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YEAR 2000 PRESS
RELEASES
Lucent Technologies
and Saudi Telecom Co conduct GPRS trials in Saudi Arabia
December 3, 2000
Recreational
Projects Available in Jeddah
December
1, 2000
Business
Opportunity at the Port of Dammam
December
1, 2000
Ministry
of Petroleum Announces Project for US Manufacturers of Catalytic
Converters and Conversion Kits
November
30, 2000
Saudi
Company Seeking U.S. Manufacturers of Classic and Modern Furniture
November 12th, 2000
Al-Alamiah Electronics signs a contract with the High Authority of
Tourism
November 9th, 2000
NEWTEK Solutions and Riyad Bank sign Internet banking & WAP
deal
Monday, October 16,
2000
SABB
Announces Third Quarter 2000 Results
October 2, 2000
KINGDOM
STUDYING MORE INVESTMENT BIDS
Monday,
September 25, 2000
General
Dynamics Wins $28 Million Saudi Aramco Offshore Networking Contract.
August 18, 2000
SAUDI ARABIA APPLIES THE LAW FOR
FOREIGN OWNERSHIP OF REAL ESTATE NEXT NOVEMBER.
13th June 2000
Shoura Council
approves ownership of real estate by non-Saudis
April 13, 2000
New
Investment Law Text
April 10, 2000
Saudi
Arabia Approves New Foreign Investment Law
March 9, 2000
Lucent
Technologies Wins Optical, Data Network Contracts Valued at $145 Million
from Saudi Telecom
February 1, 2000
Saudi
Chevron Petrochemical Celebrates Opening of Kingdom's First Totally
Private Basic Petrochemical Partnership
YEAR
2001 PRESS
RELEASES
PRESS RELEASE --
SUNDAY DECEMBER 03, 2000
Lucent Technologies (NYSE: LU)
announced today that it successfully conducted a trial of its General
Packet Radio Service (GPRS) jointly with Saudi Telecom Co. (STC) in
the Jeddah GSM network in Saudi Arabia.
Tests of "always
on" mobile Internet technology designed as prelude for
service launch
JEDDAH, SAUDI ARABIA
-- Lucent Technologies (NYSE: LU) announced today that it
successfully conducted a trial of its General Packet Radio
Service (GPRS) jointly with Saudi Telecom Co. (STC) in the
Jeddah GSM network in Saudi Arabia . GPRS is a high-speed
packet data network enhancement that enables mobile Internet
access and data communications for a new generation of
wireless devices. GPRS technology adds high-speed Internet ,
email and other data services to GSM cellular networks.
The Lucent GPRS project will
enable STC to test-market the service and provide related
valuable market research for the launch timing of full-fledged
GPRS services for all STC customers. This early deployment of
GPRS will place STC and Saudi Arabia in a wireless technology
leadership role.
STC currently has over a
million subscribers on its GSM dual band (900/1800) network
and is expected to grow over two million in the coming year.
STC currently offers several advanced wireless services,
including short messaging, data and fax services.
Lucent Technologies'
strategic product blueprint allows customers to easily migrate
their technology and applications from one generation of
wireless technology to the next. Initial GPRS-equipped
terminals will enable wireless data speeds up to 56 kilobits
per second (kpbs), with further evolution up to 115 kbps.
Lucent Technologies has
recently conducted successful GPRS trials in Malaysia with
CELCOM as well as in Australia with OneTel. In Germany, Lucent
Technologies GPRS software is carrying live commercial GPRS
traffic in over 8000 base stations in T-Mobil's GSM Network.
Lucent is also planning to conduct over 12 GPRS trials with
multiple global operators around the world.
Khalid Balkheyour, vice
president of Lucent Technologies (Saudi Arabia) said:
"The GPRS trials conducted successfully at Jeddah, is
another example of Lucent's constant commitment to identify,
develop, design and showcase business solutions and define
future products specifically for the Saudi telecommunications
market. The introduction of advanced products for the Saudi
mobile market after proper tests and trials, is bound to
strengthen the country's position in advanced wireless
technology."
Dr. Ziyad Al-Etaibi, Director
General of STC's mobile unit, said: "The success of this
trial today, which we conducted jointly with Lucent
Technologies, is considered the first trial of its kind and
magnitude in the Middle East. It paves the way for STC to
introduce high speed data services to our subscribers and
strengthens our position as a leading wireless operator in the
region."
Lucent Technologies,
headquartered in Murray Hill, N.J., USA, designs and delivers
the systems, software, silicon and services for
next-generation communications networks for service providers
and enterprises. Backed by the research and development of
Bell Labs, Lucent focuses on high-growth areas such as
broadband and mobile Internet infrastructure; communications
software; communications semiconductors and optoelectronics;
Web-based enterprise solutions that link private and public
networks; and professional network design and consulting
services. For more information on Lucent Technologies, visit
its Web site at http://www.lucent.com.
In Saudi Arabia, Lucent
Technologies plays a major role in the Kingdom of Saudi
Arabia's progress by constructing one of the most
sophisticated telecommunications networks in the world. It has
been broadly and deeply involved in providing the complete
spectrum of telecommunications products, services and
technologies in the Kingdom through its participation in
various projects.
Lucent is at the heart of
providing the latest in universal services anywhere in the
Kingdom, whether in public switching, GSM, WLL, Internet and
data services, optical fiber or satellite networks, with all
the required operations and maintenance systems.
Lucent has a multi-national
workforce of 2,200 in Saudi Arabia, including more than 600 or
approximately 30% who are Saudis in engineering, technical and
administrative management and non-management positions.
For more information, reporters
may contact:
Sam Gronner - U.S.
Lucent Technologies
+973-386-5065 - office
908-507-2115 - mobile
Email: samgronner@lucent.com
Mohammed Al Dhalaan - Saudi
Arabia
Lucent Technologies
Tel +966-1-2397070 - office
PRESS RELEASE -- December 1, 2000
Saudi
Company Seeking U.S. Manufacturers of Classic and Modern Furniture
Rashed M. Thahen & Partners Co. is a Jeddah based company that deals
with all types of furniture. The company is an agent distributor for
different British furniture manufacturing companies like Spring Vale,
Derwant, and Lord Sharetons. They are also an agent distributor for
MIKASA the American
tableware manufacturing company. Rashed M. Thahen & Partners Co. own
several luxurious show rooms throughout the Kingdom.
Rashed M. Thahen & Partners Co. is seeking American manufacturing
companies for classic and modern furniture to form a distributor or
agency agreement. They are specifically looking for bedrooms,
living rooms, as well as office furniture.
Interested American companies should send catalogs and price lists to:
Mr. Rashed M. Thahen
General Manager
Rashed M. Thahen & Partners Co.
P.O. Box 23855
Jeddah 21436, Saudi Arabia
Tel: 966-2-667-2740
Fax: 966-2-667-2792
Source: U.S. Commercial Service, 2000
PRESS RELEASE -- December 1, 2000
Business
Opportunity at the Port of Dammam
Mr. Ehsan Abdul Jawad, Group Executive
Director of Globe Marine Services Company announces an ongoing project
to establish a re-export zone at the port of Dammam. Globe
Marine Services Company and four other Saudi companies have formed The
Saudi Re-export and Development Group (Dammam FTZ) to operate a
re-export zone at the port of Dammam. The company has obtained a lease
on a large plot of land within the port of Dammam where it is building a
warehouse. It also hired a former director of Saudi customs to
propose a number of revisions to Saudi customs regulations that will
facilitate the operations of the re-export zone. The first stage of the
re-export zone, open air storage areas, opened for business this past
summer.
Dammam FTZ hopes to initially attract dealers in high value imports such
as cigarettes and cars. A re-export zone will allow the owners to
bring the goods into Dammam but delay paying custom duties until the
goods are actually sold. Dammam FTZ believes it can become the major
shipping hub or the upper Gulf because of its position as a port of
entry for the largest market in the GCC.
U.S. companies interested in doing
business with Dammam FTZ can contact Mr. Ehsan Abdul Jawad at the
following address:
Mr. Ehsan Abdul Jawad, Executive Director
Globe Marine Services Co.
P.O. Box 1814
Dammam 31441, Saudi Arabia
Tel: 966/3/831-0000
Fax: 966/3/831-1222
Source: U.S. Commercial Service, 2000
PRESS RELEASE -- November 30, 2000
Recreational
Projects Available in Jeddah
Fakieh is one of the leading groups
within the tourism and recreational sector in Saudi Arabia. The
company is looking for experienced U.S.companies to jointly work with
Fakieh on the following projects:
1. Al-Nawras Island- 93 international standard villas, a themed five
star seafood restaurant, social and health club, and three private
beaches.
2. Sail Island Water Park- A tropical island for families. A
forest of majestic white 24-meter high
sails shades the whole island area, plus large swimming pools,
playgrounds, water fountains, and opened themed food courts.
3. Sagala Restaurant- A five star seafood restaurant at Abhur on
one of the finest seafront location of the Red Sea.
4. Jeddah Aquarium- The first underwater aquarium in the Middle
East with 6,000 cubic water capacity basin. It will also include a five
star restaurant, cafeterias and souvenir shops.
5. Al-Shalal Amusement Park- Al-Shallal is the first large-scale
theme park in the Gulf region. It
will be one of the finest place for families to visit. The centerpiece
of the park is a vast Amazon jungle theme ride with animated jungle
animals. A 45-meter high waterfall with dancing fountains and
large lagoon with boat rides. Other facilities will include an Olympic
size ice skating rink, European and Far East villages with outdoor
rides, a seafood restaurant overlooking the lagoon, a main entertainment
building, arcade games, restaurants and retail sales outlets.
For more information on the above projects please contact the following
individual:
Mr. Nehad Muhammed Ameen Ismail
Project Manager-Sail Island
Fakieh Hospitality & Leisure Group
P.O. Box 14220
Jeddah 21424, Saudi Arabia
Tel: 966-2-233-2685/233-2687
Fax: 966-2-233-2584
Cell Phone: 966-556-22266
E-Mail: fakieh@zajil.net or nehad@tri.net.sa
Source: U.S. Commercial Service, 2000
PRESS RELEASE -- November 30, 2000
Ministry
of Petroleum Announces Project for US Manufacturers of Catalytic
Converters and Conversion Kits
The Minister of Petroleum of Saudi Arabia has announced that Saudi
Arabia will switch to unleaded gasoline starting in 2001. New
regulations mandating the use of catalytic converters in imported new
and used cars are expected to be introduced and enforced. This will
create a market approximately valued at $300-400 million for US
manufacturers of catalytic converters and conversion kits.
Saudi Aramco has plans to phase out the use of lead in gasoline
production. Tetraethyl lead, which has been used at Saudi
Aramco's oil refineries to enhance the octane number in gasoline, will
soon be replaced by other additives to produce unleaded, environmentally
friendly gasoline. Saudi Aramco is studying the possibility of producing
IC5 as one of those additives. Saudi Aramco will continue to use
MTBE (methyl tertiary butyl ether) and is planning to evaluate the use
of an octane enhancer known as MMT (methyl cyclopentadienyl manganese
tricarbonyl) in gasoline production at its
refineries. MMT can be used along with other unleaded additives.
It is worthy to mention that Saudi petrochemical facilities produce 2.7
million metric tons per year of MTBE. A portion of the produced MTBE is
used by the local petrochemical industries and the rest is exported.
Imported new and used motor vehicles into Saudi Arabia are not currently
equipped with catalytic converters because there is no unleaded gasoline
in the country. Over three million passenger cars travel the roads in
the country and pollute the air with their exhaust fumes.
For more information please contact:
Yanbu' Refining
Executive Director
Tel: 966/4/397-8400, 397-8401
Fax: 966/4/397-8600
US manufacturers of catalytic converters and conversion kits interested
in exploring this market can contact:
Principal Commercial Officer
U.S. Consulate General - Dhahran
Unit 66803
APO, AE 09858-6803
Tel: 966-3-330-3200
Fax: 966-3-330-2190
Source: U.S. Commercial Service, 2000
NEWTEK
Solutions, the region's leading 'net' business consulting
and technology solutions specialist, have recently won a contract to
provide Internet Banking & WAP Solutions to RIYAD
BANK.
November
9th, 2000
Dubai,
UAE RIYAD BANK is launching a new Internet and mobile banking
service for retail, commercial and corporate customers, as an effort to
enhance and improve on existing banking systems. The entire project is
being developed by NEWTEK and Brokat, building front-end and back-office
elements as well as integrating them with the Bank’s existing back-end
systems.
“Being one of the major Banks in the region, our prime
consideration is our customer reach. Our services need to be available to
our customers everywhere, anywhere and immediately. At RIYAD BANK, we
believe that through our venture with NEWTEK we will be able to achieve
this, and more”, commented Alan Thompson, President & CEO, RIYAD BANK.
“Our aim is to provide our customers with an unsurpassed service, that is
not available through other banks. We are confident that NEWTEK are
providing us with viable solutions for today’s banking world”, he
added.
NEWTEK’s Brokat products were chosen over a number of
competitor’s products for their proven record of over 2,000 installations
worldwide, as well as the fact that their installation is far more
straight forward compared with other solutions. In addition, one of the
more important features of Brokat is its enhancement of time to market
constraints. For example, a website can be edited immediately with no
downtime.
“NEWTEK undertook an in-depth study of RIYAD BANK
requirements; thus, we know that this project will help build the
infrastructure of the Bank, and with its flexibility allow for additional
NEWTEK products in the future”, stated Youssef Ward, NEWTEK, President
& CEO “We are pleased to announce that this is the largest Brokat
project in the Middle East and the first in Saudi Arabia”, he added.
NEWTEK Solutions is the exclusive distributor for
Brokat products in Saudi Arabia while holding a strong presence in the
Middle East & North Africa Region. NEWTEK understanding of the local
business environment and unrivalled experience and team of professionals,
make it the obvious partner of choice for ‘net’ business consulting and
technology solutions.
Press Contacts:
Ruba
Mughrabi NEWTEK Solutions PO Box, Dubai, United Arab Emirates Tel:
+971 4 282 7927 Fax: +971 4 282 7027 Email:
ruba_moghrabi@newtekc.com http://www.newtekc.com
Lucy Davies,
NettResults Management Consultancy PO Box 2260, Dubai, United Arab
Emirates Tel: +971 4 331 1593 Fax: +971 4 331 1562 Email:
Lucy@NettResults.com http://www.NettResults.com
Al-Alamiah Electronics
announced signing a contract with the High
Authority of Tourism with the aim of providing the latter with all
computer facilities and accessories.
November 12th, 2000
Riyadh, Kingdom of Saudi Arabia His Royal
Highness, Prince Sultan bin Salman bin Abdul-Aziz, General Secretary of
the authority and Mr. Hamed Al-Sharekh, Al-Alamiah’s Chief Director,
singed the contract.
The enterprise secures a supporting
technological base for utilizing state of the art IT technologies in
running the authority’s businesses and facilitating internal
cross-departmental communications.
The signed contract also
facilitates providing the latest PC technologies and accessories to fully
securing and accessing Internet connections.
The project
represents one of the positive activities made by the authority to fully
promote its human and equipment resources. It will also accelerate
procedures to build a huge database for tourism in the Kingdom.
It
is worth mentioning that the authority has previously executed an
enterprise for utilizing necessary software applications and programs. It
also includes establishing a comprehensive database for storing data,
documents.
For more information, you are welcome to
contact: Qassim Ali
Tel: 0096614770106 Fax:
0096614784893 Kingdom of Saudi Arabia
SABB
Announces Third Quarter 2000 Results
Monday,
October 16, 2000
The Saudi British Bank
(SABB) has recorded a net profit of SAR560 million (US$149 million) for
the nine months ended 30 September 2000. This represents an increase of
14.8 per cent over the SAR488 million (US$130 million) earned in the
same period in 1999. Customer deposits increased to SAR27.6 billion
(US$7.3 billion) from SAR24.9 billion (US$6.6 billion) at 30 September
1999 as customers responded positively to enhanced products and
services. Loans and advances to customers stood at SAR13.8 billion
(US$3.7 billion) at 30 September 2000 compared to SAR14.5 billion
(US$3.9 billion) at 30 September 1999. The decline was due to weak
demand for new corporate borrowing and scheduled repayments of existing
loans. Personal lending continued to grow at a steady pace. The total
value of SABB’s investment portfolio increased to SAR22.6 billion
(US$6.0 billion) at 30 September 2000 from SAR15.2 billion (US$4.0
billion) at 30 September 1999 as the bank deployed available liquidity
in a diversified investment portfolio, taking advantage of market
opportunities. David Hodgkinson, managing director, said: “Strong oil
prices boosted economic confidence and resulted in an improved climate
for investment. Our results for the nine months were in line with our
expectations and reflect a robust increase in operating revenues from
diversified income streams. This is encouraging and we will continue to
pursue a strategy aimed at achieving steady growth. Equally, we look
forward to prospects arising from the government’s liberalization
program. Our continued aim is to deepen our customer relationships with
a full range of products and services to meet their requirements. We
thank our customers for their support and our staff for their dedication
during this period.”
Source: Saudi British Bank Website
KINGDOM
STUDYING MORE INVESTMENT BIDS
October 2, 2000
In an interview with Al-Ahram
newspaper published in Cairo today, Governor of the Saudi Arabian
General Investment Authority (SAGIA) Prince Abdullah bin Faisal bin
Turki Al-Saud stated that the Kingdom is studying more foreign bids for
investment in the areas of oil, gas, minerals and related services,
including operation and maintenance of computer and telecommunications
networks. SAGIA, he said, is endeavoring to make the investment climate
more attractive and more competitive at regional and international
levels.
As of the end of 1999,
around U.S. $50 billion was invested in Saudi Arabia from overseas.
These investments enjoy the same privileges and incentives as domestic
investment, such as the provision of land at a nominal price, right of
ownership of real estate, copyright guarantees, freedom of flow of
capital and interest, right of litigation whenever disputes erupt, and
waiver of confiscation except by judicial order. These are in addition
to the reduction of the maximum tax rate from 45 to 30 percent, the
transfer of losses to an unlimited deadline, and the right to receive
loans from the Saudi Industrial Development Fund. Investment regulations
stipulate that the minimum capital for agricultural investment is SR 25
million, for industrial investment, SR 5 million, and for non-industrial
investment, SR 2 million.
Source:
General Dynamics Corporation (ticker: GD, exchange: NYSE)
Monday, September 25, 2000
General
Dynamics Wins $28 Million Saudi Aramco Offshore Networking Contract
NEEDHAM, Mass. –
General Dynamics Worldwide Telecommunication Systems, a business unit of
General Dynamics (NYSE: GD), has been awarded a $27.8 million contract
to build a new fiber optic network to connect Saudi Aramco’s Arabian
Gulf offshore oil platforms to the mainland.
Through this contract,
the Offshore Fiber Optic Cable System Project, General Dynamics will
replace existing microwave systems on oil platforms in the Arabian Gulf
with undersea fiber optic cable. The synchronous digital hierarchy (SDH)
network will support high-bandwidth voice and data communications,
allowing land-based decision authorities to monitor performance of the
oil platforms at sea.
Saudi Aramco is the
largest oil producing company in the world, responsible for 99 percent
of Saudi Arabia’s crude oil reserves of 259 billion barrels – about
a quarter of the world’s total.
"We have been
working with Aramco for years as they focus on obtaining the appropriate
technology to meet their business needs," said Bill Lightfoot, vice
president of international programs for General Dynamics Worldwide
Telecommunication Systems. "This project will provide Aramco with
state-of-the-art solutions, giving them the tools to achieve their
information and technology objectives."
General Dynamics
Worldwide Telecommunication Systems will provide program management,
design, procurement, installation and commissioning of the network. The
company is a leading provider of wire line and wireless networks for
voice, video and data communications around the world.
General Dynamics
Advanced Technology Systems, which operates a fleet of cable-laying
ships specifically designed to install and service undersea
telecommunications systems, will complete a detailed survey of the Saudi
coast seabed. Upon survey completion, General Dynamics will design and
install a nonrepeatered undersea fiber optic cabling system, addressing
any environmental constraints.
Design and procurement
work is planned to begin in November, followed by installation and
commissioning of the new network, plus removal of the existing microwave
equipment, in 2001. Project completion is scheduled for August 2002.
In addition to this
program, General Dynamics is constructing a fiber optic network and
associated support facilities for Saudi Aramco’s Hawiyah Gas Plant
Development project, and recently completed work on a complete
communications infrastructure to support the Shaybah oil and gas
production facilities in Saudi Arabia’s "Empty Quarter."
Shaybah, approximately
434 miles from a major urban area, is one of the most foreboding places
on the planet, due to summer temperatures exceeding 140 degrees and the
violent sandstorms that are routinely experienced in the region. Despite
these challenges, employing 50 engineers, technicians and supporting
staff and over 200 subcontractor personnel, General Dynamics designed,
engineered, installed and commissioned a turnkey telecommunications
network in 15 months.
General Dynamics
Worldwide Telecommunication Systems has been delivering
telecommunications solutions for more than 40 years, in all 50 states
and more than 40 countries. With more than 3,200 employees, General
Dynamics Worldwide Telecommunication Systems provides worldwide support
to commercial and government customers alike.
General Dynamics
Advanced Technology Systems has been developing advanced communication,
sensor and processing systems for commercial and defense customers for
more than 50 years. The company offers photonics and fiber-optic
technologies and also provides project planning, management,
engineering, installation and maintenance services to the communications
industry worldwide, with major emphasis on the undersea cable market.
General Dynamics,
headquartered in Falls Church, Virginia, employs approximately 44,000
people worldwide and has annualized sales of approximately $10 billion.
The company has leading market positions in telecommunications,
shipbuilding and marine systems, land and amphibious combat systems,
information systems, and business aviation.
Source:
Ain-Al-Yaqeen - August 18, 2000
SAUDI ARABIA APPLIES THE LAW FOR
FOREIGN OWNERSHIP OF REAL ESTATE NEXT NOVEMBER.
THE MINISTRY OF
INTERIOR PROVIDE LICENSES FOR PRIVATE OWNERSHIP AND SR 30 MILLION IS THE
MINIMUM REQUIRED FOR INVESTMENT.
The Kingdom of Saudi
Arabia has unveiled new rules and regulations for the ownership of real
estate by foreigners and their investment in the sector and said the new
law would come into effect on November 9, i.e. 90 days after the official
announcement of the law on August 11.
Asharq Al-Awsat newspaper
published extracts from the new law which has been endorsed by the Council
of Minister on the 10th of July after it was passed by the Supreme
Economic Council and the Shoura Council last May.
There are eight
basic articles in the law called "The system of real estate ownership and
investment of non-Saudis." Article two allows non-Saudi individuals, who
are legal residents in the Kingdom, to own real estate for their private
resident with the permission of the Ministry of Interior.
As per
Article Two of the system the ownership of real estate properties will not
be open to all expatriates. Only those who receives licenses from the
Ministry will be entitled to purchase real estate for their personal use.
The Ministry will have the right to either approve or reject their
applications.
Article One of the system refers to ownership of
real estate by foreign investors to conduct their business activities.
Clause (a) of the law allows such investors to own properties required for
their accommodation and that of their employees. The investors are also
allowed to rent their properties.
According to real estate
businessmen, the authority to issue real estate ownership licenses has
been given to the ministries, which supervise various economic and
business activities. The issuing authority will be either the Ministry of
Industry and Electricity or the Ministry of Agriculture and Water or the
Ministry of communications, etc.
As per Article 1, Clause (b) at
least SR 30 million should be invested for receiving the license for
purchasing land and buildings for selling and renting purposes. This
article makes it clear that foreign investors in real estate should have a
capital of at least SR 30 million. This clause could be changed by a
decision of the Council of Ministers.
Marae Ibn Mahfooz, a major
real estate investor, said the law would encourage major international
companies to enter the Kingdom's real estate market.
"The Kingdom
will also attract new real estate developers," Ibn Mahfooz said, adding
that the market was lacking capable developers who can cater to the needs
of low income groups.
Saad Al-Nefjan, another real estate investor
in Jeddah said that the new law prevented illegal competition and
artificial price hike in the sector by putting a condition that an
investor should invest his property within five years of his ownership.
Previous laws allowed an investor to keep the property only for three
years.
Article Three is related to the real estate owned by
foreign missions in the Kingdom. It allows foreign embassies and
consulates to own their headquarters as well as the residences of heads of
missions and staff. International and regional organizations should get
licenses from the Ministry of Foreign Affairs to own buildings for their
headquarters.
Article Four of the system allows "ownership of real
estate in cases other than previously mentioned with the permission of the
Prime Minister."
As reported before Article Five of the new law
bans foreigners to own properties in the Two Holy cities of Makkah and
Madinah, except through inheritance or endowments. However the law
provides foreigners the right to rent buildings within the two holy cities
for not more that two years, that could be renewed.
Article Six
stressed that officials who endorse deeds should not approve any deeds
that contradict the new law.
"The application of the new law does
not cancel the rights of foreigners and GCC citizen to own properties as
per previous regulations," the new law said.
Asharq Al-Awsat
newspaper reported that the system has been subjected to a study by the
ministries concerned, like the Ministry of Finance, National Economy and
Planning, and especially to the Ministry of Municipal and Rural Affairs,
which due to its previous experience in the field of renting lands to
investors played a large role. After the Cabinet had issued the
resolution, which allows foreigners to own lands belonging to the state, a
number of governmental organizations offered real estates and lands for
sale to investors.
On the other hand businessmen in the field of
real estate reject the idea that foreign investment would cause a sudden
outburst that would raise real estate prices. They stressed that the
Kingdom is a large country capable of absorbing new comers in the market.
They explained that this would enlarge the market to include new areas,
and stressed that the new law would terminate the cover phenomenon that
affects the real estate market.
PRESS RELEASE --13th
June 2000
Shoura
Council approves ownership of real estate by non-Saudis
The
Shoura (Consultative) Council today passed a bill on real estate
ownership for non-Saudis at a regular session.
Following the meeting, Dr. Homoud Al-Badr, secretary general of the
Council, told the Saudi Press Agency that the meeting gave approval for
foreigners to own real estate in all cities of the Kingdom of Saudi
Arabia except Makkah and Madinah. He said the new bill is part of the
[developmental] efforts in the economic and social fields in the
Kingdom. He drew the attention to the fact that the Council had
discussed the bill at several sessions and that the final version of the
bill, submitted by the Economic Committee of the Shoura Council today,
reflected these previous deliberations.
(Riyadh, 13th June
2000Source: SPA)
PRESS RELEASE -- April
13, 2000
New
Investment Law Text
Article (1)
Definitions:
by 'Council' is meant the Supreme Economic Council (SEC); by
'Commission' is meant the General Investment Commission (GIC); by
'Governor' is meant the Governor of the General Investment Commission,
who is also Chairman of its Board of Directors; by 'foreign investor' is
meant any non-Saudi, either an individual or a legal person where all
partners are non-Saudis; by 'foreign investment' is meant the investing
of foreign capital in an activity licensed by this system; by 'foreign
capital' is meant foreign input within this system including, if they
are owned by the foreign investor, such items as money and securities;
his profits if used in increasing the capital and expansion of the
existing projects or establishment of new projects; machinery,
equipment, spare parts, means of transportation and requirements for
production pertaining to investment; and moral aspects such as licenses,
intellectual property, technical knowledge, administrative skills and
production methodology; by 'commodity origins' is meant projects for
production of both industrial and agricultural goods; by 'service
installations' is meant projects for services and contracts; by 'system'
is meant the foreign investment system; by 'statute' is meant the
executive statute.
Article (2)
Without violation of any regulation, licenses for foreign investment are
issued by the Commission either on temporary or permanent basis. The
commission should settle any application for investment within thirty
(30) days, effective from the date of receipt of the required documents
as stipulated in the statute. If the fixed time expires without the
settlement of the application, then the commission should issue the
required license to the investor. If the commission turns down the
application within the fixed time, then such a decision should be based
on reasons and justifications. The applicant has the right to appeal in
line with the system if his application is rejected.
Article (3)
The Council is authorized to issue the list of activities excluded from
foreign investment.
Article (4)
In consideration of Article (2), the foreign investor has the right to
obtain more than one license in various activities. The statute
determines the required restrictions.
Article (5)
Licensed foreign investments can be either installations owned by a
national investor together with a foreign investor, or installations
wholly owned by the foreign investor. The legal form for the
installation is to be in line with the system and the directives.
Article (6)
Projects licensed in line with this system will enjoy all privileges,
incentives and guarantees of national projects.
Article (7)
The foreign investor is authorized to remit abroad his share, either
from selling his portion or from the profits earned by a project or to
use it in any legal manner. He is also authorized to remit the necessary
sums to meet any contractual obligations pertaining to the project.
Article (8)
The licensed foreign company has the right to own the required real
estate for practicing the licensed activity or housing some or all of
the personnel in line with the real estate regulations for non-Saudis.
Article (9)
The sponsorship of the foreign investor and his non-Saudi employees will
be undertaken by the licensed company.
Article (10)
The Commission will provide all interested persons with the required
information, clarifications and statistics as well as with the needed
services and procedures so as to facilitate all matters pertaining to
the investments.
Article (11)
It is not permitted for the investments of the foreign investor to be
confiscated either partially or in entirety without a judicial verdict,
nor for his property to be expropriated, either partially or in
entirety, except for in the public interest in return for fair
compensation in line with the system and directives.
Article (12)
In the event of any violation, the foreign investor is informed in
writing to eliminate the violation within a certain period that is to be
fixed by the Commission. If the violation still remains without
correction, the foreign investor will be subject to one of the following
punishments: either he will be deprived of all or some of the incentives
and privileges, or pay a fine not exceeding SR500,000, or have his
foreign investment license revoked. The aforementioned punishments will
be carried out by a decision to be issued by the board of directors. The
foreign investor has the right to appeal the punishment meted out to him
before the Court of Grievances in line with its system.
Article (13)
Without violation of the agreements to which the Kingdom of Saudi Arabia
is party, settlement of disputes between the government and the foreign
investor as regard to the latter's licensed investments, in line with
the system, is to be carried out in an amicable manner, but if amicable
settlement is not reached, the dispute will be settled in line with the
regulations.
Article (14)
All licensed foreign investments will be treated in line with the rules
of taxes implemented in the Kingdom of Saudi Arabia.
Article (15)
The foreign investor will adhere to the systems, statutes and
instructions carried out in the Kingdom of Saudi Arabia and to the
international agreements to which the Kingdom of Saudi Arabia is party.
Article (16)
The implementation of the system does not contravene with the acquired
rights for foreign investments that were in existence prior to the
implementation of the system, but the practicing of these projects with
their activities or increasing of their capitals, will be subject to the
rules of the system.
Article (17)
The Commission will issue the statute and publish it in the official
gazette, and it will be implemented effective from the date of its
publication.
Article (18)
The system is to be published in the official gazette and implemented
after thirty (30) days, effective from the date of its publication; it
will thereby annul the system for investment of foreign capital that was
issued by the Royal Decree dated 2/2/1399 H, and will also cancel all
matters that contradict with the rules.
PRESS RELEASE -- April
10, 2000
Saudi
Arabia Approves New Foreign Investment Law
In a landmark decision,
Saudi Arabia Council of Ministers approved a new Foreign Investment Law
on Monday, April 10th, following the recommendation of the
Supreme Economic Council and the Majlis Al-Shura. King Fahd issued a
Royal Decree approving the law, thus significantly revising the way
foreign investment has been conducted in the Kingdom for more than 20
years.
The Council of
Ministers also approved the establishment of the General Investment
Commission, which will be responsible for proposing and implementing
policies to promote foreign investment in Saudi Arabia, and for issuing
investment licenses to foreign investors. H.R.H. Prince Abdullah bin
Faisal bin Turki has been appointed as the new investment body governor,
with the rank of Minister.
In a dramatic change
from the previous investment law, the new Foreign Investment Law allows
foreigners 100-percent ownership of the projects, as well as the
property required for the project itself or for housing company
personnel, while enabling them to retain the same incentives given to
national companies. For example, projects that are 100 percent
foreign-owned will be eligible for loans from the Saudi Industrial
Development Fund. Investors will also be able to hold investment
licenses in more than one type of activity. The new law has brought
significant changes to the previous sponsorship regulations. Foreign
investors and their non-Saudi employees will be sponsored under the new
licensed firm.
Another very
significant change is the reduction in the corporate tax rate for
foreign companies with profits over SR100,000 a year, from 45 percent to
30 percent. The new law also enables companies to carry forward
corporate losses for an unspecified number of years.
The General Investment
Commission will work towards streamlining the foreign investment
application process by creating a one-stop shop facility. It will be
required to respond to investment applications within 30 days. If the
Commission does not make a decision within this time frame, the license
will be issued. If the Commission declines the application for some
reason, the foreign investor is allowed to appeal the decision.
The new Foreign
Investment Law will become effective 30 days after it is published in
the Official Gazette.
PRESS RELEASE -- March
9, 2000
Lucent
Technologies Wins Optical, Data Network Contracts Valued at $145 Million
from Saudi Telecom
Lucent Technologies
(NYSE: LU) today announced that it has won two contracts
from Saudi Telecom Co (STC), the Middle East's largest service provider,
to expand its optical transmission and data networks to meet customers'
Internet and voice network needs.
The total value of the two contracts is US$145 million (approximately
Saudi Riyal 544 million).
"We are proud to have been selected by the Saudi Telecom for these
projects," said John Heindel, president of Lucent Saudi Arabia.
"They envision the needs of tomorrow's networks while meeting the
demands of today's."
In one contract valued at US$110 million (approximately Saudi Riyal 413
million) Lucent will provide its WaveStar™ OLS 80G and WaveStar ADM
16/1 optical networking systems to increase STC's transmission and long
distance capacity. This expansion is designed to respond to the growth
in Internet traffic, the demand for rapidly growing GSM wireless
traffic, and the need for additional land lines.
In another contract valued at US$35 million (approximately Saudi Riyal
133 million), Lucent will also provide its Asynchronous Transfer Mode
(ATM), remote access and digital subscriber line (DSL) equipment,
enabling STC to more than double its existing Internet capacity and
offer DSL services to its customers. Lucent's WaveStar OLS 80G uses a
technique known as dense wave division multiplexing (DWDM) to
simultaneously transmit 16 distinct information streams across the same
fiber strand. This enables carriers to increase network capacity,
without incurring the cost of laying new fiber.
For the second contract, Lucent will provide the market-leading GX 550™
Smart Core ATM switches and CBX™ 500 and B-STDX 9000™ Multiservice
Wide Area Network (WAN) switches. These offer the highest performance,
scalability, and capacity for building next generation networks. In
addition, Lucent will supply its PacketStar™ Access Concentrators,
which when combined with the GX 550 and CBX 500 switches, provide the
industry's most comprehensive integrated ATM access and switching
solution.
Lucent will also provide Saudi Telecom with the MAX TNT™ carrier-class
WAN access switch for remote access at 28 locations. Lucent's
NavisFamily network management systems will enable world- class monitoring
and provisioning of the ATM and remote access systems. In addition,
Lucent will install xDSLBroadband Access Interface equipment throughout
the Kingdom-a first for Saudi Arabia.
Lucent Technologies has a workforce of about 3,100 in Saudi Arabia
composed of 760 Saudi nationals as well as expatriates from 41 nations,
and has offices in the major Saudi cities of Riyadh, Jeddah and Al
Khobar.
Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds
and delivers a wide range of public and private networks, communications
systems and software, data networking systems, business telephone
systems and microelectronic components. Bell Labs is the research and
development arm for the company. Lucent provides next-generation network
solutions to New Carriers, ISPs and PTTs world-wide - including 90% of
the largest PTTs in Europe and 85 of the 100 largest ISPs world-wide.
For more information on Lucent Technologies, visit the company's Web
site at http://www.lucent.com.
SOURCE: Lucent
PRESS RELEASE --
February 1, 2000
Saudi
Chevron Petrochemical Celebrates Opening of Kingdom's First Totally
Private Basic Petrochemical Partnership
Saudi Chevron
Petrochemical today celebrated the opening of the joint venture's $650
million plant to produce benzene and cyclohexane. The petrochemical
complex, a 50-50 joint venture of Chevron Chemical Co. and the Saudi
Industrial Venture Capital Group, was delivered under budget and with
one of the best safety performance records in the worldwide construction
industry.
At the dedication ceremony, Vice Chairman of Chevron Corp. Jim Sullivan
said, "Today, we celebrate the beginning of a new kind of
partnership. Our joint venture, Saudi Chevron Petrochemical, is the
first, totally private, basic petrochemical enterprise in the Kingdom of
Saudi Arabia."
Sullivan honored the late Sheikh Ahmed Al Juffali and thanked Sheikh
Abdulaziz Al Quraishi, both of whom, pioneered and led the venture
through project approval and development stages. He cited many Saudi
business leaders and investors who formed the Saudi Industrial Venture
Capital Group, and he expressed appreciation to the Royal Commission and
Saudi Aramco for supporting the project and for providing the vital
feedstock needed to ensure success.
The Saudi plant will use Chevron's AROMAX® process to convert naphtha
feedstock to benzene and cyclohexane. Saudi Arabian styrene
manufacturers need benzene and there are strong cyclohexane markets in
Europe and Asia. Chevron Chemical Co. is the marketer for exporting
benzene and cyclohexane. In developing the new plant, Saudi Chevron
Petrochemical worked closely with one of Chevron's other AROMAX® plants
in Pascagoula, Miss. As a result, the new plant is expected to
show better catalyst performance than other plants.
Chevron's association with Saudi Arabia dates back more than 65 years.
"This plant opening that we celebrate today demonstrates Chevron's
continued commitment toward maintaining a long and illustrious
relationship with Saudi Arabia," said Sullivan.
SOURCE:
Chevron
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