Saudi Arabian General Investment Authority (SAGIA), the gateway to investment in Saudi Arabia, has launched six initiatives to attract foreign investment to the Kingdom, a recent study of the Sharqiah Chamber of Commerce and Industry has revealed. The initiatives come as part of SAGIA's plan to make the Kingdom “one of the top ten foreign investment locations by 2010.” The study titled “Laws and Conditions of Foreign Investment in Saudi Arabia” reported that the initiatives would provide potential foreign investors with a better insight into the regulations of foreign investment in the Kingdom. For as low as SR100,000 in foreign capital, a foreign individual investor could start a business in the services industry and a minimum of SR500,000 in foreign capital for a branch of foreign company in the Kingdom, SR1,000,000 in foreign capital for an industrial investment, and unlimited foreign capital for foreign companies started in the Kingdom, the study said. SAGIA's initiatives to attract new foreign capitals to the Kingdom include: • Investor Services: SAGIA provides national and foreign investors with needed information in a more efficient and transparent way • Investment Marketing: SAGIA promotes investment opportunities across the Kingdom through direct communication with national and international investors. • Area Development: SAGIA works to strengthen investment performance across the Kingdom to maximize the return on investment and to allow fair distribution of investment capitals throughout the Kingdom • New Investors: SAGIA seeks to attract new investors by encouraging Saudi entrepreneurs and young investors to start their own businesses supported by the Centennial Fund, one of the economic reform initiatives introduced in 2005 • Boosting Certain Sectors: SAGIA looks into promising yet inactive sectors of investment in order to inject national and foreign investment capitals into them to bring them to life • Improving Investment Environment: SAGIA works with government departments to ease investment laws as required for a healthy attractive investment environment. In a commercial investment, a Saudi partner should own 49 percent of the investment project, and the foreign investors must put into the business at least SR20,000,00 and SR25,000,000 into an agricultural investment project. All real estate business projects and deals should be worth SR30,000,000 minimum each including the lot and construction and each deal should be approved by SAGIA. No foreign real estate investment projects are allowed in the holy cities of Makkah and Madina.
