After a series of corruption scandals, the Saudi Arabian
General Investment Authority (Sagia) has appointed a new
Despite coming amid a wave of optimism about changes to the
countrys foreign investment regime, the governors
first few months have created cause for concern.
Abdullatif bin Ahmed Al-Othman, senior vice president of
Saudi Aramco became
governor on May 18. His first action was to temporarily
suspend all service licence applications without releasing any
Sagia also refused to accept industrial and retail licences
unless the company had a capitalisation of over 50 million
Saudi Arabian riyals (SAR). This was in contrast to the one
million SAR previously required.
In the absence of any official announcement, there is now
widespread speculation over the future of Saudi Arabias
foreign investment framework.
Although we dont know the full extent of what
the changes to the new rules...