Foreign companies can now apply for full ownership of engineering firms in Saudi Arabia, it has been revealed.
Interested entities need to be multinational, must show that they have been operating for at least a decade, and should have a presence in at least four countries to qualify, according to Reuters.
Foreign companies were previously required to partner with local engineering firms to open a business in the Kingdom.
The move to allow full foreign ownership was announced by the Saudi cabinet on 7 August and is part of the country’s efforts to attract more foreign investors, in line with the commitments outlined in Saudi Vision 2030.
Saudi Arabian General Investment Authority (SAGIA) first made the announcement that it would be accepting proposals from foreign investors looking to fully own an engineering practice in the kingdom last year.
In 2016, it was reported that the Saudi government was considering scrapping its policy requiring foreign companies to have a local partner to boost FDI flows into the country.