- A Glance at the Saudi Economy:
Resource: http://www.indexmundi.com/saudi_arabia/economy_overview.html
Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 20% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Roughly 5.5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in December 2005 after many years of negotiations. The government has begun establishing six "economic cities" in different regions of the country to promote economic development. Five years of high oil prices during 2004-08 gave the Kingdom ample financial reserves to manage the impact of the global financial crisis, but tight international credit, falling oil prices, and the global economic slowdown reduced Saudi economic growth in 2009, prompting the postponement of some economic development projects. Saudi authorities supported the banking sector during the crisis by making direct capital injections into banks, reducing rates, and publicly affirming the government's guarantee of bank deposits.
- Saudi Arabia General Investment Authority (SAGIA)
Resource: http://www.sagia.gov.sa/en/
Why to Invest in Saudi Arabia?
Being one of the world’s Top 10 most competitive economies makes Saudi Arabia the perfect investment opportunity. But that’s not the only reason why:
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Saudi Arabia is ranked 4th in the world for “fiscal freedom” and it’s the 7th most rewarding tax system in the world
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7th freest labor market in the world according to the World Economic Forum
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One of the world’s 25 largest economies (24th) and the largest economy in the MENA region
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One of the world’s fastest growing countries: per capital income is forecasted to rise from $20,700 in 2007 to $33,500 by 2020
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It’s the world’s fastest reforming business climate
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It’s the largest free market in the MENA
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Represents 25% of total Arab GDP
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It has 25% of worlds oil reserves
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13th out of 181 countries for the overall ease of doing business globally. 7th in terms of ease of paying taxes
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1st for ease of registering property and it’s the largest recipient of Foreign Direct Investment in the Arab world
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.
At a cost of more than $60 billion, Saudi Arabia’s economy is being propelled onto a whole new level with the construction of four integrated Economic Cities. This visionary development project will promote economic diversification, create over a million new job opportunities, homes for 4-5 million residents – and, most significantly, contribute $150billion to Saudi’s GDP.
Unparalleled standards of living
Built on specially selected greenfield sites and strategically located around the nation, each city is being planned to the highest possible specification as the ultimate in 21st century urban living and working. Residents and workers will enjoy a virtually unique combination of high-quality housing, modern amenities, excellent sports and recreational facilities and world-class specialist healthcare. International schools will offer global curricula for workers’ children from all over the world while luxurious malls will offer shops and restaurants featuring the finest goods and food from around the globe.
A benchmark for world-class, sustainable design
Each city will feature modern building design, world-class services and infrastructure and ubiquitous connectivity. These built-in advantages, combined with attractive investment incentives and a supportive regulatory environment will create significant competitive advantages for business. SAGIA is also working with leading environmental institutions to ensure that the Economic Cities are developed with minimum negative environmental impact and maximum energy efficiency and sustainability.
Key Sectors for Investment: (links)
- Industry and Commerce in KSA:
Resource: http://www.commerce.gov.sa/english/default.aspx
The following is a list of the services provided by the Ministry of Commerce and Industry:
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Commercial registration
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Approve the establishment of Joint Stock Companies
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Register trade names and ensuring that they are protected
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Provide licenses for commercial exhibitions
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License hotels and accommodation providers
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Resolve differences between businesses
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Register trade Marks
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Provide licenses to professional service providers
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Register Gold dealers
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Issue certificate of origin
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Provide import Licenses
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Licensing and testing merchandise against quality standards
Applications & Procedures
Individual establishments and their branches
Procedures for Companies
Trademarks
Industrial Strategy
Information from the First Steering Committee:
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