March 27, 2007	Tuesday	Rabi-ul-Awwal 7, 1428

RIYADH, March 26: Saudi Arabia has revised the negative list for foreign investment in the Kingdom, and has permitted foreigners to invest in insurance services, wholesale and retail trade, air and train transport and communication services.

The Saudi Supreme Economic Council made the decision ensuring compliance with the WTO accession; the secretary general of SEC was quoted as saying by the press here on Monday.

"The SEC has revised the list of economic sectors in which foreign investment will not be allowed, thus allowing foreigners to invest in new areas," said Abdul Rahman Al-Tuwaijeri, secretary-general of the council.

A large number of expatriates, including Pakistanis, living in Saudi Arabia for decades have been waiting for opening of retail and wholesale trade for investment. “The exclusion of these sectors from the negative list now provides them with an ideal opportunity to enter into business on their own,” a senior Pakistani executive told Dawn.

"Also commercial agencies, except franchise rights are now open for foreign investment," said Tuwaijeri.

Other sectors open to foreign investment are: distribution of cinema films and video-cassettes, transportation of passengers inside cities by train, air transportation services and satellite transmission services.

The kingdom continues to ban foreign investment in sectors, such as oil exploration, drilling and production. But the services related to the mining sector have been excluded.

Restriction on real estate investment in Makkah Mukarrama and Madinah Munawwarah, however, continues. The same is the case for tourist orientation and guidance services related to Hajj and Umrah.

Other sectors still out of bounds for foreign investors include recruitment and employment services, including local recruitment offices, real estate brokerage; audiovisual and media services; land transport except transportation by train within cities; services rendered by midwives, nurses, physiotherapists and paramedics listed at 93,191 by international classification codes; fisheries; and blood banks, poison centres and quarantines.

Saudi Arabian General Investment Authority (SAGIA) has set a target to licence investment projects worth more than SR300 billion this year. The authority licenced 1,389 joint and foreign projects in 2006 with attracting investment of SR253 billion.

SAGIA also planned to launch two more mega-cities in Tabuk and eastern province this year.

In the meantime, the Arab Economic and Social Council has called for steps to speed up implementation of the Greater Arab Free Trade Zone project and establishment of an electric power grid linking Arab League member states.