Investing in Saudi Arabia is an ideal choice for businessmen and investors who wish to invest money outside their own borders. It is also an ideal option for companies wishing to expand and open new branches in the Arab region. In the Arab region and North Africa, we will provide you with many important details such as (incentives for "why" investing in the Kingdom, the most important industrial cities where projects can be set up, available investment opportunities, excluded activities).
Why invest in Saudi Arabia:
1 - Strong and stable economy:
The Kingdom ranks 20th in the list of the most economically powerful countries (based on GDP) and is a member of the G20 and is the only Arab representative in this group. The most powerful economy in the Middle East and North Africa, Saudi Arabia ranks 16th in the list of the world's leading exporters of goods and services and ranks 29th in the list of the most importing countries for goods and services. Saudi Arabia is one of the fastest growing economies in the world, with per capita income expected to rise to $ 33,500 from $ 25,000 in 2012. The Kingdom also has the largest free market in the Middle East, accounting for 25% It also has the largest oil reserves in the world, 25%.
2. Outstanding infrastructure:
Over the past years, Saudi Arabia has exploited the financial revenues it receives from the export of oil and natural gas in the development and improvement of the country's infrastructure. A paved road network of 66,300 km has been established to connect all parts of the Kingdom And thus it is easy for companies and investors, whether local or foreign, to transport goods and raw materials within the borders of the Kingdom without problems or difficulties. Railways are being developed and new railways are currently being constructed, such as Al-Haramain Highway and heavy cargo lines, which will link mines to industrial areas, ports and passenger trains in Makkah, Riyadh and Jeddah. There are also several airports in the Kingdom that have air ports that companies and investors can rely on in the export or import of goods, equipment or raw materials. Currently, work is being done on the construction of airports and ports in different areas such as Prince Abdulaziz bin Mousaed Economic City and Jazan City Economic and other factors in order to facilitate investment companies in Saudi Arabia, whether local or foreign. There are also marine ports in the Kingdom that can be relied upon in the export or import of goods, equipment or raw materials such as (Jeddah Port, Jazan Port, Dammam Port, Jubail Port, Daba Port, Yanbu Port) A modern port in King Abdullah Economic City. The Kingdom also spent a lot of money on the telecommunications sector, thus owning one of the best telecommunications networks at the global level. It also spent a lot of money over the past years to develop electricity and solar networks to become one of the largest producers of energy in the world. The largest producer of local water in the world water and also spent a lot of money on the development of sewage networks and has been established many hospitals, schools and training centers.
3 - Many strategic advantages:
There are many strategic advantages that would encourage foreign investors to invest in Saudi Arabia, including
4 - Investment incentives and support investors:
Foreign companies receive the same incentives, support, guarantees and privileges as local companies.
The industrial cities in the Kingdom:
There are many industrial cities in the Kingdom and foreign investors are entitled to establish their projects and benefit from the many advantages granted by the state for them such as tax cuts and low rents and others, these regions are (Riyadh 1, Riyadh 2, Riyadh 3, Jeddah 1, Jeddah 2, Jeddah 3, Dammam 1, Dammam 2, Dammam 3, Sudair Industrial, Qassim 1, Qassim 2, Hail, Al Kharj, Al Hasa 1, Al Hasa 2, Madinah, Makkah , Arar, Dharma, Zulfi, Hafr Al Batin, and the North Industrial Promise).
Available investment opportunities:
Saudi Arabia can invest in various sectors such as transportation, health care, building materials, tourism, agriculture, automotive, equipment, mining, oil and gas, chemicals, communications and information technology, housing and reconstruction, energy and electricity, water, education, engineering services. , Renewable energy, military spare parts).
Exempt Activities:
There are some activities that foreign investors are not allowed to invest their money in. These activities are:
1- Industry Sector:
Exploration of petroleum materials or exploration thereof.
Manufacture of equipment, equipment and clothing.
Explosives industry.
2. Services Sector:
In this way, we have presented the most important motives and advantages that drive foreign investors to invest in Saudi Arabia. We also presented the most important industrial cities which give many advantages to foreign investors such as reducing customs and rents. We also presented the most important sectors in which we can invest. Investment, and certainly the investor interested should look more to identify the laws of investment in Saudi Arabia and the establishment of foreign companies and how to establish the necessary capital and requirements to be met.
Why invest in Saudi Arabia:
1 - Strong and stable economy:
The Kingdom ranks 20th in the list of the most economically powerful countries (based on GDP) and is a member of the G20 and is the only Arab representative in this group. The most powerful economy in the Middle East and North Africa, Saudi Arabia ranks 16th in the list of the world's leading exporters of goods and services and ranks 29th in the list of the most importing countries for goods and services. Saudi Arabia is one of the fastest growing economies in the world, with per capita income expected to rise to $ 33,500 from $ 25,000 in 2012. The Kingdom also has the largest free market in the Middle East, accounting for 25% It also has the largest oil reserves in the world, 25%.
2. Outstanding infrastructure:
Over the past years, Saudi Arabia has exploited the financial revenues it receives from the export of oil and natural gas in the development and improvement of the country's infrastructure. A paved road network of 66,300 km has been established to connect all parts of the Kingdom And thus it is easy for companies and investors, whether local or foreign, to transport goods and raw materials within the borders of the Kingdom without problems or difficulties. Railways are being developed and new railways are currently being constructed, such as Al-Haramain Highway and heavy cargo lines, which will link mines to industrial areas, ports and passenger trains in Makkah, Riyadh and Jeddah. There are also several airports in the Kingdom that have air ports that companies and investors can rely on in the export or import of goods, equipment or raw materials. Currently, work is being done on the construction of airports and ports in different areas such as Prince Abdulaziz bin Mousaed Economic City and Jazan City Economic and other factors in order to facilitate investment companies in Saudi Arabia, whether local or foreign. There are also marine ports in the Kingdom that can be relied upon in the export or import of goods, equipment or raw materials such as (Jeddah Port, Jazan Port, Dammam Port, Jubail Port, Daba Port, Yanbu Port) A modern port in King Abdullah Economic City. The Kingdom also spent a lot of money on the telecommunications sector, thus owning one of the best telecommunications networks at the global level. It also spent a lot of money over the past years to develop electricity and solar networks to become one of the largest producers of energy in the world. The largest producer of local water in the world water and also spent a lot of money on the development of sewage networks and has been established many hospitals, schools and training centers.
3 - Many strategic advantages:
There are many strategic advantages that would encourage foreign investors to invest in Saudi Arabia, including
- The availability of energy, raw materials and natural resources, which are considered as essential factors of production.
- The country is best suited to invest in industries that need a large amount of energy, with a great deal of electricity and energy.
- The industrial sector is booming and growing significantly and is the largest in the Arab region.
- The largest economy and consumer market in the Middle East and North Africa.
- The site of the Kingdom is more than unique, from which it is possible to access Asian, European and African markets easily (more than 2.5 billion customers).
- The economic and political climate encourages investment in Saudi Arabia despite some of the political problems that have emerged recently in the border with Yemen.
- The government gives many advantages to foreign investors to encourage them to invest in Saudi Arabia (we will explain later).
4 - Investment incentives and support investors:
Foreign companies receive the same incentives, support, guarantees and privileges as local companies.
- No taxes shall be levied on the income of individuals, personal property or land.
- Foreign investors have the right to own land, companies, projects, factories or equipment in different parts of the country except Medina and Makkah.
- The availability of more than 32 industrial city allows foreigners to set up projects and take advantage of the many advantages granted by the state.
- Export duties are not imposed in the 17 countries of the Arab Free Trade Area.
- 20% tax is levied on the profits of foreign companies, allowing for delay in case of loss.
- No restrictions are imposed on foreign workers.
- Less restrictions on bank transfers and currency exchange.
- Customs exemptions on equipment, raw materials, production factors and parts not available locally.
The industrial cities in the Kingdom:
There are many industrial cities in the Kingdom and foreign investors are entitled to establish their projects and benefit from the many advantages granted by the state for them such as tax cuts and low rents and others, these regions are (Riyadh 1, Riyadh 2, Riyadh 3, Jeddah 1, Jeddah 2, Jeddah 3, Dammam 1, Dammam 2, Dammam 3, Sudair Industrial, Qassim 1, Qassim 2, Hail, Al Kharj, Al Hasa 1, Al Hasa 2, Madinah, Makkah , Arar, Dharma, Zulfi, Hafr Al Batin, and the North Industrial Promise).
Available investment opportunities:
Saudi Arabia can invest in various sectors such as transportation, health care, building materials, tourism, agriculture, automotive, equipment, mining, oil and gas, chemicals, communications and information technology, housing and reconstruction, energy and electricity, water, education, engineering services. , Renewable energy, military spare parts).
Exempt Activities:
There are some activities that foreign investors are not allowed to invest their money in. These activities are:
1- Industry Sector:
Exploration of petroleum materials or exploration thereof.
Manufacture of equipment, equipment and clothing.
Explosives industry.
2. Services Sector:
- Insurance Services.
- Investigations and security.
- Insurance for the military sectors.
- Real estate investments in the city and Mecca.
- Tourist guidance services related to Umrah and Hajj.
- Brokerage.
- Sellers and Publishing.
- Space transport services.
- Distribution Services.
- Land and air transport.
- Blood banks and sanitary ware.
- Voice and visual services.
In this way, we have presented the most important motives and advantages that drive foreign investors to invest in Saudi Arabia. We also presented the most important industrial cities which give many advantages to foreign investors such as reducing customs and rents. We also presented the most important sectors in which we can invest. Investment, and certainly the investor interested should look more to identify the laws of investment in Saudi Arabia and the establishment of foreign companies and how to establish the necessary capital and requirements to be met.
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