Section Code: 0016 - 0018
Board of Investments
INVESTMENT PROMOTION ACT
Chapter 2: Applying for and Granting of Promotion
Section 16. Eligible Investments
The activities which are eligible for investment promotion by the Board are those which are important and beneficial to the economic and social development, and security of the country, activities which involve production for export, activities which have high content of capital, labor or service or activities which utilize agricultural produce or natural resources as raw materials, provided that in the opinion of the Board, they are non-existent in the Kingdom, or existent but inadequate, or use out-of-date production processes.
The Board shall make an announcement designating the types and sizes of investment activity eligible for promotion and may stipulate there in the conditions under which promotion is to be granted and may amend or abolish those conditions at any time.
In the case where the Board is of the opinion that any activity announced to be eligible for promotion under paragraph two no longer requires to be promoted, it may announce a temporary or permanent cancellation of promotion for that activity.
Section 17. BOI Application
A person who seeks to be a promoted person shall file to the Office and application for promotion in accordance with the rules, procedure and forms prescribed by the Secretary General, describing the investment project for which promotion is sought.
The promoted person shall be a company, a foundation or a cooperative established in accordance with the respective law.
Application for promotion prior to the formation of a company, a foundation, or a co-operative under paragraph two shall be made in accordance with the rules, procedure and forms prescribed by the Secretary General.
Section 18. BOI Priorities
The investment project to which the Board may grant promotion shall be one which is economically and technologically sound.
Consideration will be given to:
- the existing number of producers and production capacity in the Kingdom and the size of production capacity to be created under promotion compared with demand estimates;
- the prospect for which such activity will expand the market for the products or commodities produced or assembled in the Kingdom and will encourage the production or assembly in the Kingdom;
- the quantity and proportion of the resources available in the Kingdom including the capital. Raw or essential materials and labor or other services utilized;
- the amount of foreign currency which may be saved or earned for the Kingdom;
- the suitability of the production or assembly processes;
- other requirements which the Board deems necessary and appropriate.