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Issue No: 23 - January - April 2007
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We would like to express our great appreciation for your interest in reading this special issue of our legal review which is designed to complement the activities of the Jeddah Economic Forum, a significant international economic event hosted by Saudi Arabia in this prosperous era of the Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz who has been exerting great and continued efforts to accomplish significant national achievements. We are not suggesting that this is a complete overview of all achievements realized in Saudi Arabia. Instead, please consider this a glimpse at just some of these achievements.
With the coming of the glorious era of the Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz (May Almighty Allah prolong his life), Saudi Arabia crowned her successful endeavors by joining the World Trade Organization (WTO) and adopting the basic foundations of the major global economic centers. Activating the Higher Economic Council through His careful attention paid to the Council and insisting that the Council should undertake a substantial role in establishing the economic policy of this great giving country, significant legal reforms ensued through the enactment and amendment of several laws and regulations to further stimulate the economic and social leaps in the Kingdom. Thus, economics and the law have been proceeding in parallel and perfect homogeneity, integrating with each other like two faces of only one coin. In this respect, we would like to extend our sincere appreciation to the Ministry of Justice for its major efforts in strengthening the Saudi courts to undertake their role and mission in promoting justice and equity in this giving country.
We also extend our congratulations to the Chamber of Commerce and Industry in Jeddah, represented by the Jeddah Marketing Council, for its excellent and major role and careful organization and supervision for the Jeddah Economic Forum which has become an international event and in the Middle East that has been embraced by the international elite of world leaders, businessmen and academic professionals. We pray Almighty Allah to back up all our efforts in building a nation to be ranked as the most glorious crowned with faith and advancement in the due course of history. |
| Dr. Khalid Alnowaiser |
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Saudi Arabia, under the motto (Economic Reform… Promising Land and Open Horizons), will witness for an eighth time the Jeddah Economic Forum from 24-27 February 2007 G in Jeddah. The conference will be attended by internationally well-known economic, academic and political personages, in addition to many members of the global media. The forum promises to live up to its well-deserved reputation as an outstanding annual event ranked in the foremost of the international events of Saudi Arabia and the Middle East region.
The forum concentrates this year on the economic issues which mainly highlight Saudi Arabia’s major economic growth in the prosperous glorious era of the Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz (May Almighty Allah prolong his life), in addition to focusing on several topics including: economic reform strategies and the legal frameworks needed to cope with the social developments of Saudi Arabia, and the Kingdom’s role in changing energy concepts throughout the world. Moreover, the forum will spotlight the latest tendencies and developments in the areas of economy and business. The forum is intended to establish constructive and meaningful dialogue among a broad sector of Saudi businessmen and businesswomen where innovative ideas and visions will be addressed on the contemporary economic issues encountered by Saudi Arabia in a way to attract and encourage international investors.
It is worthwhile to mention that the Jeddah Chamber of Commerce and Industry represented by Jeddah Marketing Council regularly undertakes the organization of this important international meeting, and that the forum’s success is indisputable. Jeddah Chamber of Commerce and Industry has allocated this year SR.14 millions to defray the expenses of this forum. |
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Economic reform is regarded as one of the issues that is currently addressed and negotiated by national governments as being an absolute necessity. Economic planning is achieved only by enacting laws that conform to international standards. These regulatory rules play an extremely important role in the lives of a country’s citizens and are inseparable from prevailing economic circumstances and those newly developing.
The laws pertaining to economic activities in Saud Arabia have embraced these expectations by striving to improve the Kingdom’s economic position both domestically and internationally. These laws have paid special attention to conform to the requirements of international markets and their radical changes in economic policies. Some of these laws have been approved and others have been drafted and referred to the Council of Ministers for its review and approval. Many governmental agencies such as the Ministries of Justice, telecommunication, information technology, and Commerce and Industry have played a major role in proposing these laws, such as: |
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Capital Market Law: This law aims to smooth and adapt the regulatory conditions to promote investing in equities and to direct these savings for service of the national economy through regulating and monitoring issuance of the equities and transacting them properly to ensure the financial interest of Saudi Arabia. The law further seeks to achieve the required transparency and equity in capital markets and protect investors. |
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Electronic Transactions Law: This law seeks to regulate electronic transactions and signatures, facilitate the use of electronic means in conducting business transactions, support investments and the business community, and activate the economic environment in Saudi Arabia in order to facilitate and accelerate its interaction with the world’s economies. Moreover, the law is regarded as an important step towards launching electronic transactions to build up and support Saudi Arabia’s information technology sector to refresh the national economy and attract foreign investments in the field of information technology. |
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Anti-Information Crime Law: This law strives to minimize unauthorized activities on the Internet by concerning itself with computer and internet crimes, prosecuting and sentencing the abusers who violate Islamic law and the laws of Saudi Arabia. |
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| In this respect, it is worthwhile to emphasize the role the Ministry of Justice has taken in developing a strategy of upgrading the courts and developing a program for assisting judges in developing their skills to cope with the required economic changes in accordance with the new re-structuring of the judicial body. This includes the establishment of new specialized courts such as commercial, traffic, and marital status courts, in order to more efficiently resolve lawsuits, a matter which leaves its impact on developing the economy and attracting Arab and foreign capital to underwrite productive projects in Saudi Arabia. |
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Joining the World Trade Organization (WTO) is no longer an option for the nations of the world; it has become essential. Saudi Arabia became a member in the world organization on November 11, 2005 G after a complete review of its economic laws and enacting new legislation to regulate the commercial rights as well as making advancements in the fields of administrative development and manpower training.
The benefits Saudi Arabia expects to realize as a result of its WTO membership are shown in the development of more efficient executive rules and regulations for protecting commercial, industrial and intellectual property, thus encouraging major international companies to invest in Saudi Arabia by opening branches here. These new laws and regulations will help in transferring and spreading technology by establishing joint venture projects designed to enhance export opportunities and foster a smooth flow of trade with other WTO members. Membership also will encourage intellectual and technical inventions so that inventors will be free to register their inventions, patents, trademarks and copyrights in Saudi Arabia, which will have a positive impact upon the national economy.
Notwithstanding all of the positive results expected to be reaped by Saudi Arabia as a result of joining the World Trade Organization, these results require practical steps and sound policies to achieve them, especially in terms of enacting new regulations that cover the different aspects of intellectual property rights and adapting the administrative infrastructure charged with the responsibility of handing and implementing the agreements issued by the WTO. |
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Generally speaking, the process of social development is defined as integral societal civilized building by which the community tries to preserve and promote its identity. It is based on the principle of efficient social participation in all its stages in order to most efficiently utilize the proceeds from development projects. This development is a method based on well-studied scientific standards that aim to provide welfare and raise the living standards of citizens, change the methods of work and thinking in the developing countries, and develop their resources and capabilities to cope with the needs of the community in accordance with Islamic principles, traditions and values.
The Government of the Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz (May Almighty Allah prolong his life) has exerted significant efforts in developing domestic communities to improve the economic, social and living standards of Saudi citizens. The beginning of this economic renaissance has been focused on economic development as the optimum method to reach comprehensive social development. This concept is clearly reflected by the giant economic centers and cities in view of the directives of the Custodian of the Two Holy Mosques (May Almighty Allah prolong his life) to be established throughout the nation. Moreover, the social service and development centers and social development committees have played significant roles to improve the local communities. A summary of their objectives includes: |
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To spread awareness among citizens in all social, healthy and cultural aspects. |
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To undertake the required changes within the framework of Islamic values and principles. |
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To identify and assist group leaders and train them on teamwork. |
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To promote opportunity for women for the efficient positive participation within the framework of the Islamic values, such as the woman who is a member in the management council of Jeddah Chamber of Commerce & Industry. In addition to her participation and contribution in the development process through this position, she undertakes a further role on some company boards in the private sector, such as education and health fields, banking sector, and social care activities. |
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The wise leadership has always been taking steps towards creating social and economic development for all citizens in the belief that man is considered the nation’s real wealth and that without developing and qualifying him, most if not all of the development plans will fail. |
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The beginning of the third century has witnessed a greater openness for a national dialogue on many significant and major social, economic and cultural issues which have been raised among all social, cultural and intellectual classes in our Saudi community. These discussions, supported by our wise leaders, are held regularly throughout the Kingdom through the participation of a panel of professionals, experts and thinkers as a framework for interpreting the national views and visions in important and relevant economic, social and intellectual issues. |
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Saudi Arabia has paid great attention to promoting investment the country in recent years. There have been many studies and discussions held in this respect and many administrative rules and regulations have been enacted to create an investment climate that encourages and attracts Arab and foreign capital to be invested in the various service and economic sectors in Saudi Arabia. And in a way that ensures protection of their interests and funds invested in the Saudi projects through securities and collaterals stipulated by these resolutions and regulations.
Saudi Arabia has exerted great efforts in encouraging these investments and removing obstacles that stood in the way of achieving business success. The development of electronic commerce is just one example of this.
Saudi Arabia understands that the volume of economic and social changes now taking place in the world, and the Middle East in particular, presents exciting challenges. The government has been proactive in dealing with these changes by privatization of industry and developing incentives for companies doing business in the country.
The Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz (May Almighty Allah prolong his life) is determined to increase these investments as a national objective so that direct foreign investment along with local investment will achieve sustained economic development and growth.
Saudi Arabia has opened the door, through the Investment Law and its Executive Regulation, to enhance the investment environment within the framework of its goal to be fully merged in the world economy. The country has provided lucrative incentives to foreign investors where their plants receive the same advantages, incentives and guarantees as domestic companies, including incentives stipulated under the National Industries Encouragement and Protection Law. These include: |
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Acquisition of real estate which is directly associated with any project including workmen’s accommodation. |
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Transfer of capital and profits abroad without any restrictions. |
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The foreign investor and his non-Saudi staff are sponsored by the licensed firm. |
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Provision of assistance, advice, and clarifications by the General Investment Authority. |
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| Moreover, there are major incentives and factors that encourage foreign companies to invest in Saudi Arabia such as: |
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The Kingdom’s distinguished and strategic geographic location. |
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Its stable political environment. |
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Saudi Arabia’s emphasis on a free market economy. |
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A global living standard at a relatively low cost. |
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| Thanks to these investment factors that encourage foreign investors to invest in Saudi Arabia, General Investment Authority now is in the process of establishing two economic cities to attract foreign and mixed investments exceeding SR 300 billions this year to underwrite the cost of these giant investment projects. |
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| Disclaimer |
| Material contained in this newsletter is for general information only and should not be interpreted as legal advice on any particular matter. Readers are advised to consult their legal advisor directly on any issues discussed herein. Transmission of this document does not create any attorney-client relationship. Although considerable care has been taken to ensure the accuracy of the material in Legal Update, the Law Firm of Dr. Khalid Alnowaiser is not responsible for any errors contained herein. |
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12/4/2009:Ministry steps up clampdown on copyright piracy 12/4/2009:Construction of New Office is near to completion 14/4/2009:JCCI preparing black list of car rental defaulters 7/4/2009:Justice Ministry warns ‘lawyers’ without permits
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