Saudi Investment Support Center Brochure

Your Gatewayto Business

in Saudi Arabia

Saudi Arabia is a major world economy and is also a member of the G20. Not only is it one of the most

stable economies in the world, but it has a young, booming business-savvy population. About 50% of the Saudi population is under 21 years old and, unlike the other gulf states, almost 80% is made up of native Saudi individuals; the large native population contributes to a reliable consumer market not affected by expat immigration patterns.

Saudi Arabia is a member of the world trade organization and is also the only gulf country that allows 100% foreign ownership of corporations. As a result of high oil prices Saudi Arabia, a major energy hub, has benefited from huge government investments in infrastructure, construction, and developments of the industrial sector in an effort to diversify the Saudi economy. These efforts not only include building development, but also tax incentives, low land prices, and subsidized electricity, not to mention interest free loans of up to 75% of building costs for factories.

Along with the drive towards industry, education is a major concern for the Saudi government. Because of this concern, the country began construction on an additional number of universities to supplement the 5 they already had. The number of universities by the end of construction should reach 37 all over the country. The government has also started to fund support for private universities in the form of new buildings, extra curriculum offerings, and even government

Business Opportunities in Saudi Arabia

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supported scholarships to help promote overseas education in countries all around the world.Saudi Arabia has 3 major mobile telecommunications companies, and with the boom in sales of mobile technology, the opportunities for growth in this sector is immense. In fact, because of the thriving telecommunications industry, plans have started being put in order that would introduce licenses for mobile virtual network operators (MVNO). As technology grows and changes the opportunities for businesses seizing hold of viable market changes will triple in both their availability, and the lucrativeness!

Air travel is also a major part of Saudi society. With plans to privatize Saudi Arabia’s national airline and the introduction of 2 private airlines Saudi Arabia is taking the next step in hopes of licensing international airlines to operate domestically within the country. Rail is another major endeavor for the country; construction of a major high-speed rail connecting the holy cities of Mecca and Madina has recently gone underway, and is charted

to be completed by 2014. Riyadh also just started a major public transportation project of rail and bus networks with an estimated cost of over USD 10 billion that is set to be completed in 2016. As the population increases and needs in transportation grow, there will be a large market to be filled in terms of rail, air, and vehicle transportation.

Saudi Arabia is an economy on the rise that affords opportunities for individuals in almost every industry. Whether you are interested in technology, agriculture, education, transportation, or any other number of business ventures Saudi Arabia has the market to support you. Now is the time to be part of the Saudi market, and we can help! At our offices, we and our legal partners can setup an LLC or a Branch office for your corporation in Saudi Arabia. Along with getting your company or corporation up and running, we can also help you to protect your assets with trademark registration and a number of other business related services that we provide in house for your benefit.

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If there is something that you are interested in but you do not see here, please let us know! Our services are diverse and not limited to what is mentioned here, and upon your request we will do our best to accommodate your needs or find someone that will!

ServicesEstablishing an LLC or Branch officeWe at SISC understand that it can be difficult and time-consuming to set up your own LLC or Branch office, so we do it for you. With the help of our highly trained legal assistants we figure out how best to meet the needs for your company, and assist in laying down some of the basic foundations. The cost for this service is USD 15,000, along with any associated government fees.

Trademark RegistrationIt is incredibly important to protect the assets of your company! SISC helps by being able to register any of your trademarks that you wish to protect. The cost for registering a trademark in a single category is USD 2,000.

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We provide special rates for legal and IP firms, contact us at [email protected] for more information.

Local Representative ServiceWould you like to hire a local employee to represent your business in Saudi Arabia and provide you with a local address? We can facilitate the hiring process, and assure the individual’s continued service to you for USD 20,000 per year. As a separate option, you may also request a dedicated marketing employee for your brand, pick them your self and be responsible for their salary.

Office Space SearchWe will search for an office space that fits your needs and provide you with a list of available options for USD 1,500.

• Provide research data and information in all aspects of the Saudi market.

• Arrange visits to and from Saudi Arabia.

• Organize meetings with corporations and individuals within the public and private sector of Saudi Arabia.

• Provide travel arrangements, hotel booking, car rental, mobile phone rental, and translators.

• Corporate and financial legal services.

• Relocation into Saudi Arabia.

• Organize conferences and exhibitions in regards to investment opportunities in Saudi Arabia and abroad.

• Connect Saudi investors to further examine investment opportunities abroad.

We also offer to:

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Minimum Capital Requirementsto Start a Business in Saudi Arabia

Following is a table documenting the minimum (working) capital requirements to start a business in Saudi Arabia. Please examine the chart and be certain that you meet criteria.

Type of Investment LLC BranchTechnical

& Scientific Office

Industrial100% Foreign Ownership Allowed

SR 1,000,000 SR 1,000,000 NR

Trade75% Foreign Ownership Allowed

SR 20,000,000 for foreign partner

shareNA NR

Agricultural100% Foreign Ownership Allowed

SR 25,000,000 SR 25,000,000 NA

Contracting100% Foreign Ownership Allowed

SR 500,000 SR 500,000 NA

Real Estate100% Foreign Ownership Allowed

Minimum project value with land and

buildingsSR 30,000,000

Minimum project value with land and

buildingsSR 30,000,000

NA

Services100% Foreign Ownership Allowed

NR NR NA

Distributor Search ServiceDo you already have an established company and wish to enter the Saudi market? Are you in need of a distributor for your products in Saudi Arabia? We can help! Along with all of the above listed services, we can also look for a distributor for your products in Saudi Arabia and facilitate you getting started.

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Businesses prohibited for foreign investments in Saudi ArabiaThere are a number of business types that are prohibited from foreign investments in Saudi Arabia. Below we have populated two lists relating to the industrial and service industry sectors for your ease of perusal.

What This Looks Like:For a US$ 7,000 non-refundable fee, you can hire us as your exclusive representative for one year and provide us with all of the materials and samples related to your brand and company that you have on hand; we will need these materials to make a marketing plan, and to show as samples to potential distributors.

Then, we as a company search and connect you with interested distribution companies and individuals that would meet the needs you have designated within your market. We guarantee that you will get offers from at least 3 serious individuals, establishments, and/or corporations during the year of our partnership.

If and when a deal is reached between you and a Saudi distributor, SISC receives US$ 35,000 as a success fee.

Industrial Sector• Oil exploration, drilling and

production. Except the services related to mining sector listed at (CPC 5115+883) in International Industrial classification codes.

• Manufacturing of military equipment, devices and uniforms.

• Manufacturing of civilian explosives

Service Sector• Catering to military sectors.• Security and detective services.• Real estate investment in Makkah

and Madina.• Tourist orientation and guidance

services related to Hajj and Umrah.• Recruitment and employment

services including local recruitment offices.

• Real estate brokerage.• Printing and publishing.

Except the following activities:  •  Pre-printing services 

internationally classified at (CPC 88442)

  •  Printing Presses internationally classified at (CPC 88442)

  •  Drawing and calligraphy internationally classified at (CPC 87501)

  •  Photography internationally classified at (CPC 875)

  •  Radio and Television Broadcasting Studios internationally classified at (CPC 96114)

  •  Foreign Media Offices and Correspondents internationally classified at (CPC 962)

  •  Promotion and Advertising internationally classified at (CPC 871)

  •  Public Relations internationally classified at (CPC 86506)

  •  Publication internationally classified at (CPC 88442)

  •  Press Services internationally classified at (CPC 88442)

  •  Production, selling and renting of computer software internationally classified at (CPC 88)

  •  Media consultancies and studies internationally classified at (CPC 853)

  •  Typing and copying internationally classified at (CPC 87505 + 87904)

  •  Motion picture and video tape distribution services internationally classified at (CPC 96113).

• Commission agents internationally classified at (CPC 621).

• Audiovisual and media services.• Land transportation services, excluding the inter-city passenger transport by trains.

• Services provided by midwives, nurses, physical therapy services and quasi-doctoral services internationally classified at (CPC 93191).

•  Fisheries

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Mailing Address:Saudi Investment Support Center (SISC)PO Box 301413Riyadh 11372Kingdom of Saudi Arabia

Physical and Courier address:Saudi Investment Support Center (SISC)Ciricon Bulding #14, 5th Floor, Office 5056675 AlUlya StreetRiyadh 12241-2628Kingdom of Saudi Arabia

Tel: +966 1 416 0808Fax: +966 1 416 0909E-Mail: [email protected]

www.sisc.info