investment guide

Answering your investment needsA detailed guide to investing in Saudi Arabia

Contents1. Why? Reasons to invest in Saudi Arabia Thebigpicture

2. Who? SAGIA are the people who can help AboutSAGIA SAGIABusinessCenters BusinessCenterlocationsandcontacts

3. How? Here’s how to register for business Pre-registrationdecisions Generalrequirements Speciallicensing Commercialregistration Investmentflowcharts

4. What? Some things you need to know Investmentincentives Tradeandfinance Lawandtaxation Infrastructureandresources Saudilifeandculture

5. Where? Good places to put your money Sectorguide TheEconomicCities

6. When? The time to invest is now Nextsteps

Reasons to invest in Saudi ArabiaYou’ve made a great choice. When you look closely at the benefits of investing in Saudi Arabia, the competitive advantages are immediately obvious. From low taxes, low inflation and the lowest energy costs, to high growth, high returns and a highly educated young workforce. Better still, the Kingdom is No.1 in the Middle East for ‘Ease of Doing Business’ (World Bank).

Rea

sons

to

inve

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1. Why?ReasonstoinvestinSaudiArabia

The big picture

Locatedatcrossroadsofglobaltrade–andformingagatewaytotheworld’slargestenergyreserves–SaudiArabiaoffersavastmarketplace,abundantskilledlaborandatrulycompetitivebusinessenvironment.

AstheheartoftheMiddleEast/NorthAfrica(MENA)region,withsome400millionconsumersandmanyoftheworld’sfastest-growingeconomies,theKingdomitselfhas27millionincreasinglyprosperousconsumersformingthelargestmarketintheregion.

InSaudiArabia,educationiscentraltothedevelopmentagendaasnowhereelseonearth.Alreadythe8thhighesteducationspenderworldwide,theKingdomisinvestingheavilyineducationalandtrainingprogramstoattractinvestorsthroughaworld-classworkforceandaknowledge-basedeconomy.

Inadditiontoskilledlocalmanpower,thecountryhaslongwelcomedanabundanceofforeignworkers,fromlow-costlabortohighlyskilledprofessionals.Thereisawell-establishedinfrastructureforaccommodatingexpatriate

1. Why?ReasonstoinvestinSaudiArabia

workersofallkinds,withresidentandvisitingexecutivesenjoyingsecureandluxuriouslivingarrangementsforshortorlong-termstays.

Bestofall,theKingdom’s0%individualincometaxratecreatesexceptionaleconomicadvantagesforemployers,aswellasprovidingapowerfulincentivefortalentedandindustriousstaff.

SAGIA are the people who can helpYou want a direct interface with expert local advisers; you want practical assistance with travel arrangements and itineraries; you want fast, hassle-free ways to get your business up and running; and you want it all under one roof. Well, that’s exactly what SAGIA Investor Services are all about.

SAG

IA a

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he p

eopl

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ho c

an h

elp

2. Who?SAGIAarethepeoplewhocanhelp

About SAGIA

TheSaudiArabianGeneralInvestmentAuthority(SAGIA)isaSaudigovernmentorganizationdedicatedtoimprovingthecountry’sinvestmentenvironmentandprovidingcomprehensiveservicestoinvestorsseekingtopursuebusinessopportunitiesintheKingdom.

SAGIAiscommittedtoenhancingtheexperienceofinvestingandoperatingintheKingdombyservingasaninformationclearing-house,whileprovidingcomprehensivelicensingandsupportservices.

ThesearejustafewexamplesofhowSAGIAisworkingtostreamlineandaddvaluetoitsinterfacewithinvestorsandbusinesses.



SAGIA Business Centers

Tomaximizeusers’easeandefficiency,theBusinessCentersbringtogetherawiderangeofcriticalservices–allfocusedonmakingitaseasyaspossibletoinvestinorsetupbusinessintheKingdom.AlargenumberofgovernmentdepartmentsarerepresentedineachBusinessCenter,providinginvestorswithfast,hassle-freeaccessto128business-relatedservicesrangingfromgovernmentlicensingtotelecommunicationsandbankingservices.

Asaleeb

Topromoteeaseofinterfaceforforeigninvestors,SAGIAlaunchedasophisticatedSAP-poweredcustomerrelationshipmanagement(CRM)solution,called‘Asaleeb’,in2006.Thesystemenablesreal-timeinformationexchangebetweenbankers,executives,lawyers,analystsandgovernmentagencies–greatlysimplifyinginteractionbetweenSAGIAanditspartnersinareassuchasvisaandlicensingapplications.

Investor Assist

SAGIAprovidesinvestorswithafullsuiteoftravelandfreightservicesdesignedtomakestayingintheKingdomasenjoyableandstress-freeaspossible.Called‘InvestorAssist’,theseservicesforbusinesspeopleandtheirclientsinclude:

Airlineandhotelbookings��

Tourismpackages��

Arrivalanddepartureassistance��

HajjandUmrahservices��

Travelinsuranceandvisaservices��

Charterflights��

Carrental��

Freightforwarding,cargoservices,customsclearanceand��

shipping

Global outreach

InadditiontorepresentativesthroughouttheKingdom,SAGIAhasestablishednineInternationalOfficesonfourcontinents.EachinternationalofficeisheadedbyahighlyskilledCountryDirectorcapableofprovidingexpertadviceavailableonallaspectsofinvestinginandoperatingabusinessinSaudiArabia.SAGIA’sinternationalofficescanbefoundinAustralia,China,theUnitedStates,theUnitedKingdom,Germany,France,Italy,JapanandSingapore,withmoreinthepipeline.

Contact numbers and website details

PleasefeelfreetocontactusifyouhaveanycommentsorsuggestionsonhowSAGIAcanbemoreeffectiveinachievingitsmission,orifyou’dliketolearnmoreaboutthewaywearechangingtheKingdomofSaudiArabia.We’reeasytocontacthereintheKingdomandaroundtheworld.Welookforwardtoconnectingwithyou.

WithinSaudiArabia: 8002449990(TollFree)Fromabroad: +966(2)6539510Ourwebsite: www.investinsaudi.com



SAGIA Business Centers

Originallylaunchedasour‘One-StepShops’,SAGIABusinessCenterssupportinvestorsbyprovidingthemwithasinglesourceofinformationandan‘underoneroof’applicationprocessingservice.

TheCenterssimplifytheinvestmentprocessbybringingtogetherrepresentativeofficesfromallthegovernmentdepartmentsandagenciesrelatedtoinvestors’needs.Thegovernmentagenciesassistwitheverythingfromlicenseapprovalsandbusinessstart-upstoprovidingInvestorCards–whichofferahostofbenefitsandperks.

AtSAGIABusinessCenters,you’llfindrepresentationfromthefollowingagencies,offeringimmediatedeliveryofover100differentservices:

MinistryofCommerceandTrade��

TheDirectorateGeneralofPassports��

MinistryofAgriculture��

GeneralDirectorateforLaborVisa��

MinistryofLabor��

DepartmentofZakatandIncome��

MinistryofJustice��

MinistryofForeignAffairs��

MinistryofMunicipalandRuralAffairs��

GeneralOrganizationforSocialInsurance��

ChambersofCommerce��

Investorscanalsofindarangeofotherfacilities,allowingthemtomeettheirbusinessneedswithoutleavingtheCenter:

InformationDesk��

LegalAdvisory��

FinancialAdvisory��

ManagerialAdvisory��

SaudiTelecomCompany��

BankingService��



Business Center locations and contacts

SAGIA Head Office and Riyadh Business CenterPhone:+96612035555Fax:+96612632894

Mailing address:P.O.Box5927Riyadh11432KingdomofSaudiArabia

Street Address:ImamSaudBinAbdulazizRoad(UniversityRoad)

Jeddah Business CenterPhone:+96626571580Fax:+96626572097

Mailing address:P.OBox:1001Jeddah21431KingdomofSaudiArabia

Street Address:Ha’ilStreet(behindChamberofCommerce)

Dammam Business CenterPhone:+96638812088Fax:+96638811990

Mailing address:P.O.Box1234Dammam31431KingdomofSaudiArabia

Street Address:EasternRegionCementTowersKhobarStreet

Medina Business CenterPhone:+96648388909Fax:+96648389032

Mailing address:P.OBox443,MedinaKingdomofSaudiArabia

Street Address:TheChamberofCommerceandIndustryBuildingKingAbdulazizStreet(infrontoftheGeneralDepartmentofPolice)

Jazan Business CenterPhone:+96673175545Fax:+96673236448

Mailing Address:P.OBox201,JazanKingdomofSaudiArabia

Street Address:TheChamberofCommerceandIndustryBuildingCornicheStreetAl-ShatiDistrict



Abha Business CenterPhone:+96672271677Fax:+96672270596

Mailing Address: Street Address:TheChamberofCommerceandIndustryBuilding

Tabuk Business CenterPhone:+96644227519Fax:

Mailing Address: Street Address:TheChamberofCommerceandIndustryBuilding

Najran Business CenterPhone:+99675236085,+99675236086Fax:+99675236097

Mailing Address:P.OBox1138,Najran,KingdomofSaudiArabia

Street Address:TheChamberofCommerceandIndustryBuildingKingAbdulazizStreet

Ha’il Business CenterPhone:+99665434922Fax:+99665314922

Mailing Address:KingdomofSaudiArabia

Street Address:

Forgeneralquestionsorenquiries,ortofindaninternationalBusinessCenterrepresentativeataSaudiArabianconsulatesabroad,pleasevisitourwebsiteatwww.investinsaudi.comorcalltoll-free:+966 800 244 9990.

Here’s how to register for businessIn the following pages, you find all the detail: the starting points, the legal definitions, the do’s and don’ts, the paperwork requirements and a step-by-step guide to the registration process itself.

Her

e’s

how

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3. How?Here’showtoregisterforbusiness

Pre-registration decisions

How to start

Thisguidedescribesthestepsnecessarytolicense,registerandbeginoperationsinsideSaudiArabia.StartinganinvestmentprojectinSaudiArabiahasfivegeneralstages.Eachstageshouldbecompletedbeforethenext:

Stage PurposePre-ApplicationPreparation

OrganizebusinessplanandsupportingdocumentspriortoapplyingforanInvestmentLicense.

InvestmentLicense

DemonstratethatprojectisqualifiedforinvestmentandoperationintheKingdomofSaudiArabia.Conditionsandrequirementsdependonthedetailsoftheinvestment.

700File Obtaininvestmentidentificationnumber(calleda“700File”)fromtheMinistryofLabor.Thisallowsinvestorstoobtainresidencyandsponsorforeignemployees,subjecttolegalrequirements.



CommercialRegistration

Satisfystandardlegalrequirementsforoperatingacommercialenterprise.AllbusinessesinSaudiArabiamusthaveCommercialRegistration.

EmployerRegistration

RegisteringemployerwiththeLaborOffice,DepartmentofZakatandIncomeTax(DZIT),andGeneralOrganizationofSocialInsurance(GOSI)toobtainafilenumberandacertificateofcommencementofbusiness.

Where to go

AsthegovernmentagencyresponsiblebothforpromotingandforlicensinginvestmentswithintheKingdom,SAGIAwillbethesolecontactpointbetweeninvestorsandthegovernmentofSaudiArabia.WeareproudtoprovideallgovernmentservicesthroughourBusinessCenteroperations.TheBusinessCenteristheonlygovernmentofficeyouwillhavetovisit.

EachCenterensuresanenvironmentthatprovidesacomprehensiveandhassle-freeprocessforestablishingacompanyinSaudiArabia.Itprovidesanyoneinterestedininvestingwithallthenecessaryinformation,licensing,statistics,facilitiesandsupportservicesneededtocompletetheinvestmentstart-up.

(sidebox) Visiting Saudi Arabia

SaudiArabiaiskeentosupporteconomicdevelopmentbyprovidingmorefacilitiestobusinessmen,investorsandcorporaterepresentatives.

IfyouwouldliketovisitaSAGIABusinessCenterinSaudiArabia,youneedaCommercialVisa.ThesevisasareissuedfromSaudiArabianEmbassiesworldwide,typicallywithin24hoursofreceivingtherelevantapplicationform.Moreinformationcanbefoundathttps://visa.mofa.gov.sa/

YoumayalsocontactSAGIAtoobtainfurtherinformationaboutincentivesavailableforforeigninvestors.

(sidebox) Women investors

Inaddition,SAGIAboastsaspecificWomen’sInvestmentsServicesCenter,supportingparticipationbywomeninlarge-scaleinvestmentprojectsthroughouttheKingdom.ThisCenterworkscloselywithallfemaleinvestorsintheKingdominallBusinessCentermattersandcanassistinorganizingsymposiaandmeetingsforbusinesswomen.Forfurtherinformation,visitaBusinessCenterorcalltoll-free:+9668002449990.



(sidebox) Getting help

ForeigninvestorsmaycontactSAGIAtoobtainfurtherinformationandadvice.Someinvestorshirealocalpartnerorlawfirmtoassistinthelicensingandregistrationprocess.Thepartysubmittingandcompletingtheinvestmentlicenseprocessmustbetheactualinvestororalawfirm,consultationofficeorservicecompanywithpowerofattorney.

Pre-application preparation

ForeigninvestorsmustorganizetheirbusinessplanandsupportingdocumentsbeforebeginningtheInvestmentLicenseandCommercialRegistrationprocess.

Define your business activity

TheKingdomofSaudiArabiawelcomesandencourages��

investmentinmostbusinesssectors,freefromrestriction.Certainbusinessactivities,however,arelimitedtoSaudiandGCCcitizensbasedontheKingdom’sculturalandlegaltraditions.

AspartoftheKingdom’scommitmenttomakingits��

economyoneofthetopteneconomiesintheworldby2010,theSaudiArabiangovernmentcontinuestoincreaseitsopennesstoforeigninvestment.Assuch,the‘NegativeList’hasbeenreducedsignificantlyinrecentyears.ThelistisundercontinuousexaminationsoastoencouragetheprosperityoftheSaudiArabianeconomy.

ThemostrecentNegativeListforForeignInvestment��

canbefoundonthewebsiteoftheSupremeEconomicCouncil:http://www.sec.gov.sa/

Select your business structure legal status

ForeigninvestmentsSaudiArabiamayestablishsevendifferentlegalentities,ofwhichthefourmostcommonare:LimitedLiabilityCompanies(LLC),JointStockCompanies,GeneralPartnershipsandLimitedPartnerships.Inpractice,LLCsarethemostcommonforeignentitiesoperatinginSaudiArabia,withothertypesestablishedonlyinexceptionalcases.

Which business structure is right for you in the Kingdom?Limited Liability Company (LLC)

Joint Stock Company

Maybewhollyownedby��

foreignersMayhaveoneormore��

managers,withnorequirementforanymanagertobeaSaudinationalMaychoosethestart��

dateofthefiscalyear(butmustexpresslydoso);thedefaultcalendarisHijricalendar

Maybewhollyownedby��

foreignersSharesinJointStock��

Companiesfreelytransferable,withtheexceptionoffounders’sharesMayhavenominative��

orbearersharesandpreferredshares



Limited Liability Company

LimitedLiabilityCompaniesareeasytoestablishand��

offerprotectiontoindividualinvestorsasliabilityislimitedtoeachindividualpartner’scontributiontothecompany’ssharecapital.UndertheCompaniesLaw,partnersarejointlypersonallyliabletopayallthecompany’sdebtsifthecompany’slossesexceed75%ofitsstatedcapitalandnoresolutionofthepartnersprovidingforthecontinuationofthecompany(andpaymentofdebts)isadoptedwithinthirty(30)days.Thisresolutionshoulddetermineifthecompanycontinuesorisdissolvedafterthepartnerspayitsdebts.

Regulations Governing Limited Liability Companies (LLC)

Thecompanymusthaveatleasttwobutnomorethan50partners,whomaybenationalsorlegalresidents.Shareholders’agreementsarepermittedandenforceableonlyifthetermsareincompliancewithShari’aandCompaniesLaw.Theremustalsobeasupervisoryboardofatleastthreemembersifthecompanyhasmorethan20shareholders.SharetransfersshouldbeapprovedbySAGIAandtheMinistryofCommerce.Sharesmustbeofferedtootherpartnersbeforethirdparties,andthecompany’sSAGIAlicense,CommercialRegistrationandArticlesofAssociationmustbeamendedfollowinganysharetransfer.

Joint Stock Companies

TheadministrationofJointStockCompaniesismoredetailedthanthoseapplicabletoLimitedLiabilityCompanies.However,therequirementsarenotasstrictasthosefoundincertainCivilLawJurisdictions.ThismeansthatthecostofadministrationforaJointStockCompanyisnotsignificantlyhigherthanthoseforaLimitedLiabilityCompany.ShareholdersofJointStockCompaniesalsohavetherightofpre-emptionifithasbeenmadepartofthecompany’sArticlesofAssociationorshareholdersagreements.

Regulations governing Joint Stock Companies

TheproposedArticlesofAssociationofJointStockCompaniesshouldfollowamodelissuedbytheMinistryofCommerceandIndustry.JointStockCompaniesmustalsohaveaboardofdirectorsthatiscomposedofatleast3persons.TheboardofdirectorsmusthaveachairmanandmanagingdirectoramongstitsmembersandtheymustownnolessthanSR10,000incompanystock.Anordinaryshareholdersmeetingmustbeheldatleastonceayear,butnolaterthan6monthsaftertheendofthecompany’sfiscalyear.Extraordinaryshareholdersmeetingscanalsobeconvenedinordertoamendthecompany’sArticlesofAssociation.



Choosing a company name

Whenselectingacompanyname,investorscanchoosetheiroriginalnameorauniquecommercialname.HereissomeinformationongovernmentguidelinesfortheselectionofcompanynamesinSaudiArabia.

Companynamesmust:

Includethephraseindicatingthelegalformofthe��

institutionorcompany.

Beapprovedbyofficialauthoritiesofthecommercial��

nameofbusinessesundertakingcertainactivitieswithinthejurisdictionofsuchauthorities.

Beidenticaltothenameoftheoriginalcompanyifthe��

institutionisabranchorrepresentativeofficeofaforeigncompany,followedbythephrase“abranchofaforeigncompany/representativeoffice”.

Beuniqueanddissimilartoothercommercialnames��

alreadyregisteredattheMinistryorattheDirectorateofIndustrialProperty.

Companynamesmustnot:

BeregisteredinthenameofthirdpartiesattheMinistry��

ofCommerceandIndustry.

Implyanyviolationofpublicmorals,customs,traditions��

orreligiousbeliefs.

Denoteanyactivitycontradictingtheactivitycarriedout��

bythebusiness.

Besimilartofamous(brand)names.��

Becomposed,inwholeorinpart,ofsomeexpressions��

ornamesthathavepoliticalconnotationsorthatarerelatedtotheregimeofanycountry,suchasroyaltyortheconstitution.

Useanyofthefollowingphrases:insurance,re-insurance,��

investment,bank(andderivativesthereof)unlessthereispriorauthorizationfromtheMinistryofCommerceandIndustry(MoCI).

Usethenameofanaturalpersonwhoisnotaninvestor,��

unlessthecompany’sobjectistheuseofapatentorinventionregisteredinthenameofthatpersonorthecompanyacquiresacommercialfirmandadoptsthenameofthelatterasitsownname.



Selecting a license

Eachcompanymustchoosetheappropriatelicensefortheirbusinessactivity.Examplesareasfollows:

Service:restaurants,maintenance.��

Industrial:manufacturing.��

Trading:importsandexports.��

RealEstate:landdevelopment.��

Agriculture:farms,orchards,livestock.��

Bank accounts

Foreigninvestorsmusthaveproofofalocalbankaccountthatcontainstheminimumcapitalrequired,basedonthetypeofbusiness.

General requirements

Minimum Capital Requirements

SAGIArequiresforeigninvestorstopossessaminimumamountofcapital.TheminimumcapitalrequirementsforinvestinginSaudiArabiaareasfollows:

Type of Invest-ment

Individual Establish-ment

LLC Branch Techni-cal & Scientific Office

Service Norequire-ment

Norequire-ment

Norequire-ment

Nore-quire-ment

Indus-trial

SR1,000,000

SR1,000,000

SR1,000,000

Nore-quire-ment



Trading N/A SR20,000,000SaudiPartnerre-quired,maximumforeignownership75%

N/A Nore-quire-ment

Real Estate

MinimumprojectvalueSR30,000,000



N/A

Agricul-ture

SR25,000,000

SR25,000,000

SR25,000,000

N/A

Required conditions for all investors

Toobtainlicenseapproval,allinvestorsmustadheretotherequiredlawsandregulationsofSaudiArabia.Foreigninvestmentsareonlypermittedforthelicensedinvestmentactivity.AlllicenseapplicantsmustbeSaudi,GCCorcorporatepersonscomingtotheKingdomforthepurposeofinvestment.Itisimportantthattheproductspecifications,productmethodandmaterialsmustbeapprovedunderthelawsoftheKingdom,iftherearenosuchspecifications,thenrelianceshallbebasedonthelawsoftheEuropeanUnion,JapanortheUnitedStatesofAmerica.Aswellasbeingfinanciallycapableofinvesting,allinvestorswillhavetopayaSR2,000feefortheirlicense.

Required documents for the investment license application

Forforeigninvestors,alldocumentsmustbetranslatedintoArabicbyalicensedtranslatorlocatedintheKingdomandthedocumentsmustbecertifiedbytheSaudiConsulateintheinvestor’scountry.Iftheinvestordoesnotwanttosubmittheapplicationpersonally,thentheymustappointapowerofattorneythroughalawfirm,consultationoffice,serviceofficeoranappointedemployeefromthefirm.

Required documents for all investors

Copyofpassportforeachpartnerthatmustshowall��

pagesincludingblankones.Thepassportmustalsobevalidforatleastsix(6)monthsfromthedateofsubmission.

Four(4)personalphotographsofeachpartner.��

CopyoftheCommercialRegistrationofthefirmin��

theinvestor’scountry.Itmustalsobecertifiedbytheauthorityconcernedwithcommercialactivitiesintheinvestor’scountry.

FinancialStatementsofthefirmownedbytheinvestor,��

orinwhichheisapartner.TheFinancialStatementsmustbeforthetwo(2)yearsprecedingfilingforthelicenseapplicationandmustshowthesoundfinancialpositionofthefirm.TheFinancialStatementsmustalsobepreparedbyalicensedaccountingfirm,aswellasbeingcertifiedbytheauthorityinchargeofcommercialactivitiesandtaxes.

Iftheinvestorpreviouslyresidedorworkedinthe��

Kingdomduringthethree(3)yearsprecedingapplyingfortheInvestmentLicense,thenhemustsubmita“LetterofNoObjection”fromhisformersponsor.



Required documents for individual establishments

Investorswillalsoberequiredtosubmitacopyoftheirresumé,aswellasacopyoftheirhighesteducationcertificateandofthefirm’sclassificationcertificate.Otherdocumentsthatwillberequiredarealistofthreemajorclientsandtheircontacts,abankcertificateshowingtheminimumcapitalrequestedbySAGIAandabankstatementforthelastsixmonthsifaskedbySAGIA.

Required documents for the Limited Liability Companies

DraftArticlesofAssociationofthenewcompany.��

Ifthepartnershipiscomprisedofindividuals:acopy��

oftheinvestorsresumesandacopyoftheirhighesteducationcertificatewillberequired.

Shareholdersresolutionstatingtheirdesiretoinvestand��

allotherdetails(names,capital,percentagesetc).

BankcertificateshowingtherequestedamountbySAGIA,��

aswellasabankstatementforthelastsixmonthsifrequestedbySAGIA.

Ifthepartnershipiscomprisedofcompanies:acopyof��

theArticlesofAssociationoftheparticipatingfirmsandtheShareholders’Resolutionstatingtheirdesiretoinvestandallotherdetails(names,capital,percentagesetc).

Required documents if there is a Saudi partner

IfthereisaSaudiPartner,hewillberequiredtosubmitacopyofhisfamilycardoranofficialdocumentthatprovesheisnotagovernmentemployee.

Special licensing

Investment Licensing and Commercial Registration

SAGIABusinessCentersareproudtoprovideallgovernmentservicesrelatedtoyourinvestmentstart-up.InformationonourwebsitewillalsoshowjusthoweasyitistostartupabusinessinSaudiArabia.

Investment Licensing

OneofthefirstthingsyouwillneedwhensettingupabusinessinSaudiArabiaisaLicense.AllyouneedtodoisvisitoneofourBusinessCenters,whereaCustomerRelationshipManager(CRM)willbeassignedtoyou.Hewillbeonhandtoofferadviceandprepareyourapplication.

The Investment License application form

YoucanfindcopiesofourLicenseapplicationformatanyofourBusinessCenters,oryoucandownloaditfromourwebsite:http:/sagia.gov.sa/English/.Alldocumentsmustbecompletedinprintedform.



SAGIA approval process

OnceyourInvestmentLicenseapplicationformiscompletedwiththehelpoftheCRM,itcanthenbesubmittedforapproval.IfitisapprovedthenatemporaryInvestmentLicensewillbeissued.AlthoughatemporaryInvestmentLicensewillonlybevalidfor3months,apermanentLicensewillbeissuedoncetheinvestorhascompletedtheentireregistrationprocess.

The total processing time for a SAGIA License

SAGIAoffersanumberofapprovalpackagesthatoffervalue-addedservice;thisincludestheprocessingtimeofyourinvestmentlicense.

Packages Max Duration

Blue OneMonth

Bronze 2Weeks

Silver 1Week

Gold 3Days

Platinum 2Days

Diamond 1Day

Public-PrivatePartnership 1Hour

Special Licensing conditions and documents by business type

Investment Type

Conditions

IndividualEstablishmentLLC

Nofinaljudgmentshavebeen��

passedagainsttheinvestorduetoseriousviolationsoftheForeignInvestmentLaworforotherfinancialorcommercialviolationsintheKingdomorabroad.Theinvestorhassucheducational��

qualificationsandexperienceasmaybeappropriatefortheactivitytobelicensed,andhisprofessionshallnotbeofa‘laborer’or‘student’nature.

Foreigncompanybranch

Theinvestmentactivityshallbe��

statedonthelistofactivitiesincludedfromthemothercompany.

InvestorholdingapreviousInvestmentLicense

Theinvestorhasnooutstanding��

violationsornotesTheinvestmentprojectsbeingcarried��

outbytheindividualinvestor,orbythebusinesswhereheisapartner,shallnotbemorethanthree(3)projects.



700 File

OnceyouhavereceivedyourtemporaryInvestmentLicense,youcanopena‘700File’attheLaborOfficeintheBusinessCenter.ThisdocumentwillallowvisitinginvestorswithaVisitVisatoupgradetoaresidencycardcalledanIqama.IfanyoftheinvestorsarenotintheKingdom,thena700FilewillenabletheinvestortoreceiveanInvestorVisasotheycanvisittheKingdomtoacquiretheirIqama.

Investor Visa eligibility

Type of Business Eligibility

LLC Threeinvestors(25%Owner’sEquityORcapitalnotlessthanSR1,000,000)

BranchofaForeignCompany

OnlyappointedGMisentitledtoaVisa

Commercial registration

TheMinistryofCommerceandIndustryalsomaintainstheCommercialRegister,whichistheofficialrecordofthenamesofallmerchantsandcompaniesoperatingintheKingdomofSaudiArabia.ExtractsofrecordsintheCommercialRegisterareaccessibletothegeneralpublic.

ApplicationstotheCommercialRegistrywillneedtobesubmittedthroughtheSAGIABusinessCentersunderthefollowingconditions.



Type of Business Condition for Commercial Registration

Individualmerchants

Within30daysofopeningthe��

businessWithin30daysofthemerchant’s��

capitalreachingSR100,000

ManagersofcompaniesformedintheKingdom

Within30daysofthecompany’s��

ArticlesofAssociationbeingrecordedbythenotarypublic

ForeigncompanieslicensedtoopenabranchorofficeintheKingdom

Within30daysofthebranchor��

officeopening

AllregistrantsoftheCommercialRegistrymustindicateinallofficialcorrespondenceandprintedmaterialshisCommercialRegistrationnumber,nameandlocationofregistration.

Commercial Registration Process Overview

Order Procedure Time to Complete

Fees

1 RentanOfficeSpace Nocharge

2 SubmittheArticlesofAssociationtotheMinistryofCommerce&Industryforapprovalandobtainapprovalofthecompanyname

2days Nocharge

3 FounderssigntheArticlesofAssociationbeforeanotarypublic

2days Nocharge

4 Publishcompanynameandsummaryofthearticlesofassociationforpublicationinthelocal

newspaper

2days SR7,000-10,000(dependingonlength)

5 Deposittheinitialcapitalintoabankaccountandobtainrequiredcertificate

3days Nocharge

6 RegisterwiththeMinistryofCommerce

2days SR6,000registrationfeefor1year



Returning to the Commercial Registry

IfthebusinessneedstomakeamendmentstoexistinginformationintheCommercialRegister,itmustbemadewithinthirty(30)daysofthedateoftheamendment.Itisalsoimportanttonotethatheirsorliquidatorsofabusinesscanceltheregistrationofabusinesswithinninety(90)daysofliquidationorsuspensionofcommercialactivity.

From Commercial Registration to starting a business

OnceacompanyhasreceiveditsCommercialRegistration,thereareajustafewsimplestepsleftbeforeacompanycanlegallyoperate.ThesecaneasilybecompletedatSAGIA’sBusinessCenters.

Registering with the Chamber of Commerce

AllregistrantswillneedtodepositaCertificateofMembershipattheChamberofCommerceandIndustrywithinthirty(30)daysofhavingregisteredintheCommercialRegistry.Therewillalsobeaone-yearregistrationfeeofSR2,000.

Registering with the Department of Zakat and Income Tax (DZIT)

BusinesseswillalsoneedtoregisterwithDZITinordertoobtainafilenumberandreceivetheirCertificateofCommencementofBusiness.

Registering with the General Organisation of Social Insurance (GOSI)

AllemployersandemployeeswillhavetoregisterforcontributionstoGOSI.

Registering with the Municipality

ItisalsoimportantthatallCompaniesobtainaMunicipalLicensebeforetheycanregisterwiththeLaboroffice.

Registering with the Labor Office

OnceacompanyhasreceiveditsMunicipalLicense,theywillthenberequiredtoregisterwiththeLaborOfficefortherecruitmentofmanpower.



Investment flowchartsOverview Step 1 - Preparation

1. Preparation

2. Investment Licensing

4. Commercial Registration

3. Residency

StartanInvestmentinSaudiArabia

InvestmentLicenseApplicationForm

InvestmentLicense

ApplywithSAGIA

Open“700file”atLaborOffice

700file

ResidencyCard(“Iqama”)forInvestor

ApplywithMoCI

CommercialRegistarion

RegisterwithLabourOffice

RegisterwithGOSI

CommenceBusinessinSaudiArabia

RegisterwithDZIT

StartanInvestmentinSaudiArabia

WhatBusinessStructurewillyou

use?

BusinessStructure

Isyouractivityonthe

NegativeList?

LegalActivity

Areyouusinga

commercialname?

Companyname?

InvestmentLicenseApplicationForm

ApplywithSagia

BankAccount

MinimumCapital

CopyofPassport

PersonalPhotos

ForeignAoA

PoA

LetterofNoObjection

ForeignCR

BalanceSheet

RegisterNamewith

MoCIyes

nono

Decisions DecisionsProcess ProcessInput/Output Input/Output



Step 2 - Investment Licensing Step 3 - Obtaining Residency

Decisions DecisionsProcess ProcessInput/Output Input/Output

InvestmentLicenseApplicationForm TemporayInvestmentLicense

SubmitapplicationtoCustomerRelationshipManager(CRM)atOSS

Open“700file”atLaborOffice

Isapplicationcomplete?

700file

Isapplicationapproved?

Istheinvestorinthe

KingdomonaVisitVisa

ApplyforInvestor

Visa

SubmitapplicationtoLicenseEvaluator

SagiaissuesLetterofRejection

Sagiaarchivesoriginalapplication

Sagiareturnscopiesofdocuments

TemporaryInvestmentLicense

TransferVisatoIqama

InvestorVisa

ResidencyCard(“Iqama”) forInvestor

MakeCorrections

yes

yes

no

no


Step 4 - Commercial Registration

Decisions Process Input/Output

CompanyName

ArticlesofAssociation

ResidenceCard

BankAccount

SubmittoMoCIforappoval

PublishinLocalNewspaper

RegisterwithMoCI

CommercialRegistration

SubmitapplicationtoLicenseEvaluator

RegisterwithMunicipalOffice

RegisterwithLaborOffice

RegisterwithGOSI

FileNumber

RegisterwithDZIT

FileNumber

CertificateofCommencementofBusiness

RecruitManpowerCommencebusinessin

SaudiArabia

Some things you need to knowWhen you’re ready to invest in Saudi Arabia, SAGIA is the government’s investor-friendly face. As well as a progressive regulatory environment, generous financial incentives and one of the world’s most stable currencies, the Kingdom offers an excellent standard of living – thanks to our huge experience in hosting expatriate workers and professionals from around the world.

Som

e th

ings

you

ne

ed t

o kn

ow

4. What?Somethingsyouneedtoknow

Investment incentives

Investment climate in Saudi Arabia

SaudiArabia’s27millionincreasinglyprosperous��

consumersareattheheartoftheMiddleEast/NorthAfrica(MENA)region’s400million-strongpopulation.Oneoftheworld’s25largesteconomies(24th),andNo.1intheMENAregion,SaudiArabiaranks16thoutof181countriesfortheoverall‘EaseofDoingBusiness’,accordingtotheInternationalFinanceCorporation/WorldBank’s‘DoingBusiness’reportin2009.TheKingdomisoneofthefastest-growingcountriesworldwide,withpercapitaincomeforecasttorisefrom$20,700in2007to$33,500by2020.Inaddition,SaudiArabiaisalsothetopforeigninvestmentdestinationintheArabworldandamongthetop20globally.Asyoucansee,SaudiArabiaisanexcitingandrewardingplacetoinvestanddobusiness.



Youcanrestassurethatyouwillfindnobetterpartner��

thantheSaudiArabiangovernmentinsupportingyourinvestmentintheKingdom.Withaccountsurplusesconsistentlyinexcessof25%ofgrossdomesticproduct,SaudiArabiahasamplecapitaltomovetheKingdomforwardbymakinglargeinvestmentsintargetedareasofgrowth.TheSaudieconomyissupportedbyoneoftheworld’smoststablecurrencies(theSaudiRiyal)andbylowinflation.ThegovernmentofSaudiArabiaalsooffersthe7thmostrewardingtaxsystemintheworldandisalsothe7th‘freestlabormarket’accordingtotheWorldEconomicForum.Youwillfindthat,atalllevels,theSaudigovernmentisdedicatedtosupportingthegrowthofyourbusinessintheKingdom.

SaudiArabiaismorethanreadytomeetyourinvestment��

needsthroughitsprogressiveregulatoryandgenerousfinancialincentives.

Regulatory incentives

Thegovernmentisalsocommittedtoreducingbureaucracyatalllevelsandtransforminggovernmentdepartmentsinanefforttosupportforeigninvestment.H.M.KingAbdullahchairstheSaudiSupremeEconomicCouncil,whichisinchargeofoverseeingprivatizationandencouragingforeigninvestment.In2000,theSaudigovernmentannouncedanewForeignInvestmentLaw,introducingmajorregulatoryincentivesincluding(butnotlimitedto):

TheestablishmentoftheSaudiArabianGeneral��

InvestmentAuthority(SAGIA),toassistforeigninvestorsintheapplicationandapprovalprocessforoperatingintheKingdom.

Acceleratedinvestmentapplication,businessregistration��

andset-upprocess,withaguaranteeddecisionforforeigninvestmentapplicationswithinthirty(30)daysofsubmissiontoSAGIA.

Equalbenefits,incentivesandguaranteesforforeign��

investorsanddomesticcompanies.

100%foreignownershipofcompaniesandproperty.��

100%propertyownershipforforeigninvestors.��

Nominimumcapitalrequirement.(Query:Butthere��

isatableofminimumcapitalrequirementsinthisdocument??)

Norestrictionsonrepatriationofcapital.��

Theabilityforforeigninvestorstosponsorforeign��

employees.

Financial incentives

Nopersonalincometaxesandonlya20%corporatetax.��

Abilitytocarryforwardlossesonbalancesheets��

indefinitely.

Foreigninvestorshaveaccesstogenerousregionaland��

internationalfinancialprograms,including:

Arab Fund for Economic and Social Development�� (AFESD):ParticipatesinfinancingeconomicandsocialdevelopmentprojectsinArabcountries.

Arab Monetary Fund:�� PromotesthedevelopmentofArabfinancialmarketsandtradeamongmemberstates;advisesmemberstatesoninvestmentofresources.



Arab Trade Financing Program:�� Providesmediumandlong-termloanstoindividualsandorganizationsforprivateandcommercialtrade.

Inter-Arab Investment Guarantee Corporation:�� Providesinsurancecoverageforinter-Arabinvestmentsandexportcreditsagainstcommercialandnon-commercialrisks.

Islamic Development Bank:�� Participatesinequitycapitalandgrantsloansforproductiveprojectsandenterprises.ItacceptsdepositstomobilizefinancialresourcesthroughShari’acompatibleavenues.

Otherfinancialincentivestorealizethefullpotentialof��

yourinvestmentsintheKingdominclude(butarenotlimitedto):

The Human Resources Development Fund�� tosupportactivitiesrelatedtoqualifying,trainingandrecruitmentofSaudilabor.

Preferentialallocationsofnaturalgas.��

Competitiveindustrialutilityratesforwater,power��

andland.

Largeresearchanddevelopmentendowmentsat��

KingAbdullahUniversityforScienceandTechnology(KAUST)andKingAbdulAzizCityofScienceandTechnology(KACST).

Tax incentives for six regions in the Kingdom

ThegovernmentofSaudiArabiahasgrantedtaxconcessionstosixless-developedregionsintheKingdom,withtheintentionofattractingmoreinvestment.Thesetaxprivilegesaregrantedforaperiodoftenyearsfromthestartofanyproject.Thetaxcutswillbeofferedinthefollowingregions:

Ha’il1.Jazan2.Najran3.Al-Baha4.Al-Jouf5.NorthernTerritory6.

Thebenefitsareasfollows:

50%deductionfromtheexpensesofannualtrainingfor��

Saudis

50%deductionfromtheannualsalariespaidtoSaudis��

MoredeductionsaregrantedifinvestmentcapitalforanyprojectexceedsSR1,000,000andifmorethanfiveemployeesofSaudinationalityhavejobsofatechnicaloradministrativenaturewithcontractsofatleastoneyear.



Economic Cities

Atacostofmorethan$60billion,theKingdomhasplannedandbegunconstructingfourmetropolitan‘marvels’–apublic-privateprojectthatpromisestosignificantlydiversifytheeconomiclandscapeofSaudiArabiawhileprovidingawealthofopportunitiesforinvestors.AspartofSaudiArabia’sdriveforglobalcompetitiveness,theeconomiccitiesaimtobemorethanfreezonesorbusinessparks,theywillbealsoidealplacestoliveandwork.

King Abdullah Economic City�� (KAEC):DevelopedbyEmaar,KAECisthesinglelargestprivate-sectorprojectintheregion.ItisexpectedtousherinaneweraofeconomicprosperityforSaudiArabiaandhasthepotentialtocreateonemillionjobsandbehometoatleasttwomillionresidents.

Jazan Economic City�� (JEC):Located725kmsouthofJeddah,JECincludesaseaport,anindustrialzone,acommercialbusinessdistrict,residentialareas,publicamenitiessuchashospitalsandschools,aswellasotheracademicandvocationaltraininginstitutions.

Prince AbdulAziz bin Mousaed Economic City (PABMEC):LocatednearHail,thiscityissettobecomethelargesttransportationandlogisticshubintheMiddleEastbyincorporatingacluster-baseddevelopment,whichwillencompasstransportation,logisticsandsupplychaincenters.Thecitywillbedevelopedbytheprivatesector,headedbyRakisaHoldingCompany.

TheEconomicCitieswillinclude‘SmartServiceCenters’(SSC),whichwillcentralizeandsimplifygovernmentproceduresbyofferingresponsiveandcomprehensivecustomersupport.TheSSCiscommittedtoprovidingcustomerserviceinlessthan60minutesatalltimes.

Relevant government bodies

Supreme Economic Council��

Thiswasformedin1999undertheleadershipofH.M.–KingAbdullah.TheSupremeEconomicCouncilisthecoordinatorbetweentheKingdom’smanyeconomicagencies,integratingtheiractivities,andfacilitatingeffectivedecision-makingoneconomicissues.

Saudi Arabian Monetary Agency (SAMA)��

SAMAisthecentralbankoftheKingdomofSaudi–Arabia,whichisresponsibleforthefollowing:

Issuesthenationalcurrency,theSaudiRiyal.��

Actsasabankertothegovernment.��

Supervisescommercialbanks.��

ManagestheKingdom’sforeignexchangereserves.��

Conductsmonetarypolicyforpromotingpriceand��

exchange-ratestability.

Promotesthegrowthandensuresthesoundness��

ofthefinancialsystem.

Leadership:H.E.HamadAl-Sayari,GovernorofSAMA.–

Contactinformation–

Web:http://www.sama.gov.sa��

Telephone:+966-1-463-3000��

Fax:+966-1-466-2936/466-296��

Ministry of Economy and Planning��



TheMinistryofEconomyandPlanningworksto–ensurethatallgovernmentagenciesworkinawell-coordinatedandwell-informedmannertoachievetheKingdom’seconomicpriorities.

TheMinistryofEconomyandPlanningisresponsible–forthefollowingfunctions:

Preparesaperiodiceconomicreportonthe��

Kingdom,featuringanalysisoftheeconomy,progressmadeandlikelydevelopments.

Preparesthefive-yeardevelopmentplan.��

Estimatesthemagnitudeoffinancialresources��

requiredfortheimplementationofthedevelopmentplansapprovedbytheCouncilofMinisters.

Conductseconomicstudiesasrequired,��

submitsthefindings,andcollects,analyzesandpublishesstatisticaldataineconomic,socialanddemographicfields.

Leadership:H.E.KhalidMohamedAlGosaibi,Minister–ofEconomyandPlanning.


Web:http://www.mep.gov.sa��

Telephone:+966-1-4049212��

Fax:+966-1-4052051��

Saudi Industrial Development Fund��

TheSaudiIndustrialDevelopmentFundparticipatesin–thefinancingofdevelopmentprojectsindevelopingcountries.SIDFmakesitscontributionsthroughdirectsoftloanstothegovernmentsofthesedevelopingcountries,withnogeographicalexclusionorpre-conditions.SIDFassignsprioritiestotheleast

developed,lowest-incomecountries.

Leadership:H.E.Engr.YousifBinIbrahimAl-Bassam,–ChairmanoftheBoardofDirectorsofSIDF.


Web:http://www.sidf.gov.sa��

Phoneno.+966-1-2794444��

Faxno.+966-1-4640246��

Saudi Industrial Property Authority (Modon)��

Establishedbylegislationin2001,Modonis–responsiblefordevelopingandsupervisingindustriallandintheKingdom.Modon’smissionistoundertake,asanindependentpublicagency,theregulationandpromotionofIndustrialEstatesandTechnologyZonesintheKingdomofSaudiArabiaonbothpublicandprivateindustriallandsandtoencouragetheprivatesectortobecomeinvolvedinthedevelopment,operationandmaintenanceofIndustrialEstatesandTechnologyZones.

Leadership:Dr.TawfigFawzanAl-Rabiah,Director–General.

Contactinformation:–

Web:http://www.modon.gov.sa��

Address:ModonHeadOffice,P.O.Box84214,��

Riyadh11671

Telephone:+966012831331��

Fax:+966014775235��

Ministry of Commerce and Industry ��

Establishedin2003,theMinistryofCommerceand–



IndustryisresponsibleforallaspectsofcommercialandindustrialactivityintheKingdom.

Leadership:Dr.HashimbinAbdullahbinHashimAl-–Yamani,MinisterofCommerceandIndustry.


Web:http://www.commerce.gov.sa��

Address:MinistryofCommerceandIndustry,PO��

Box1774,AirportRoad,Riyadh11162

Telephone:+966-1-4012220/4014708��

Fax:+966-1-4038421��

Chambers of Commerce��

WiththeexpansionoftheKingdom’seconomyand–theneedtoconsolidatethecommercialbase,thenetworkofChambersofCommercehasplayedanincreasinglyactiveroleinthedevelopmentoftheKingdom’scommercialactivity.TheCouncilofSaudiChambersisbasedinRiyadh.

Leadership:Mr.SalehA.Al-Turki,Chairmanofthe–BoardandPresidentoftheChamberofJeddah.


Web:http://www.saudichambers.org.sa��

Address:CouncilofSaudiChambers,P.O.Box��

16683,Riyadh11474

Telephone:(966)1-4053200/4057502��

Fax:(966)1-4024747��

Ministry of Labor and Social Affairs��

TheMinistryofLaborandSocialAffairsisresponsible–

forthedevelopmentanduseoftheKingdom’shumanresources,includingmanpowerplanning,laborrelationsandthegeneralmonitoringofallmattersrelatingtoemployment,suchaslaborvisas.

Leadership:DrGhazibinAbdulrahmanAlGosaibi,–MinisterofLabor.


Web:http://www.mol.gov.sa��

Address:OmarbinAl-KhatabStreet,Riyadh11157��

Telephone:4771480/4787166��

Fax:4777336��

General Directorate of Passports��

TheGeneralDirectorateofPassportshasresponsibility–forimplementingandmonitoringpoliciesandprogramsrelatedtoresidencyandhumantrafficwithinSaudiArabia,suchas:

The�� Iqama(ResidencePermit)SystemorganizingexpatriatearrivalsintheKingdomandrelatedvisa,registrationandrenewalissues.

Monitoringandregulationofarrivalsand��

departuresofindividualsintoandoutoftheKingdom.

Theregulationandmonitoringofcompaniesand��

establishmentsthatemploynon-Saudisandaliens.

Leadership:Mr.HashimMa’tooq,DeputyMinisterof–InteriorofPassportsandCivilAffairs.


Web:http://www.gdp.gov.sa��



Address:AlffersdqStreet,Riyadh11184��

Telephone:+966-1-4771100��

Fax:+966-1-4778835��

Department of Zakat and Income Tax (DZIT)��

AspartoftheMinistryofFinanceandNational–Economy,theDepartmentofZakatandIncomehasresponsibilityfortaxpolicyandtaxcollectionintheKingdom.

Leadership:Mr.SaadHamdanAl-Hamdan,Acting–DirectorGeneral.


Web:http://www.dzit.gov.sa��

Address:DepartmentofZakatandIncomeTax,��

Riyadh11187

Telephone:+966-1-4010182/4041537��

Fax:+966-1-4041495��

General Organization of Social Insurance (GOSI)��

TheGeneralOrganizationforSocialInsurance–(GOSI)administerstheKingdom’snationalinsuranceprogrambypayingallowancesandothercompensationstoindividualsandfamiliesintheKingdom.

Leadership:H.E.SulimanSaadAl-Humaid,Governor.–


Web:http://www.gosi.gov.sa��

Address:GeneralOrganizationofSocialInsurance,��

P.O.Box878,Riyadh,11421

Telephone:+966-1-4777735��

Fax:+966-1-477-9958��

Ministry of Municipalities and Rural Affairs ��

Establishedin1975,theMinistryforMunicipaland–RuralAffairsisresponsiblefortheadministrationofmunicipalitiesthroughouttheKingdom.Itsprimaryfunctionsincludetownandcityplanning,aswellasthedevelopmentandmaintenanceofthebasicinfrastructure.

Leadership:H.E.Dr.MuhammadIbrahimAl-Jarallah,–Minister.


Web:��

Address:MinistryofMunicipalitiesandRural��

Affairs,Riyadh11136

Telephone:+966-1-441-5434/456-9999��

Fax:+966-1-442-1901/456-3196��

Monetary policy

SaudiArabia’smonetarypolicyismanagedbythe��

SaudiArabianMonetaryAuthority(SAMA)andis



basedonitsfixedexchange-ratepolicy.

TheSaudiRiyalispeggedtotheUSDollar,basedon��

thepatternofSaudiArabia’sexternalreceiptsandpayments,whicharepredominantlyinUSDollars.

TheoperationaltargetofSAMAistomanagesystem��

liquiditythroughtherepurchasewindow.TheintermediatetargetofSAMAisthestabilityoftheRiyalagainsttheDollarastheanchorandinterventioncurrency.

Trade and f inanceForeign Trade

Saudi Arabian Import / Export Regulations

Custom Duties

Mostbasicconsumerproductsareduty-free,e.g.sugar,��

rice,tea,unroastedcoffee,cardamom,barley,corn,livestockandmeat(freshorfrozen).

Customsdutiesof20%areimposedonsomeimported��

commoditiesfortheprotectionofinfantindustrieswithintheKingdom.

Importdutyonotheritemsis12%�� ad valoremonthecost,insuranceandfreight(CIF)value.

Alimitednumberofitemsaresubjecttocustomsduties��

calculatedonthebasisofmetricweightorcapacityratherthanad valorem;theratesfortheseitemsarefairlylow.

SpecialconcessionsaregrantedtomembersoftheArab��

LeaguewhoaresignatoriestotheAgreementtoFacilitateTradeandExchangeandtoOrganizeTransitbetweenthe



ArabLeagueStates.

ImportsfromArabstateswithwhichSaudiArabiahas��

establishedbilateraltradeagreementsareentitledtofurtherreductionsofduty.

Products Covered by Custom Duties of 20%

Product Category

Products

Food Chewinggum��

Chocolates��

Confectionerywithoutcocoa��

Fruitpastesandcreams��

HalawTeheniah��

Icecreamwithoutcocoa��

Macaroniandspaghetti��

Sugarproducts��

Sweetswithnutsandsimilarfillings��

Toffees��

Industrialgoods

Aluminumbarrelsandcans��

Bottlesandflasks��

Electricalheaters��

Fileswithmetalfittings��

Foamboards/sheetsoradhesive/foam��

tapesFoamsheets,foilsandtapesmadeof��

unhardenedrubberFramesforfurnitureandelectrical��

wiringconduitsMetalshelves��

Officemetalcupboards��

Oxygen��

Resinandplasticbags/casesandcones��

Signboardsandwoodenproductsfor��

animalhusbandryandagriculturalpurposesTahina��

Tincans,barrelsandcontainers��

Tanks��

Woodenbarrels,boxesandcages��

Clothingandtextiles

Mashalihandibie(cloaksand��

overcoats)madeofwoolorsofthairRoughwooltextiles��

Woodenshoes,wigleather,corkorrope��

soles

Religiousitems

Prayerbeads��

Woodenprayerbeads��



Householdgoods

Iron/steelwoolfibersandproductsfor��

cleaninghouseholdsPaperboxes��

Papertissuesandtablecovers��

Plasticcrockery��

Plasticandaluminumbottles,crown��

caps,tablecovers,ashtraysandhouseholdappliancesToiletpaper��

Tooth-picksandcoathangers��

Wood,straw,plasticandmetal��

furniture,andcushionsWoodenframesforphotosandmirrors��

Commercial Documents

Thefollowingdocumentsarerequiredforallcommercial��

shipmentstotheKingdomofSaudiArabiaandwillneedtobepresentedtotheSaudiArabianconsulateintheorderbelow.Additionaldocumentsmayberequireddependingonthetypeofgoodsbeingshipped,oncertainrequestsfromtheSaudiimporterorintheletterofcredit(L/C),oraccordingtoacontract.Eachdocumentshouldbepreparedin(atleast)anoriginalandonecopy.Alldocuments(originalorcopies)shouldalsobearthehandwrittensignatureofthepersonissuingthedocument.Facsimilesignatureswillnotbeaccepted.

Theexporterisresponsibleforauthenticatingthe��

certificateoforigin,thecommercialinvoiceandanyspecialdocuments.Thedocumentsmustbecertifiedinthefollowingorder:

NotarizedbyaNotaryPublicandcertifiedbya1.ChamberofCommerceintheexportingcountry.

CertifiedbytheSaudiArabianBusinessCouncilinthe2.exportingcountry.

LegalizedbytheSaudiEmbassyoranySaudi3.Consulateintheexportingcountry.

Inaddition,twocopiesoftheExportInformationSheet��

(EIS)willhavetobefilledoutandsignedbyanofficialoftheexporting/shippingcompany.Itshouldthenbesubmittedwiththeotherrequiredshippingdocuments.

Formoreinformationregardingeachdocument,��

includingspecificinformationtobeincluded,pleasecontacttheMinistryofCommerceandIndustry

Commercial Invoice

Theinvoiceshouldcontainthenamesandaddressesof��

theconsignorandtheconsignee,andmustaccuratelydescribeinfulldetailthegoodsandcomponentsbeingtransported(includingthesix-digitHarmonizedSystemnumber),trademarks,nameofthevessel(orairline)andtheotherkeydetailsofthetransportationofthesaidgoods.



Certificate of Origin

Thecertificateoforiginmustbeissuedbythe��

manufacturer(ortheexportingfirm)andmustincludethenameofthevessel(airline)andthedateofsailing,name(s),nationality(ies),andfullstreetaddress(es)ofthemanufacturer(s)ofallitemstobeshippedtoSaudiArabia.Furthermore,theoriginofeachitemorcomponentmustbespecified.Ifthemerchandiseisnotsolelyandexclusivelyaproductoftheexportingcountry,anotarized‘AppendedDeclaration’mustbeattachedtotheCertificateofOrigin.

Insurance Certificate (if applicable)

Thiscertificate(issuedbyaninsurancecompanyinat��

leastoneoriginal)mustcontaintheactualamountofinsurance,descriptionandvalueofinsuredgoods,nameofvessel,portofloadingandSaudiportofdischarge,andnameandaddressofthebeneficiary.Inaddition,the‘AppendedDeclarationtoInsurancePolicy’(availablefromSaudiConsulates)shouldstatethattheinsurancecompanyhasadulyqualifiedandappointedagentorrepresentativeintheKingdomofSaudiArabia,givinghisnameandfulladdress.IftheshipmentisinsuredbyaninsurancecompanyinSaudiArabia,theexporter,ontheirletterhead,muststatethenameandaddressofthatcompany.

Bill of Lading / Airway Bill

Onenon-negotiablecopyofthebillofladingistobe��

presentedtoaSaudiArabianConsulate.TheBillofLadingshouldagreewiththecommercialinvoiceandshowthedescriptionandvalueofthegoodsonboard,alongwithallinformationregardingtheimporter,shippingcompanyandmethodoftransport.

Steamship / Airline Company Certificate

Thiscertificate(whichisanAppendedDeclarationto��

theBillofLadingorAirwayBill)shouldbeissuedbythesteamship(orairline)company,notarized,andcontainthekeyinformationaboutthevessel(orplane)usedinimport.

Further,thesteamship(airline)companycertificate��

shouldalsodeclarethatthevessel(plane)shallnotanchororcallonanyports(airports)otherthanthosementionedinit,andthatallinformationprovidedinthecertificateistrueandcorrect.

Special Documents and Regulations

DependingonthenatureoftheexportedgoodstoSaudi��

Arabia,oraccordingtoarequestfromtheSaudiimporter,certaindocumentsmayalsoberequiredinadditiontothegeneraldocumentslistedabove.Specialcertificatesordocumentsneedtobeauthenticatedaccordingtothesameprocedurefortheauthenticationofgeneralshippingdocuments.



What special documents will I need to provide for my shipment into Saudi Arabia?

Nature of Shipment

Important to Know Documents Required

FoodProducts Requirementsfor��

labelingfoodandfoodproductssoldintheKingdomofSaudiArabiaaredeterminedbytheSaudiArabianStandardsOrganization(SASO).Exportersof��

theseproductsshouldcomplywith,amongotherSASOrules,MandatoryStandardsSSA1/1984whetherforsampledemonstrationorforcommercialshipments.

Food��

ManufacturerIngredientsCertificateConsumer��

ProtectionCertificatePriceList��

Meats Certificateof��

HalalMeatOfficialHealth��

Certificate

SeedsandGrains

Certificateof��

InspectionPhytosanitary��

CertificateSeedAnalysis��

CertificateCertificateof��

Weight

AnimalFodderAdditive

Certificateof��

FreeSaleProduct��

RegistrationCertificateCertificateof��

AnalysisProductSafety��

DataSheet

Livestock Certificateof��

WeightHealth��

CertificatePedigree��

CertificateProduction��

recordsDeclarationof��

InspectionandAcceptance



Pets Onlyguard,��

hunting,andguidedogsareallowedintoSaudiArabia.

Health��

CertificateAnimal��

VaccinationCertificate

Horses OnlySaudisare��

allowedtoimporthorsesintotheKingdom.Theimporter��

shouldsubmitanapplicationtothePresidentoftheSaudiEquestrianClubindicatingthenumberofhorses,exportingcountry,andcustomscenterattheportofentrytotheKingdom.Theapplication��

shouldbeaccompaniedbythespecialdocuments.

Certificateof��

OriginHealth��

Certificate

VegetablesandFruits

Thiscertificate��

mustcertifythattheexportsarefreefrompests,insects,andotheragriculturaldiseases,andthattheyhavenotbeenexposedtoionizingradiation(butcanbetreatedwithaluminumphosphate).

Vegetableand��

FruitHealthCertificate

ElectricalAppliances,EquipmentandAccessories

SASO��

CertificateofConformity



MotorVehicles Atleastthree��

monthsbeforedispatchingthefirstshipmentofanytypeofmotorvehiclesinanyyear,themanufacturermustsendtoSASOaMotorVehiclesConformityCertificateinEnglishorArabicforitsapproval.Individuals��

mustobtainthiscertificatefromthemanufacturerpriortotheshipmentofanycarfortheirpersonaluseintheKingdom.

MotorVehicles��

ConformityCertificate

MedicinesandPharmaceuticals

Nomedicineor��

pharmaceuticalproductsareadmittedintotheKingdomunlessapriorregistrationismadewiththeMinistryofHealth.Thecertificateof��

localauthenticitymustcertifythatthemedicinesareactuallyusedbythepublicintheExportingCountryunderthesametradenameandformulaandmustincludethenameofeachproduct,theformula,andthedateandnumberofthepermittomanufacturethemifoneisrequired.

Certificateof��

FreeSaleCertificate��

oflocalauthenticityfromExportingCountry



Commercial Legal Documents

Legaldocumentsinclude:��

PowerofAttorney.�–

AgencyAgreements.�–

SoleDistributorship.�–

TradeMarksRegistration.�–

CertificatesofFreeSale.�–

BidorTenderDocuments.�–

RegistrationofPartnerships,Corporations,orJoint�–

Ventures.

Allcompanies’documentsmustbelegalizedasfollows:��

NotarizedbyaNotaryPublic.�–

CertifiedbytheCountyClerkoftherespectivecounty�–

wheretheNotaryPubliciscommissioned.

CertifiedunderthesealoftheOfficeoftheSecretary�–

ofthestatewherethedocumentsoriginated.

AuthenticatedbytheExportingcountryDepartment�–

ofState,AuthenticationDivision(51823rdStreet,N.W.,StateAnnex1,Washington,D.C.20520;Phone:(202)647-5002or1-800-688-9889,option(6).

LegalizedbyaSaudiConsulate.�–

Saudi Arabia Import Standards

InNovember1995,theSaudiMinistryofCommerce��

implementedtheInternationalConformityCertificationProgram(ICCP),incoordinationwiththeSaudiArabianStandardsOrganization(SASO).SASOreliesprimarilyoninternationalstandardswhenissuingSaudispecifications,andSASOspecificationconformityisappliedtoallproducts,bothlocallyproducedandimported,toprovidethenecessaryconsumerprotection.AlloftheapprovedSASOprocedures,includingtheICCPprogram,workwithintheguidelinesoftheInternationalStandardsOrganization.

TheSASOICCPrequiresaCertificateofConformityfor��

everyshipmentofSASO-regulatedproductsdestinedfortheKingdom.BeforeaCertificateofConformitycanbeissued,eachshipmentmustbeaccompaniedbyevidenceofconformitytoSASOrequirements.ShipmentsarrivingwithoutaCertificateofConformitywillberejectedattheSaudiportofentry.SASOhasappointedCountryOfficesinlocationsthroughouttheworldthatperformconformityverificationoneachshipmentpriortoitsleavingtheportofexport.Inaddition,SASOhasauthorizedRegionalLicensingCenterstoadministertheregistrationprocess,carryoutverificationofconformity,andissueSASOTypeApprovalLicenses.Insomecases,randomsamplingoftheproductsandtestingwillalsoberequiredbytheSASOCountryOffice.



TheproceduresforobtainingaCertificateofConformity��

areasfollows:

Theexporterwillneedtosubmitawrittenrequestto�–

theappropriateSASOCountryOfficeforinspectionandtestingoftheproductsrequiringaCertificateofConformity,togetherwithfulldetailsoftheconsignment.

TheCountryOfficecompletesthenecessarysteps�–

appropriatetotheproductinordertomeetSASOrequirements.Thesestepswilldependuponexistingproductcertificationsandwhethertheproductiscoveredbyavalidregistration.Iftheproductsareregistered,theCountryOfficewillsetupaninspectionplanwhichmayormaynotrequireproductstobesampledfortesting.

Iftheproductsarenotregistered,theywillbe�–

sampledandtestedaccordingtoSASOrequirements.Assumingthetestingand/orinspectionproducessatisfactorycomplianceresults,aCertificateofConformityisissued.TheCertificateofConformityshouldaccompanytheshippingdocuments.

IftheproductsdonotmeettheSASOrequirements,�–

theexporterwillbegivenacompleteexplanationofthedeficiency.Ifacceptablecorrectiveactionisnottaken,noCertificateofConformitywillbeissuedandtheMinistryofCommerce,SASOrepresentatives,andtheimporterwillbeadvisedaccordingly.

WhentheshipmentarrivesattheSaudiArabian�–

portofentry,theMinistryofCommerceandSASOtechnicalstaffwillrequesttheaccompanyingCertificateofConformity.EachCertificateofConformitywillbecheckedforauthenticityandmatchingdetails.Aftersatisfactorychecks,SASOwillissuealetterofrelease.

Domestic export incentives

SaudiArabiahasenteredseveralcommercialagreements��

forremovingorreducingbarrierstoexports,includingtheunifiedGCCeconomicagreement.SaudiArabiaalsomaintainsbilateraltradeagreementswiththefollowingArabcountries:

HashemiteKingdomofJordan�–

RepublicofTunisia�–

KingdomofMorocco�–

RepublicofLebanon�–

RepublicofSyria�–

RepublicofYemen�–

People’sDemocraticRepublicofAlgeria�–

ArabRepublicofEgypt�–



TheSaudiArabiangovernmenthasalsoparticipated��

inregionalandinternationalprogramstofinanceandinsureexports,notablyinthelong-termtradefinanceprogramsoftheIslamicDevelopmentBank,theprogramoftheArabsystemforinsuranceofexports,licensedbytheArabInvestmentsGuaranteeCorporationandtheportfoliooftheIslamicBanksrunbytheIslamicDevelopmentBank.Inaddition,itprovidesthefollowingincentives:

Reducingportfeesby50percentonallexportsofthe�–

nationalindustries.

Exemptingexportedgoodsfromstoragefeesforten�–

daysaftertheyenterthecustomsarea.

AllowingSaudiArabianAirlinestoofferfavorable�–

pricesfortransportingagriculturalandindustrialproducts.

Foreign transfer regulations

Therearenorestrictionsonconvertingortransferring��

fundsassociatedwithaninvestment(includingremittancesofinvestmentcapital,earnings,loanrepaymentsandleasepayments)intoafreelyusablecurrencyandatalegalmarketclearingrate.

Therehavebeennorecentchanges,norarethereplansto��

changeremittancepolicies.

Therearenodelaysineffectforremittinginvestment��

returnssuchasdividends,returnofcapital,interestandprincipalonprivateforeigndebt,leasepayments,royaltiesandmanagementfeesthroughnormallegalchannels.

Thereisnoneedforalegalparallelmarketforinvestor��

remittances.

Thereisnolimitationontheinfloworoutflowoffunds��

forremittancesofprofits,debtservice,capital,capitalgains,returnsonintellectualproperty,importedinputs,etc.Thereis,however,aheavytax(upto45percent)oncorporateprofitsandcapitalgainsoftheforeignpartnerinajointventure.

SASO Country Program Offices

TheSaudiArabianStandardsOrganizationisresponsible��

fordeterminingandenforcingapprovedstandardsofservices,facilities,utilitiesandproductswithintheKingdomofSaudiArabia.ASASOCertificateofConformityissuedbyIntertekTestingServicesmayberequiredbeforeapprovalofimportingandexportingoperationswithinSaudiArabia

Website:http://www.saso.org.sa��

IntertekTestingServices,3741RedBluffRoad,Pasadena,��

Texas77503

Tel.:713-475-9184�–

Fax:713-475-2083�–

RegionalLicensingCenter,North/Central/SouthAmerica,��

70CodmanHillRoad,Boxborough,MA01719

TollFree:1-800-441-7276�–

Tel.:978-635-8651/978-635-8652/978-635-8653�–

Fax:978-635-1620�–



Finance

Introduction to financing in the Kingdom

InvestorsintheKingdomwillalsohaveaccesstoboth��

debtandequityfinancingfromtheSaudifinancialsector.FinancingisavailabletoSaudiandnon-Saudibusinessmenandentities.

Saudientitiesmayalsoborrowfromnon-Saudibanksand��

oftenemploytheservicesofoffshorebankingunitsinBahrain,whichisamajorbankingcenterforfinancing.

Thefinancialsectorisregulatedandcontrolledbythe��

SaudiArabianMonetaryAgency(SAMA).Policiesonfinancingandtermsofpaymentaimtofacilitatethefreeflowoffinancialresources.

General financing availability

Localcommercialbankscanalsoprovidecreditand��

projectfinancingtobusinessesintheKingdom.Theprivatesectoralsohasaccesstoavarietyofcreditinstruments.Creditfromthecommercialbanksisallocatedonmarketterms,andforeigninvestorscanobtaincreditonthelocalmarket.

MajorcommercialbanksinSaudiArabiainclude:��

ArabNationalBank�–

AlJaziraBank�–

AlRajhiBankingandInvestmentCorporation�–

BankAlBilad�–

NationalCommercialBank�–

RiyadhBank�–

SaudiAmericanBank�–

SaudiBritishBank�–

SaudiFransiBank�–

SaudiHollandiBank�–

SaudiInvestmentBank�–

Equity financing

SAMAandtheCapitalMarketsAuthority(CMA)supervise��

theSaudistockmarket,whichisknownastheTadawul.

TheTadawulhasgrownsignificantlyoverthepast20��

yearsandisnowthelargeststockmarketintheArabworld.In2008,thevalueoftradingexceeded$500billion.

ThenumberofJointStockCompaniesthattradeinthe��

SaudiArabiaStockMarkethasincreasedsteadily,withapproximately127firmsnowlistedontheexchange.

Internationalinvestorshavebeenapprovedtoparticipate��

intheTadawulthroughmutualfundssince1997.



Special financing options

Projectfinancingisalsoavailablefromspecializedcredit��

institutionsintheKingdomthathavebeensetuptoprovidelong-termloanstovitalsectorsoftheeconomy.Thesespecializedcreditinstitutionsandtheirrelatedfinancingareasinclude:

Institution Area of Financing and Assistance

SaudiIndustrialDevelopmentFund

Low-costmediumandlong-termcapitalforindustrialprojectsMarketing,technical,andfinancialadvicetoallSIDF-financedprojectstoenhancetheirchancesofsuccess

PublicInvestmentFund

Mediumandlong-termloanstothelarge-scalegovernmentandprivateindustrialprojectsnotcoveredbycommercialbanks

RealEstateDevelopmentFund

Mediumorlong-termloanstoindividualsororganizationsforprivateorcommercialhousingprojects

SaudiArabianAgriculturalBank

Loansandcreditfacilitiestofarmersandagriculturalprojects

IslamicDevelopmentBank

EquitycapitalandloansforprojectsthatfostertheeconomicdevelopmentandsocialprogressofmembercountriesandMuslimcommunities.

Import payment process

MostSaudiimportsarereceivedonthebasisof��

anirrevocableletterofcredit(L/C),althoughotherarrangementssuchasanopenaccount,cashinadvance,anddocumentarycollectionarealsopermitted.

Importsdonotrequiremandatory,maximumor��

minimumcreditterms.

Typicalturnaroundtimesinlocalcredittransactions��

rangebetweenthreeandfourmonths.



Law and taxation

Trademark law

SaudiArabiaisamemberoftheParisConventionfor��

theProtectionofIndustrialPropertyandfollowstheInternationalClassificationofGoodsandServicesforthePurposesoftheRegistrationofMarksundertheNiceAgreement,withrevisionsandadditionsadoptedasofJanuary1,2002.Aseparateapplicationshouldbefiledwithrespecttoeachclassofgoodsorservices.TrademarkscoveringalcoholicgoodsandrelatedretailorwholesaleservicesarenotapplicablewithintheKingdom.

What can I register as a Mark?

Can be registered as a Mark Cannot be registered as a Mark

Distinctshapes��

Signatures��

Words��

Letters��

Numbers��

Drawings��

Symbols��

Seals��

Prominentinscriptions��

Invisibletrademarks��

(e.g.soundsorscents)Expressions,signsor��

drawingscontrarytoreligiouspracticesorpublicorderormoralityPublicandofficial��

symbolsofKSAGeographicalnames��

Misleadingstatements��

orstatementsregardinghonorarydegreesInternationallyfamous��

MarksorMarkssimilartoregistered(orappliedfor)Marks



What is the process for registering a Mark?

Documents Required Timeline

Applicationform��

Legalizedcopyofthe��

Mark’scorrespondinghomeregistrationcertificateLegalizedPower��

ofAttorneyorAuthorizationofAgentListofgoodstobe��

coveredandtheirclassesThirtyprintsoftheMark��

foreachclass

Adecisionismadeon��

applicationswithin60daysbytheMinistryofCommerceIftheapplicationis��

rejected,theapplicanthas90daystosatisfytheconditionsforapprovalsetforthbytheMinistryofCommerceAppealsmaybefiledto��

theBoardofGrievanceswithin30daysofthefinalrejectionnotification

TrademarksregisteredinSaudiArabiaareprotectedfor��

aperiodof10Hegirayearsfromthedateofapplication.RegistrantscanapplyforrenewalsoftheMarkwithinthelastyearofvalidityorwithinagraceperiodof6monthsafterexpirationoftheMark.

Copyright law

TheCopyrightLawintheKingdomofSaudiArabiawas��

issuedasperRoyalDecreeNo.M/41datedAugust30,2003andpublishedintheOfficialGazetteNo.3959datedSeptember19,2003.

Protectionisgrantedtoauthorswhoseworksofartare��

expressedinwriting,sound,drawing,photographyormotionpicturesandcomputersoftware.Therightsoftheauthorareprotectedforhislifetimeandforaperiodof50yearsafterhisdeath.

Protectioncoversallintellectualworksofanytype��

whethertheyareliterary,scientificorother,asfarasthedistributionofthoseworksinSaudiArabiaisallowed.

Foreignintellectualworksareprotectedinaccordance��

withtheinternationalconventionsofwhichSaudiArabiaisamember,namelytheUniversalCopyrightConventionandtheBerneConventionfortheProtectionofLiteraryandArtisticWorks.

Violationsofintellectualpropertyprotectionsare��

punishablebystringentpenalties,includingfinesofuptoSR250,000,suspensionofbusiness,confiscationofmaterials,andimprisonment.

Patent law

PatentsinSaudiArabiaaregovernedbyPatents,Layout��

DesignsofIntegratedCircuits,PlantVarietiesandIndustrialModelsLaw,effectiveSeptember6,2004.ThePatentLawdefinitionofaninventioncoversanynewarticle,methodofmanufacture,orimprovementineither.AbsoluteuniversalnoveltyisstipulatedbythePatentLaw:aninventionisnewonlyifitisnotanticipatedbythepriorart,whichcoversanythingdisclosedtothepublicanywhereandatanytime,bymeansofawrittenororaldisclosure,byuse,orinanyotherwaybeforetherelevantfilingdateorprioritydate.



Applicationsforpatentsmustbesubmittedtothe��

DirectorateofPatentsatKingAbdulAzizCityofScienceandTechnology(KACST)ontheappropriateform.Apatentisprotectedfor20yearsfromthedateoffilingtheapplication.Apatentissubjecttoanannuitydueatthebeginningofeachyearsubsequenttotheyearinwhichtheapplicationwasfiledandpayablewithinaperiodofthree(3)months.

Patentdisputesareresolvedbyanadhoccommitteeat��

KACST.Appealsagainstthecommittee’sdecisionmaybemadetotheBoardofGrievanceswithinsixty(60)daysfromthedateofnotification.

Taxation

Introduction to the Kingdom’s tax system

WiththeKingdom’sabundanceofrichnaturalresourcescombinedwithataxationsystemthatisbusiness-friendly,efficientandencouragesgrowth,SaudiArabiahasbeenabletoinvestitswealthinthedrivetobecomeoneofthetop10economies.Giventhequalityofthetaxsystem,theWorldBankrankedSaudiArabiaseventhintheworldin2008for‘EaseofPayingTaxes’.

Itisalsoimportantthatallindividualsorbusinessesthataresubjectto‘zakat’ortaxberegisteredwiththeDepartmentofZakatandIncomeTax(DZIT).Onceyouhaveregistered,youwillreceiveafilenumber(FIN)whichyouwillneedtouseinalltaxtransactionswiththeDZIT.Pleaserefertothe‘RegistrationProcess’sectioninthisGuide.

What taxes will you need to pay?

Individual Tax (Resident and Non-Resident)

What is my individual tax eligibility?

YouareeligibletopayResidentIndividualTaxifyouarea…

YouareeligibletopayNon-ResidentIndividualTaxifyouarea…

Aresidentdoing��

businessintheKingdom,definedas:

Maintaininga�–

permanentresidenceintheKingdomandbeingphysicallypresentintheKingdom30daysormoreduringthetaxableyear;orBeingphysically�–

presentintheKingdommorethan183daysinthetaxableyearwithoutapermanentplaceofabode.

Apartnerinaresident��

partnership(personalcompanies).Ageneralpartnerin��

aresidentcompanylimitedbyshares.

Anindividualphysically��

presentlessthan183daysayearwithoutapermanentplaceofabodedoingbusinessintheKingdomthroughapermanentestablishmentissubjecttotheprovisionsapplicabletoresidentcompanies.Anindividualphysically��

presentlessthan183daysayearwithoutapermanentplaceofabode,includinglegalpersonsownedbySaudis,issubjecttowithholdingprovisionsonincomefromsourceswithintheKingdom.



Resident Individual Tax definitions and rules

Forpartnersinaresidentpartnership(personalcompany)andgeneralpartnersinaresidentcompanylimitedbyshares:

Non-residentpartnersholdingsharesinresident��

partnershipsshallbeconsideredbyvirtueoftheirshareinthepartnershiptohaveapermanentandestablishedinterestintheKingdom.Taxesshallbeleviedonthepartnersinthepartnershipratherthanthecompanyitself.Thepartnershallfilehisorherowntaxreturn,ordeclaration,oftaxableincomeformallactivitiesrelatedtothepartnership;thisdeclarationshallbesubjecttotheproceduralrulesaccordingtotheIncomeTaxLaw.

Partnershipswillalsohavefinalresponsibilityfor��

determiningtheirtaxableyear,accountingandinventorymethods,filingnotificationsandothertax-relatedstatementsofactivity.Withinsixty(60)daysoftheendofthetaxableyear,itwillbenecessaryforthepartnershiptofileaninformationreturncoveringthefollowing:

Income.��

Profit.��

Loss.��

Expenses.��

Debts.��

Othertax-relateditems.��

Resident Individual Tax rate and filing procedure

Fornon-SaudiresidentsdoingbusinessintheKingdom,individualearnedincomewillbetaxedat20%ofthetaxablebase.Individualearnedincomeistaxedataflatrate;thisisbecausetheKingdomdoesnotmaintainprogressivetaxbracketsbasedonincomelevel.IndividualtaxpayersmustfileataxreturnwiththeDZITandpaytheirtaxreturnwithin120daysofthecompletionofthetaxationyear.

Non-Resident Tax definitions and rules

Fornon-residents,apermanentestablishmentintheKingdomisconsideredthepermanentplaceofactivity,wherebusinessiscarriedoutdirectlyorindirectly,infullorinpart.Thefollowingisconsideredapermanentestablishment:

Constructionsites,assemblyfacilitiesandtheexerciseof��

supervisoryactivitiesconnectedwiththem.

Installationsorsitesusedforsurveyingnaturalresources��

,drillingequipmentorshipsusedforsurveyingnaturalresources,aswellastheexerciseofsupervisoryactivitiesconnectedwiththem.

Afixedbasewherenon-residentscarryoutbusiness.��

Abranchofanon-residentcompanywhichislicensedto��

carryoutbusinessintheKingdom.

Anon-residentpartnerinaresidentpersonalcompanyisconsideredtohaveapermanentestablishmentintheKingdomintheformofapartnershipinterest.

Withholding Tax



Everyresident(whetherornotataxpayeraccordingtotheIncomeTaxLaws),aswellasanon-residentwithapermanentestablishmentintheKingdom,whopaysanamounttoanon-residentfromasourceintheKingdom,mustwithholdtaxfromthepaidamount.ThewithholderusingtheformmustpaythewithheldamounttotheDZITwithinthefirsttendays(10)ofthemonth,followingthemonthofpaymenttothebeneficiary.Thewithholdermustalsoprovidecertificationofpaymenttothebeneficiary.

Withholdersarealsoresponsibleforfilingtheannualwithholdingformwithin120daysoftheendofthefinancialyear.Itisimportanttonotethatwithholderswhofailtowithhold,paytaxesorreportinformationasrequiredbylawwillbesubjecttopenalties.

Thetaxbaseforwithholdinggrosstaxableincomeallowsdeductionsforallexpensesthatarenecessaryandnormaltotheconductofbusiness.Someexamplesofallowabledeductionsincludewagesandsalaries,depreciation,repairfees,charitablecontributions,royalties,insurancepremiums,baddebt,end-of-serviceawardsandschoolfees.

Withholdingtaxratesareasfollows:

Type of Payment Rate

Managementfees 20%

Royaltiesorproceeds,includingpaymentstoahead-officeoraffiliate

15%

Paymentsforrent;technicalandconsultingservices;transportationcosts(airtickets,air/maritimefreight);telecommunications;dividends;loancharges;insurancepremiums

5%

Otherpayments 15%

Corporate Income Tax

AnentityissubjecttoCorporateIncomeTaxifithas:

Aresidentcapitalcompanyonnon-Saudishares.��

(meaning???)

Totalsharesinnetprofitsofnon-Saudilimitedpartnersin��

limitedpartnerships.(meaning???)

Corporate Tax definitions and rules



Anyentityisconsideredaresidentcompanyif:

ItisformedundertheCompaniesRegulations;or��

Itsplaceofcentralcontrolandmanagementissituated��

withintheKingdom.

Corporate Tax rate and filing procedure

ResidentCorporateIncomeistaxedat20%ofthetaxablebase.ItisimportantthatCorporateIncomeTaxpayersmustfileataxreturntotheDZITandpaywithin120daysofthecompletionofthetaxableyear.Aswellasthetaxreturn,CorporateTaxpayersmustattachtherelevantfinancialstatementsandschedule,including(butnotlimitedto)thefollowing:

Scheduleofdepreciation.��

Scheduleofincomeandsources.��

Scheduleofsub-contactorsandrecipientsoftechnical��

andconsultingservicesfeeswiththeaddressesandDZITfilenumbers(ifavailable)foreachrecipient.

Scheduleofinsurancepremiumspaidaswellasnames,��

addressesandfilenumbersofinsuredcompanies.

Scheduleofexpensespaidabroad,theirnatureandthe��

recipients.

Natural Gas Investment Tax

NaturalGasInvestmentTaxliabilityisforanynaturalorlegalpersonsorentityengagedinnaturalgas,naturalgasliquidsorgascondensatesinvestmentactivitieswithintheKingdom.T

Thetaxwillbeontheannualincomederivedfrom��

naturalgasinvestmentactivitiesataprogressiveratebasedontheinternalrateofreturnoftheseactivities.

Theminimumtaxrateonaninternalrateofreturnof8%��

orlessonnaturalgasinvestmentactivityis30%.

Themaximumtaxrateonaninternalrateofreturnof��

20%ormoreonnaturalgasinvestmentactivityis85%.

What can you expect from the Kingdom’s tax system?

Tax payers’ rights

TaxpayersintheKingdomofSaudiArabiaareentitledtocertainrightsrelatedtotheirtaxprocess.

Informationconfidentiality:Taxpayershavetherightto�–

informationconfidentialitybytheDepartmentofZakatandIncomeTax(DZIT)anditsstaff.

Losscarry-forward:Taxpayershavetherighttocarry�–

forwardanetoperatinglosstothenexttaxationyearandtohavethelossdeductedfromthefollowingyearsuntilthecumulativelossisfullyrecoveredbyoffset.

Accounting method: �� Taxpayershavetherighttodeterminetheirtransactionalaccountingmethodsonacashoraccrualbasis,withtheexceptionofthosewhoseincomeexceedsSR5million,whomustusetheaccrualmethod.

Refunds: �� Taxpayersareentitledtorequestarefundof



anyexcesstaxespaidwithinfive(5)yearsofthetaxyearforwhichtheoverpaymentwasmade.

Statute of limitations: �� Taxpayersareprotectedfromassessmentsorre-assessmentsbyDZITiffive(5)yearshavepassedsincethetaxyear.

Appeals: �� TaxpayershavetherighttoappealanassessmentbyDZITtothePreliminaryCommitteeandtheAppealCommitteewithin60daysandtohavetheappealreviewedultimatelybytheBoardofGrievances.

Taxpayers’ obligations

Aboveandbeyondtheobligationsoutlined,taxpayers�–

mustmeetthefollowingobligations:

Books and records: �� TaxpayersmustmaintainthenecessarycommercialbooksandaccountingrecordsinArabicandthesupportingdocumentsforthoserecords.

Provision of information regarding contracts: ��

TaxpayersintheprivatesectormustsubmittotheDZITasummaryofthecontractsconcludedwithinthree(3)monthsoftheconclusionofthosecontracts.

Advance instalments of due tax: �� Taxpayersmustpaythree(3)advancepaymentsoftaxonorbeforethelastdayofthesixth,ninth,andtwelfthmonthsofthetaxyear,eachintheamountof25%oftheprecedingyear’stax,minustaxespaidintheprecedingyearbywithholding,unlessthetotalislessthanSR500,000.

Cessation of activities:�� Uponthecessationofactivities

intheKingdom,thetaxpayermustnotifytheDZITandprovideataxdeclarationforthepro-rataperiodofoperationwithinsixty(60)daysofcessation.

Penalties

Anytaxpayerdelayingmorethan30daysorfailingto�–

filetheirindividualorcorporatetaxeswillbesubjecttofinancialpenaltiesleviedasapercentageoftheunderpaidamountandpro-ratatothelengthoftimedelayed.

Ifacorporatetaxpayerhasnotfiledareturn,theDZIT�–

maintainstherighttomakeapresumptivecorporatetaxassessmentonaminimumprofitof15%oftheentity’sgrossincomeforthetaxyearbasedontherelevantfactsandcircumstances.

Willfultaxevasionandrelatedactivitieswillbesubject�–

tofinancialandlegalpenaltiesincluding(butnotlimitedto)suspensionorterminationofoperations;seizureofassets;anddetention.



Infrastructure and resources

Infrastructure

Ownership of property

TheSaudilegalsystemprotectsandfacilitatesacquisition��

anddispositionofprivateproperty,consistentwithstrongIslamictraditionsthatrespectprivateproperty.

Non-Saudisaregenerallynotallowedtopurchasereal��

estateinSaudiArabia.

Aforeign-ownedcompany,orjointventurewithforeign��

participation,maypurchaserealestateifrequiredtocarryouttheinvestor’slicensedactivity,housingforstaff,orforapersonalresidence.

Cost of doing business

SaudiArabiaiscommittedtoprovidingthemost��

competitivebusinessenvironmenttofirmsandcompaniesoperatingintheKingdom.

Commercial and industrial rents

InsideIndustrialCities:SR.0.02[US$0.021]persquare��

meterplusSR.0.98[US$0.26]persquaremeteragainstOperationandMaintenanceperyear.

Elsewhere:SR.20toSAR100persquaremeterperyear��

[US$5.33toUS$26.67].

Utilities

Electricity:��

SR.0.12[US$0.032]perKwHforindustrialuse.�–

SR.0.05[US$0.013]perKwHforaminimumupto�–

2,000KwHforresidentialuse,risingovereightbandsinaccordancewithconsumption.

Water:��

Progressive,fromSR.0.10[US$0.027]percubicmeter�–

from1to50cubicmeters,toSR.6.00[US$1.60]percubicmeterfrom301cubicmetersupwards.

Diesel:SR.0.36[US$0.096]perlitre.��

IndustrialFuelOil:SR.0.125[US$0.033]perlitre.��

LiquidGas:SR.2.81[US$0.75]/MMBTU.��



Industrial Loans

2.5%servicechargefrom5to10yearsstartingaftertwo��

yearsofproduction.

Environmental Protection

SaudiArabiahasapprovedageneralenvironmental��

regulatorysystemintheKingdom.Theserulesaddressincreaseawarenessandsustainabilitybyaddressingsuchtopicsasthefollowing:

Protectingpublichealthfromthehazardsof�–

activitiesandworkswhichadverselyimpactontheenvironment;

Preserving,developing,andrationalizingtheuseof�–

naturalresources

Enhancingecologicalawarenessaboutthe�–

importanceofprotecting,preserving,anddevelopingtheenvironmentandpreventingthepollutionfromaffectingit;

Environmentalregulationsareavailableathttp://www.��

pme.gov.sa/en/env_regul.asp.

BusinessesinallfieldsoperatingintheKingdomare��

expectedtocomplywithenvironmentalplanningasanintegralpartofSaudiArabia’scomprehensivesustainabledevelopmentpolicy

Human Resources

(sidebox) Labor Law definitions

Ministry:MinistryofLabor.��

Minister:MinisterofLabor.��

LaborOffice:Theadministrativeauthoritythatassumes��

jurisdictionoverthelaboraffairsornon-SaudiworkerswithinanareaspecifiedbyadecisionoftheMinister.

EmploymentUnit:Theadministrativeauthoritythat��

assumesjurisdictionoverthelaboraffairsorSaudiworkerswithinanareaspecifiedbyadecisionoftheMinister.

Employer:Anynaturalorcorporatepersonemployingone��

ormoreworkersforawage.

Minor:Anypersonbetweenfifteenandeighteenyearsof��

age.

Part-timeWork:Workperformedbyapart-timeworker��

foranemployerandforlessthanhalftheusualdailyworkinghoursatthefirm,whethersuchaworkerworksonadailybasisoroncertaindaysoftheweek.



General Labor Law provisions

Allcitizensareequalregardingtherighttoworkandthe��

LaborLawofSaudiArabiaguaranteesthisrighttoeverycitizenunlessspecificconditionstothecontraryhavebeensatisfied.OnlythefollowingtypesofemploymentareexemptfromtheLaborLaw:

Wheretheemployer’sfamilymembers,namely,the�–

spouse,theascendantsanddescendantsconstitutetheonlyworkersofthefirm.

Domestichelpersandsimilarworkers.�–

Seaworkersworkingonboardvesselswithaloadof�–

lessthanfivehundred(500)tons.

Agriculturalworkersotherthanthecategoriesstated�–

inArticle(5)ofthisLaw.

Non-SaudiworkersenteringtheKingdomtoperform�–

aspecifictaskforaperiodnotexceedingtwomonths.

Playersandcoachesofsportsclubsandfederations.�–

Employersandworkersshalladheretotheprovisions��

ofShari’ainimplementingrelevantLaborLawsintheKingdom.Arabicshallbethelanguageusedfordata,records,files,workcontractsandthelike,asprovidedforbytheLaborLaworinanyrelateddecisionorinstructionsissuedbytheemployertohisworkers.IftheemployerusesaforeignlanguagebesideArabicinanyofthementionedcases,theArabictextshallprevail.AllperiodsandschedulesprovidedforintheLaborLawshallbeaccordingtotheHegiracalendar,unlessotherwisestatedintheworkcontractortheworkorganizationregulations.

Bothemployersandworkersareexpectedtobefamiliar��

withtheprovisionoftheKingdom’sLaborLaw.Anyentityemployingten(10)ormoreworkersmustsubmittotheMinistryforapprovalaWorkOrganizationRegulationtoincludeorganizationalrulesandinternalworkprovisions,suchasthoserelatedtoprivileges,violationsanddisciplinarypenalties.Theapprovedworkorganizationregulationshallbeprominentlydisplayedattheplaceofemploymentorcommunicatedtoworkers.

AmodelWorkOrganizationRegulationmaybeobtainedattheMinistryofLaborwebsite,http://www.mol.gov.sa/mol_site/labor_law.pdf

Uponstartingoperationsatthefirm,employersarerequiredtoconveythefollowinginformationinwritingtotherelevantlaboroffice:

Name,typeandheadquartersofthefirm,aswellas�–

itsmailingaddressandanyothercontactinformation.

Lineofbusinessforwhichitislicensed,numberof�–

theCommercialRegisterorthelicense,itsdateandissuingauthority,togetherwithacopythereof.

Numberofworkerstobeemployedinthefirm.�–

Nameofthefirm’smanagerin-charge.�–

Anyo�– therdatarequiredbytheMinistry.

Anemployermustmaintainattheworkplaceanyrecords,��

statementsandfilesrelatedtotheLaborLaw.Employersmustalsodisplayinaprominentlocationattheworkplaceascheduleofworkinghours,breaks,weeklyrestdaysandtimeofstartattheendofeachshift,whenoperatinginshifts.

ThepercentageofSaudiworkersemployedbythe��



employershallnotbelessthan75%ofthetotalnumberofhisworkers.TheMinistermaytemporarilyreducethispercentageinthecaseofnon-availabilityorinadequacyoftechnicallyoracademicallyqualifiedworkers.

Employment Units

Ministry-sponsoredEmploymentUnitsareavailable��

throughouttheKingdomtoassistwiththerecruitmentofSaudinationals;workcounselingandplacementofSaudinationals;andlabormarketresearchandanalysis.

Employersarerequiredtocommunicateregularlywith��

theirlocalEmploymentUnitinthefollowingareas:

Astatementofvacantandnewjobs,theirtypes,�–

locations,wages,andqualificationswithinaperiodnotexceedingfifteendaysfromthedateofthevacancyorthecreationofaposition.

Anoticeofmeasurestakentoemploythecitizens�–

nominatedbytheEmploymentUnitwithinsevendaysfromreceivingthenominationletter.

Alistofnames,jobs,professions,wages,ages,�–

nationalitiesofhisworkers,numbersanddatesofworkpermitsfornon-SaudisandotherdataspecifiedintheRegulations.

Areportonthestatus,conditionsandnatureofwork�–

andtheanticipatedincreaseordecreaseinjobsduringtheyearfollowingthedateofthereport.

UnlesslicensedbytheMinistry,privateofficesforthe��

recruitmentofSaudinationalsorforeignworkersarenotpermittedwithintheKingdom.

Training and qualification of employees

AllemployersmustworktoattractandemploySaudis��

andmaintainconditionstokeepthemonthejob.Theywillalsoneedtoprovidethemwithongoingeducationalandtrainingopportunitiestoenhancetheirtechnical,administrativeandvocationalskillsforthepurposeofgraduallyreplacingnon-Saudis.TheemployershallkeeparecordshowingthenamesoftheSaudiworkerswhohavereplacednon-Saudiworkers.

Everyemployeremployingfifty(50)ormoreworkersshall��

annuallyinstituteatrainingprogramaccordingtotheLaborLawspecificationthatservesnolessthan6%ofthetotalnumberoftheworkerswhoareSaudis.Thetrainingprogramshallbeboundbythetrainingorqualificationcontract,whichcommitstheemployertotrainandqualifyapersonforaspecificprofession.Theemployermayrequirethetraineetoworkforhimuponcompletionofthetrainingperiodforaperiodnottoexceedtwicethedurationofthetrainingoroneyear,whicheverislonger.Theemployerandthetraineemayterminatethetrainingorqualificationcontractifthetrainee,intheviewofeitherparty,isincapableofornotamenabletocompletingthetrainingprogram.

TheMinistermayrequirethefirms,tobeidentified��

pursuanttoadecisionbyhim,toacceptacertainnumberorpercentageofthestudentsandgraduatesofcolleges,institutesandcenterstoreceivetrainingandsupplementarypracticalexperienceinaccordancewiththeconditions,circumstances,durationsandtraineeallowancestobespecifiedinanagreementtobeconcludedbetweentheMinistryandthemanagementoftherelevantfirm.



LaborregulationsaregovernedbytheMinistryof��

LaborandtheMinisterofLabor.TheseregulationsarefrequentlyupdatedinordertomaximizetheeffectivenessoftheSaudiArabianeconomy.AlldecisionsmadebytheMinisterofLaborregardingemploymentofdisabledpersons,non-Saudis,womenandminors,includingprohibitedjobsandprofessions,canbefoundattheMinistryofLaborwebsite:http://www.mol.gov.sa/.

Employment of the disabled

Eachemployeremployingtwenty-five(25)workersor��

more,wherethenatureofhisworkallowsrecruitmentofdisabledprofessionals,mustemployanumberofdisabledpeoplethatrepresentsatleast4%ofthetotalnumberofhisworkers.

Employment of non-Saudis

Therecruitmentandemploymentofnon-Saudiworkers��

fromabroadisonlypermittedwiththeapprovaloftheMinistryofLabor.Permitsforforeignemploymentareissuedunderthefollowingconditions:

Theworkerhaslawfullyenteredthecountryandis�–

authorizedtowork.

Theworkerpossessesuniqueprofessionaland�–

academicqualificationswhichthecountryneedsbutwhichareunavailableorinsufficientintheKingdom.

Theworkerhasacontractwiththeemployer.�–

Theworkcontractfornon-Saudisshallbewrittenfor��

aspecifiedperiod.Ifthecontractdoesnotspecifytheduration,thedurationoftheworkpermitshallbedeemedasthedurationofthecontract.Anemployermaynotemploytheworkerinaprofessionotherthantheonespecifiedinhisworkpermitwithoutfilingtheappropriatelegalproceduresforchangingtheprofession.Theemployerisresponsibleforallfeesrelatedtotherecruitmentandretentionofnon-Saudiworkers-includingtheresidencepermit(Iqama)andworkpermitchangeofprofessionprocess,exitandre-entryvisas,andreturnticketstotheworker’shomecountry.

Employment of women

Womenarepermittedtoworkinallfieldssuitable��

totheirnatureintheKingdomofSaudiArabia.TheemploymentofwomeninhazardousjobsorindustriesisprohibitedorrestrictedaccordingtoregulationscirculatedbytheMinistry.Womenmaynotworkduringaperiodofnight-time,thedurationofwhichisnotlessthanelevenconsecutivehours,exceptincasesdeterminedpursuanttoadecisionbytheMinister.



Afemaleworkerisentitledtoamaternityleaveforthe��

fourweeksimmediatelyprecedingtheexpecteddateofdeliveryandthesubsequentsixweeksafterabirth.Duringmaternityleave,thefemaleworkerisentitledtohalfherwageifshehasbeenemployedforone(1)yearormore,andtoherfullwageifshehasservedforthree(3)ormoreyears.Employersmaynotterminatetheemploymentofafemaleworkerorgivewarningofterminationwhilesheisonmaternityleave,andemployersmaynotterminatetheemploymentofafemaleworkerduringillnessresultingfrompregnancyordeliveryasestablishedbyacertifiedmedicalreport.

Whenafemaleworkerreturnstoworkfollowing��

maternityleave,sheshallbeentitled,inadditiontotherestperiodsgrantedtoallworkers,toapaidrestperiodorperiodsnotexceedinginaggregateonehoureachdayfornursingherinfant.

Employment of minors

Age and industry restrictions. �� Minorsmaynotbeemployedinhazardousjobsorharmfulindustriesorinoccupationsorjobsthatmayendangertheirhealth,safetyormorals.Anypersonundertheageoffifteenyearsmaynotbeemployedorallowedtoenterplacesofwork,unlesstheworkisperformedforeducationalpurposesorunderspecialdispensationbytheMinisterforcertainindustriesorareasorforcertaincategoriesofminors.TheMinistermayallowtheemploymentforworkofpersonsbetweenthirteen(13)andfifteen(15)yearsofageinlightworks,grantedthatsuchjobsarenotpotentiallyharmfultotheirhealthorgrowth,andthatsuchjobsdonothindertheireducationandtraining.

Working conditions. �� Minorsmaynotworkduringaperiodofnight-time,thedurationofwhichisnotlessthantwelveconsecutivehours,exceptincasesdeterminedpursuanttoadecisionbytheMinister.Minorsmaynotbemadetoperformactualworkformorethansixhoursaday,exceptinthemonthofRamadanwhentheactualworkinghoursshallnotexceedfourhours.Theminorshallnotstayattheworkplaceformorethansevenhours.Workinghoursshallbeorganizedsothataminormaynotworkformorethanfourconsecutivehourswithoutoneormoreperiodsofrest,eachnotlessthanhalfanhourfor,foodandprayers,providedthattheminordoesnotremainattheworkplaceformorethansevenhours.Minorsmaynotbemadetoworkduringtheweeklyrestdays,Eids,officialholidaysorannualvacations,norshalltheybesubjecttotheexceptionsprovidedforinArticle(106)ofthisLaw.

Required documentation. �� Priortoemployingaminor,theemployershallobtainfromhimthefollowingdocumentstobemaintainedintheminor’spersonalfile:

Thenationalidentificationcardoranofficialbirth�–

certificate.

Areportofphysicalfitnessfortherequiredjobissued�–

byacompetentphysiciananddulycertifiedbyahealthauthority.

Theconsentoftheminor’sguardian.�–

Anemployershallnotifytherelevantlaborofficeofthe��

employmentofeachminorwithinthefirstweekofsuchemployment,andshallkeepattheworkplacearegisterforemployedminors,showingthenameoftheminor,hisage,fullnameofhisguardian,hisplaceofresidenceanddateofhisemployment.



Labor relations for all workers in the Kingdom

Work contract

Termsofemploymentaredefinedbyawrittenor��

unwrittenworkcontractthatisconcludedbetweenanemployerandaworker.Theworkcontractincludesthenameoftheemployer,venue,thenameoftheworker,nationality,identification,wageagreedupon,typeandlocationofwork,dateofemployment,durationofthecontract,andotherinformationasprovidedbytheLaborLaw.Inselectcircumstances,theemployermayonlymakeessentialchangestotheworkcontract,suchasthenatureofdutiesperformedorthelocationofthework.

Afixed-termcontractterminatesupontheexpiration��

ofitsterm,unlessthecontractincorporatesaclauseprovidingforitsrenewal.Iftheemployerandworkercontinuetoimplementafixed-termcontractbeyonditsexpirydate,thecontractisdeemedrenewedforanindefiniteperiodoftimeandsubjecttotheregulationsthereof.Probationaryperiodsmaynotexceedninety(90)days,exclusiveofEidholidaysandsickleaves,andareexpresslynotedintheworkcontract.

Employer’s duties and obligations

Theemployerwill:��

Refrainfromusingtheworkerwithoutpayand�–

shallnot,withoutduejudicialprocess,withholdtheworker’swagesoranypartthereof.

Treathisworkerswithduerespectandrefrainfrom�–

anyactionorutterancesthatmayinfringeupontheirdignityandreligion.

Givetheworkersthetimerequiredtoexercisetheir�–

rightsasprovidedforbytheLaborLawwithoutanydeductionsfromtheirwagesagainstsuchtime.

Forbidentryofanyillegalsubstancesintotheplaces�–

ofwork,andinstitutepunishmentsforanyonefoundinpossessionoforwhoconsumessuchsubstances.

Givetheworker,uponhisrequestandfreeofcharge�–

attheexpirationofhisworkcontract,acertificateofworkexperienceindicatingthedetailsofhisemployment.



Worker’s duties and obligations

Allemployeesmust:��

Performworkinaccordancewiththetradepractice�–

andtheemployer’sinstructionsasarereasonable.

Carefortheemployer’smachinery,tools,suppliesand�–

rawmaterialsplacedathisdisposalorinhiscustodyandreturntotheemployeranyunusedmaterials.

Abidebyproperconductandethicalnormsduring�–

work.

Extendallassistanceandhelpwithoutmakingit�–

contingentonadditionalpayincasesofdisastersorhazardsattheworkplace.

Undergo,upontheemployer’srequest,themedical�–

examinationsrequiredpriortoorduringemploymenttoensurehishealth.

Keepconfidentialthetechnical,tradeandindustrial�–

knowledgethatisproprietarytohiswork.

Disciplinary rules

AsprovidedforbytheLaborLawortheworkorganization��

regulation,employersmaydealoutonlythefollowingdisciplinarypenaltiestotheiremployeesafterissuingwrittennotificationoftheallegationandconductinganimpartialandthoroughinvestigationthatallowstheemployeetopresenthisdefense:

Warning.�–

Finesnotexceedingafive-daywage.�–

Withholdingallowanceorpostponingitforaperiod�–

notexceedingone(1)year.

Postponementofpromotionforaperiodnot�–

exceedingone(1)year.

Suspensionfromworkandwithholdingofwages.�–

Dismissalfromworkincasessetforthbythelaw.�–

Limitations on workplace discipline. �� Thestatuteoflimitationsfortheaccusationofanoffenseintheworkplaceisthirty(30)daysaftertheallegedcommitmentoftheoffense.Thestatuteoflimitationsforthepunishmentofanoffenseintheworkplaceisalsothirty(30)daysaftertheconclusionoftheinvestigationandestablishmentofguilt.Aworkermaynotbesubjectedtodisciplinarypenaltyforanactcommittedoutsidetheworkplace,unlesssuchactisrelateddirectlytothejob,theemployerorthemanagerin-charge.

Termination of work contract

Employersmayterminateaworker’scontractwithout��

anaward,advancednoticeorindemnityiftheemployeeisfoundtobeprofoundlyandconsistentlynegligentordeficientintheperformanceofhisduties;iftheemployeeisfoundtohavecausedorintendedtocausematerial,physical,ormoralharmtotheemployer;oriftheemployeeisonprobation.Anemployermaynotterminatetheworker’sservicesonaccountofillnesspriortoavailinghimoftheperioddesignatedforsickleaveasprovidedbytheLaborLaw.



Aworkcontractshallterminatenormallyifitismutually��

agreeduponinwriting;ifthespecifiedterminthecontractexpireswithoutrenewal;iftheworkerattainstheageofretirement,whichissixty(60)formalesandfifty-five(55)forfemales,unlessotherwiseagreedupon;ifinthecaseofforce majeure.

Aworkermayleavehisjobwithoutnoticeincaseswhere��

theemployerisnegligentinhiscontractualorstatutoryobligations,includingmaintainingasafeandhealthyworkenvironment;wheretheemployeeorhisfamilyistreatedwithdeepdisrespect,cruelty,fraudorinjustice.

TheCommissionfortheSettlementofLaborDisputes��

shalladjudicateallcasesinwhichacontractisterminatedforanallegedlyinvalidreason.

Dismissal compensation

Ifanemployerterminatesanemployee,forreasons��

thatarenofaultoftheemployeesuchasalayoff,theemployershallpaytheworkeranend-of-serviceawardofahalf-monthwageforeachofthefirstfiveyearsandaone-monthwageforeachofthefollowingyears,calculatedonthebasisoftheemployee’slastwage.

Work conditions and circumstances

Wages and compensation

ThereisnominimumwageintheKingdomofSaudi��

Arabia.

Theworker’swagesandallotherentitlementsarepaid��

intheKingdom’sofficialcurrency,theSaudiriyal(SR).Workerspaidonadailybasismustbepaidatleastonceperweek,andworkerspaidonamonthlybasisonceamonth.

Noamountmaybedeductedfromtheworker’swages��

againstprivaterightswithouthiswrittenconsent,exceptincertaincasessuchastherepaymentofemployerloansorcontributionprograms,socialinsuranceorotherlegalcontributions,orfinesorpenalties.

Overtimewagesarecalculatedatthehourlywageplus��

50%oftheworker’sbasicwage.Ifthefirmisoperatedonthebasisofweeklyworkinghours,thehoursinexcessofthehourstakenasthecriterion(48hours)aredeemedtobeovertime.AllworkinghoursperformedduringholidaysandEidsaredeemedovertimehours.



Working hours and rest periods

Governmentworkinghoursaregenerallyfrom7:30a.m.��

to2:30p.m.Privatebusinessconcernsaregenerallyopenfrom9:30a.m.toaround2:00p.m.,withaneveningsessionfrom17:00p.m.until21:00p.m.

Aworkermaynotactuallyworkformorethaneight��

hoursadayiftheemployerusesthedailyworkcriteria,ormorethanforty-eighthoursaweekifheusestheweeklycriterion.DuringthemonthofRamadan,theactualworkinghoursforMuslimsshallbereducedtoamaximumofsixhoursadayorthirty-sixhoursaweek.Workinghoursmaybeextendedorreducedforcertainindustriesandjobsdependingonthenatureoftheemployment.Restperiodsmustbescheduledwithworkinghourssuchthatnoworkerworksformorethanfive(5)consecutivehourswithoutabreakofnotlessthanthirty(30)minutesforrest,prayerandmeals.Duringtheserestperiods,theworkerdoesnotfallundertheemployer’sauthorityandcannotberequiredtoremainattheworkplace.

Weekly rest days

Fridayshallbetheweeklyrestdayforallworkers.With��

propernotificationoftherelevantlaboroffice,employersmayreplaceFridaywithanotherdayoftheweekforsomeofhisworkers,providedthattheweeklydayofrestbenotlessthantwenty-four(24)hours.

GovernmentofficesarealsoclosedonThursdays.��

Official holidays

Therearetwopublicholidayseveryyear:theEidal-Fitr,��

whichisoveraweeklong,andEidal-Adha,whichistendays.

Leave

Paid annual leave. �� Aworkerisentitledtoaprepaidannualleaveofnotlessthantwenty-one(21)days,tobeincreasedtoaperiodofnotlessthanthirty(30)daysiftheworkerspendsfiveconsecutiveyearsintheserviceoftheemployer.Allworkersareentitledtofull-payleaveonEidsandotherreligiousorholidayoccasions,asspecifiedbytheLaborLaw.Annualleavemaybepostponedbymutualagreementoftheemployerandemployee.Aworkerisentitledaccruedwagesoftheleaveifhisemploymentisterminatedwithoutusingsuchleave.

Paid special leave. �� Employeesareentitledtopaidspecialleaveforselectedlifeoccasions.Theemployermayrequestsupportingdocumentationforcasesinwhichpaidspecialleaveisrequested.



For how many days and what reasons are my employees entitled to paid special leave?

Occasions NumberofDaysofPaidSpecialLeaveAllowed

Condition(s)

Spousegivingbirth

Threemonths None.��

Marriage Three(3)

Deathofaspouseorafamilymember

Three(3)

Hajj Notlessthanten(10)andnotmorethanfifteen(15).

Employeehasnot��

performedHajjbefore.Employeehas��

workedatleasttwo(2)consecutiveyearsintheserviceofhisemployer.

Examinations Dependentonnumberofexaminationdays.

Employeeis��

enrolledinaneducationalinstitution.Employeeissitting��

foranexamofanunrepeatedyear.Employeehas��

appliedforleaveatleastfifteen(15)daysaheadoftheexamdate.

Sickness Progressive:firstthirty(30)daysatfullpay;nextsixty(60)daysatthree-quarterspay;allsubsequentdayswithoutpay.

Totalsickleave��

calculatedduringasingleyearwhethercontinuousorintermittent.

Unpaid leave. �� Aworker,subjecttotheemployer’sapproval,mayobtainleavewithoutpayforadurationoftimetobeagreeduponbybothparties.Underthisarrangement,theworkcontractissuspendedforthedurationoftheleaveplustwenty(20)daysunlessotherwisespecified.



Part-time work

Full-timeworkerswhoareaffectedbyacollective��

temporaryreductionintheirnormalworkinghoursforeconomic,technicalorstructuralreasonsarenotconsideredpart-timeworkers.PleaserefertoadditionalguidancefromtheMinistryonthelaborregulationsregardingpart-timeworkers.

Worker safety

Protection against occupational hazards and major industrial accidents

Anemployerisresponsibleforprovidingaclean,safeand��

hygienicenvironmenttohisworkersandothervisitorstohisworkplacethatiscompliantwiththeMinistry’srules,measuresandstandardsofoccupationalprotection,healthandsafety.Thisresponsibilityincludestakingthenecessaryphysicalprecautionstoprotectworkersagainsthazards,occupationaldiseases,operatingmachineryandotherworkplacerisks.Employersmustinformemployeesofthehazardsofhisjobpriortohisemployment,postwork-relatedsafetyinstructionsinrelevantlanguagesintheworkplace,andprovideandrequiretheuseofprotectiveequipment.

TheMinistryhasestablishedregulationstoidentify��

high-riskfirmsdealinginhazardousmaterials.High-riskfirmsaredefinedasenterpriseswhichdealwithoneormorehazardoussubstances;hazardoussubstancesaredefinedasmaterial(s)thatconstituteaphysicalhazardonaccountofitschemical,physical,ortoxicproperties.Pleaserefertotheseregulationsseparatelyforthestandardsanddecisionsgoverningfirm-levelprotectionsagainstmajorhazards.

Work injuries

Employersareresponsiblefortreatingandassumingall��

directandindirectexpensesforanemployee’sinjuryoroccupationaldiseasesustainedintheworkplace.Inthecaseoftemporarydisabilityarisingfromworkinjury,theinjuredpartyisentitledtofullpayforthefirstthirty(30)daysand75%ofhiswagefortheremainingdurationofhistreatment.Theworkcontractisterminatedinthecaseoftotaldisability,definedasdisabilitylongerthanone(1)yearormedicationdeterminationofphysicalinabilitytoperformwork,andtheemployeeand/orhisbeneficiariesareentitledtocompensation.



Medical and social services

Employersareresponsibleformakingavailableoneor��

moremedicalcabinetsattheworkplacewithdrugsandothernecessitiesrequiredforfirstaid.EmployerswillalsoprovideamedicalexaminationatleastonceayearforhisworkerswhoareexposedtoanyoftheoccupationaldiseaselistedintheSchedulesofOccupationalDiseasesprovidedforintheSocialInsuranceLaw,alongwithotherpreventiveandtherapeutichealthcareasspecifiedbytheMinistry.

Foremployeesworkinginremotelocations,theemployer��

isresponsibleforprovidingathisexpensethereasonablesocialstructuresandamenitiesforacomfortablelifestyle,including(butnotlimitedto)mosqueorprayerareas,educationalandrecreationfacilities,medicalarrangements,and/orliteracyprograms.Employersoperatingremotemines,quarriesandoilexplorationcentersarealsoresponsibleforprovidingaccommodation,campsandmealsforhisemployees.Iftheplacesofworkarenotservedbyregularandreasonablemeansoftransportation,theemployerisalsoresponsibleforprovidingadailymeansoftransportationforhisworkersfromtheirplaceofresidenceorcentralgatheringpointtotheworksiteandback.

Labor regulations for special industries

Regulation Maritime Industry Mines and Quarries

Employeerequirements

Mustbe18years��

ofage.Musthold��

acertificateallowingforworkinmarineservice.Mustbe��

physicallyfit.

Mustbe18��

yearsofage.Mustbemale.��

Mustundergo��

amedicalexaminationandbeproventobephysicallyfitforwork.

Paymentrequirements

Mustbepaid��

intheofficialcurrency.Isentitledtoa��

fullwageifthevoyageiscutshort,unlesswageissetasashareoftheprofits.

Isnotrequired��

tobearcostsofnecessarymedicalexaminations.



Specialrequirements

Workinghours��

mustnotexceed14ina24hourperiod.Mustbe��

providedwithfoodandaccommodation.Iseligible��

forpayuptooccurrenceiftheshipiscaptured,sinksorisunseaworthy.

Actualworking��

hoursshallnotexceed7hoursaday.Employermust��

establisharescuepointinthevicinityoftheworkplacewithrescueandfirstaidequipment;mustincludetrainedtechnician.

PleaseconsultwiththeMinistryofLaborforadditional��

laborprovisionsrelatedtoemploymentinthemaritimeindustryorinminesandquarries.

Work inspection

Workinspectionsareregularlycarriedoutbywork��

inspectorsappointedandtrainedbytheMinistryofLabor.WorkinspectorshavetheauthoritytomonitorimplementationoftheLaborLawandreportdeficienciesandviolations;suggestoptionsforproperimplementationoftheLaborLaw;andprovidetechnicalinformationandguidelinestoemployersandemployees.Employersmustfacilitatetheworkinspectorsintheperformanceoftheirdutiesbyprovidingrequireddataandrespondingtorequests.

If,inthecourseofinspection,theworkinspector��

concludestheexistenceofaviolationoftheprovisionsoftheLaborLaworofanydecisionsissuedhereunder,hemay(dependingontheseriousnessoftheviolation)provideadvicetotheemployeronhowtoavoidsuchviolations;servetheemployerwithaverbalnoticeorawrittenwarningtorectifytheviolationwithinacertainperiod;ordraftandsubmitareportrecordingtheviolation.

Commission for Settlement of Labor Disputes

ThePreliminaryCommissionforSettlementofDisputes��

andtheHighCommissionforSettlementofDisputesareresponsiblefortheresolutionoflabordisputesintheKingdomofSaudiArabia.Circuitsforeachpreliminarycommissionarelocatedineachlaborofficeanddecidecasesthatarereferredtoit.Theworkcontractpartiesmayalsoincorporateaclauseintheworkcontractprovidingforsettlementofdisputesthrougharbitrationormayagreetodosoafterthedisputearises.



ThePreliminaryCommissionhasjurisdictionover��

finaldecisionswherelabordisputesdonotexceedtenthousandriyals(SR10,000);wherethereisanobjectiontoapenaltyimposedbytheemployer;andwherethepunishment(s)forviolation(s)oftheLaborLawdonotexceedfivethousandriyals(SR5,000).TheseCommissionsalsorenderpreliminarydecisionsonlabordisputesexceedingtenthousandriyals(SR10,000);onpunishment(s)forviolation(s)oftheLaborLawexceedingfivethousandriyals(SR5,000);andondisputesofanyamountsoverworkinjurycompensationsorterminationsofservice.TheHighCommission,comprisedofseveralcircuits,hasfinaljurisdictiontodecideallappealsbroughtbeforeitondecisionsfromthePreliminaryCommissions.

Casestobesubmittedforthesettlementoflabor��

disputesarefiledwiththePreliminaryCommissionsthroughthelaborofficewithrelevantlocaljurisdictionfortheworkplaceafterthelaborofficetakesthenecessarymeasurestofirstsettlethedisputeamicably.WhilethecaseisunderreviewbytheCommissionorinreconciliationorarbitrationproceedings,theemployermaynotchangethetermsofemployment.

Decisionsmustbeappealedwithinthirty(30)daysfrom��

theissuanceofthePreliminaryCommission’sdecision;ifnoappealismadewithinthisperiod,thedecisionisconsideredfinal.AlldecisionsoftheHighCommissionarefinalfromthedateofissuance.

Penalties

TheMinistryhasestablishedpunishments��

commensuratewiththeseverityofvariousviolationsoftheLaborLaw,including(butnotlimitedto)financialpenaltiesandthesuspensionofcommercialactivityintheKingdom.PleaseconsulttheMinistryofLaborforadetailedlistingofthepenaltiesassociatedwithviolationsoftheLaborLaw.



Saudi life and culture

The hospitable Kingdom

Havinglongplayedhosttoexpatriateworkersandbusinessvisitorsfromacrosstheglobe,SaudiArabia’samenitiesoffervisitorsamicrocosmofhomeinthemidstofaculturallyrichKingdom.

Accommodation

WhethersettlingintheKingdomorjustpassingthrough,visitorstoSaudiArabiacanchoosefromarangeofmodernhousingoptionstosuitanybudget.

Forshort-termstays,SaudiArabiaoffersanarrayoffourandfive-starhotelslocatedineverymajorcity.Executiveapartmentsarealsofoundthroughoutthecountryandofferaluxuriousandcomfortablealternativetohotelrooms.Long-termtenantsinSaudiArabiahaveanevenlargerselectionofhousingoptionsavailabletothem,includingtheKingdom’sfamoushousingcompounds.Foundthroughoutthecountry,compoundsoffertop-qualityaccommodationandentertainmentfacilities,inadditiontoincreased

security.Manycompoundsoffersuchfacilitiesasswimmingpools,supermarkets,fitnessclubs,bowlingalleysandevengolfcourses.

Education

TheKingdomofSaudiArabiapridesitselfonfurnishingmanyofthefinesteducationalinstitutions,bothpublicandprivate,intheGulfregion.Forexpatriatefamilies,numerousworld-classinternationalschoolsanduniversitiesexistineverymajorcitythroughouttheKingdom.

International schools

AlHussanAcademy

BritishInternationalSchoolofAlKhobar

DhahranBritishGrammarSchool

InternationalSchoolsGroup

SaudiAramcoSchools

AmericanInternationalSchoolofJeddah

BritishInternationalSchoolofJeddah

ContinentalSchool

AlWahaInternationalSchool

JeddahPrep&GrammarSchool

TheInternationalDutchSchool

TheInternationalBritishSchool

JubailInternationalSchool

AmericanInternationalSchoolofRiyadh

BritishInternationalSchoolofRiyadh

KingFaisalSchool

InternationalSchoolofYanbu



Healthcare

Publicandprivateprimary,secondaryandtertiaryhealthcarefacilitiesandservicesarereadilyavailableacrossSaudiArabia.TheKingdom’shospitalsandclinicsareequippedwithstate-of-the-artequipmentandlaboratoriesandstaffedbyhighlytrainedphysicians,specialistsandparamedicsfromacrosstheworld.Prescriptiondrugsandothermedicinesarealsowidelyavailableatpharmaciesanddrugstoresthroughoutthecountry.

Recreation and activities

VisitorstoSaudiArabiacanenjoyanendlessarrayofuniqueanddistinctiveactivities,whethertheyarelookingforspectacularculturalsites,sportingevents,shopping,orsimplyadesertpicnicunderthestars.

Cultural sites

SaudiArabia’svasttourismpotentialincludescountlesshistorical,archaeologicalandreligiousattractions–productsofitsrichandancientculturalheritagedatingbackthousandsofyears.SaudiArabia’slandscapeisdottedwitharchaeologicalandculturalheritagesites,aswellasnumerous,storiedregionsofspectacularnaturalbeauty.Fromthelushmountainsofthesouthtothevastdesertsofthenorth,theeast’sdesolate‘emptyquarter’tothemajestyofwesternJeddah’scoralshelves,avisitortoSaudiArabiahasmuchtoseeanddo.

Sports

VisitorscanparticipateinarangeofsportingactivitiesinSaudiArabia,includinggolf,tennis,andfishing.Spectatorsportsincludefootball(soccer),horseandcamelracing.Incoastalresorts,sailing,snorkeling,windsurfing,water-skiing,catamarans,wetbikesandjetskisareallavailableinadditiontoscuba-divinginthespectacularcoralreefsoftheRedSeaandArabianGulf.Inaddition,thedesertenvironmentprovidesopportunitiesforoff-roaddrivinginjeepsandfour-wheelers.

Shopping

AffectionatelyknownastheKingdom’sother‘nationalsport’(afterhorseracingandfalconry),shoppinginSaudiArabiaoffersaone-of-a-kindexperience.Fromtraditionalsoukstothehundredsofmodernshoppingmallsscatteredthroughoutthecountry,shopperswillhavenotroubleinfindingeverythingfromtraditionalartsandcraftstohaute coutureandwell-knowninternationalbrands.WithnosalestaxorVAT,shoppersarealwaysguaranteedattractivepricesinSaudiArabia.

Shopping hours: Sat-Thurs0900-1300and1630-2000(Ramadan2000-0100).Thesehoursdifferinvariouspartsofthecountry.



Social conventions

SaudicultureisbasedonIslamandtheperfectionoftheArabiclanguage.SomeremoteareasinSaudiArabiaremainconservative,butthroughoutthecountrythiswayoflifeisbeingalteredbymodernizationandrapiddevelopment.

Shakinghandsisthecustomaryformofgreeting.Invitationstoprivatehomesareunusual.Entertainingisusuallyinhotelsorrestaurantsandalthoughthecustomofeatingwiththerighthandpersists,itismorelikelythatknivesandforkswillbeused.Asmallgifteitherpromotingthecompanyorrepresentingyourcountrywillgenerallybewellreceived.

Womenareexpectedtodressmodestlyanditisbesttodosotoavoidoffence.Menshouldnotwearshortsinpublicorgowithoutashirt.Thenormsforpublicbehaviorareconservative.

Going out

Localfoodisoftenstronglyflavoredandspicy.Themostcommonmeatsarelambandchicken;beefisnotcommonlyfoundandporkisprohibitedunderIslamiclaw.Themainmeatmealofthedayislunch.Foreigncookingisonofferinlargertownsandthewholerangeofinternationalcuisine,includingfastfood,isavailableintheoil-producingEasternProvinceandinJeddah.

Local currency

ThelocalcurrencyofSaudiArabiaistheRiyal(SR),which��

ishasafixedexchangerateofSR3.75perUS$1.SaudiArabiaisamemberoftheGulfCooperationCouncil(GCC)whichhasproposedestablishingacommoncurrencyin2010.

Official language

TheofficiallanguageofSaudiArabiaisArabic.Englishis��

commonlyusedandacceptedinthebusinesscontext.



Top things to do

Go�� shoppinginthetraditionalsouks,largedepartmentstoresandmallcomplexes.Shoppingisamuch-lovedwaytospendtimeinSaudiArabia

Visittheroyalcapital,�� Riyadh,amoderncitybuiltonthesiteofthefirsttowncapturedbyIbnSaudin1902.TheonlytraceoftheoldtownthatremainsistheMasmak FortandafewtraditionalNajdi palacesnearDeeraSquare.

Discover�� Hofuf,atthecentreofthegreatAl-Hasa oasis,whichhasastrongTurkishinfluenceandaverygoodcamel market.Theagricultureherethrivesandthefoodissensational.

Exploretheornateruinsof�� TimnaandShiban,ancientcitiesrestingamidstorchardsofpomegranates,limesandbananas.

Enjoythe�� Obhir Creek,northofJeddah.Ithasgoodfacilitiesforwater sports,includingswimming,waterskiing,fishing,snorkelingandsailing,andtherearesimilarbeachesontheGulf coast southofAlKhobar.

Drive(carefully–SaudiArabiadoesnotboastgreat��

drivingconditionsandhasahighincidenceofcaraccidents)downtheastoundingmoderncorniche roadthatwindsalongthesheercliffsoftheTaif escarpmenttothehotcoastalplain.

FindsomeofSaudiArabia’sancient�� craftsandskills.InJebel-al-Qara,thepotterieshavebeenworkedbyeightgenerationsofthesamefamily.

Top things to see

Seetheragged,coral-colored�� Ottoman buildingsoftheancientcityofJeddah.Itshotelsandrestaurantsarecosmopolitanandtherearegoodfishandmeatmarkets.

Witnesstheastonishinglandscapeandwildlifeof�� The Asir,arangeofcoastalmountainsandtheonlypartoftheKingdomwherethereissignificantwildvegetation.Baboon,gazelleandleopardinhabitremoterareas.

Whilstintheregion,seetheancient�� gasaba towers,theancientcaravancityofQaryat-al-Fau,thegreatdamandtempleatNajran.

Seeanancientsaltmineinuse.The5,000-year-oldonein��

Abqaiqisstillinoperation.

Lookaroundin�� Taiftoseepink palacesinbetweenthestunningcliff-tops.SuchbeautyandamildclimatehavemadethistownSaudiArabia’sofficialsummercapital.

Viewapicturesquesettlementoffishermenandweavers��

onTarut Island.Itisalsothesiteoftheoldesttownonthepeninsula.

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Sector guide

When you think about Saudi industries, you probably think of Oil – which remains the Kingdom’s most prominent sector. But there’s also a much bigger picture. While the Energy sector itself is growing, diversification into other areas has created huge investment potential in everything from Transport and Information Technology to Health, Life Sciences and Education.

Crude Oil Refining

Withtheworld’slargestprovenoilreservesandglobaldemandexpectedtoremainstrong,SaudiAramco’sforeignpartnershipprojectsaimtodevelopthreenewexport-orientatedrefineries,offeringverysubstantialinvestmentopportunitiestoinvestors,intheprogressivelyderegulatedSaudimarkets.



Petrochemicals

SaudiArabiaistheworld’s11thlargestpetrochemicalsupplierandhasbecomeamemberoftheWTO,whichprovidesfreeaccesstonewglobalexportmarkets.TheKingdomhasalsoopenedupitsrapidlydevelopingpetrochemicalindustriestoprivate-sectorinvestments,creatingsignificantbusinessopportunitiesforinvestors.

Fertilizers

Withanaturalabundanceofworld-classphosphatedeposits,naturalgas,sulfurandpotash,SaudiArabianotonlyhascompetitiveadvantagethroughitsgeographicallocationbetweenmarketsinAsia,EuropeandNorthAmerica,butisalsowell-placedtosupply,securelow-costfertilizerstoAsia’sboomingmarkets.

Power and Water

AsharppopulationgrowthandhugeinvestmentsinsocialandindustrialdevelopmentshasleadtoanextremelyhighdemandforpowerstationsanddesalinationplantsinmanykeyregionsintheKingdom.OperatorsintheKingdomenjoysomeofthehighestannualgrowthratesintheworldand,withstrongprofitmargins,havecreatedexcellentinvestmentopportunitiesforlong-termassets.

Mining and Metal Processing

Well-documentedrichdepositsofbauxite,phosphate,zinc,copperandgoldandamulti-billion-dollarinitiativetodeveloptheKingdom’saluminumsectordemonstrateSaudiArabia’scommitmenttotheindustry.TheKingdom’snewminingcode,taxreductions,low-costenergyandgas,provideexcellentinvestmentandexplorationopportunitiesinthevastunexploredlandmass.

Transport and LogisticsSaudiArabiahasbegunlarge-scaleinvestmentsinsophisticatedtransportnetworksandinfrastructureprojectsthatwillbesupportedbymassivecapitalspendingof$100billionoverthenext10years,strongdomesticgrowthandcheapenergysupplies.Withahighlystable,competitiveandincreasinglyliberalbusinessenvironment,theKingdomhasthepotentialtobecomeaglobaltransportandlogisticshub.

Information and Communication Technology (ICT)WiththelargestICTmarketintheMiddleEast,SaudiArabiahasembarkedona20-yearICTplanthatwillbesupportedbymassivepublicinvestment.Withclearsignsofrapidgrowth,increasedgovernmentusageofweb-basedservices,connectivityfortheEconomicCities,thereisauniqueopportunityforgreenfieldprojects,contractorsandserviceproviderscoveringmillionsofusers.



HealthSaudiArabia’sexpandinghealthcaresystemoffersattractiveinvestmentopportunities.Aidedbylargebudgetsurpluses,thepublicsectorissettomakeunprecedentedinvestmentsinthehealthcaresystemtoprovidecarefortherapidlyexpandingpopulationoftheKingdom.Theimminentneedforacomprehensiveinformationmanagementsystemwillalsoprovideextensiveprivate-sectoropportunitiestocontributetotheemerginghealthcaremarket.

Life SciencesOneoftheSaudiGovernmentstopeconomicprioritiesistodevelopaLifeSciencesindustry.TheGovernmentofferssignificantfinancialgrantsforR&Dopportunitiesinpharmaceuticals,medicaldevicesandagrochemicals.Domesticandregionalend-marketsalsopresentanattractiveinvestmentprofileintheKingdomanditsneighbouringeconomies.SaudiArabiaalsoprovidesanexcellentexportplatformtothevasthealthcareandagrochemicalmarketsofEuropeandAsia.

EducationSaudiArabiahasinitiatedacompleteoverhaulofitseducationsystematacostof$3.1billion.Withagrowingpopulationdemandforhigh-qualityeducation,thegovernmenthasanambitiouspublicinvestmentcampaigntobringknowledge-intensiveindustriestotheKingdom,providingtheprivatesectorandforeignorganizationswithanopportunitytoentertheEducationsector.Indeed,theEconomicCitieswillprovideanunprecedentedplatformforforeignorganizationstoparticipateinavarietyofeducationaltrainingservices.

The Economic Cities

Forget everything you know about ‘industrial parks’ and ‘free zones’. Saudi Arabia’s four new Economic Cities – fully planned and under construction – are exactly that: new cities, where up to five million residents will live, work and play. Each will be an exciting metropolis, designed to maximise investment potential and deliver huge advantage to businesses located there.

King Abdullah Economic City

Area: 168 million sq mInvestment size: $27 billionJobs: 1 millionPopulation: 2 million

AsthecrownjewelintheKingdom’sdevelopmentstrategy,KAECwillbecomeoneofthemostimportantcitiesintheKingdom,providingahighstandardoflivingfornearly2millionpeople.The$27billioninvestmentinKAECisaprimeexampleofSaudiArabia’scommitmenttoencouragingprivate-sector-drivendevelopmentintheKingdom.Thecity



willconsistofsixcomponents:TheSeaport,IndustrialZone,EducationalZone,CentralBusinessDistrict(includingaFinancialIsland),ResidentialandResortDistricts.TheCityisbeingbuiltbyaconsortiumheadedbyglobalrealestategiantEmaarPropertiesandanumberofSaudiinvestors.InternationalexpertshavealsobeenconsultedtoensurethattheIndustrialZoneisinlinewithenvironmentalbestpractice.KAECisdesignedtobecomeaworld-classmetropolisofthefuture;whencompleteditwillbecomparableinsizetoWashingtonDC.

Prince Abdul-Aziz bin Mousaed Economic City

Area: 156 million sq mInvestment size: $8 billionJobs: 55, 000Population: 300,000

ThecityofPABMECislocatedinthenorthern-centralregionofHail.Theprojectwillleveragetheregion’sstrengthsinagriculture,mineralsandclimate.Withaninvestmentof$8billion,thecityisexpectedtocreate55,000newjobs.

AstheMiddleEast’smostadvancedtransporthubs,PABMECwillincludeastate-of-the-artdryport,internationalairportandlandfreightsector.Thenewinternationalairportisexpectedtoserveatleastthreemillionpassengersperyearandtherailwaystationwillservetwomillionpassengersannually.PABMECwillalsohostanagro-industrialzone,withapetrochemicalandminingcenter,aswellasprocessingandconstructionmaterialszones.Thecitywillalsoofferbusiness,residentialandrecreationalsectors.

Knowledge Economic City

Area: 4.8 million sq mInvestment size: $7 billionJobs: 20,000Population: 150,000

KnowledgeEconomicCity(KEC)isuniquelypositionedtoattracttalentedMuslimsfromaroundtheworld.WithKECfocusingonknowledge-basedindustries,itisexpectedtocreateabout20,000newjobsintheindustrial,academic,culturalandcommercialsectors.

UnderthedirectionoftheCustodianoftheTwoHolyMosques,KingAbdullahbinAbdulaziz,SAGIAbroughttogetheraconsortiumofSaudicorporationstoformaninvestmentvehicleforthedevelopmentoftheKingAbdullahFoundationproperty.

KECwillconsistofanumberofcomplementarycomponentsthatsupporttechnologicalinnovation.TheCityisalsoequippedwithanadvancedinfrastructure,includingconferencehalls,exhibitioncentersandofficespaceaccommodatingupto10,000employees.ThereisalsoaplannednetworkoftransportationfacilitiestoconnectthecitytotheHolyMosqueinAl-Madinaandothermajoreconomiccentersinthecountry.


Jazan Economic City

Area: 100 million sq mInvestment size: $27 billionJobs: 100,000Population: 300,000

JazanEconomicCity(JEC)willbelocated60kmnorthwestofJazanCityand725kmsouthofJeddahontheRedSea,whichisoneofSaudiArabia’smostimportantseaports.Itslocationwillprovideaccesstoabundantlaborandrawmaterials,includingenergy,siliconandminerals.

Withexcellentsearoutes,aninternationalairport,aproposednewroadrunningeastandaplannednewrailconnectiontoJeddah,JECwillbetheregionaleconomicengineandgatewaytotheglobaleconomyforthisregion’sresources.

JazanEconomicCity’sprimarysectorswillbe:portservices,power,water,oil,aluminum,steelandcopper,whichareexpectedtoattractmorethanSAR100billionininvestmentsandcreatesome100,000newjobs.JEC’sindustrialzonewillaccountformorethantwothirdsoftheoverallproject.

Morethanjustacompetitivelocationforglobalbusinessactivities,JECwillalsoplayacrucialroleinaccommodatingtherapidlygrowingSaudipopulation–expectedtonearlydoubleoverthenexttwenty-fiveyears.Likewise,consumermarketsarealsoexpectedtoexperiencesubstantialgrowth.

The time to invest is nowIf you’re looking for higher productivity, lower costs and improved profitability, take the time to look closely at Saudi Arabia. As the world’s fastest reforming business climate – with corresponding big ambitions – the Kingdom offers unlimited potential to investors with an eye for high-quality investment opportunities.

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investment guide

Documents

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saudi arabiacontents1

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saudi arabia thebigpicture2

business world bank

sagia investor services

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