SAGIA eases license procedures for foreign investors

JEDDAH: 黑料社区n General Authority听(SAGIA) is accelerating the licensing process and offering several flexible ways for entrepreneurs to obtain visas.
SAGIA听has听introduced several steps aimed at simplifying licensing procedures for foreign companies planning to invest in 黑料社区. 听
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. 听
Documentation requirements听were听significantly reduced to 3 simple听documents:
1) A board resolution declaring intent of investment in 黑料社区;
2) Another resolution outlining the investment plan including its economic impact;
3) A document showing the investor鈥檚听financial ability听to carry out operations.听
In addition, Ayedh added听all听foreign investors now听enjoy a听fast track听service to receive investment licenses听within听a maximum听of听5 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.
鈥淭o 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,鈥� said the SAGIA official.
This includes having the option of a听3-year听license to explore the market and gradually work toward building the organization capabilities.
After this period, the investor has the right to 听procure a renewable license after establishing a sustainable entity with a minimum听number听of personnel,听fixed assets and equipment.听
The investor also have the option of听applying for听a renewable听permanent听license, provided听the applicant submits an undertaking听to听establish an entity with minimum level of assets and personnel听within one听year from the date of the license.听听
Another option 听involves a听temporary license听for the implementation of specific contracts for specific duration with government听or quasi-government agencies where the nature of these projects are characterized as听non-frequent.
The fourth option听is that of听granting听a temporary certificate, in lieu of 听a classification certificate,听for the implementation of听onesingle government project听provided听the applicant听conforms to the听prescribed听regulations and standards.
听
Clear and flexible听visa听
options听for听entrepreneurs
Ayedh听also noted: 鈥淲e have worked with the Ministry of Labor and other government agencies to now refine and align听鈥榠nvestor鈥檃nd 鈥榞eneral manager鈥� visa requirements.鈥澨� He听added that SAGIA听will听issue a听support听letter听to issue a visa for听鈥渋nvestor鈥� and/or听鈥済eneral manager鈥�, in line with foreign investment and international听agreements.
This relates to the visa and does not affect the licensing or听Investor听ownership听as听the听regulations听deal only听with听investor/general manager visas.
More particularly, 听these regulatory measures听are听related to applying for investors or general manager visa听(limited听to听sole proprietorship, a limited liability company owned听wholly or partly by individuals ,听and the branch of听a limited liability听foreign company, which is owned听in part听or听whole by individuals),听will get support letter for entrepreneurs 鈥渋nvestor鈥� visa听must听conform 听to one听of the following requirements:
1) 听The activities of the听entity听needs to fall under 鈥渋nnovative activities鈥� with听a听valid听patent听used听as part of the听enterprise products.
2) The听entity听needs to be an exporter of its products with the condition that听the technical specifications of the听export听products听and the method of production听must听conform to the听approved Saudi, GCC or international specifications.听
3)听The听entity听must听have听a minimum of 50 workers and听adhere to 黑料社区鈥檚 WTO听commitment to employ听a maximum of听25 percent foreign labor as part of the total听workers employed听in foreign听or joint-venture听companies听and of these,听10 percent听are听managers and professionals and 15 percent technicians and workers, or vice versa.
4) The听entity鈥檚听paid-in听capital must not be less than听SR37.5 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 granted听a听lead time of 24 months or听the date听before the second renewal of the license, whichever comes first,听to adapt these conditions.听听

Owners will also have the option 听to obtain business听visit visas听in accordance with听regulations and international obligations听of 黑料社区.

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