KSA makes real estate tenders more accessible

JEDDAH — Individuals and registered legal entities will now be able to enjoy equal access to real estate tenders issued by the municipalities in Saudi Arabia, according to a new mandate issued as part of the Kingdom's WTO commitments for foreign investments.

By From Our Correspondent

Published: Fri 25 Aug 2006, 9:23 AM

Last updated: Sat 4 Apr 2015, 2:20 PM

Minister of Municipalities and Rural Affairs Prince Miteb bin Abdul Aziz handed down the foreign investment friendly mandate, said a statement issued through the Saudi Press Agency on Sunday.

Architectural offices registered as foreign investment companies must be of Saudi origin to be able to bid on local contracts, tendered by the municipalities — all on the condition that these offices abide by Saudisation quotas and government procurement quotas.

Foreign investors registered through the Saudi Arabian General Investment Authority (SAGIA) can now open and run retail outlets, on the condition that foreign capital does not exceed 51 per cent at present and up to 75 per cent in three years' time.

Companies registered through SAGIA, meanwhile, need to apply for a commercial registration through the Ministry of Commerce and Industry, which is then vetted by municipal authorities.

According to municipal regulations, a company is only allowed to open one retail outlet per district, where each outlet must have SR20 million in capital and a quota of at least 75 per cent of Saudi labour.

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