Expatriate businessmen are searching for ways to legally establish a business in Saudi Arabia, but find they are not eligible for a license and find it virtually impossible to find alternative methods to obtain one.
An alternative to setting up a business without the need for a Saudi sponsor could be through the Saudi Arabian General Investment Authority (SAGIA). In that case, SAGIA acts as the general Saudi sponsor for those expatriates planning on setting up businesses in the Kingdom.
Naser Al-Tawayan, head of media at SAGIA, said that Article 6 of the Executive Rules of the Foreign Investment Law states, “The license applicant should have come to Saudi Arabia for investment. Expatriates who currently reside in Saudi Arabia cannot apply for a foreign investment license.” Al-Tawayan added that, “SAGIA is responsible for granting foreign investment licenses to foreign investors. The establishment of 100 percent foreign owned companies is permitted in most cases. All sectors are open for foreign investment, except a few that were deemed to be closed for sovereign or infant industry nature.”
According to Ali Shah, CEO of business-consulting firms ASCS and VRS, there are many reasons the government does not allow expatriates to set up their businesses legally.
“One of the major reasons is the influence the 'free' presence of foreign entities of different scales may have on the traditions, culture, social structure or even security of the Kingdom,” Shah said.
Shah said Saudi society is nonetheless being compromised because of the ever-increasing population of expatriates. He suggests that a regulated and well-monitored system of allowing expatriates to run their businesses can legally be implemented.
The Foreign Investment Law further states that SAGIA is responsible for granting a foreign investment license to foreign investors.
“Allowing expatriates to set up businesses legally on their own will definitely add to the economy,” says Shah. “The only harm I can see is the entrance of undesirable crime-oriented entities, but that can be countered through effective law enforcement and intelligence.”
Expatriates residing in the Kingdom claim that the government should pay attention to the foreigners who have been already living in the country for several years.
“I believe they should be given the opportunity to buy homes and have some sort of a permanent residence free of sponsorship that leads to citizenship based on track record,” said Shah.
Paul Gamble, chief economist and head of research at Jadwa Investments, assumes the government does not allow expatriates to set up their businesses legally because it could undermine the position of locally owned businesses.
“There is no reason that foreign-owned business would harm the Saudi economy,” says Gamble. “If it is a good business – one that generates products and services that are better than, cheaper than or different to those already available – then everyone benefits. Foreigners may choose to transfer more of their profits abroad, but if their business is successful they may prefer to invest more in the Kingdom. They will face the same restrictions on hiring foreign labor as locally owned firms.”
Many expatriates from countries like Egypt and Syria demand investing in the Kingdom rather than back at home due to the revolutions.
Shah says it is a good opportunity for Saudi Arabia to attract such investors if the main focus is on reduction of unemployment and contribution to the market.
“If this privilege is given, monitors and regulations also have to be set up to protect everyone's rights,” said Shah. “In the case of Syria, I think they should be given any and every concession and privilege possible under the current conditions.”
“The Kingdom has proven to be one of the most stable investment destinations in the region,” said Gamble. “It also has one of the strongest and best performing economies. It is therefore an attractive opportunity for investors from across the region.”
“The original policy of SAGIA to allow any expatriate should be brought back, and in fact, the umbrella of SAGIA should get much bigger and accommodate expatriates that have been here a long time,” says Shah.
He adds, “The condition that they leave on exit-only does not help. This will totally resolve the Saudization issue if a major condition is for businesses to train and hire locals.”
Expats face obstacles in obtaining Saudi licenses
Expats face obstacles in obtaining Saudi licenses
Busy bees: Asir’s local markets abuzz over Sidr honey season
- Unique taste, aroma make it popular locally, internationally
RIYADH: The Asir region is currently in the midst of the Sidr honey season, with local markets flooded with high-quality honey produced from the nectar of Sidr trees.
The recent heavy rainfall in the region has led to a prolific flowering of Sidr trees, providing ideal conditions for bees to produce abundant and flavorful honey, the Saudi Press Agency reported.
Sidr honey, which is renowned for its health benefits, is particularly prized for its antioxidant properties and ability to strengthen the immune system.
The unique taste and aroma of the honey have made it a sought-after commodity, both locally and internationally, the SPA reported.
Beekeepers in Tihama Asir have been busy harvesting the golden nectar, with prices ranging from SR350 to SR500 ($93-133) per kg.
The region’s diverse ecosystem, characterized by its fertile valleys and abundant flora, provides an optimal environment for beekeeping.
The Ministry of Environment, Water and Agriculture is actively supporting the development of the beekeeping industry. Initiatives such as the beekeeping and honey production development initiative improve practices, protect bee populations, and enhance the quality of honey.
By promoting sustainable beekeeping and preserving the natural habitats of bees, the Kingdom seeks to strengthen its position as a leading producer of high-quality honey while contributing to the global market.
Saudi Reef Forum to focus on rural sustainability
- Al-Ahsa event to promote communities’ role in economic growth
RIYADH: The Ministry of Environment, Water and Agriculture will host the 1st International Forum for Saudi Reef in Al-Ahsa from Dec. 16-18, aiming to strengthen rural communities, and promote their role in driving sustainable development.
Maha Aldhahi, head of the forum’s executive committee, said: “The forum is pivotal in advancing rural development, aligning with the UN Sustainable Development Goals and Saudi Vision 2030. It will support rural communities, while contributing to global efforts and research on sustainable agriculture.”
Aldhahi said that the forum will unite regional and international experts to address the challenge of rural-to-urban migration, a widespread issue. To counter this, the forum will propose practical solutions to ensure rural areas remain economically viable, vibrant, and sustainable.
Additionally, it will explore innovations in agriculture and rural development, fostering economic growth and social cohesion through job creation and investment promotion, she added.
Aldhahi said that the forum builds on the Saudi Reef Program, recognized by the UN Food and Agriculture Organization as the world’s largest development initiative of its kind.
The program has supported over 77,000 agricultural projects, achieved a self-sufficiency rate exceeding 65 percent in vital sectors, and provided upskilling and career opportunities for rural communities.
Ghassan Bakri, secretary-general of the Saudi Reef Program, said: “The program is a model of sustainable growth, addressing food security and job creation while preserving cultural heritage. By hosting this forum, we aim to attract global partnerships and exchange cutting-edge solutions for rural empowerment.”
Bakri added that the forum will feature dynamic discussions on key topics, including sustainable agricultural practices, rural entrepreneurship, and the role of modern technology in agriculture.
The three-day event will also include an exhibition showcasing unique rural practices, handicrafts, and the work of local farmers, artisans, and entrepreneurs. It will highlight how traditional techniques integrate with modern innovations to create sustainable livelihoods.
Kingdom arrests 19,696 illegals in one week
- A total of 11,336 people were arrested for violations of residency laws
Riyadh: Saudi authorities arrested 19,696 people in one week for breaching residency, work and border security regulations, the Saudi Press Agency reported on Saturday.
According to an official report, a total of 11,336 people were arrested for violations of residency laws, while 5,176 were held over illegal border crossing attempts, and a further 3,184 for labor-related issues.
The report showed that among the 1,547 people arrested for trying to enter the Kingdom illegally, 65 percent were Ethiopian, 32 percent Yemeni, and 3 percent were of other nationalities.
A further 71 people were caught trying to cross into neighboring countries, and 22 were held for involvement in transporting and harboring violators.
The Ministry of Interior said that anyone found to be facilitating illegal entry to the Kingdom, including providing transportation and shelter, could face imprisonment for a maximum of 15 years, a fine of up to SR1 million ($260,000), as well as confiscation of vehicles and property.
Suspected violations can be reported on the toll-free number 911 in the Makkah and Riyadh regions, and 999 or 996 in other regions of the Kingdom.
Gaza victims praise Saudi Arabia’s lifesaving humanitarian efforts
Riyadh: Palestinians in Gaza who received Saudi aid have expressed gratitude to the Kingdom for its humanitarian support through aid agency KSrelief.
They likened the Saudi assistance to rain that quenches their thirst for hope, alleviates suffering and rekindles optimism amid immense challenges, the Saudi Press Agency reported.
Samaher Eid Awkal, 47, said she struggled with health issues while living in Khan Younis with her blind mother in a basic tent. She thanked KSrelief for providing her family with a suitable tent, which has eased their hardship and restored hope.
A Gaza mother who endured freezing conditions with her children without shelter also expressed appreciation after receiving essential aid. She described the support as a source of joy and hope during difficult times.
Mahmoud Nabil Abu Alwan, displaced from Rafah to Mawasi in Khan Younis, thanked KSrelief after he received a new tent. He previously lived in a dilapidated tent borrowed from relatives amid shelling and harsh displacement conditions.
Saudi Orchestra performance in Tokyo helps ‘bridge cultural boundaries,’ CEO says
TOKYO: The Saudi National Orchestra’s performance in Tokyo is “bridging cultural boundaries” as part of Vision 2030, the CEO of the Kingdom’s top music body has said.
Paul Pacifico, CEO of the Saudi Music Commission, added that music has a “very important part to play in each of the three main pillars of Vision 2030” as it represents a proud nation, a vibrant society and diversified economy.
Bringing the Saudi National Orchestra to Tokyo has given people the opportunity “to communicate with our language and it allows everybody to come together and share an experience that allows us to appreciate each other’s cultures, and really to be in harmony,” Pacifico said.
“And that’s why I think it’s so special that the orchestra is here for the first time.”
The program for the performance last night included traditional music directed by Saudi director Reab Ahmed, as well as the Japanese Imperial Court Orchestra “Gagaku.”
Pacifico said: “We’re able to show Saudi culture on one of the most prestigious stages in one of the world’s great cultural capitals here at Tokyo Opera City, and we’re doing that with authentic Saudi music, and authentic traditional Japanese music with Gagaku.
“But also with that great fusion between the two sets of musicians coming together and doing something really unique and beautiful.
“The Saudi National Orchestra and choir is really at the vanguard of developing the music landscape in Saudi Arabia as it builds the depth and richness and uniqueness of its beautiful culture, both traditional and modern.”
Pacifico said it was “an honor” to share the stage with the Japanese Imperial Orchestra performers. “It also shows how our cultures are different and yet similar: The regard for tradition and modernity, the appreciation of music, the sense of formality in public, but warmth and a sense of fun as well in private.”
He hoped that Friday’s performance was not a one-off but the foundation of a rich and longstanding collaboration with “our Japanese friends, the Tokyo College of Music, who we’re collaborating with on this concert.
“We hope that Saudi artists will start to have opportunities to play on stages here in Tokyo, like the Blue Note and Billboard Live and the Cotton Club, or festivals like Summer Sonic or Fuji Rock. And equally, we’d love to see Japanese artists playing more in Riyadh and all over the Kingdom of Saudi Arabia.
“Saudi Arabia has a very exciting story to tell.”
