1- The same meanings clarified in the Law for the terms and phrases stipulated in its (first) article apply to the Regulation wherever mentioned.
2- The following terms and phrases - wherever mentioned in this Regulation - mean the meanings indicated in front of each, unless the context requires otherwise:
A- Law: Investment Law issued by Royal Decree No. (M/ 19) dated 1446/1/16H.
B- Ministry: Ministry of Investment.
C- Regulation: Implementing Regulation of the Law.
D- Comprehensive Service Center: A center that includes liaison offices with representatives from government entities related to investment, providing services to investors.
E- Committee: Committee for Reviewing Violations and Imposing Penalties as stipulated in the Law.
F- Prohibited Activities: Activities that foreign investors are prohibited from investing in - in principle - according to the list issued by the Examination Committee.
G- Restricted Activities: Activities that foreign investors are allowed to practice in the Kingdom upon fulfilling the conditions and requirements related to practicing the activity.
H- Examination Committee: The Permanent Ministerial Committee for Examining Foreign Investments formed by Council of Ministers decision No. (83) dated 1443/1/30H.
I- Investor Guide: A guide issued by the Ministry including the rules, procedures, and instructions related to the application of the provisions of the Law and Regulation, and the services provided by the Ministry.
J- Procedures for Recording Violations: Procedures regulating the work of officials recording violations.
The following assets - without limitation - are considered capital of value for the purposes of applying the provisions of the law and its regulations:
A- Cash and its equivalents, shares, stocks, and other forms of participation in company capital.
B- Contractual rights; including construction contracts, franchises, and contracts where the compensation is primarily linked to the production rates, profits, or revenues of the establishment, and the right arising from contracts for the delivery or receipt of funds or the execution of valuable works under contractual agreements.
C- Fixed and movable assets, and any other property rights associated with them, including real estate mortgages.
D- Intellectual property rights in accordance with the relevant laws in the Kingdom; including patents, industrial designs, trademarks, and trade secrets.
1- Without prejudice to the provisions of relevant laws and international agreements to which the Kingdom is a party, the investor shall enjoy equality in treatment with other investors, and equality in treatment between local and foreign investors, under similar circumstances.
2- For the purposes of paragraph (1) of this article, the following factors are taken into account to determine whether the circumstances specific to the investors are similar:
A- The goods or services produced or consumed by the investor as part of his production inputs.
B- The relevant sector.
C- The size of the investment.
D- The impact of the investment on the local economy or environment.
3- The provision of paragraph (1) of this article does not prejudice the right of the Ministry to regulate according to local laws and regulations as required by the public interest, including but not limited to; protection of national security, public safety, and public order.
1- A procedure or series of procedures is considered indirect confiscation if it has an effect similar to direct confiscation; such that it leads to depriving the investor of fundamental ownership rights in his investment without the formal transfer of ownership or direct expropriation. The following factors are taken into account to verify the occurrence of indirect confiscation:
A- The economic effect of the procedure or series of procedures, and the negative impact on the economic value of the investment is not solely considered in determining whether expropriation has occurred.
B- The duration of the negative impact of the procedure or series of procedures.
C- The nature and purpose of the procedure or series of procedures.
2- Non-discriminatory regulatory procedures applied to protect legitimate public interests - including procedures related to public health, safety, and the environment - are not considered indirect confiscation.
1- Without prejudice to any of the applicable laws, regulations, and instructions; the investor has the right to transfer funds related to his investments freely to and from the Kingdom without delay, and these transfers include, but are not limited to:
A- Initial capital and additional amounts for maintaining or increasing the size of the investments.
B- All profits and capital gains, distributed profits, royalties, fees, and other current income and revenues.
C- Amounts paid under a contract, including loan installments related to the investments.
D- Revenues realized from the liquidation of the investment or its sale in whole or in part.
E- Gains and salaries of employees contracted from abroad who perform work related to the investments.
2- Regardless of what is stated in paragraph (1) of this article; the transfer may be delayed or refrained from in application of the fair and non-discriminatory legislation in force and in good faith which relates to the following:
A- Cases of bankruptcy, insolvency, or protection of creditors' rights.
B- Issuance, trading, or dealing in securities.
C- Criminal offenses or penalties.
D- Compliance with orders or judgments issued in legal proceedings.
3- The provisions of paragraphs (1) and (2) do not apply to actions taken by the competent authorities related to financial services for reasonable and justified reasons, including measures to protect investors, depositors, insurance policyholders, or persons who are creditors of a commercial establishment providing financial services, or to ensure the stability and integrity of the financial system.
1- The investor has the right to request available information and statistical data from the Ministry through its website, unless the information or statistical data cannot be shared for reasons related to the application of the regulations and decisions in force in the Kingdom.
2- The Ministry shall provide the investor with the available information or statistical data within a period not exceeding (thirty) working days from the date of submitting the claim.
3- The Ministry may publish this information and statistical data in line with its objectives.