Arab News, Saturday, Sep 18, 2021 | Safar 11, 1443
New Saudi committee tasked to regulate foreign investments as Kingdom opens up
Saudi Arabia:
Saudi Arabia has formed a new
committee to regulate foreign investments and protect the Kingdom's critical
sectors such as utilities.
The committee is tasked to create and implement a
criterion for foreign investors, identifying a list of companies, individuals,
and activities excluded from foreign investment, Argaam reported, citing a
cabinet's decision.
Chaired by the investment minister, the new
committee will also set the limit for foreign ownership in local companies.
“The setup of this committee is a sagacious
decision which reflects the fast pace of change in the economic structure with
the participation from foreign investors,” Mohammed Al-Suwayed, chief of Razeen
Capital, said.
The committee comes as more foreign entities take
an interest in entering the Saudi market as part of the government’s push to
modernize its economy.
Saudi analyst Al-Suwayed said: “The committee is
made to deal with the implications of national security and national resources
including natural and critical types of resources.”
He said the decision to create the committee will
protect the Kingdom from “broader political risk” if critical services such as
utilities are controlled by foreign businessmen.
“Businessmen in Saudi have more access to public
policymaking than any other stakeholders, and after allowing foreign businessmen
to join the boards of Commercial Chambers, they're expecting to enjoy the same
access and influence policymaking as well,” he explained.
Ministers of commerce, economy, planning,
communications and information technology, heads of the Local Content Authority
and the Capital Market Authority will also be part of the committee.