KEY GOVERNMENT AGENCIES,
FINANCIAL INSTITUTIONS AND JOINT VENTURES PARTNERS AFFECTING FOREIGN INVESTMENT IN THE
KINGDOM OF SAUDI ARABIA (See appendix I and II for the address of
applicable Saudi Arabian Ministry or Agency.)
1) Ministry of Industry and Electricity:
- Foreign Capital Investment Committee:
This is an inter-ministerial committee which passes judgment on joint ventures
recommended by the Foreign Capital Investment Bureau.
- Foreign Capital Investment Bureau, FCIB:
Relevant information on foreign capital investment regulations can be obtained
from FCIB. The bureau evaluates and licenses non-industrial joint ventures on its own, and
industrial projects in association with the Industrial Licensing Department.
- Engineering and Projects Department:
Engineering drawings for proposed joint ventures are evaluated by this
department.
- Industrial Protection and Encouragement Department:
This department grants tariff protection for national industries.
- Industrial Cities Department:
This department assigns plots of land in industrial cities.
2) Ministry of Commerce:
The Companies Department approves the joint venture's Article of Association, registers
the companies under Companies Regulations and assigns Commercial Registration numbers
(CR).
3) Saudi Consulting House:
Conducts market research and industrial feasibility studies for proposed joint ventures
(for a fee). In addition, SCH prepares and publishes data on industrial development.
4) Investment Funds:
There are a number of specialized credit institutions established by the Government
which provide credit to Saudi individuals and companies in all sectors of the economy (see
appendix I for addresses).
(a) The Saudi Industrial Development Fund (SIDF) is the most important of these credit
institutions. The fund is linked to the Ministry of Industry and Electricity and has
particular relevance for joint ventures. Its objective is to encourage Saudis in the
private sector to establish small and medium size industrial projects by providing
low-cost medium and long-term capital for these projects. In addition the Fund provides
marketing, technical and financial advice to all Fund-financed projects to enhance their
chances of success.
(b) The Public Investment Fund, a government institution linked to the Ministry of
Finance and National Economy, was established in 1971 to provide medium and long-term
loans to the large scale government and private industrial projects that Saudi commercial
banks fail to finance.
(c) The Real Estate Development Fund provides medium or long-term loans to individuals
or organizations for private or commercial housing projects.
(d) The Saudi Arabian Agricultural Bank works under the umbrella of the Saudi Arabian
Ministry of Agriculture and Water. Its purpose is the provision of loans and credit
facilities to farmers with the overall objective of developing and promoting agriculture
and related activities. Loans are granted to those projects licensed under the Ministry of
Agriculture and Water
5) Major Joint Ventures' Partners:
In addition to being the major joint ventures' partners with several international
industrial corporations in oil, gas, and petrochemicals, the activities of Petromin (see
appendix I for address), Saudi Aramco (see appendix XII for address), and Saudi Basic
Industries Corporation (see appendix II for address) cover the development of national
human resources and research and development.
6) The National Industrialization Company of Saudi Arabia:
NIC (P.O.Box 26707, Riyadh 11496, Saudi Arabia, Tlx. No. 406662 TAWSAT SJ., Fax.
No. 477-0898, Phone No. 476-7166) has been organized to stimulate approximately $10
billion of private industrial development in the Kingdom. It is a holding company with 12
percent of its paid-in capital to be owned by the Saudi government and the balance to come
from private individual investors. NIC is seeking joint venture project proposals from
companies who may be interested in 20-40 percent equity participation in new industrial
joint ventures in Saudi Arabia.
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