LEGAL DEVELOPMENTS
Liberalization of Wholesale and Retail Trade Sector –
100% Foreign Ownership Allowed
Introduction
As was described in our
September 2015 KSA Update, the Saudi Arabian authorities
recently made the decision to further liberalize the wholesale and
retail trade sector.
Prior to Saudi Arabia's 2005 accession to the World Trade
Organization (WTO), non-Gulf Cooperation Council (GCC) investors
could only hold up to 51 per cent ownership in wholesale trade and
retail entities.
With the 2005 WTO accession, Saudi Arabia liberalized this
restriction and allowed non-GCC investors to hold up to 75 per cent
ownership in wholesale trade and retail entities.
Now, building on the decision to allow 100 per cent foreign
ownership made in September 2015, the Council of Ministers have
approved the Rules for Full Foreign Ownership of Retail and
Wholesale Operations (the Rules).
