RESTRICTED
WORLD TRADE WT/ACC/SPEC/SAU/3
24September 1997
ORGANIZATION(97-3981)
Working Party ontheAccession Original: English
oftheKingdom ofSaudi Arabia
ACCESSION OFTHE KINGDOM OFSAUDI ARABIA
Communication from Saudi Arabia
TheMinistry ofCommerce oftheKingdom ofSaudi Arabia hassubmitted thefollowing initial
offer onservices.
_______________WT/ACC/SPEC/SAU/3
Page2STRICTLY CONFIDENTIAL
THE KINGDOM OFSAUDI ARABIA: INITIAL OFFER ONSERVICES
Modes ofsupply: 1)Cross-border supply 2)Consumption abroad 3)Commercial presence 4)Presence ofnatural persons
Sector orSub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
I.HORIZONTAL COMMITMENTS
ALL SECTORS AND
SUB-SECTORS OF
SERVICES INCLUDED
INTHIS OFFER3)
(i)Commercial presence subject to
approval under theForeign Capital
Investment LawandtheCompanies
Law.
(ii)Only intheform ofjoint-ventures
between Saudi individuals /entities and
foreign individuals /entities, withthe
share offoreign partner (s)limited to
49%.
(iii)Commercial presence for
professional services and“other business
services ”,included inthisoffer, subject
totherequirements oftheProfessional
Companies Law, andtherelevant Saudi
regulations applicable toindividual
services.3)
(i)NonSaudi nationals maynot,other thanby
succession, acquire therightofownership to
real-estate within Saudi Arabia. However,
foreign establishments authorized tocarry on
theiractivities intheKingdom under the
Foreign Capital Investment Lawmayownreal
estate onlyforaspecific userelated tothe
licensed project. Theconcerned Minister 's
approval isaprerequisite before itsreview by
aMinisterial Committee intheMinistry of
Interior, which compromises ofmembers from
theMinistry ofInterior andMinistry of
Industry andElectricity.
(ii)NonSaudi business entities aresubject to
income taxwhile Saudi entities aresubject to
Zakat.
(iii)NonSaudi service entities notentitled to
certain promotional programs suchasmarket
research andmarketing programs including the
organization ofexhibitions orfacilities of
participation ininternational fairsand
exhibitions, andtheestablishment ofmarketing
centres.
(iv)Foreign service entities noteligible for
services subsidized bytheState.
(v)Foreign service entities must adhere tothe
rules forinvestment inSaudi Arabia.WT/ACC/SPEC/SAU/3
Page3Modes ofsupply: 1)Cross-border supply 2)Consumption abroad 3)Commercial presence 4)Presence ofnatural persons
Sector orSub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
4)
Unbound, except asfollows:
Asamatter ofprinciple, since work is
considered aSaudi citizen 'sright, a
foreigner would notbeemployed when
todosowould displace aSaudi worker.
Inapplying thisprinciple, theLabor and
Workers Regulations establish, asa
general rule,thatanyenterprise, Saudi
orforeign owned, shallensure thatthe
"percentage oftheSaudi workers
engaged bytheemployer shallnotbe
lessthan75percent ofhistotal
workforce". However, theRegulations
alsoprovide theMinister ofLabor with
theauthority totemporarily reduce the
required percentage incircumstances
"where Saudi workers withnecessary
qualifications arenotavailable".
Permission ofMinistry ofLabor is
required forobtaining work permits for
foreign persons. Work permit shallnot
begiven unless thefollowing conditions
havebeensatisfied:4)
Unbound, except asinthecolumn for
Limitations onmarket access
(i)Foreign natural person shallhave
entered thecountry legally and
satisfies theconditions prescribed in
theResidence Regulations.WT/ACC/SPEC/SAU/3
Page4 Modes ofsupply: 1)Cross-border supply 2)Consumption abroad 3)Commercial presence 4)Presence ofnatural persons
Sector orSub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(ii)Theforeign person must posses
occupational proficiency or
academic qualification needed in
Saudi Arabia, provided thatno
Saudi national withthesame
qualification isavailable orthatthe
number ofavailable Saudi nationals
doesnotsatisfy demand.
(iii)Theforeign person shallhave
entered intoacontract withand
guaranteed byaSaudi employer ora
non-Saudi employer whois
authorized under theInvestment of
Foreign Capital Regulation.
Thepositions ofallpersonnel officers,
cashiers, civilsecurity guards,
transactions pursuers contacting
government, andreceptionists are
reserved forSaudi nationals inall
companies whether Saudi orforeign.
II.SECTOR SPECIFIC COMMITMENTS
1.Business Services
A.Professional Services
(b)Accounting, auditing
andbookkeeping services
(c)Taxation Services1)None
2)None
3)Only inpartnership between certified
Saudi andforeign accountants
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.WT/ACC/SPEC/SAU/3
Page5Modes ofsupply: 1)Cross-border supply 2)Consumption abroad 3)Commercial presence 4)Presence ofnatural persons
Sector orSub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(d)Architectural services
(e)Engineering services
(f)Integrated engineering
services
(i)Veterinary services1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
B.Computer andRelated
Services:
to(e)1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
C.Research and
Development Services:
(a)to(c)1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
F.Other Business
Services:
(a)Advertising
services
(b)Market research
services
(c)Management
consulting
services
(d)Services related
tomanagement
consulting
(e)Technical testing and
analysis services
(f)Photographic services
(q)Packaging services1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.WT/ACC/SPEC/SAU/3
Page6 Modes ofsupply: 1)Cross-border supply 2)Consumption abroad 3)Commercial presence 4)Presence ofnatural persons
Sector orSub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
2.COMMUNICATION SERVICES
B.Courier services 1)None
2)None
3)Subject tolicense from theMinistry
ofPTTandsubject tothecondition ofa
joint-venture between aSaudi and
foreign company.
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
3.CONSTRUCTION AND RELATED ENGINEERING SERVICES
A.General construction
work forbuildings:
B.General construction
work forcivilengineering
C.Installation and
assembly work
D.Building completion
andfinishing work1)None
2)None
3)Commercial presence permitted only
intheform ofajoint-venture. Subject
toalicense from theMinistry ofPublic
Works andHousing.
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
6.ENVIRONMENTAL SERVICES
A.Sewage services
B.Refuse disposal services1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.WT/ACC/SPEC/SAU/3
Page7Modes ofsupply: 1)Cross-border supply 2)Consumption abroad 3)Commercial presence 4)Presence ofnatural persons
Sector orSub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
7.FINANCIAL SERVICES
B.Banking andother
financial services
(excluding insurance)1)None
2)None
3)
-Foreign commercial presence is
permitted intheform ofa
joint-stock company incorporated in
Saudi Arabia orasabranch ofa
foreign bank.
-Foreign shareholders 'participation
inajoint-stock Saudi Bank maygo
uptoamaximum of40%.
-Foreign participation issubject to
license bytheMinister ofFinance
andNational Economy, upon the
recommendation ofSAMA, and
subject totheapproval ofthe
Council ofMinisters.
-Number ofbanks andnumber of
bankbranches subject toeconomic
needs, determined bytheMinister
ofFinance andNational Economy
-Provision ofservices issubject to
applicable rules.
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.WT/ACC/SPEC/SAU/3
Page8 Modes ofsupply: 1)Cross-border supply 2)Consumption abroad 3)Commercial presence 4)Presence ofnatural persons
Sector orSub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
8.HEALTH RELATED AND SOCIAL SERVICES
A.Hospital services: 1)None
2)None
3)Subject tolicense from theMinistry
ofHealth
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
B.Other human health
services1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
9.TRAVEL AND TOURISM SERVICES
A.Hotels andrestaurants
C.Tourist guides services1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
10.RECREATIONAL CULTURAL AND SPORTING SERVICES
D.Recreational services 1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.
11.TRANSPORT SERVICES
C.Airtransport services
(d)Maintenance andrepair
ofaircraft
(e)Computer reservation
system1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.1)None
2)None
3)None
4)Unbound, except asinthehorizontal
section.