ABOUT KINGDOM OF SAUDI ARABIA

Saudi Arabia is a World Trade Organization (WTO) member country

Since its inception to WTO in 2005, Foreign investors have benefited tremendously. This led to a deluge of foreign investment in Saudi Arabia, showcasing a 30-fold increase, totaling US $53 billion proximately.

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 world’s largest oil reserves, offers a long-term and stable supply of energy and other resources

ECONOMIC GROWTH IN SAUDI ARABIA

Saudi Arabia boasts a population of approximately 25 million & over, half of whom are 20 years or younger.

The economy of Saudi Arabia is the largest in the Middle East and rapidly growing due to high population growth rates and influx of expatriates from all countries. 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.

SAUDI BUSINESS
ENAVIRONMENT & INCENTIVES

Saudi Arabia is undergoing a vast change and economic boom that has allowed expansion in the industrial sector. This growth has made it possible for local and international investors to benefit from the vast land resources & infrastructure which has facilitated Saudi Arabia to attain the best of global business standards as well as compliance to international rules & regulations.

1. The incentives include:
2. Adoption of open market economic policies.
3. Leading exporter/importer country in the Middle East.
4. Abundance of natural resources.
5. Foreign investors can own 100 percent of their investment projects.
6. Foreign investments, including joint ventures, shall enjoy all the benefits, incentives and      guarantees extended to national investments.
7. Foreign investors are allowed to repatriate fully their capital, profits and dividends.
8. Partners in foreign investments may freely transfer shares among themselves and others.
9. The foreign investors may obtain more than one license to practice the same activity, or      different activities.
10. Exemption from customs duties on machinery and equipment for industrial use.
11. Soft loans from government lending agencies.

HUMAN RESOURCES

Thousands of Saudi and non Saudi workers will be employed at RPTP.

Saudi Arabia has a large pool of labor, owing to its population of 25 million with approximately half of them 20 years or younger. Non-Saudi workers will range from countries in Asia, Africa and other regions, thus English will be the operational language.

The average wage amongst the manufacturing workers in Saudi Arabia is approximately twice as much as that in China and less than one tenth that of Germany and the United Kingdom. With lower costs for resins and electricity, RPTP is expected to retain an overall competitiveness. To diversify its industrial sector, The Government of Saudi Arabia provides various educational and training opportunities to its nationals.

Training institutions have been set up in some cities. Recently, a human resources fund was established for the purpose of providing training for technicians and machine operators at some of those institutions. In the town of Rabigh, a vocational center is under construction which will provide training for manufacturing plant workers and is expected to benefit RPTP directly. There will also be high schools, colleges and universities in the Education Zone at King AbdulAziz Economic City.