Saudi Arabia engineers new business structures

Saudi Arabia is to allow foreign companies to own engineering services companies in full, without requiring them to partner with a Saudi-owned firm.

The Saudi Cabinet said the foreign company would need to have existed for at least 10 years to qualify. It would also need to be multinational, with operations in at least four countries.

The kingdom’s investment authority, SAGIA, said last year it would accept applications for wholly owned engineering consultancies but did not set out procedures.

Previously, foreign engineering companies were regulated by the commerce ministry and required to partner with a Saudi engineering firm.

Saudi Arabia is liberalising its business regulations to attract more investors and diversify its economy away from oil.

SAGIA announced eased ownership restrictions in the wholesale and retail sectorsin2015andawarded its first full foreign ownership investment licence to Dow Chemical Co last year.