His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Deputy Crown Prince, Second Deputy Prime Minister, Minister of Defense, and Chairman of the Council of Economic and Development Affairs, issued the first investment license in the commercial sector for a wholly foreign-owned company, to the U.S. company Dow Chemical, during his current visit to the United States, The license was received by Mr. Andre Leavers, CEO of Dow Chemical, in the presence of His Excellency the Minister of Commerce and Investment and Chairman of the Board of Directors of the General Investment Authority, Dr. Majid bin Abdullah Al-Qasabi, and His Excellency the Minister of Energy, Industry, and Mineral Resources, Engineer Khalid bin Abdulaziz Al-Falih .
The General Investment Authority had issued the license days after the Council of Ministers approved the opening of the retail and wholesale sectors to international companies with 100% ownership, In a statement, the General Investment Authority affirmed that Dow Chemical’s presence in the Kingdom will significantly contribute to generating high and qualitative returns for the Kingdom’s petrochemical industry.
Dow Chemical —listed on the Dow Jones Industrial Average and founded nearly 120 years ago—one of the world’s leading companies in the petrochemical and manufacturing industries, as well as in innovation and research, with annual revenues of approximately $48 billion in 2015 and a workforce of 51,000 employees.
The Authority clarified that the conditions required for licensing foreign companies to invest in the wholesale and retail trade sector with a 100% ownership stake stipulate that licenses shall be granted to companies that have a presence in at least three markets, and that the cash capital of the company being established in accordance with the Companies Law must not be less than thirty (30) million Saudi riyals, with the company committing to invest an amount of no less than 200 million Saudi riyals (which is included in the company’s cash capital), provided that the investment is made over the first five years starting from the date of obtaining the investment license from the General Investment Authority.
The company is also committed to employing Saudis in accordance with the ratios specified by the Ministry of Labor and Social Development, to develop and implement a plan to appoint them to leadership positions within the first five years, and to ensure the continuity of this initiative, while committing to training 30% of its Saudi employees annually.
