JEDDAH: Ƶn General Authority(SAGIA) is accelerating the licensing process and offering several flexible ways for entrepreneurs to obtain visas.
SAGIAhasintroduced several steps aimed at simplifying licensing procedures for foreign companies planning to invest in Ƶ.
Ayedh Al-Otaibi, director general of System Development and Investment Procedures Administration, said the new steps included expediting the procedure for all kinds of license, reducing them to three requirements and obtaining them in not more than five working days.
SAGIA revealed a number of reforms to ease the investment procedures in the Kingdom, stated Dr. Ayedh.
Documentation requirementsweresignificantly reduced to 3 simpledocuments:
1) A board resolution declaring intent of investment in Ƶ;
2) Another resolution outlining the investment plan including its economic impact;
3) A document showing the investor’sfinancial abilityto carry out operations.
In addition, Ayedh addedallforeign investors nowenjoy afast trackservice to receive investment licenseswithina maximumof5 days.
Investors will also have the option to extend their licenses for up to a 15-year period.
According to the SAGIA press release, the short cyclical nature of the construction sector is viewed by many construction companies as challenging especially in a foreign country.
“To help reduce this risk, we are adopting a series of measures and providing options for foreign investors in this sector to allow for a more sustainable investment,” said the SAGIA official.
This includes having the option of a3-yearlicense to explore the market and gradually work toward building the organization capabilities.
After this period, the investor has the right to procure a renewable license after establishing a sustainable entity with a minimumnumberof personnel,fixed assets and equipment.
The investor also have the option ofapplying fora renewablepermanentlicense, providedthe applicant submits an undertakingtoestablish an entity with minimum level of assets and personnelwithin oneyear from the date of the license.
Another option involves atemporary licensefor the implementation of specific contracts for specific duration with governmentor quasi-government agencies where the nature of these projects are characterized asnon-frequent.
The fourth optionis that ofgrantinga temporary certificate, in lieu of a classification certificate,for the implementation ofonesingle government projectprovidedthe applicantconforms to theprescribedregulations and standards.
Clear and flexiblevisa
optionsforentrepreneurs
Ayedhalso noted: “We have worked with the Ministry of Labor and other government agencies to now refine and align‘investor’and ‘general manager’ visa requirements.” Headded that SAGIAwillissue asupportletterto issue a visa for“investor” and/or“general manager”, in line with foreign investment and internationalagreements.
This relates to the visa and does not affect the licensing orInvestorownershipastheregulationsdeal onlywithinvestor/general manager visas.
More particularly, these regulatory measuresarerelated to applying for investors or general manager visa(limitedtosole proprietorship, a limited liability company ownedwholly or partly by individuals ,and the branch ofa limited liabilityforeign company, which is ownedin partorwhole by individuals),will get support letter for entrepreneurs “investor” visamustconform to oneof the following requirements:
1) The activities of theentityneeds to fall under “innovative activities” withavalidpatentusedas part of theenterprise products.
2) Theentityneeds to be an exporter of its products with the condition thatthe technical specifications of theexportproductsand the method of productionmustconform to theapproved Saudi, GCC or international specifications.
3)Theentitymusthavea minimum of 50 workers andadhere to Ƶ’s WTOcommitment to employa maximum of25 percent foreign labor as part of the totalworkers employedin foreignor joint-venturecompaniesand of these,10 percentaremanagers and professionals and 15 percent technicians and workers, or vice versa.
4) Theentity’spaid-incapital must not be less thanSR37.5 million.
It is important to note that the application of these requirements include existing and future licenses of the entities referred to above. Existing licenses will be grantedalead time of 24 months orthe datebefore the second renewal of the license, whichever comes first,to adapt these conditions.
Owners will also have the option to obtain businessvisit visasin accordance withregulations and international obligationsof Ƶ.
SAGIA eases license procedures for foreign investors
Updated 29 March 2016
SAGIA eases license procedures for foreign investors
