ST. PETERSBURG – Abdullateef Al-Othman, governor of the Saudi Arabian General Investment Authority (SAGIA), said the Saudi-Russian Business Council Forum in the Russian city of St. Petersburg has been convened to lay down new horizons for economic and investment relations between the two countries, Saudi Press Agency (SPA) said. In a speech during the inauguration of the Saudi-Russian Business Council Forum named “It is time to work: The joint efforts to achieve stability and growth”, Al-Othman said the forum aims to strengthen and consolidate the economic and investment relations between the Kingdom and Russia, especially since the two countries are among the biggest G20 economies in the world. Both these countries, he said, have points of strength and high competitive advantages in different fields. He hoped that these advantages will be utilized to serve the economies of the two countries resulting in distinctive investment cooperation between them.
Al-Othman said: “Many people ask me about the Kingdom, its economy and investment in it. I always tell them that the Kingdom's past witnessed huge accomplishments. Its future is promising and is supported by ambitious visions by its leadership.”
He lauded the speech of Custodian of the Two Holy Mosques King Salman to the Kingdom's people on his ascension to the throne. The Monarch spoke about the future development. He also said that the state will build an economy that is based on strong foundations wherein there are numerous sources of income and through which the savings grow. He said job opportunities will be created in the public and private sectors. The King expressed his personal keenness to overcome any obstacles that investors might face in the Kingdom.
The Kingdom, Al-Othman said, is the biggest economy in the region and is one of the three fastest growing countries in G20. He said the volume of the Kingdom's economy has reached $746 billion with a nominal growth rate of 6 percent during the past ten years. It is characterized by the most advanced foreign investment system compared to most of the countries. It has a developed infrastructure that is updated continuously. It has a geographic location that encourages investment supported by political stability and sincere determination of the government to activate the role of the private sector.
He said local and foreign projects established in the Kingdom get energy and lands at very reasonable rates. They get easy financing from a number of government funds to support the investment projects needed by the Kingdom. They are provided with financial support in return for training and employment of Saudi citizens. They are also given preferential government treatment in purchasing for any government project.
He said foreign companies including leading Russian ones are allowed 100 percent ownership in all sectors with some exception that require the presence of a local partner. They are financing services, telecommunications, occupational investment services and wholesale and retail trade sectors. No income tax is imposed, or tax on added value, or sales tax. There is a competitive tax on companies' profits reaching 20 percent of the profits.
Al-Othman said foreign investment in the Kingdom has reached $208 billion at a rate ranging between $10–15 billion annually.
