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Saudi to allow 100% foreign stake in retail

Riyadh - The increase in foreign ownership from the present level of up to 75 per cent for retail and wholesale businesses comes after tumbling oil prices have slashed Saudi revenues.

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Saudi Arabia will ease restrictions on foreign investors to let them own 100 per cent of retail and wholesale businesses, the government said on Sunday as the world's top oil exporter embarks on a new drive to attract investment and diversify its economy.
The Saudi Arabian General Investment Authority announced the reform to US businessmen during a visit by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz to Washington, adding that the changes would be subject to conditions, which would be revealed at a later stage.
The increase in foreign ownership from the present level of up to 75 per cent for retail and wholesale businesses comes after tumbling oil prices have slashed Saudi revenues.
SAGIA wants to attract more high-end investors into the kingdom to create white collar or technical jobs for Saudi citizens, introduce new technology and maintain economic growth - goals that may become increasingly important if oil prices stay low.
The agency is streamlining its investment rules and visa regulations for investors, it said, adding that the new regime would come into force next year.
Finance Minister Ibrahim Alassaf said at the weekend that the government was cutting unnecessary expenses and delaying some projects to compensate for low oil prices, though projects that are important for the economy would go ahead.

• Saudi Arabia