SAUDI ARABIA OPENS ITS DOORS AS IT LOOKS BEYOND OIL
As oil rich Saudi Arabia looks for a future beyond its own petrochemical industry it has launched what is tantamount to a revolution in its industrial structure and business culture – which equals business opportunities for AGN clients.
The National Transformation Program aims to shake up the public sector and the domestic business scene and in doing so open up rich opportunities for foreign direct investment. The Saudi's are targeting an FDI shift from 3.8% to 5.7% of all investment, and to increase the private sectors contribution to GDP from 40% to 65%.
The Kingdom is one of the world's fastest growing countries worldwide, with per-capita income forecast to rise from USD $25,000 in 2012 to USD $33,500 by 2020.
There is currently no taxation of personal income and zero sales tax in Saudi Arabia. In addition the government are encouraging business investment through a series of incentives:
Corporate tax rates at 20%
- A program of privatization of state owned assets
- Investment in public private partnerships
- Aramco the largest public investment fund in the world
- Investment incentives in mining, renewable energy, industrial equipment, defense, infrastructure, healthcare and education.
- The Ministry of Commerce & Investment are targeted to increase the number of limited companies from circa 50000 to 104000 by 2020.
Business is conducted in English and Saudi Arabia is at the heart of the Gulf region providing easy access to other affluent middle eastern markets. The National Transformation Program is part of a wider a deeper initiative called Vision 2030 which aims to re-energize a country that has grown rich on its natural resources but now has to get ready for a future where oil will play a less important role in generating wealth and income.
For more information about how you or your client might take advantage of this opportunity see the contact details of the AGN member firms below.