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KEY GOVERNMENT AGENCIES, FINANCIAL
INSTITUTIONS AND JOINT VENTURES PARTNERS AFFECTING FOREIGN INVESTMENT IN THE
KINGDOM OF SAUDI ARABIA
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:
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
- Engineering and Projects Department:
drawings for proposed joint ventures are evaluated by this department.
- Industrial Protection and Encouragement
This department grants tariff protection for national
- 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
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.
(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
(c) The Real Estate Development Fund provides medium or long-term loans
to individuals or organizations for private or commercial housing
(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'
In addition to being the major joint ventures' partners with several
international industrial corporations in oil, gas, and petrochemicals, the
activities of Petromin,
Saudi Aramco and Saudi Basic Industries Corporation
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,
Telex. 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.
country Brief | Ministerial
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