Dr. Majid Al-Qasabi, Minister of Commerce and Investment and Chairman of the Board of Directors of the General Authority for Investment, affirmed that the Cabinet’s decision to approve the Authority’s taking the necessary steps to license foreign companies operating in the field of engineering and consulting services to work in the Kingdom, will increase the Saudization rate in the engineering sector and its contribution to the national economy, in addition to transferring the specialized expertise accumulated by these companies and the added value this represents for the nation.
Al-Qasabi expressed his gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and to the Deputy Custodian of the Two Holy Mosques, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Chairman of the Board of Directors of the Public Investment Fund —may God protect them both—for issuing the decision.
Earlier this week, after reviewing the proposal submitted by the Minister of Commerce and Investment, Chairman of the Board of Directors of the Investment Authority, and after reviewing the recommendation prepared by the Council of Economic and Development Affairs, the Council of Ministers approved to task the Authority with taking the necessary steps to license foreign companies operating in the field of engineering services and related consulting to invest in the Kingdom with 100% ownership, provided the following two conditions are met: The company must have been in existence for at least ten years from the date of its incorporation in its home country, and the company or one of its subsidiaries operating in the same field must be present in at least four countries. The Board of Directors of the Investment Authority may—in cases it deems appropriate – the authority to grant an exemption from one of the two conditions listed above, in accordance with general criteria established by the Board that are clear, publicly available, and non-discriminatory, in a manner that best serves the Kingdom’s interests.
Al-Qasabi explained that the presence of distinguished international companies in the field of engineering and consulting services fosters outstanding national talent that gains experience from leading firms, in addition to reducing the financial cost of engineering contracts.
It is worth noting that the decision to allow foreign engineering firms stems from the Investment Authority’s review of sectors and investment opportunities that deserve support and facilitation to attract investment to the Kingdom—an area considered crucial for knowledge transfer, localizing technology, and blending foreign expertise with national expertise.
