The key-takeaways from the Regulations are as follows:
- broad definition as to what is considered "capital" to include items such as:
- cash;
- contracts;
- fixed / movable assets; and
- IP.
- Reiteration of equality of treatment of local and foreign investors including more details to be taken into account when comparing "similar" circumstances, such as:
- goods / services produced / consumed;
- the relevant sector;
- size of investment; and
- impact of investment on local economy and environment.
- reiteration of fair and equitable treatment;
- reiteration of freedom of transfer of funds;
- link between Investment Law and granting of incentives;
- concept of "Excluded Activities" and "Restricted Activities";
- flexibility in respect of potentially engaging in an Excluded Activity and / or submitting changes to Restricted Activities;
- establishment of a Comprehensive Service Center affiliated with the Ministry of Investment;
- issuance of the Investor Guide (link to latest investor guide on MISA website: Copy of Investor Guide).
The Investment Law, Regulations and the Investor Guide complete the post Foreign Investment Law regime and aims to further level the playing field amongst local and foreign investors, creating more transparency and processes and overall enhancing the business environment in Saudi Arabia. Whilst the practical implications of this enhanced regulatory regime remains to be seen, these are more steps in the right direction!
Please contact Leopold Zentner for further information.
