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