Doing Business in Saudi Arabia - International Franchise Association

• Intellectual Property Protection: Intellectual property protection has steadily increased in
the Kingdom. Over the last seven years, Saudi Arabia has comprehensively revised its laws
covering intellectual property rights to bring them in line with the WTO agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPs). The Saudi Government undertook
the revisions as part of Saudi Arabia’s accession to the WTO, and promulgated them in
coordination with the World Intellectual Property Organization (WIPO). The Saudi
Government updated its Trademark Law (2002), Copyright Law (2003), and Patent Law
(2004), with the dual goals of TRIPs-compliance and effective deterrence against violators.
In 2008 the Violations Review Committee created a website and has populated it with
information on current cases. The patent office continues to build its capacity through
training, has streamlined its procedures, hired more staff, and reduced its backlog.
In September 2009, the King approved a mechanism to protect Exclusive Marketing Rights
(EMR) for certain pharmaceutical products which lost patent protection when Saudi Arabia
transitioned to a new TRIPS-compliant patent law in 2004. The Saudi Ministerial Council in
December 2009 approved the Kingdom’s accession to both the Intellectual Property Owners
Association Patent Cooperation Treaty (PCT) and its Implementing Regulations and the
Patent Law Treaty (PLT) adopted by the Diplomatic Conference in Geneva on June 1, 2000.
The Council of Ministers issued a resolution on 23/11/1428H (December 3, 2007) approving
the Law of Trademarks for GCC countries.
• Counterfeiting: Although anti-counterfeiting laws exist, manufacturers of consumer
products and automobile spare parts are particularly concerned about the widespread
availability of counterfeit products in Saudi Arabia. The Saudi Government remains
committed to stopping counterfeit products from entering into the country.
• Arab League Boycott: The Gulf Cooperation Council (Saudi Arabia, Kuwait, Bahrain,
Oman, Qatar, and the United Arab Emirates) announced in the fall of 1994 that its members
would no longer enforce the secondary and tertiary aspects of the Arab League Boycott.
The primary boycott against Israeli companies and products still applies.
• Government Procurement: Government contracts on project implementation and
procurement strongly favor Saudi and GCC nationals. However, most Saudi defense
contracts are negotiated outside these regulations on a case-by-case basis. Saudi Arabia
published its revised government procurement procedures in August 2006. Foreign
suppliers participating in government procurement are required to establish a training
program for Saudi nationals.
• Banking: Although the Saudi central bank, SAMA, has granted licenses to a number of
foreign financial institutions to open branches in Saudi Arabia, these banks are only being
allowed to provide investment banking and brokerage services, as applicable. The number
of commercial banks operating in the Kingdom in 2008 amounted to twenty two, including
branches of the National Bank of Kuwait, Deutsche Bank, Muscat Bank, National Bank of
Bahrain, Gulf International Bank (GIB), Emirates Bank (EB), J.P. Morgan Chase N.A, BNP
Paribas, National Bank of Pakistan (NBP), and State Bank of India (SBI).
• Shipping: Saudi Arabia gives preference to national carriers for up to 40% of governmentrelated
cargos. Two local companies take full advantage of this situation.