Foreign firms need to invest SR200 million in five years

RIYADH – Foreign firms licensed to own 100 percent of retail and wholesale businesses in the Kingdom must invest at least SR200 million over the first five years after obtaining a license to operate in the Saudi market. This is one among the terms and conditions for owning 100 percent investment, according to Minister of Commerce and Investment Majed Al-Qasabi, the Saudi Press Agency reported on Tuesday night. “The terms and conditions will be published on the official website of the Saudi Arabian General Investment Authority (SAGIA),” he said. The Council of Ministers on Monday gave the green signal for foreign investors to have 100 percent ownership of retail and wholesale businesses. Al-Qasabi, who is also president of the board of SAGIA, said that foreign companies shall have operations at least in three international markets, and their capital at the time of foundation shall be not less than SR30 million. “The company has to achieve the percentage of Saudization as fixed by the Ministry of Labor and Social Development, and has to implement plans for providing training to a fixed number of Saudis and appointing them in key posts, in addition to ensuring their job security,” he said. Al-Qasabi said the Cabinet decision will be instrumental in attracting multinational retail and wholesale giants into the Kingdom. “SAGIA will offer all the required support and facilities for these investors in a way serving the national economy with easing restrictions for ownership and foreign investment,” he said.