Doing Business In Saudi Arabia - Dr. Mohamed Al-Amri & Co.
Doing Business In Saudi Arabia - Dr. Mohamed Al-Amri & Co.
Doing Business In Saudi Arabia - Dr. Mohamed Al-Amri & Co.
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<strong>Dr</strong>. M. <strong>Al</strong> <strong>Amri</strong> &<strong>Co</strong>.<br />
Private sector institutions<br />
<strong>In</strong> the private sector there are three main industrial groups providing funding and taking equity<br />
participation.<br />
. National <strong>In</strong>dustrialisation <strong>Co</strong>mpany (NIC)<br />
. <strong>Saudi</strong> Advanced <strong>In</strong>dustries <strong>Co</strong>mpany (SAIC)<br />
. <strong>Saudi</strong> Venture Capital Group (SVCG)<br />
The NIC operational from 1985, has been organised to stimulate private industrial development<br />
in the Kingdom. NIC seeks joint venture project proposal from companies who may be<br />
interested in 20-40 percent equity participation in new industrial joint ventures in <strong>Saudi</strong> <strong>Arabia</strong>.<br />
SAIC, a public company, was established in 1986 for the purpose of participation in joint<br />
venture projects employing advanced industrial technology. The company has participated in the<br />
formation of various aerospace industrial projects and seeks investors with technical know-how<br />
for investment in new industrial projects in <strong>Saudi</strong> <strong>Arabia</strong>.<br />
The SVCG, a loose grouping of about forty influential senior <strong>Saudi</strong> businessmen and industrial<br />
families, is an important organization and a response to the government's thrust to bring the<br />
private sector into industrial development.<br />
Stock exchange<br />
<strong>In</strong> terms of total capitalization, the <strong>Saudi</strong> Stock Exchange (Tadawul) is the largest in the<br />
Middle East. Privatization of public entities has long been a top priority of the <strong>Saudi</strong><br />
Government. The privatization of public entities such as <strong>Saudi</strong> Telecommunications and <strong>Saudi</strong><br />
Electricity in the recent past has set a healthy trend of a larger number of organizations<br />
seeking listing on the <strong>Saudi</strong> Stock Exchange.<br />
<strong>In</strong> order to strengthen the <strong>Saudi</strong> Capital markets, the government set up the Capital Market<br />
Authority (CMA) in 2003 pursuant to the Capital Market Law. The CMA is entrusted with the<br />
organization and development of the capital market in the Kingdom through enactment and<br />
enforcement of the rules and regulations for protection of investors and integrity and stability<br />
of the stock exchange.<br />
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