Opportunity and Challenges in Saudi Arabia

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Saudi Arabia is transforming itself as one of the world’s most competitive economies, which makes it one of most lucrative markets for strategic investment in the eyes of many investors. Saudi Arabia has reduced many regulatory barriers to investment in recent years and was ranked by the World Bank and IFC 2008 to be amongst the top ten reformers by making it easier to do business in the country. Saudi Arabia has also launched many programs to encourage business formation in Saudi Arabia. As part of the program, the procedures to set up business in Saudi Arabia is simplify, foreign business are allow to bid for visa of their staff, and many others. Besides that, Saudi Arabia also provides unparalleled security to foreign investors in order to attract more foreign investor to invest in Saudi Arabia. The security include a 100 percent ownership of foreign investor in certain industries, fixed exchange rate without any restrictions on outgoing money transfers and also signing bilateral agreements with many other countries to encourage investor protection and reduce tax burdens on foreign investor. Other than that, the government run program Saudi Arabian General Investment Authority (SAGIA) is also form to give support to foreign investors. Lastly, Saudi Arabia is also investing tens of billions of dollars into the launch of four Economic Cities. The four Economic Cities which is the King Abdullah Economic City (KAEC) in Rabigh, Prince Abdul Aziz Bin Mousaed Economic City (PABMEC) in Hael, Knowledge Economic City (KEC) in Medinah and Jazan Economic City (JEC) in Jazan creates the most attractive investment platforms for foreign companies. These unprecedented developments combine world-class infrastructure, cutting-edge design principles, and special incentives and streamlined processes to create foreign investment-led hubs in knowledge-based industries and other

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