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News & Events


20



Fines up to SR25,000 for violating labor rights: Ministry


JEDDAH: Employers will be fined SR25,000 ($6,700) for registering Saudi employees with the General Organization for Social Insurance (GOSI) without their approval.

Firms can also face a five-day closure in addition to the fine, the Ministry of Labor and Social Development on Tuesday announced.
The ministry posted on its official Twitter account a list of penalties that will be imposed on employers if they violate the rights of their employees.
The announcement includes nine violation scenarios. Companies can receive fines of SR20,000 for recruiting expat workers for jobs allocated for Saudis as well as SR10,000 plus a one-day closure if the firm employs male expat workers for jobs which have been nationalized.
Holding workers’ passports without their approval will result in a SR2,000 fine. Employing a worker without a contract or without giving a copy of the contract can lead to a SR5,000 fine; the same fine applies to not adhering to offering work contracts in Arabic.
The ministry also stated that a SR5,000 fine would imposed for not complying with the conditions mentioned in training contracts; for not keeping workers’ records, including names, salaries, fines, attendance and medical records; as well as for full or partial withholding of a worker’s salary.


LULWA SHALHOUB | Published — Wednesday 14 June 2017 Arabnews





20



Fines, recruitment bans for recruiting others sponsors’ workers


RIYADH: An official at the Ministry of Labor and Social Affairs said companies that employ other sponsors’ workers or allow their workers to work for others, could be fined SR25,000 ($6,667) and denied foreign recruitment for one year, according to Article 39 of the Labor Law.


If the violation is committed a second time, the fine is raised to SR50,000, the recruitment ban is increased to two years, the employer is named, and the responsible manager is jailed for six months. If repeated for a third time, the fine is SR100,000, the recruitment ban is increased to five years, and the responsible manager is jailed for one year.


Small enterprises are fined SR15,000 and denied recruitment for one year when caught committing these violations, with the fine increased to SR30,000 and SR100,000, and the recruitment ban extended for two years and five years, respectively, when the violation is committed the second and third time.


An official said the ministry regularly inspects establishments, and has received complaints from workers if they are made to work for firms other than their sponsors. Reported or detected violations are referred to the Ministry of Interior for legal recourse.


ARAB NEWS | Published — Monday 19 June 2017





20



MCI warns buyers of counterfeit products sold online


 

RIYADH: The Ministry of Commerce and Investment cautioned consumers against counterfeit products sold online and urged them to report any such practices.

Warning against selling or marketing fake or counterfeit goods, the ministry said: “Since this act is considered a violation of the Anti-Commercial Fraud Law and Trademark System, it may lead to penalties of up to three years in prison and fines of up to SR1 million ($266,645).”

In the statement, the ministry also called on owners of e-shops and social network marketers to register their trade activities with its free e-service platform Maroof, which will ensure credibility of the traders’ activities and products, and protect the rights of buyers. Marketers are urged to make sure that the party selling goods has a commercial registration or has signed up through the e-service.

The portal provides an evaluation of services and the quality of e-stores in the Kingdom, and presents the opinions of dealers and clients on such stores.

“This e-service also gives the seller an opportunity to market their electronic shop online within various Maroof platforms,” enabling online store owners to add all their social media accounts, their website and contact numbers to their page with Maroof, which makes it is easier for buyers to access and contact them, according to the ministry.

The service preserves the rights of consumers, making it possible to lodge a complaint in case of any commercial fraud, by contacting the ministry’s consumer call center (1900) or through the application of a commercial violation report via smartphone.
Maroof is a free electronic service and takes only a few seconds to sign up to the website: www.maroof.sa. According to the ministry, the number of stores signed up, so far, with the e-service has reached 15,000 electronic stores.
 
 
RASHID HASSAN | Published — Tuesday 20 June 2017 Arabnews
 





20



All businesses in Kingdom with annual revenues from SR375,000 covered by VAT


 

JEDDAH — The General Authority for Zakat and Tax announced Sunday that the implementation of 5% VAT starting January 2018 will have no exceptions.

Misfir Dahim, the head of legal team for non-direct tax at the Authority, said all private sector establishments that had annual revenues of SR375,000 will be included in the VAT decision. Businesses with revenues of SR185,000 have the option to pay the tax.

He added that the system will overcome some wrong practices in the market and it will reflect positively on the economy. He added that this tax fee comes as an agreement between GCC states and it is considered the lowest in the world. He added that losing company is not exempted from paying the tax. He noted that the VAT is applied in 150 countries around the world.

Meanwhile, Ahmad Al-Taifi, head of the Authority at Jeddah office, said that there are major punishments on those evading the taxes. The violating establishment will be asked to pay an additional 50% of the value of the tax.

Vijay Soni, President, IMA Western Province Chapter, said GCC, particularly Saudi Arabia, has been treated as a tax-free zone by investors over decades. The adoption for the first time of any form of tax is a challenge for government as well as businesses and enterprises, as none of them have experienced its functionality, issues, and ways forward.

Most SMEs do not even understand the concept and their accounting processes are still based on non-VAT/sales tax methods. This means that they have to modify the process of recording business transactions, possibly adapt new technologies, conduct training for staff or hire new talent in addition to a new marketing approach to adjust pricing, he told Saudi Gazette during an interview.

Asked about sectors most affected by the VAT, he said packaged foods and soft drinks will face the most challenge initially. Automobile and machinery business enterprises are already feeling the pain of increased customs and removal of customs exemptions on various accounts.

Commenting on the potential contribution of the VAT in the GDP, he said at the outset, Saudi Arabian VAT collection is estimated to reach close to 2% of GDP within a short span of time. He added that in emerging and developing oil-exporting countries where the VAT has been implemented, the VAT contribution to GDP is around the average range of 5 percent (global average of about 7%).

He highlighted that the tax department needs to have a customer-friendly approach. They need to proactively reach out to the business community to reduce the fear of the new tax regime. He suggested that the department studies the experience of EU, Singapore and India to replicate best practices from these countries.

He highlighted that Vision 2030 is clearly showing the government’s willingness to work for the betterment of business community with transparent and performance-oriented working environment. “As management accountants, our role is to help translate those policies into business practices and adapt them to our enterprises to support and contribute to the country’s development goals.”

 

All businesses in Kingdom with annual revenues from SR375,000 covered by VAT
Saudi Gazette - May 22, 2017, By Fatima Muhammad

 





21



MCI, Requesting the Opinions of the Public on the New Draft of the General Policies of bankruptcy


MCI, Requesting the Opinions of the Public on the New Draft of the General Policies of bankruptcy
17 March 2015
 
Based on transparency and giving a chance for public participation, MCI would like to invite those interested and the public to express their views and suggestions on the new draft of the general policies of bankruptcy, through its website and e-mail before Sunday, 16.06.1436 H, corresponding to 05.04 . 2015 AD. This comes within the Ministry`s pursuit to prepare and develop a new draft for bankruptcy, where the Ministry was keen on designing the general policies of bankruptcy in accordance with the different aspects of the local environmental, such as legitimacy (Islamic Law), statutory and economic, in order to achieve the desired goals of the bankruptcy law in general, taking into consideration a number of advanced international practices in this field.
 
 MCI pointed out that the new draft of bankruptcy seeks to create a systemic environment that may contribute to expand the private investment base in terms of number and volume, through the preservation of the private economic value, to be added to the overall economy. Therefore, the new draft of bankruptcy would give priority to conciliation procedures or reorganizing the debtor's situation, who is in financial troubles and there is still real and true chance to regain his trade activity to a level where he could add values to the overall economy and fulfill his obligations towards the creditors, as well as the new draft aims at liquidating the assets of the commercial institutions which may fail to regain their trade activity in a regular and fast way.   
 
MCI stresses the importance of the new draft of bankruptcy for small and medium enterprises. Therefore, the new draft would contain a number of provisions that take into account the nature of these enterprises and stimulate entrepreneurs to start their business. These provisions would include simplified and swift remedial action to deal with the small and medium enterprises in case of financial troubles, in addition to some of the detailed provisions that might help stimulating the private sector to finance these enterprises.
 
MCI pointed out that this new draft would contribute in raising the contribution of the private sector, especially small and medium enterprises, in developing the trade and industry and therefore the economic development in general.
 
MCI would like to invite those interested and the public to participate and express their opinions on the new draft of bankruptcy policies through accessing the link: click here:
Or via e-mail: ippd@mci.gov.sa.





21



MCI, Requesting the Opinions of the Public on the Draft of Professional Companies Law


MCI, Requesting the Opinions of the Public on the Draft of Professional Companies Law
17 March 2015
 
Based on the principle of participation and transparency, MCI invites those interested and the public to express their views and suggestions on the draft of professional companies Law, through its website, before Thursday, 04.07.1436 H, corresponding to 23.04.2015 AD.
 
MCI stressed that this draft would enable the Saudi professional companies to grow, enter into competition and play a greater role in the national economy, in light of the events and changes witnessed by the liberal professions sector over the past two decades, along with the growing number of professional companies around the world and the liberalization of many of the restrictions on their work in the WTO Member States.
 
MCI pointed out that the draft of the professional companies law establishes three fundamental changes to the existing system, such as to allow the establishment of professional companies exercising more than one liberal profession, and to approve the establishment of a professional companies that take the form of a Limited Partnership, limited liability companies, closed- joint company, Inc. per person, in addition to the company's corporate form permitted by the applied professional companies system.
 
The system also allows the participation of non-professional investors in the professional companies, in order to help providing the necessary financing needed for their founding and to ensure continuation.
 
MCI would like to invite those interested and the public to participate and express their opinions on the draft of Professional Companies law, through accessing this link: Click here.





21



MCI, Six Months to Register and Update the Commercial Agencies and Abolishment for those Non-Compliant


22 March 2015
 
The Commercial Institutions and Companies are requested to Register their Agencies and Update the Registered Ones
 
MCI would like to announce to all companies and institutions, which have commercial agencies contracts, to take the initiative and register these contracts in the Agents and Distributors Record. The Ministry stressed that it will apply the penalties set forth in the Commercial Agencies System against those who do not adhere to register during a period of six months starting from 01/06/1436 AH. Notably, it is permissible to register more than one agency for a product or a single client in case of multiple agents.
 
The Ministry said that those enrolled in the Agents and Distributors Record are kindly requested to update and renew the database of their expired commercial agencies during a period of six months starting from 01.06.1436 AH. Otherwise, their agencies will be written off administratively. To perform the requested update, the agent must provide a letter from the entrusted company in the country of origin, certified by the competent authorities, and to be translated by a certified translation office, stating the renewal and validity of the agency agreement.
 
These measures will contribute in preserving the rights of the agencies parties and clarify their obligations towards the consumers, and will enhance the application of other related systems, such as Anti-Commercial Fraud System, Commercial Brands and others.
 
Only those who are registered in the Agents and Distributors Record can consider themselves as agents or distributors in the media, they can also benefit from the speed of their products release via the customs ports.
 
Meanwhile, MCI emphasizes that the agents and distributors must commit to provide maintenance services, spare parts and guarantee the manufacturing quality for the products subject of the agency, whether imported by them or by others, and they must be in conformity with the Gulf Standards and Specifications, according to the added provisions of Article II of the Commercial Agencies System and the provisions of the related Implementing Regulations. Also, the aforementioned provisions of Article II would be applied on importers, even if they are not agents or distributors, and on anyone who has taken the sales process directly or through a third party as a craft and with the intention of a profit. Anyone who violates the provisions of this article will be subject to the same penalties applied on agents and distributors.
 





21



MCI, Foreign Investors are compelled to Issue Industrial Licenses, any Factory does not Adhere with that will be Shut Down


21 April 2015
 
Ministry of Commerce and Industry announced the start of industrial licenses issuance for foreign   investors, stressing its intention to apply the mechanism of issuing industrial licenses for national investors in the future. Therefore, it is mandatory to have valid investment license, issued by the General Authority of Investment, allowing   the practice of any industrial activity.
 
The Ministry also called on all foreign investors to issue the necessary licenses, so as not to be subject to cease their commercial activities.
 
MCI has pointed out that it will start issuing the industrial licenses for foreign investors in accordance with the applied mechanism on the national investment, the investment license will be requested from the foreign investors, as a prerequisite for getting the industrial license.
 
This comes as an implementation of the Council of Ministers Decree No. 181 dated 05/06/1434 H, which contained the assertion that the General Authority of Investment should include the following phrase "the licensee must contact the Ministry of Commerce and Industry for getting the industrial license" for all investment licenses issued by the Authority in the industrial field.
 
MCI emphasizes its Permanent keen and interest in the application of the regulatory and control role to improve the industrial environment, and to free it from any systematic violations, to contribute attracting the commercial and industrial investments in the local market.
 





06



New labor courts to start operations in Muharram 1438AH


Labor Minister Adel Fakeih disclosed recently that the affiliation of labor dispute settlement bodies with the Ministry of Justice will soon come to an end and will be transferred to the Ministry of Labor, pending the launch of the new labor courts in Muharram 1438AH.
The minister was speaking following the inauguration of a workshop regarding labor codes and principles held recently, in the presence of Minister of Justice Waleed Al-Samaani and a number of judges and interested parties. 
"The labor codes, decisions and rulings issued by the labor commission represent a step forward in documenting labor judicial functions. In coordination with the Ministry of Justice, this process is expected to be completed next year. Once the process is completed, we will be able to transfer the responsibilities of the labor judicial functions to the Supreme Judicial Council, in line with the development of the judicial system as ordered by the king", said the minister.
Fakeih explained that the Ministry of Labor has spent the past two years developing the number of commissions for labor dispute settlements, including primary and supreme commissions, in addition to staffing such commissions with newly trained members. "The object is to minimize the litigation period for employers and workers," he said.
He added that the step to publish the new codes stems from the ministry's efforts to increased transparency in litigation, and to enable the employers, judges and other parties concerned to be familiar with the courts' rulings. 
"The codes for the years 1431 and 1432 already have been issued, while other codes will also be issued to form a strong benchmarks for labor commission members, lawyers and others," said the minister.
He noted that other developmental projects to boost the competencies of labor commissions' members will also be implemented soon. Such projects, he added, will represent an operational model with positive effects, and will be concise in terms of time and effort. "We are cooperating with the Ministry of Justice in this regard."
Abdullah Al-Abdullatif, president of the Supreme Commission for the Settlement of Labor Disputes, confirmed that the ultimate goal of the codes is to satisfy clients, develop the commissions, reduce litigation periods and develop administrative competency.
"The inauguration of the electronic portal for the labor commission by the minister of labor will also help in the study and evaluation of the training needs of employees in these commissions. It will help establish a consultative center for further development of the mechanisms, in order to allow follow up on the labor laws, he explained.


ARAB NEWS Published — Saturday 4 April 2015






14



Up to SR10m penalty for bad food sale


ARABNEWS - Published — Sunday 14 December 2014

A new fining system set up by Jeddah's municipality to uncover health and hygiene violations has been endorsed.
It rewards whistle blowers with up to 25 percent of the amount fined to restaurants and food facilities. The rewards could reach up to SR2.5 million if the facility used tainted food or any substances that could compromise the consumers’ health. In such cases, the fine would also increase to up to SR10 million.
This plan stipulates that any establishment found violating the regulations would be fined over SR1 million. The fine will also include the closure of the premises for a period of at least 180 days, with the establishment's license revoked for one year.
The new campaign is also targeting imported food, which is forbidden to enter the Kingdom until it has met all prescribed conditions.
Moreover, any edibles that are found misleading consumers about Shariah would attract a hefty fine, municipality sources said. Edibles must be evaluated by authorities concerned before they hit the market. 
Health officials evaluate any impending danger to human health while carrying out inspections both in food establishments or factory products before they hit the supermarket shelves. If unsavory food or cooking methods are caught, inspectors would seize the evidence and order an immediate shutdown of the establishment.





14



Non-Saudis can own hospitals


ARAB NEWS - Published — Sunday 14 December 2014

New regulations governing private health institutions will allow non-Saudis to own hospitals in the Kingdom. However, a foreign investor's application to set up a health establishment should be cleared first by the Saudi Arabia General Investment Authority (SAGIA), Aleqtesadiah daily reported.
A committee of medical and economic experts set up by the Ministry of Health is the competent authority to approve a new establishment, and will review all applications made by foreigners wishing to open such institutions.
While the application fee to open a 50-bed hospital is SR5,000, the fee for a hospital with 51 to 100 beds is SR10,000, and SR15,000 for more 100 beds. A general and specialist medical and laboratory complex with a single-day surgery facility will have to pay an application fee of SR2,000.
This new system will come into effect in three months. Authorities will make sure that these private health institutions comply with regulations to combat infections, especially the disposal of their medical waste in the appropriate manner.
The private health sector is also likely to be permitted to open rehabilitation clinics with specially trained and qualified doctors and staff.
Those who violate the new regulations by opening a private health institution without the required license may face criminal charges as well as the closure of the facility and the denial of license for a period of not less than six months. In addition, authorities will fine offenders with up to SR30,000 in the case of support health service centers, SR100,000 for laboratories, scanning centers, ambulance service centers and SR150,000 for clinics and medical complexes with single day surgery. The fine for operating an unlicensed hospital with all departments will be SR300,000.





02



Jordanian awarded SR4.3m for unlawful detention


Jeddah’s Administrative Court has ordered the General Directorate of Prisons to pay a former Jordanian inmate SR4.3 million in compensation for having unlawfully detained him three years longer than his prison sentence.

The defendant had originally been sentenced to one year at Briman Prison for forgery and was supposed to be released on Dec. 3, 2011.
The prison, however, refused to release him on the grounds that the deportation ruling was still pending.
Legal counselor Mohammad Al-Thaali confirmed that the directorate unlawfully extended the detention period after misinterpreting the deportation decision and process.
“Prisons have no right to extend prison sentences based on a specific article within a criminal law that stipulates that prisons are only meant for serving time and not making decisions on the fate of prisoners.”
The lawyer will submit an appeal on the verdict, demanding, instead, more than SR15.5 million in compensation, or SR15,000 per each additional day the defendant had been unlawfully held.
The ex-inmate had filed the compensation claim himself.
The ruling, issued by a criminal court at the Board of Grievances, had been delivered in three parts.

ARAB NEWS  Published — Sunday 2 November 2014






02



Over 3,700 expats await decisions in labor disputes


Statistics show that more than 3,740 expatriate workers have filed complaints against their Saudi employers concerning a number of issues, such as nonpayment of salaries, refusal to renew residency documents, preventing them from traveling and a host of other problems.


The labor office in Makkah has witnessed a large influx of expatriates who are following up on their complaints. These expatriates have criticized the slow process of dealing with complaints, and of their sponsors’ failure to show up at hearings. 

A number of expatriate spoke to Al-Madinah daily about their problems.

Abdulati Abdulsalam, a plumber, said his sponsor had not paid him for the past six months and also accused him of insulting and mistreating him. He submitted his complaints to the preliminary committee at the labor office, but is still awaiting a decision as he wants to transfer his work visa to another employer.

Hakeem, a Pakistani national, said he had not been paid for the past eight months despite his constant requests to his employer. He also criticized the slow process of complaints.

Sameer Othman said his sponsor asked him to pay SR20,000 to renew his residence permit, an amount he cannot afford to pay. “I make SR1,700 a month, which is hardly enough to cover my expenses. My sponsor has also reported me to the concerned bodies and accused me of fleeing my job,” he said.

Othman’s case is currently under review with the preliminary committee.

Yaseen Abdulaziz said that he arrived in the Kingdom five years ago, and ever since, his sponsor has refused to allow him to travel to his country to see family, including his ill daughter. He hopes his case will be resolved soon.

Lawyer and judicial consultant, Abdullah Fallatah, said any expatriate has the right to file a complaint at the labor office against his employer for issues concerning their rights according to the work agreement.

He pointed out that complaints concerning mistreatment of workers are filed in specialized courts and asked anyone subjected to such problems to submit their complaints at these courts.

Saudi Gazette report






02



38 percent Saudi companies unsure about cyber security


Information security experts have claimed that 38 percent of companies in the Kingdom are unsure how secure their data is against hacking attempts.


The main reason for this uncertainty is negligence of top management and information technology managers in these companies of the seriousness and damage hacking can have on their data.

The CEO of Ard Al-Sahab for Communication and Information Technology, Abdullah Aal-Mesaed, told Al-Yaum daily that breaching companies’ networks is one of the major threats companies face.

He also claimed that many companies rely on basic anti-virus and firewall software to protect their data and that most network administrators are unaware that their network has been penetrated.

“Most information technology companies in the Kingdom employ experts that can design special programs to protect data, and many companies are reverting to backing up their data on the cloud, but that depends on the data security provided by the hosting company,” he said.

Information security specialist, Sami Al-Eidaa, said online attacks are similar to traditional wars, and countries that possess the technological know-how can destroy the infrastructure, such as electricity and communications systems, of any country without using weaponry or troops.

“Some countries can also implant spy files into systems as an alternative to human spies and all electronic attacks should be considered dangerous as they threaten the confidentiality of data and information, and can also damage the electronic services offered by these companies,” he said.

Al-Eidaa believes the main reason for poor security at companies is due to the lack of support by the management.

“Some companies believe that their anti-virus and firewall software is enough to fend off hackers, and they neglect other technical factors that can contribute to minimizing and limiting such attacks,” he said.

A recent survey published by SafeNet Inc., which specializes in data protection, showed that most companies believe that their basic internal protection measures are enough to guard against hackers. This is despite the increasing number of hacking attempts and the loss of more than 2 billion data files worldwide last year.

SafeNet Inc.’s index for data security showed that 66 percent of decision makers in the Middle East believe their preventive measures are sufficient in preventing unauthorized access to their data, while ironically, 48 percent of them admitted that they had been subjected to hacking attempts.

 

Saudi Gazette report





29



SAGIA warning: Shape up or ship out!


The Saudi Arabian General Investment Authority (SAGIA) has urged small-scale foreign investors to either improve their performance or leave the Kingdom. 
“We have given an ultimatum to these small investors who have failed to add value to the national economy,” said Abdullathif Al-Othman, SAGIA governor, adding that the deadline ends within a week.
Al-Othman said the move was aimed at attracting investments to quality projects that not only add value to the economy, but also help the transfer of technology and employment of more Saudis. 
“New investment licenses will be given only to those who fulfill these conditions,” he said in comments published on Thursday. He said some of these small investors have submitted an undertaking that they would improve their level of investment. 
“If they do this, they will continue in the market,” he said, adding that serious investors have expressed their readiness to meet the conditions. 
Al-Othman said the closure of these small businesses would not affect the economy. “Our economy is big enough not to be shaken by these small-scale projects,” he said while welcoming serious investors who wanted to contribute positively to the economy. “Such good investors will receive a warm welcome from both Saudi people and officials.”
Abdul Rahman Al-Zamil, president of the Council of Saudi Chambers, applauded SAGIA’s move to clean up the investment sector. 
“There are hundreds of investors who have licenses, but did nothing to kick-start their projects. Some of them are engaged in activities other than what they are licensed to do,” he told Arab News.
Al-Zamil said the SAGIA move would also help eradicate illegal cover-up businesses from the country. 
“Saudi Arabia is not against foreign investors, but we are looking for serious investors,” he said, adding that about 8,000 foreign investors had not contributed to the national economy after receiving SAGIA licenses.
“SAGIA has launched a survey of foreign investment projects across the country,” Al-Zamil said. 
The authority has canceled 792 licenses, including 403 in the contracting sector, 117 in the light industries, 189 in metal works, gold and furniture, 10 restaurants and 18 tour operators.

Published on Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more. (http://www.arabnews.com)

Published — Friday 30 May 2014





29



SAGIA: Fast track service in KSA for foreign investors


Saudi Arabian General Investment Authority (SAGIA) has introduced a ‘fast track service’ to process applications from foreign investors within five days under a streamlined program.
The new measures have been announced in an administrative decision issued by Abdullatif Al-Othman, governor of SAGIA and chairman of the board. 
This follows the Council of Ministers’ decision (No. 2 of 5/1/1421H), the Foreign Investment Law by Royal Decree (No. M/1 of 5/1/1421H) and its Implementing Regulations issued by the board’s decision No. 2/74 of 12.5.1435H.
“Overseas investors looking to launch businesses in the Kingdom of Saudi Arabia will now be able to benefit from a faster and simpler application process with the launch of the new fast track service by SAGIA,” said an official from the authority. 
“This new application process guarantees application decisions within five working days, once SAGIA has received all required documentation.” 
The fast track is available to potential investors who meet one of the following requirements: 
1 Multinational companies publicly listed in the capital market of their countries or in international stock exchanges 
2. Firms manufacturing products that are classified and approved by independent agencies, and employ certified process technology 
3. Small and medium size enterprises which will be operating in the area of the IPRs registered in their names, or which are classified as innovative enterprises. 
4. An international company aiming to set up regional centers in Saudi Arabia. 
5. A construction company classified under ‘first class’ in their countries, or which have implemented a project with a value of not less than SR500,000,000 and have a manpower of not less than 2,000 employees and total assets of not less than SR50 million. 
6. A company entering into partnership with other companies qualified by Saudi government agency, or by a state-owned entity or an entity in which the government has a shareholding, or with a company listed in the Saudi Capital Market.
7. The aim of SAGIA’s fast track service is to facilitate foreign direct investment (FDI) into target sectors in the Saudi economy, namely ICT, downstream petrochemical and mining, industrial manufacturing, health care and life science, transportation and infrastructure, human capital development, and energy and petrochemicals.
Documents required to complete applications under the fast track service include: 
1. Shareholders Resolution to invest in the Kingdom, listing the names of shareholders, capital share of each shareholder, company headquarters, type of activity, name of the general manager and authorized representative, duly legalized by the competent authorities and the Saudi mission. 
2. Copies of enterprise Memorandum of Association and commercial registration, duly authenticated by the competent authorities and the Saudi Consulate.
3. Filling out the autobiography form and provision of a company profile, duly stamped by company’s seal.
Eligible applicants providing the necessary information should make their applications to:Fasttrack@sagia.gov.sa in the interim, while an online application process is developed.


Published on Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more. (http://www.arabnews.com)

Published — Monday 9 June 2014





29



Investors upset as SAGIA cancels 374 licenses


Saudi Arabian General Investment Authority (SAGIA) announced Tuesday that it canceled 374 licenses of foreign investors in 2013 after they failed to correct their status in tune with new regulations and conditions set by the organization to promote value-added investment.


The SAGIA move, which has brought down the number of foreign investment licenses from 9,265 to 6,000 this year, aims at attracting major international companies to ensure transfer of advanced technology and creation of more job opportunities for Saudis.

But many foreign investors, including Arabs, Americans, Canadians and Indians, said the action has negatively affected their investments worth billions of riyals and that they would take legal action against the organization.

SAGIA said it applied new rules and conditions on the basis of a royal decree that regulates its activities. 

“There are three types of foreign investors,” said Khaled Al-Khathlan, deputy governor of SAGIA, adding that many license holders have violated the regulations. He said 10 percent of licensed foreign firms created 90 percent of jobs in the sector.

According to a report, 167 investors have lodged complaints at the Court of Grievances against SAGIA with the hope that it would issue a fair verdict in order to avoid taking the case to the international center for settlement of investment disputes in the US.

One investor said SAGIA was imposing an annual fee of SR12,000 for each license. “The royal decree calls for equal treatment of Saudi and foreign investors, but in practice this is not the case,” said another investor.
A SAGIA official told the Shoura Council that it would complete its survey of foreign investment projects shortly to make proposals to improve the Kingdom’s investment climate.

Published on Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more. (http://www.arabnews.com)

Published — Wednesday 18 June 2014