What are the visa regulations for foreign investors?

 

It is necessary for the investor or his representative to visit the Saudi Embassy/Consulate to apply for a visa. However, it is also possible to obtain the visa via post in some countries like the United States and some European countries. More information concerning the types of visa and other entry requirements can be found on the Saudi Arabian General Investment Authority (SAGIA website: http://www.sagia.gov.sa, the Visa Regulations and Rules section on the website of the Saudi Ministry of Foreign Affairs: http://www.mofa.gov.sa/Detail.asp?InNewsItemID=36407 and through the consular services of Saudi embassies. (should be hyperlinked to word)
In the US: http://www.saudiembassy.net/
In the UK: http://www.saudiembassy.org.uk/
In Germany: http://deemb.mofa.gov.sa
In France: http://www.mofa.gov.sa
In Italy: http://www.arabia-saudita.it
 

What are the labor costs in Saudi Arabia?

At present, there are no laws prescribing a minimum wage in Saudi Arabia. The average wage among the manufacturing workers is approximately twice as much as that in China and less than one-tenth of that in Germany and the United Kingdom. With lower costs of resins and electricity, RPTP is expected to retain an overall competitiveness.
 

Does the Government of Saudi Arabia provide any additional incentives to foreign investors?
 

The Saudi Arabian Government provides multiple incentives to foreign investors, particularly, in the manufacturing industry.
Being a member of the Multilateral Investment Guarantee Agency (MIGA), the Kingdom ensures the same treatment, protection and incentives accorded to national capital. Hence, foreign investment projects enjoy the same benefits, incentives and guarantees extended to locally owned projects. These, in addition to the ones mentioned above, include:

Exemption from customs duties of machinery and equipment for industrial use. Commodities entering the Kingdom as input for industrial production and some basic foodsare exempted from custom duties. Duties on other products range from 5 percent to 20 percent.

What are government regulations for foreign investment?

SAGIA, the Saudi Arabian General Investment Authority, is the gateway to investment in Saudi Arabia responsible for the creation of a pro-business environment, provision of comprehensive services to investors and the fostering of investment opportunities.
Before doing any business in Saudi Arabia, an investment license needs to be obtained from SAGIA. This can be done by filling out the Investment License Application and sending send it to SAGIA (this can also be done online, through SAGIA's website: http://www.sagia.gov.sa, and will receive expedited treatment). The Application will then be decided upon within 30 days of submission of the complete file. In case of denial, decision can be appealed before the Grievance Board. SAGIA provides periodic follow-ups on the status of issued licenses in order to help resolve any implementation problems and ensure projects are either in production or on-stream for production.
Obtaining an investment license is the first step in doing business in Saudi Arabia. Most businesses need to acquire some form of post licensing services from certain government departments.
 

How will RPTP employees be recruited?

How safe is Saudi Arabia?

The Kingdom of Saudi Arabia condemns all forms of terrorism and actively counters the threats of terrorism. The kingdom is determined to confront the threat posed by alleged terrorists and those who support them. Thus, the Kingdom is an active partner in the international commission formed to combat terrorism and has been working diligently with the US and other nations to destroy terrorist organizations and eliminate the threat they pose to the international community. Severe measures have been undertaken to deter and prevent any attacks on both national and foreign citizens.
To obtain up-to-date information on Saudi Arabian travel and security (including the level of threat of terrorism and travel warnings) foreigners should check the Travel Advice Section issued by their government's foreign offices.
The crime rate in Saudi Arabia is generally low.
 

What is the main competitive advantage of RPTP?
 

The tenants of RPTP will benefit significantly from competitively-priced resins and electricity supplied from PETRORabigh. Resin prices will be negotiated individually with tenants, with reference to the netback price of resin in the tenant's target market. Similarly, electricity will be supplied at approximately 3 cents/kWh, which will bring significant savings to the tenants.
From the fourth quarter of 2008, as its first phase development, PETRORabigh will make the following products available to the tenants of RPTP:

What are the general incentives to investors in the Kingdom?
The general incentives to investors are:

What are the rules of behavior in Saudi Arabia?

Saudi Arabia is a state based on Islamic Law. Alcohol and drugs are not permitted, and dress and social standards are very conservative (particularly for women). Foreigners should check the Travel Advice Section issued by their government's foreign offices for further information.
Useful Refrences:
British Business Group, in Jeddah, Saudi Arabia 
Information for expat communities in Saudi Arabia:

Who are the Tenants already leasing at RPTP?

This information will be available shortly.

 

What is the state of Saudi Arabian business infrastructure?
Airports
There are 25 airports across the Kingdom of which three, at Riyadh, Jeddah and Dammam, are international. Fourteen are local and eight are regional. In 2000, 27.5 million passengers and 467,000 tons of cargo were handled.
Seaports
Saudi Arabia has eight major seaports with 183 berths capable of handling 252 million tons of cargo annually. All ports are managed, operated and maintained by private sector companies under long-term contracts.
Roads
Nearly 160,000 kilometers of road traverse the entire Kingdom. Of this total over 47,000 kilometers are asphalted and link the main centers. Road construction linking the outlying areas is on-going.
Railways
The Saudi Railways Organization (SRO), which operates 59 locomotives and over 2,300 passenger coaches and freight wagons, provides services over a network of 1,391 kilometers of track between Dammam and Riyadh, either direct or via Abqaiq and Hofuf, with branch lines to Dammam Port, Dhahran, Al-Judaidah, Ain Haradh and Al-Kharj. There are also detailed plans for the expansion of the railway network.
Communication All telecommunications facilities are available in the Kingdom including land lines, mobiles (GSM), fax, telex, satellite phones, pagers and the Internet.
Electricity & Water
Electricity and water are available Kingdom-wide, including in all industrial areas and cities.
How has Saudi industrial development been progressing?
Saudi Arabia has made big strides in the field of industrial development. The Kingdom has 3808 productive factories with an invested capital of more than SR 277 billion and about 371,000 workers.
The most important industries include industrial and plastic industries, industries of ceramic and construction materials as well as textiles, metal products and foodstuffs. The Kingdom's non-oil industrial exports amounted in 2005 to about SR 71.4 billion. These products were exported to more than 120 countries. By the end of 2005, the industrial sector, including oil refinery, constituted about 10 percent of the gross domestic product (GDP). Moreover, the growth rate of the industrial sector amounted to about 16 percent, while the value of the industrial products amounted to more than SR 111 billion.
The Petrochemical Industry

The Petrochemical Industry represents a cornerstone in the diversification drive that Saudi Arabia launched primarily to reduce the heavy reliance of the economy on oil revenue. The Kingdom had successfully established a globally competitive petrochemical industry, particularly in the basic and intermediate petrochemical segments of the industry. The industry is projected to nearly double its production capacity to around 70 mty by 2010, with 24% of this capacity owned by the private sector.
Several opportunities exist for investors (foreign and local) to set up manufacturing ventures in the Kingdom in basic and intermediate petrochemicals. Investors will benefit from the feedstock cost advantage coupled with a modern infrastructure and favorable financing incentives. Likewise, ample opportunities exist for foreign and local investors in the downstream petrochemical industries in particular: plastic conversion and the performance chemicals manufacturing.

 

What is the availability of skilled and unskilled labor?
 

Saudi Arabia has a large labor pool, as it has a population of 25 million with approximately half of them 20 years or younger. The size of the Saudi labor force is estimated to have risen from 1.2 million in 1969 to 3.2 million in 1999, increasing by an average annual rate of about 3.3 percent. At the same time, the availability of skilled labor is also growing, with student enrollment (male and female) at various educational institutions having increased from 0.6 million in 1969 to about 4.7 million in 1999, denoting an average annual growth rate of 7.0 percent.

 

Why is Saudi Arabia the right location for foreign investment?
 

Foreign investors benefit from the fact that Saudi Arabia is a WTO member country. In 2005, foreign investment in Saudi Arabia increased 30-fold, totaling US $53 billion. Manufacturers in countries where energy prices increased dramatically in recent years are finding Saudi Arabia an attractive destination for their production base. Saudi Arabia, with the world's largest oil reserves, offers long-term and stable supply of energy.
Saudi Arabia is a signatory to various regional agencies guaranteeing a level playing field to foreign investors. It is a member of the Multilateral Investment Guarantee Agency (MIGA). The Kingdom, hence, ensures the same treatment, protection and incentives accorded to a national capital.
The economy of Saudi Arabia is the largest in the Middle East and rapidly growing due to high population growth rates and ever-expanding foreign trade. With high income from the sale of crude oil, there are significant opportunities for foreign manufacturers to enhance their business in Saudi Arabia.
 

How will land be allocated?
 

The land parcel for industrial location is based on a modular system with a minimum unit of 5,000m². Tenants can, therefore, select their required land area, based on their preferences, in integer multiples of 5,000m². However, this is subject to a flexible zoning system, which will allow manufacturers of similar products to operate in similar environmental conditions.

 

Where is RPTP located?

RPTP provides tenants with ideally located production bases for multiple markets including Saudi Arabia, the Gulf countries and the Middle East, Europe and North Africa. It can be reached by air, from King Abdulaziz International Airport in Jeddah, 160 kilometers away or by sea, via the Jeddah Islamic Port, which is located 180 kilometers south of RPTP. A highway connects RPTP with both of these locations. Additionally, there is a large-scale new town called King Abdullah Economic City (KAEC) 15 kilometers south of RPTP, which will include an international port for both cargo and passengers.

 

Will my company be subject to the Policy of Saudisation?

Were environmental considerations included in the project?

Environmental Compliance Program of Rabigh Plus Tech Park (ECP-RPTP) follows the Presidency of Meteorology and Environment (PME) standard as well as SOIETZ Environmental Guidelines and all other related regulations. Additionally, RPTP planning and design shall be pursuant to the 3 R (Reduce, Reuse, Recycle) policy. Wastewater shall be recycled and reused as well.

 

What other incentives will be provided to tenants?

In addition to the incentives offered by the Kingdom mentioned in the Investing in Saudi Arabia Section, (hyperlink) Saudi Aramco and Sumitomo Chemical will offer the following incentives to the tenants of RPTP:

What services will RPTP supply tenants with?
 

RPTP will ensure each tenant's safe and secure operation. To this purpose, the following services will be provided:
a) Before construction:

b) During construction (on a request basis):

c) After construction:

What industries are best suited for RPTP?

RPTP shall provide a platform to accommodate a broad range of potential industries. Besides conversion industries, other plastic-related manufacturing sub-sectors such as consumer goods, construction materials and a wide variety of intermediate products can be accommodated.

 

What is the schedule for the construction and development of RPTP?

This information will be available shortly.

 

What other incentives will be provided to tenants?

In addition to the incentives offered by the Kingdom mentioned in the Investing in Saudi Arabia Section, (hyperlink) Saudi Aramco and Sumitomo Chemical will offer the following incentives to the tenants of RPTP:

How is Saudi Arabia looking to develop in the future?

Over the past three decades (1970 - 2000), the Saudi economy has witnessed a considerable transformation in economic, social and urban aspects of life. The transformation was brought about by extensive government investments within the framework of five-year development plans to lay down the social and physical infrastructure of the country. The present Eighth Five-Year Plan, for the years 2005 to 2009, outlines objectives crucial to economic growth, while reaffirming the government's commitment to free trade and the development of a free market economy, with major private sector participation.

 

Will I receive any assistance concerning the fulfilling of government regulations related to foreign investment?
 

SAGIA operates a network of One-step Shops in Riyadh, Jeddah and Dammam, which provide investors with all the necessary services for investment in Saudi Arabia, receipt of applications, guidance through the licensing process and facilitation (?) of benefits from a wide range of incentives and post licensing services. Currently there are also representatives of SAGIA assigned to the United States as well as other major European and Asian cities. Representatives act as the contact point for investors within their respective country. They answer questions regarding investing in Saudi Arabia in addition to participating in relevant events that will highlight countless opportunities within the Kingdom.
Moreover, an additional One-stop Service Center will be located in the Park Management Center of RPTP. The Service Center will provide investors with the following support:

Upon investment, SAGIA will introduce valuable information for foreign investors. More information on the services provided by SAGIA is available at:
http://www.sagia.gov.sa/innerpage.asp?ContentID=36&Lang=en