Saudi Arabia is a signatory to various regional agencies guaranteeing a level
playing field to foreign investors. It is a member of the Multilateral
Investment Guarantee Agency (MIGA). The Kingdom, hence, ensures the same
treatment, protection and incentives accorded to a national capital. The
pre-investment assistance provided by SAGIA and other government agencies
includes helping foreign investors prepare feasibility studies for industrial
projects. They also provide information and statistics for investment projects
within the scope of Saudi Arabia's development plans. Land for setting up
industrial units is available throughout the Kingdom in several industrial
cities. The land can be acquired on lease or sale at nominal charges.
The government makes electricity, water and fuels available to industrial
projects at low prices. Industrial parks have public utilities like roads,
desalinated water, telephones, police stations, restaurants and postal
services. Commodities entering the Kingdom as input for industrial production
and some basic foods are exempted from custom duties. Duties on other products
range from 5 percent to 20 percent. The Saudi Industrial Development Fund
(SIDF) gives soft, medium and long-term loans to industrial establishments for
up to 50 percent of the total cost of the project. The payback period is up to
15 years. There is also a two-year grace period from the start of production.
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