Source Credit: Arab News
Saudi Arabia and Argentina are exploring new avenues for trade and investment, highlighted by a recent seminar in Riyadh. Argentina's recently introduced "New Legal Framework for Major Investments in Argentina" (RIGI) was intended to be shown to Saudi businesses at the event, which was organized by the Argentine Embassy and the Riyadh Chamber of Commerce and Industry.
Key points
- By providing incentives in industries like mining, energy, infrastructure, tourism, technology, and manufacturing, the RIGI program aims to draw significant foreign investments.
- For international investors, these attractions include long-term predictability, tax advantages, and regulatory stability.
- Full exemption from export taxes and exemption from import tariffs on capital items are further incentives.
- Businesses that follow the RIGI will be assured application reviews within 45 business days and enjoy a 30-year stability term. A $200 million minimum investment is required, of which 40% must be made within the first two years.
To promote direct investment between the two nations, Argentinean Foreign Affairs Minister Santiago Andres Cafiero and Saudi Investment Minister Eng Khalid Al-Falih signed a memorandum of agreement. The Saudi Ministry encourages the private sector to have a role in economic growth. Three important Saudi Arabian industries that are expected to see significant growth and draw in foreign investment are renewable energy, tourism, and infrastructure.
