|HEC approves list of exclusions to foreign investment
February 11, 2001
The Higher Economic Council (HEC) met today under the chairmanship of Deputy Prime Minister and Commander of the National Guard Crown Prince Abdullah bin Abdulaziz, and passed the following resolutions:
A) In implementation of cabinet resolution 257 dated February 5, 2001, stipulating that the Higher Economic Council assume the responsibility of supervising the privatization program and following up its implementation, HEC resolved to form a committee of some of its members plus two members of the consultative commission for economic affairs to carry out the works and tasks necessary for the performance of its responsibilities and the exercise of its jurisdiction concerning privatization. The committee will be chaired by Minister of State and cabinet member Dr. Muhammad bin Abdulaziz Al-Ashaikh, with as members the Ministers of Commerce, of Finance and National Economy, and of Planning, plus Minister of State and cabinet member Dr. Metlab bin Abdullah Al-Nafisa, Dr. Khalid bin Muhammad Al-Faiz and Mr. Muhammad bin Abdullah bin Adwan.
B) The council took note of the controls governing the participation of the private sector in implementing governmental projects according to the system of build, operate and transfer (BOT) and directed that these rules be included in the privatization strategy.
C) The council approved the list, submitted by the Governor of the Saudi Arabian General Investment Authority (SAGIA), of categories of activities excluded from foreign investment according to the stipulations in Article (3) of the foreign investment regulations issued by royal decree dated April 11, 2000. The issuance of this list reflects the government's efforts aimed at developing the national economy, providing productive job opportunities, diversifying the economic base, developing investment channels and increasing investment of both domestic and foreign capital in the nation's economy. HEC made the following specific decisions:
i) Without prejudice to the stipulations in Article (2) of the foreign investment regulations, the categories of activities that are excluded from foreign investment shall be approved as listed.
ii) This list shall be revised annually with the aim of opening up some sectors for investment when their own regulations are issued.
D) The categories of activities excluded from foreign investment cover the following areas:
i) In the sector of industry:
ii) In the sector of services: