GulfBase Live Support
Leave a message and our representative will contact you soon
29/01/2016 10:05 AST
Saudi Arabia may further ease restrictions on foreign ownership in the economy and overhaul a restrictive visa system as the kingdom seeks to draw investors to help reduce its reliance on oil exports.
The world’s biggest oil exporter is considering allowing foreigners to own 100% of a company in at least four more industries, Mohanud Helal, secretary general of the Economic Cities Authority, said in an interview in Riyadh. Retail and wholesale will be opened fully, from a 75% limit now, once rules are approved, Abdullatif al-Othman, governor of the Saudi Arabian General Investment Authority, said on Monday.
The role of foreign investors in the economy has always been a controversial issue in Saudi Arabia. Yet as oil prices plummet to around $30 a barrel, authorities are racing to find alternatives to revenue from crude exports to finance a budget deficit about 15% of economic output.
Foreign investments in non-oil industries are also crucial to create jobs for Saudi nationals in the private sector in a country where youth unemployment stands at about 30%. Almost 90% of private-sector jobs created in five out of the six-nation Gulf Cooperation Countries between 2000 and 2010 went to expatriates, according to the International Monetary Fund. Nationals filled over 70% of public-sector jobs.
“The decision had already been made on some of the industries,” Helal said. The Saudi Arabian General Investment Authority, known as SAGIA, has identified about four sectors in which full foreign ownership may be permitted, he added without elaborating. Calls made to SAGIA after office hours weren’t immediately returned.
“SAGIA welcomes feedback from any investor on any regulation that will enable them to expand and grow their investment in Saudi Arabia,” said al-Othman, the SAGIA governor. “We would love anyone to say look, if you change this law or regulation, I am coming here with these investments. Any regulation.”
The slump in oil prices has already pushed Saudi authorities to cut spending, issue more debt and draw down the kingdom’s foreign-currency reserves. Officials are also weighing plans to sell stakes in state-owned entities from hospitals to airports and even Saudi Arabian Oil Co, the kingdom’s biggest oil company, known as Aramco.
The country is also reviewing its restrictive visa system by looking for ways to accelerate the process of issuing work and visit permits, according to Helal, who heads the regulatory body governing four economic cities, including King Abdullah Economic City.
“It is a very important and much needed step,” said Mohammed Alsuwayed, the Riyadh-based head of capital and money markets at Adeem Capital.
The kingdom last year started allowing direct foreign investments in its stock market, the Arab world’s biggest. The benchmark Tadawul All Share Index has dropped 36% over the past year, compared with a 27%-decline in the MSCI Emerging Markets Index.
Authorities are looking at allowing visitors, including pilgrims, to visit landmarks in various parts of the country through tourist visas. Enabling workers to bring family in easily is another area which is being considered, Helal said.
“These are all things that are being looked at as we speak today and very quickly we will hear how some things are quickly changing to further the invitation of the international community,” he said.
Bloomberg
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
RIBL | 13.83 | 1,519,548 |
JARIR | 177.89 | 111,251 |
STC | 83.41 | 257,644 |
DARALARKAN | 13.47 | 74,648,349 |
05/04/2018
Saudi Arabia's Public Investment Fund (PIF) has signed an agreement with Six Flags to develop and design an amusement park in Riyadh. Six Flags, the world’s leading international amusement park compa
Arab News
05/04/2018
In an exclusive interview with Arab News, Turki Mohammed Al-Shehri explains how an expanding renewables industry will boost employment as well as pave the way for a greener future.
A massiv
Arab News
05/04/2018
Dubai’s residential property market continued to soften in the first three months of this year, in line with analysts’ forecasts, with rental values recording a more pronounced fall than sales prices
The National
05/04/2018
Buoyed by a strong oil price of $70 per barrel, Saudi Arabia’s Tadawul shot up by over 6 per cent in March 2018, according to Kuwait Financial Centre’s (Markaz’s) recently released Monthly Markets Re
Times of Oman
05/04/2018
Qatar banks’ combined credit facilities to real estate sector rose by QR17bn to QR147.7bn in 2017. The banks’ credit to various sectors stood at QR911bn at the end of 2017, up from QR839bn recorded i
The Peninsula