Some important things to know about Investing in Saudi Arabia:

• The basics
• Investment incentives
• Relevant government bodies
• Monetary policy
• Finance
• Laws
• International Agreements

  Area	2,240,000 sq km
  Population	27,136,977   million (2010)
  Density of population	2.26%
  Capital	Riyadh
  Main cities	Riyadh  (The capital) Makkah  (The most sacred place to Muslims, and their praying direction)  Al Madinah (Second most sacred place) Jeddah  (Saudi capital of business, an important port, and a major gateway to pilgrims) . Dammam  (Capital of Eastern region, well-off oil, and an important port) . Dhahran (A military city, the location of Saudi Aramco`s headquarter which the largest oil company in the world .  ArAr (Capital of Northern region)
  Overview of Saudi Arabia	Saudi Arabia is located in the South-west of Asia. Bounded by the red sea from the west. Jordan, Iraq, and Kuwait from the North. Arabian Gulf, Bahrain, Qatar, and United Emirates from the East. Yemen and Oman from the South.
  Climate	Continental weather Summer : very hot  Winter : cold
  Judicial law	The constitution of Saudi Arabia is Quran and Sunnah, all legislative regulations have been derived from these two sources. The regime in Saudi Arabia is a monarchy system. The king and the Council of Ministers form the executive and the legislative authority. The State Consultative council has the mission of giving its opinion on any general issue submitted to the council by the prime minister.
  Language	Arabic
  Currency	Saudi Riyal
  National day	23rd, September. (1932 A.D)
  Symbol	Two crossed curved swords which symbolize strength and justice. A palm tree on the top symbolizes prosperity.
  Timing	GMT + 3:00
  Internet code	sa
  Phone code	00966
  Calendar	Saudi Arabia follows the Muslims Hijra calendar, which is the day when Prophet Mohammad (Peace be Upon him) migrated from Makkah to Al Madinah corresponding to 622 A.D . Hijra year has 12 months. However, it\\s ten or eleven days less than the calendar year. In the hijra calendar, the month ranges between 29 to 30 days .
  Working days	Saturday to Wednesday (Regarding to public sector). Public Sector: 7:30 a.m to 2:30 p.m Private Sector:  Morning: 8:00a.m to 12 p.m Afternoon: 4:30 p.m to 7:30 p.m Thursday: (morning shift only)  Banks: 8:30 a.m to 4:30 p.m Shopping Stores Weekdays: 10:00 a.m to 12:00 p.m  Friday:4:00 p.m to 10 p.m
  Weekends	Thursday - Friday
  Official holidays	Eid Al Fitter : 25th Ramadan to 8th Shawwal                      4 - 17 Sep , 2010 Eid Al Adha : 7th Thi Alhijja to 13 Thi Alhijja                      13 - 19 , Nov ,2010
  Measurements and weights	Weights: Ton – Kilogram Measurements: Meter – kilometer – centimeter nvestment climate in Saudi Arabia Saudi Arabia’s 27 million increasingly prosperous consumers are at the heart of the Middle East/North Africa (MENA) region’s 400 million-strong population. One of the world’s 25 largest economies (24th), and No.1 in the MENA region, Saudi Arabia ranks 13th out of 181 countries for the overall ‘Ease of Doing Business’, according to the International Finance Corporation/World Bank’s ‘Doing Business’ report in 2009. The Kingdom is one of the fastest-growing countries worldwide, with per capita income forecast to rise from $20,700 in 2007 to $33,500 by 2020. In addition, Saudi Arabia is also the top foreign investment destination in the Arab world and among the top 20 globally. As you can see, Saudi Arabia is an exciting and rewarding place to invest and do business.   You can rest assured that you will find no better partner than the Saudi Arabian government in supporting your investment in the Kingdom. With account surpluses consistently in excess of 25% of gross domestic product, Saudi Arabia has ample capital to move the Kingdom forward by making large investments in targeted areas of growth. The Saudi economy is supported by one of the world’s most stable currencies (the Saudi Riyal) and by low inflation. The government of Saudi Arabia also offers the 7th most rewarding tax system in the world and is also the 7th ‘freest labor market’ according to the World Economic Forum. You will find that, at all levels, the Saudi government is dedicated to supporting the growth of your business in the Kingdom    Saudi Arabia is more than ready to meet your investment needs through its progressive regulatory and generous financial incentives.   Regulatory incentives The government is also committed to reducing bureaucracy at all levels and transforming government departments in an effort to support foreign investment. H.M. King Abdullah chairs the Saudi Supreme Economic Council, which is in charge of overseeing privatization and encouraging foreign investment. In 2000, the Saudi government announced a new Foreign Investment Law, introducing major regulatory incentives including (but not limited to):   The establishment of the Saudi Arabian General Investment Authority (SAGIA), to assist foreign investors in the application and approval process for operating in the Kingdom. Accelerated investment application, business registration and set-up process, with a guaranteed decision for foreign investment applications within thirty (30) days of submission to SAGIA. Equal benefits, incentives and guarantees for foreign investors and domestic companies. 100% foreign ownership of companies and property. 100% property ownership for foreign investors. No minimum capital requirement No restrictions on repatriation of capital The ability for foreign investors to sponsor foreign employees. Financial incentives No personal income taxes and only a 20% corporate tax. Ability to carry forward losses on balance sheets indefinitely. Foreign investors have access to generous regional and international financial programs, including: o Arab Fund for Economic and Social Development (AFESD): Participates in financing economic and social development projects in Arab countries. o Arab Monetary Fund: Promotes the development of Arab financial markets and trade among member states; advises member states on investment of resources. o Arab Trade Financing Program: Provides medium and long-term loans to individuals and organizations for private and commercial trade. o Inter-Arab Investment Guarantee Corporation: Provides insurance coverage for inter-Arab investments and export credits against commercial and non-commercial risks. o Islamic Development Bank: Participates in equity capital and grants loans for productive projects and enterprises. It accepts deposits to mobilize financial resources through Shari\\a compatible avenues.  Other financial incentives to realize the full potential of your investments in the Kingdom include (but are not limited to): o The Human Resources Development Fund to support activities related to qualifying, training and recruitment of Saudi labor. o Preferential allocations of natural gas. o Competitive industrial utility rates for water, power and land. o Large research and development endowments at King Abdullah University for Science and Technology (KAUST) and King Abdul Aziz City of Science and Technology (KACST). Tax incentives The government of Saudi Arabia has granted tax concessions to six less-developed regions in the Kingdom, with the intention of attracting more investment. These tax privileges are granted for a period of ten years from the start of any project. The tax cuts will be offered in the following regions: 1. Ha’il 2. Jazan 3. Najran 4. Al-Baha 5. Al-Jouf 6. Northern Territory  The benefits are as follows: 50% deduction from the expenses of annual training for Saudis 50% deduction from the annual salaries paid to Saudis More deductions are granted if investment capital for any project exceeds SR 1,000,000 and if more than five employees of Saudi nationality have jobs of a technical or administrative nature with contracts of at least one year.Supreme Economic Council This was formed in 1999 under the leadership of H.M. King Abdullah. The Supreme Economic Council is the coordinator between the Kingdom’s many economic agencies, integrating their activities, and facilitating effective decision-making on economic issues.   Saudi Arabian Monetary Agency (SAMA) SAMA is the central bank of the Kingdom of Saudi Arabia, which is responsible for the following: Issues the national currency, the Saudi Riyal. Acts as a banker to the government. Supervises commercial banks. Manages the Kingdom’s foreign exchange reserves. Conducts monetary policy for promoting price and exchange-rate stability. Promotes the growth and ensures the soundness of the financial system.    Ministry of Economy and Planning The Ministry of Economy and Planning works to ensure that all government agencies work in a well-coordinated and well-informed manner to achieve the Kingdom’s economic priorities. The Ministry of Economy and Planning is responsible for the following functions: Prepares a periodic economic report on the Kingdom, featuring analysis of the economy, progress made and likely developments.  Prepares the five-year development plan.  Estimates the magnitude of financial resources required for the implementation of the development plans approved by the Council of Ministers.  Conducts economic studies as required, submits the findings, and collects, analyzes and publishes statistical data in economic, social and demographic fields. Saudi Industrial Development Fund The Saudi Industrial Development Fund participates in the financing of development projects in developing countries. SIDF makes its contributions through direct soft loans to the governments of these developing countries, with no geographical exclusion or pre-conditions. SIDF assigns priorities to the least developed, lowest-income countries. Saudi Industrial Property Authority (Modon) Established by legislation in 2001, Modon is responsible for developing and supervising industrial land in the Kingdom. Modon\\s mission is to undertake, as an independent public agency, the regulation and promotion of Industrial Estates and Technology Zones in the Kingdom of Saudi Arabia on both public and private industrial lands and to encourage the private sector to become involved in the development, operation and maintenance of Industrial Estates and Technology Zones.   Ministry of Commerce and Industry Established in 2003, the Ministry of Commerce and Industry is responsible for all aspects of commercial and industrial activity in the Kingdom.   Chambers of Commerce With the expansion of the Kingdom\\s economy and the need to consolidate the commercial base, the network of Chambers of Commerce has played an increasingly active role in the development of the Kingdom\\s commercial activity.  The Council of Saudi Chambers is based in Riyadh.   Ministry of Labor The Ministry of Labor is responsible for the development and use of the Kingdom\\s human resources, including manpower planning, labor relations and the general monitoring of all matters relating to employment, such as labor visas.   Ministry of Social Affairs The Ministry of Social Affairsis  is responsible for social insurance, and social care and development. It has charities and co-operative societies, as well as social research, within its jurisdiction. In keeping with the Kingdom\\s Islamic foundation, the Ministry is charged with ensuring that the less fortunate citizens of Saudi Arabia, the physically or mentally handicapped, the aged and the destitute, are cared for within a humane society. Throughout the Kingdom, facilities for the disabled and those needing rehabilitation have been established.  General Directorate of Passports The General Directorate of Passports has responsibility for implementing and monitoring policies and programs related to residency and human traffic within Saudi Arabia, such as:  The Iqama (Residence Permit) System organizing expatriate arrivals in the Kingdom and related visa, registration and renewal issues. Monitoring and regulation of arrivals and departures of individuals into and out of the Kingdom. The regulation and monitoring of companies and establishments that employ non-Saudis and aliens. Department of Zakat and Income Tax (DZIT) As part of the Ministry of Finance and National Economy, the Department of Zakat and Income has responsibility for tax policy and tax collection in the Kingdom.   General Organization of Social Insurance (GOSI) The General Organization for Social Insurance (GOSI) administers the Kingdom\\s national insurance program by paying allowances and other compensations to individuals and families in the Kingdom. Ministry of Municipalities and Rural Affairs  Established in 1975, the Ministry for Municipal and Rural Affairs is responsible for the administration of municipalities throughout the Kingdom. Its primary functions include town and city planning, as well as the development and maintenance of the basic infrastructure. Monetary policy Saudi Arabia’s monetary policy is managed by the Saudi Arabian Monetary Authority (SAMA) and is based on its fixed exchange-rate policy.   The Saudi Riyal is pegged to the US Dollar, based on the pattern of Saudi Arabia’s external receipts and payments, which are predominantly in US Dollars.   The operational target of SAMA is to manage system liquidity through the repurchase window. The intermediate target of SAMA is the stability of the Riyal against the Dollar as the anchor and intervention currency. Introduction to financing in the Kingdom Investors in the Kingdom will also have access to both debt and equity financing from the Saudi financial sector.  Financing is available to Saudi and non-Saudi businessmen and entities. Saudi entities may also borrow from non-Saudi banks and often employ the services of offshore banking units in Bahrain, which is a major banking center for financing. The financial sector is regulated and controlled by the Saudi Arabian Monetary Agency (SAMA).  Policies on financing and terms of payment aim to facilitate the free flow of financial resources. General financing availability Local commercial banks can also provide credit and project financing to businesses in the Kingdom. The private sector also has access to a variety of credit instruments. Credit from the commercial banks is allocated on market terms, and foreign investors can obtain credit on the local market.  Major commercial banks in Saudi Arabia include: – Arab National Bank – Al Jazira Bank – Al Rajhi Banking and Investment Corporation – Bank AlBilad – National Commercial Bank – Riyadh Bank – Saudi American Bank – Saudi British Bank – Saudi Fransi Bank – Saudi Hollandi Bank – Saudi Investment Bank Equity financing SAMA and the Capital Markets Authority (CMA) supervise the Saudi stock market, which is known as the Tadawul.  The Tadawul has grown significantly over the past 20 years and is now the largest stock market in the Arab world. In 2008, the value of trading exceeded $500 billion. The number of Joint Stock Companies that trade in the Saudi Arabia Stock Market has increased steadily, with approximately 127 firms now listed on the exchange. International investors have been approved to participate in the Tadawul through mutual funds since 1997 Special financing options Project financing is also available from specialized credit institutions in the Kingdom that have been set up to provide long-term loans to vital sectors of the economy.  These specialized credit institutions and their related financing areas include: Institution Area of Financing and Assistance Saudi Industrial Development Fund Low-cost medium and long-term capital for industrial projects Marketing, technical, and financial advice to all SIDF-financed projects to enhance their chances of success Public Investment Fund Medium and long-term loans to the large-scale government and private industrial projects not covered by commercial banks Real Estate Development Fund Medium or long-term loans to individuals or organizations for private or commercial housing projects Saudi Arabian Agricultural Bank Loans and credit facilities to farmers and agricultural projects Islamic Development Bank Equity capital and loans for projects that foster the economic development and social progress of member countries and Muslim communities.   Import payment process Most Saudi imports are received on the basis of an irrevocable letter of credit (L/C), although other arrangements such as an open account, cash in advance, and documentary collection are also permitted. Imports do not require mandatory, maximum or minimum credit terms. Typical turnaround times in local credit transactions range between three and four months. Trademark law Saudi Arabia is a member of the Paris Convention for the Protection of Industrial Property and follows the International Classification of Goods and Services for 1Purposes of the Registration of Marks under the Nice Agreement, with revisions and additions adopted as of January 1, 2002. A separate application should be filed with respect to each class of goods or services. Trademarks covering alcoholic goods and related retail or wholesale services are not applicable within the Kingdom.   What can I register as  a Mark? Can be registered as a Mark Cannot be registered as a Mark Distinct shapes Signatures Words Letters Numbers Drawings Symbols Seals Prominent inscriptions Invisible trademarks (e.g. sounds or scents) Expressions, signs or drawings contrary to religious practices or public order or morality Public and official symbols of KSA Geographical names Misleading statements or statements regarding honorary degrees Internationally famous Marks or Marks similar to registered (or applied for) Marks   What is the process for registering a Mark? Documents required Timeline Application form Legalized copy of the Mark’s corresponding home registration certificate Legalized Power of Attorney or Authorization of Agent List of goods to be covered and their classes Thirty prints of the Mark for each class Thirty prints of the Mark for each class A decision is made on applications within 60 days by the Ministry of Commerce If the application is rejected, the applicant has 90 days to satisfy the conditions for approval set forth by the Ministry of Commerce Appeals may be filed to the Board of Grievances within 30 days of the final rejection notification   Trademarks registered in Saudi Arabia are protected for a period of 10 Hegira years from the date of application. Registrants can apply for renewals of the Mark within the last year of validity or within a grace period of 6 months after expiration of the Mark.   Copyright law The Copyright Law in the Kingdom of Saudi Arabia was issued as per Royal Decree No. M/41 dated August 30, 2003 and published in the Official Gazette No. 3959 dated September 19, 2003. Protection is granted to authors whose works of art are expressed in writing, sound, drawing, photography or motion pictures and computer software. The rights of the author are protected for his lifetime and for a period of 50 years after his death. Protection covers all intellectual works of any type whether they are literary, scientific or other, as far as the distribution of those works in Saudi Arabia is allowed. Foreign intellectual works are protected in accordance with the international conventions of which Saudi Arabia is a member, namely the Universal Copyright Convention and the Berne Convention for the Protection of Literary and Artistic Works. Violations of intellectual property protections are punishable by stringent penalties, including fines of up to SR250,000, suspension of business, confiscation of materials, and imprisonment.   Patent law Patents in Saudi Arabia are governed by Patents, Layout Designs of Integrated Circuits, Plant Varieties and Industrial Models Law, effective September 6, 2004. The Patent Law definition of an invention covers any new article, method of manufacture, or improvement in either. Absolute universal novelty is stipulated by the Patent Law: an invention is new only if it is not anticipated by the prior art, which covers anything disclosed to the public anywhere and at any time, by means of a written or oral disclosure, by use, or in any other way before the relevant filing date or priority date. Applications for patents must be submitted to the Directorate of Patents at King Abdul Aziz City of Science and Technology (KACST) on the appropriate form. A patent is protected for 20 years from the date of filing the application. A patent is subject to an annuity due at the beginning of each year subsequent to the year in which the application was filed and payable within a period of three (3) months. Patent disputes are resolved by an ad hoc committee at KACST. Appeals against the committee’s decision may be made to the Board of Grievances within sixty (60) days from the date of notification. International Economic Cooperation Saudi Arabia is a main player in the commercial life around the world. By signing agreements with world trade organizations and many European and Asian countries, Saudi Arabia has created a powerful cooperation with world economy.   Gulf Cooperation Council The  Gulf  Cooperation  Council  (GCC)  was  founded  in  May  1981,  by  the  leaders  of  the  United  Arab Emirates, the Kingdom of Bahrain, the Kingdom of Saudi Arabia, the Sultanate of Oman, the State of Qatar and the State of Kuwait. The GCC Charter documents the special relations of the six states, their common qualities and similar systems founded on the creed of Islam, and their faith in a common destiny.   WTO Accession Agreement  Agreement on the Accession of the Kingdom of Saudi Arabia to the World Trade Organization (WTO) The agreement has three documents: 1.  Working party report. This report describes Saudi regulations and policies at present and contains answers to all questions received from other members of the working team (32 countries). 2.  The schedule of specific commitments in services. This includes Saudi Arabia\\s commitments in commercial presence (sectors that are open for foreign investors) and also include commitments on the presence of natural persons (visas for business visitors, intra-corporate transferees, contractual service suppliers  ... etc). The horizontal commitments mean that they are applicable across all sectors.   3.  The schedule of commitments on goods. This includes a list of the custom tariff for all goods.  It indicates the rate at accession, what the final rate will be, and when it will be reached.   Trade Agreements Investment Promotion & Protection Agreements These agreements aim to promote and protect the investments of the nationals and enterprises of one contracting party in the territory of the other contracting party by providing an appropriate legislative environment to stimulate and increase investment, trade and industrial activity. The agreement also provides adequate guarantees to nationals or enterprises of the other contracting party to transfer their profits, dividends and other current income. The investment will not be subject to expropriation except for a public purpose and against prompt and adequate compensation. The Kingdom has signed Investment Promotion & Protection Agreements with the following eight countries: Italy Germany Belgium Taiwan China France Malaysia Austria   Avoidance of Double Taxation Agreements These agreements aim primarily to eliminate the double payment of taxes by nationals and enterprises of a Contracting State in the territory of the other. It also aims to create an appropriate economic environment to attract capital between the two contracting parties.   Economic, Trade and Technical cooperation Agreements These agreements aim to develop economic, trade and technical cooperation in accordance with the laws of each contracting party, and create appropriate conditions to develop cooperation on the basis of reciprocal interests. This allows the free inflow of goods, capital, and services and the free movement of individuals and investment between the two contracting party.   Country Type of Agreement Date of Signing Algeria Economic, Cultural, Technical 21/3/1407 H 24/11/1986 Argentina Economic, Technical 12/10/1401 H 13/8/1981 Australia Economic, Technical 6/5/1400 H 23/3/1980 Austria Economic, Technical 11/8/1408 H 29/3/1988 Azerbaijan Economic, Investment, Cultural, Sports, Technical, Trade 2/2/1415 H 31/7/1994 Bangladesh Economic, Trade 10/1/1399 H 21/12/1978 Belgium/Luxemburg Economic, Technical 3/6/1398 H 11/5/1978 Canada Economic, Trade 12/2/1408 H 6/10/1987 China Economic, Trade, Investment, Technical 11/5/1423 H 21/7/2002 Denmark Economic, Industrial, Scientific, Technical 1/8/1394 H 19/8/1974 Egypt Economic, Trade, Investment 10/8/1410 H 8/3/1990 Finland Economic, Technical 6/5/1396 H 6/5/1976 France Economic 15/7/1395 H 25/7/1975 Germany Economic, Industrial, Technical 10/2/1397 H 30/1/1977 Greece Economic, Technical 13/1/1407 H 18/9/1986 Holland Economic, Technical 12/8/1404 H 14/5/1984 India Economic, Technical 10/6/1401 H 15/4/1981 Indonesia Economic, Trade 15/7/1410 H 17/4/1984 Iraq Economic, Trade 11/4/1404 H 15/1/1984 Ireland Economic, Technical 14/1/1404 H 21/10/1983 Italy Economic, Technical, Financial 21/2/1395 H 5/3/1975 Japan Economic, Technical 18/2/1395 H 2/3/1975 Jordan Economic 2/6/1382 H 31/10/1962 Korea Economic, Technical 10/6/1394H 1/7/1974 Lebanon Economic, Trade 23/9/1391 H 12/11/1971 Malaysia Economic, Trade 17/1/1395 H 30/1/1975 Morocco Cultural, Media, Trade 20/5/1386 H 6/9/1966 Pakistan Economic, Technical, Trade 10/6/1413 H 5/12/1992 Philippines Economic, Investment, Trade, Technical 12/5/1415 H 18/10/1994 Russia Economic, Investment, Trade, Technical 17/6/1415 H 21/11/1994 Syria Economic, Trade 19/2/1392 H 4/4/1972 Tunisia Trade 21/7/1408 H 10/3/1988 Turkey Economic, Technical, Trade 18/5/1394 H 9/6/1974 USA Secured Private Investment 10/2/1395 H 22/2/1975 Uzbekistan Economic, Investment, Cultural, Sports,  Technical, Trade 25/6/1416 H 19/11/1995 Yemen Cultural, Trade, Technical 11/8/1408 H 29/3/1988   Other Agreements: In addition to the above, the Kingdom of Saudi Arabia is party to a number of trade and economic agreements with GCC and Arab League countries. These agreements aim at promoting trade and economic development in the respective countries. The Coordinated Gulf Efforts The GCC Joint Economic Accord Undertaking economic activities in the kingdom by GCC citizens The GCC countries\\ joint strategy for industrial development The Integrated Statutes Regulating Foreign Investment in the GCC Countries The Foundations for Economic Integration in the GCC Countries The Integrated Regulations for Protecting Industrial Products Trade Facilitation and Development Agreement Between the Arab Countries The Integrated Agreement on Investing Arab Capital Funds in the Arab Countries Transit Agreement Between Arab League Countries The Agreement on Mutual Exemptions from Taxes and Administrative Charges the Activities and Equipment of Arab Airlines.