- Law is expected to boost international business by 50 percent
RIYADH: Saudi Arabia’s new investment law is expected to increase international business by 50 percent, as it treats both local and foreign investment equally, removing any commercial advantage previously extended to Saudi companies, said Sovereign Saudi Arabia.
“By legally enforcing the principle of competitive neutrality to public and private investors, this removes any previous commercial barriers to entry,” said Paul Arnold, managing director of Sovereign Saudi Arabia.
The corporate service provider helps companies set up operations in the Kingdom while attracting foreign direct investment. Armold said the new investment law is set to increase the attractiveness of doing business in the Kingdom, as it will grant foreign investors the freedom to manage, sell and dispose of their economic projects.
“Whether you’re looking to expand your company’s presence or launch your brand for the first time if you have a contract in hand, it has never been a better time to enter and invest in the Saudi market,” he said.
He added that companies will be able to own any necessary properties that will ensure smooth business operations while allowing them to conclude commercial contracts with the full support of all competent authorities.
Under the new law, both local and foreign investors will be subject to the same sectoral approval requirements for licenses and registration, as well as for approvals or permits for certain economic activities or special economic zones.
Sovereign also noted that the new investment law could boost the country’s gross domestic product as more than $936 million in funds was recently announced at the Global Entrepreneurship Congress 2022 to facilitate the access of international companies into Saudi markets.
While official data from the World Bank projected the country’s GDP to reach $820 billion by the end of 2022, Sovereign expects the recent policy development to help Saudi Arabia surpass that projection as the business activity is set to increase significantly in the Kingdom.
Source: Arab News