This article offers a basic overview of the country and its advantages for foreign investors. The kingdom lacks personal income taxes but charges a corporate tax of 20 percent on foreign profits. The article lists various investment opportunities in Saudi Arabia for foreign investors, such as the Arab Fund for Economic and Social Development (AFESD), the Arab Trade Financing Program (ATFP), and the Islamic Development Bank. Listed below are some of the main benefits of investing in Saudi Arabia.
The Saudi economy has consistently grown over the past decade, thanks to ongoing structural and regulatory reforms and a diversified production base. These economic reforms have improved employment rates and diversified the Saudi economy’s revenue base. In 2017, the Saudi economy expanded 2.2% in real terms, up 2.8% from the year before. However, the oil sector contributed a smaller share of GDP (79.0%), and the country’s economy was still largely dependent on oil prices.
The draft law outlines the legal system for making investments in Saudi Arabia, and many of the obligations are fairly unsurprising. For example, a foreign investor must carry out their business through an Establishment in the Kingdom. As such, it may be difficult for a foreign investor to set up a local entity in Saudi Arabia. However, the draft law does highlight the rights of foreign investors. While these are not yet fully codified, the government has taken steps to reassure foreign investors.
For investors who are considering investing in the Saudi market, there are some important factors to consider. For example, the Saudi economy has a stable exchange rate and controlled inflation. The country also has numerous privatization programs that are driving the non-oil sector’s growth. While some sectors are prohibited from foreign investment, the country has a low cost of living and relatively low energy prices. And, most important, the country has a low tax rate.
With the new Saudi Real Estate Law in place, major international property developers and companies are expected to enter the Saudi property market. The new law is expected to provide several benefits to potential investors, including increased investment incentives. A guide to making investments in Saudi Arabia provides information on the benefits of investing in Saudi Arabia. The government has also made it easier to obtain foreign investment licenses in the kingdom. The Saudi government has made many reforms to attract foreign investment.