Developments Affecting Foreign Investors in Saudi Arabia October 2016

Business Climate The Saudi government has proposed and/or implemented a wide range of procrustean measures to adjust to new fiscal realities in the wake of falling oil revenues, including canceling tens of billions of dollars of contracts,1 merging, eliminating or privatizing key government agencies (including Saudi ARAMCO), taxing expatriate income and remittances, drastically raising traffic fines and visa fees, and …

ABGR Vice Chair Addresses U.S. Town Hall Meeting

To borrow a phrase, these are the times that try men’s souls, with terrorism, Brexit, the U.S. election, all inviting literary and historical comparisons; a recent Wall Street Journal article was entitled “the Year of Yeats,” whose Second Coming appeared in the wake of the Russian Revolution and Irish Uprising, featuring the following unsettling reflections: A professor is quoted as …

Legal Update from Saudi Arabia

Government Contracts Saudi Arabia’s 2016 construction spending on development projects is projected to attain $229 billion, a 20% reduction from last year, with similar projections for 2017.1 To achieve these savings, projects must either being scaled back, cancelled or delayed. Priorities under Vision 2030 will include education, healthcare, science, technology, and e-governance. With 30%+ of the workforce employed in infrastructure …

Developments Affecting Foreign Investors in Saudi Arabia March 2016

FOREIGN INVESTMENT Foreign Investment Incentives New Companies Law A new Saudi Companies Law will come into force on May 2, with the following significant changes from the 1965 law. Limited Liability Companies (“LLC”s) A single member may now register an LLC; previously 2+ were required. 10% of profits must be contributed annually to a statutory reserve until this attains 30% …