Problems relating to Trade and Investment on Saudi Arabia
8. Investment recipient organization |
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Issue |
Issue details |
Requests |
Reference |
| (1) Abrupt Change of Guidelines on Investment License Renewal Procedures (the Guidelines) | - From time to time, abrupt change takes place on the guidelines both neither prior notices, background explanation, nor reason. It drives foreign funded enterprises (FFEs) into great consternation. Should the change in question delay FFEs' renewal of Investment licence, it can materially disrupt FFEs' operation. The renewal procedures at times require submission of documents normally deemed totally unnecessary. | - It is requested that Saudi Arabia General Investment Agency (SAGIA) refines the guidelines underlined with convincing background and reasons together with sufficient grace period, enabling timely preparation of the requisite documents. | - SAGIA Internal Guidelines |
| (2) Vexatiously Complex Rules and Procedures upon FFEs Entry into Saudi Arabia | - For establishment of foreign funded enterprises (FFEs)/offices, it is necessary to acquire Saudi Arabian General Investment Authority's (SAGIA's) licence. It takes a vast amount of person-hours workload due to their complexity in rules and equally complex clerical work. | - It is requested that SAGIA streamlines the rules and regulations "highly visible", capable of achieving "efficiency" in work like one-stop-service by adopting single window, etc. | - Foreign Investment Law, and the Related Laws and Regulations (SAGIA, MOCI, Notary Public, etc.). |
| (3) Procrastinated SAGIA Trade Licence Acquisition | - It has become apparent that it takes as long as 6-months to acquire the Trade Licence at Saudi Arabian General Investment Authority (SAGIA). A Firm had to spend a long time to establish an enterprise in Saudi Arabia. - SAGIA licence, interlocked with the validity period of commercial registration, in effect, is strikingly tinted in the "business licence" colour. While its validity is only for one year, more than 2-months are necessary for its renewal, a nuisance, severely burdening foreign funded enterprises. New regulation of October last year was further amended largely so that enterprises of good standing, meeting certain requirements are entitled to the License, valid for plural years, 2-, 3-, 5-years, while the renewal scheme is simplified so that it takes about a week from the date of filing application online. |
- It is requested that SAGIA expedites the Trade Licence Issuance. - While the dramatic improvement is appreciated, further improvement is requested to extend the license good for a longer period. - In addition, while renewal procedures have become simple, SAGIA's inspection remains. Depending upon its frequency, it could grow up into additional burdens. |
- SAGIA Announcement of 21 September 2014 |
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