His Excellency Chairman of Economic and Development presented the license to the Chief Executive Officer
Saudi Arabian General Investment Authority issued its first full foreign ownership investment license in the commercial sector, to the US company Dow Chemical, days after the Council of Ministers approval to open retail and wholesale trade to international enterprises with 100% ownership.
To ensure the Kingdom's commitment to attract major leading global companies, His Royal Highness Deputy Crown Prince Mohammed bin Salman bin Abdulaziz, Minister of Defense and Chairman of Economic and Development Affairs Board, presented the license to Mr. Andrew N. Liveris the CEO of Dow Chemical's during his current visit to the United States of America. The meeting was held in the presence of the Minister of Commerce and Investment Council, the chairman of General Authority for Investment Dr. Majid bin Abdullah AL-Qausabi and the Minister of Energy, Industry and Mineral Resources Khalid bin Abdul Aziz Al-Faleh.
The Dow Chemical Company - listed in the US Dow Jones index, founded about 120 years ago and considered one of the major international companies in petrochemical industries and transformative Industries in the field of innovation and research. In 2015, the annual revenues were about $ 48 billion and had 51 thousand employees.
General Investment Authority confirmed in a statement that the presence of Dow Chemical Company in the Kingdom will contribute significantly to the quality of the petrochemical sector.
The General Investment Authority explained the essential conditions for foreign investing companies to get 100% ownership licensed in the wholesale and retail trade sector. The company must have at least 3 presences in different markets, capital cash of (30) SR million, with the company's commitment to invest an amount not less than (200) two hundred million Saudi riyals (included the capital), within the first five years starting from the date of obtaining the investment license.
The company will be committed to employing Saudis citizens in leadership positions in the first five years under the Ministry of Labor and Social Development regulations. Also, commit to training (30%) of Saudi employees annually. Besides, it has to achieve one or more of the following within the first five years:
- Manufacturing: - so that 30% of its locally distributed products, made in the Kingdom.
- Research and development programs: assign (5%) - at a minimum - of total sales, to establish research and development programs in the Kingdom.
- Logistics and distribution; by establishing an integrated center to provide those services, and provide after-sales services.