Doing Business In Saudi Arabia - Bna

share. The foreign equity limitation is expected to increase to 75 percent by December
2008. All industrial enterprises are open to non-Saudis, and they can also trade in the
products they manufacture. Restrictions on individual professions also are in force,
such as who can practice law, medicine, accounting and financial services, architect
and engineers, and other similar professions. A Saudi joint venture partner is a
requirement for any entity or individual to practice the above-mentioned professional
services. Following accession, U.S. service providers will be able to hold up to 75
percent equity in those firms.
Other trade barriers are:
Commercial Disputes Settlements: Saudi Arabia signed the New York Convention
on foreign arbitration awards in 1995. Saudi Arabia will adopt WTO’s procedures for
resolving trade quarrels under the Dispute Settlement Understanding. As of the date
of this report, the Saudi Government is overhauling its business arbitration processes
in an effort to bring them into line with the needs of its developing capital market. Up
to 20 articles of the current regulations are under review by specially convened
committees within the Ministry of Justice. New arbitration centers have also been
established across the country to support the process.
Business Visas: All visitors to Saudi Arabia must have a Saudi sponsor in order to
obtain a business visa to enter Saudi Arabia. Business visitors and foreign investors
can apply through the Saudi Arabian General Investment Authority (SAGIA) for a visit
visa at the Saudi Embassy or Consulates in the U.S. Based on new instructions, the
issuance of a visitor’s visa should be effected within 24 hours from the application
date. Most business visas are valid for only one entry for a period of up to three
months. The Saudi Ministry of Foreign Affairs is currently examining the issuance of a
visitor’s visa at ports of entry for selected nationalities. Notwithstanding, The Council
of Ministers issued a resolution on 24/10/1428H (November 5, 2007) approving
charging a SR 1,000 ($266.67) fee for multi-entry visit visa for business people and
those of similar standing, valid for one year, taking into consideration the principle of
reciprocity for countries that levy lower fees or exempt Saudi business people from
visa fees. The new resolution is till to be enacted.
Delayed Payments: This is an important concern for affected U.S. companies.
Although some Saudi Government agencies as well as some companies still have
outstanding debts, the Saudi Government, however, is keen to resolve any payment
disputes and has reduced its arrearages for the last couple years. Nonetheless, the
problem persists, and U.S. companies should check with the U.S. Embassy or
Consulates for information on the current arrearage situation.
Intellectual Property Protection: The Saudi Government is committed to fully
implement the Trade Related Aspects of Intellectual Property Rights (TRIPS)
Agreement. The Saudi legal system protects and facilitates acquisition and disposition
of all property rights, including intellectual property. The Saudi Government has
acceded to the Universal Copyright Convention; implementation began in 1994. The
Saudi Copyright Law was amended in June 2003 to improve protection and to provide
for serious deterrent penalties for violators. The government also endorsed the
country’s joining the “Paris Convention for Protection of Industrial Property” and the
“Berne Convention for the Protection of Literary and Artistic Works”. Though
5/13/2008