
Government
Procurement Preference:
Saudi government gives preference to national products on procurement
and produces from JVs or wholly owned foreign companies in Saudi Arabia
would also get the preferential treatment. However, this is being reviewed. Detailed
information on the text and regulations of the Foreign Investment Act
and SAGIA can be accessed from the website at: http://www.sagia.gov.sa
Saudi
Arabian General Investment Authority (SAGIA),
PO
Box 5927, Riyadh 11432,
Tel:
00-966-1-263 5010
Fax:
00-966-1-2635020
E-Mail:
info@sagia.gov.sa,
Website:
www.sagia.gov.sa
Investos
Service Centers:
RIYADH
P.O.
BOX 1267, RIYADH 11431
TEL
00966 1 448 0031
FAX
00966 1 4473687
JEDDAH
P.O.
BOX 1001, JEDDAH 21431
TEL
00966 2 657 1580
FAX
00966 2 657 2097
DAMMAM
P.O.
BOX 1234, DAMMAM 31431
TEL
00966 3 858 1110
FAX
00966 3 858 8177
JUBAIL
P.O.
BOX 1001, JUBAIL 31961
TEL
00966 3 341 3000
FAX
00966 3 341 9891
YANBU
P.O.
BOX 30031 YANBU
TEL
00966 4 3216330
FAX
00966 4 3212005
AL
MEDINAH
P.O.
BOX 443, AL MEDINAH
TEL
00966 4 837 9032
FAX
00966 4 8373827
Details
of Licenses granted by Saudi Arabian General Investment Authority(
SAGIA) to 100 % Indian owned or Indo- Saudi Joint Ventures in
Saudi Arabia ( As on 16/12/2003) 1
INDUSTRIAL PROJECTS (MILLION
RIYAL) SAUDI SHARE INDIAN SHARE Source: Data provided by SAGIA( As on 16/12/2003)
SL.NO.
NAME
OF THE ESTABLISHMENT
TOTAL PROJECT COST
Man
Power
CITY
( MILLION RIYAL)
% SHARE
(MILLION RIYAL)
% SHARE
1
Gulf
SPIC Company (For production of natural praffin)
570
0
0
570
100
110
Yanbu
2
Gulf
SPIC Company (For production of Linear Alkyl Benzene )
507
0
0
507
100
166
Yanbu
3
Ajanta
Arabic Circle Co. for Medicines Ltd.
14.7
7.4
50
7.4
50
111
Jeddah
4
*Saudi
Company for Pure Helium Ltd.( Indo- German- Saudi JV)
5.5
0
0
5.5
100
15
Riyadh
5
Saudi
Barsuli Valve Manufacturing Co. Ltd.
19.4
9.9
51
9.5
49
63
Jeddah
6
Daerah
Al-Shaml Factory for Mineral Manufacturing
5
0
0
5
100
25
Riyadh
7
Mohd.
Shamshad Abdul Ghaffar Perfume Manufacturing Factory
5
0
0
5
100
42
Jeddah
8
Electric
& Domestic Appliances manufacturing Factory
10
5.1
51
4.9
49
50
Dammam
9
Sona
Factory Co. for Golden & Jewellery Works Ltd.
5.01
2.51
50
2.51
50
28
Riyadh
10
Mohd.
Aliyar Galvanizing & Iron Works Factory
5
0
0
5
100
25
Riyadh
11
Zauq
Factory for spices and grains packing
5
0
0
5
100
27
Dammam
12
Azam
Ali Anwar Ali Plastic Factory
6
0
0
6
100
30
Jeddah
13
Anzemah
Co. for Advance Rubber works
9.13
8.8
96
0.37
4
40
Dammam
14
Olefin
Battarjee Ltd.
Co.
5
3.7
74
1.3
26
30
Jeddah
15
Mulla
Abdul Saleem Tyre Factory
5.2
0
0
5.2
100
25
Jeddah
16
Mohammad Muqeem Sayyid Ali Iron Works
6
0
0
6
100
25
Riyadh
17
Al-Samsaq
Perfumeries & Cosmetics
5
0
0
5
100
25
Riyadh
18
Panda
Serbal Nilakata Plastic Factory
5
0
0
5
100
25
Riyadh
19
Aslam
Ansar Comforter and Pillow Manufacturing Factory
5.53
0
0
5.53
100
20
Riyadh
20
Saudi
Steel Barrel Co
15.5
0
0
15.5
100
41
Yanbu
21
Al-Ala
Cement Plant
7
3.5
50
3.5
50
90
Dammam
22
Central
Production Co. for Industrial Development
5.18
0.5
10
4.68
90
40
Riyadh
23
Wali Meed Batterji Limited
5
3.7
74
1.3
26
30
Jeddah
24
Al Jazira Metal and Scaffolding Factory
5
2.5
50
2.5
50
15
Riyadh
25
Al-Alimat
Metal Factory
5
0
0
5
100
18
Riyadh
26
Ibraheem
Ahmed Ali for Mineral Oil Filling
5
0
0
5
100
20
Jeddah
27
Arabiian
Suncity Ltd. Co.
5
0
0
5
100
25
Dammam
28
Daud
Ahmad Al-Wani & Sons Ahmad Noor Haini for Readymade
Garments
5
1
20
4
80
25
Jeddah
TOTAL
1256.2
48.61
1207.69
Details
of Licenses granted by Saudi Arabian General Investment Authority(
SAGIA) to Indo- Saudi Joint Ventures in Saudi Arabia
2
SERVICES PROJECTS
SL.NO.
NAME
OF THE ESTABLISHMENT
TOTAL PROJECT COST
SAUDI
SHARE
INDIAN SHARE
Man
Power
CITY
(MILLION
RIYAL)
( MILLION RIYAL)
% SHARE
(MILLION RIYAL)
% SHARE
1
Basim
International Loading and Transportation Co. Ltd.
2
1.2
60%
0.8
40%
Jeddah
2
Telecommunications
India Ltd. Co. (TCIL)
2
0
0%
2
100%
Riyadh
3
Sayyed
Masud Ahmad Contracting Est.
2.5
0
0%
2.5
100%
Jeddah
4
Taj
Restaurants Establishment
3
0
0%
3
100%
Jeddah
5
Saudi
Supreme Computers Co.
2
1.1
55%
0.9
45%
Riyadh
6
Mohd.
Salem Quresh Computer Est.
2
0
0%
2
100%
Riyadh
7
Mazhar
Hamid Al-Gamedi Center for Renovation of Spare Parts
2.4
2.2
90%
0.2
10%
Riyadh
8
Services
Contracting Ltd. Co.
2
0.2
10%
1.8
90%
Riyadh
9
Channel
Communication Ltd. Co.
2
0.5
25%
1.5
75%
Riyadh
10
Multiple
Construction Ltd. Co.
2
0.8
40%
1.2
60%
Al-Khobar
11
JAYA
Saudi Medical Services Ltd. Co.
2
1
51%
1
49%
Riyadh
12
Sayyed
Najib Ahmad Contracting and Maintenance Est.
2
0
0%
2
100%
Jeddah
13
Saudi Progressive Ltd. Co.
2
1
51%
1
49%
Riyadh
14
Ibrahim
Abdullah Al-Saud Restaurants & Co.
2
1
50%
1
50%
Riyadh
15
Rawdha
Al-Sena Decoration Co.
3.3
0
0%
3.3
100%
Riyadh
16
Mohd.
Ali Patel Computer Estb.
2
0
0%
2
100%
Riyadh
17
Anwar
Al-Majal Publicity Accessories
2
0
0%
2
100%
Riyadh
18
Yassir
Zakir Architectural Contracting Co
2
0
0%
2
100%
Riyadh
19
Mulla
Fennel Abdul Salam Restaurants
2
0
0%
2
100%
Jeddah
20
Industrial
Equipments maintenance Co.
2
0
0%
2
100%
Jeddah
21
Mohammad
Abdul Karim Faisal Computer Maintenance Establishment
2
0
0%
2
100%
Jeddah
22
Mohammad
Rafiq Chauhan and Partner
for Decoration Company
2
1
50%
1
50%
Al-Khobar