Problems relating to Trade and Investment on Saudi Arabia
1. Restrictions on entry of foreign capitals |
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Issue |
Issue details |
Requests |
Reference |
| (1) Restricted Trade Activity Under Trade Licence | - Trade licence open to foreign capital is restricted, in principle, to invoice based transactions and information collection work, while the marketing specific products or the transaction under the name of vendor's head office amount to violation of Broker Law and Agent Law, and therefore are prohibited. Actually, these kinds of activities might not be included in the trade licence under Broker Act and Agent Act as exclusive right to the Saudis, however they are effective to creation and expansion of invoice based transactions. Therefore, it is requested that Government of SA (SGA) approves such activities as a part of commercial activities based on trade licence. | - It is requested that SGA will expressly provide into law, such as ministerial interpretative decree the lawfulness of foreign funded entreprises (FFEs) entering into such business activity. | - Broker Law - Agent Law |
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