Saudi Arabia
Saudi Arabia is the largest free market economy in the Middle East and North Africa holding 25 percent share of the total Arab GDP. The Kingdom's geographic location provides easy access to markets and services in Europe, Asia, and Africa.
The investment environment in the Kingdom reflects traditions of liberal, open market private enterprise policies and its new Foreign Investment Law allows 100 percent foreign ownership of projects and real estate. The new Mining Act also allows 100 percent ownership of minerals tenements. The Kingdom has an impressive record of political and economic stability and has a modern world-class infrastructure.
Saudi Arabia has the biggest oil reserves in the world (25 percent). The Kingdom is endowed with other natural resources including a wide range of industrial raw materials and minerals such as bauxite, limestone, gypsum, phosphate, copper, zinc and iron ore. There are significant precious metals resources, and the Kingdom has a long track record of successful development of mining operations.
There are no restrictions on foreign exchange and repatriation of capital and profits. It has a very stable currency and has no foreign exchange curbs, and companies are allowed 100 percent repatriation of profits. The Kingdom is among the few countries in the world that allows companies to carry forward losses indefinitely, effectively relieving businesses of the tax burden until they become profitable. The Kingdom does not impose personal income tax. Labor cost in almost all spheres is low, and energy costs (especially fuel) is also very low.
Additional incentives recently offered to investors include exemption of export goods from storage fees for 10 days, annual land rent in industrial areas fixed at 2 US cents per square meter, cut in corporate tax by 30 percent, 50 percent cut in port fees on all exports and exemption of industrial machinery and equipment from duties.
