RESTRICTED
WORLD TRADE WT/ACC/SAU/24
23September 1997
ORGANIZATION(97-3863)
Working Party ontheAccession Original: English
oftheKingdom ofSaudi Arabia
ACCESSION OFTHE KINGDOM OFSAUDI ARABIA
Communication from Saudi Arabia
TheMinistry ofCommerce oftheKingdom ofSaudi Arabia hassubmitted thefollowing
Information onPolicy Measures Affecting Trade inServices.
_______________WT/ACC/SAU/24
Page2TABLE 1:Measures Relating toMarket Access
Mode(s) ofSupply Measures Relevant Laws andRegulations
A.HORIZONTAL
(1)Cross-border supply -- --
(2)Consumption Abroad -- --
(3)Commercial presence Commercial Presence inSaudi Arabia subject toapproval under
theForeign Investment Capital lawandunder thecompanies
law.
Itcantakeeither theform ofbranches offoreign companies or
inoneoftheeight forms oflegalentities incorporated inSaudi
Arabia. Theeight forms are:General Partnership, Limited
Partnership, Partnership Limited byShare, Limited Liability
Partnership, Company withvariable Capital, Joint-stock
Company, Cooperative Company, andJoint-venture Company.Foreign Investment Capital law
Companies Law
(4)Presence ofnatural persons Asamatter ofprinciple, since work isconsidered aSaudi
citizen 'sright, aforeigner would notbeemployed when todoso
would displace aSaudi worker. Inapplying thisprinciple, the
Labor andWorkers Regulations establish, asageneral rule,that
anyenterprise, Saudi orforeign owned, shallensure thatthe
"percentage oftheSaudi workers engaged bytheemployer shall
notbelessthan75percentofhistotalworkforce". However,
theRegulations alsoprovide theMinister ofLabor withthe
authority totemporarily reduce therequired percentage in
circumstances "where Saudi workers withnecessary
qualifications arenotavailable".Labor andWorkers Regulations (Chapter 3)
Permission ofMinistry ofLabor isrequired forobtaining work
permits forforeign persons. Work permit shallnotbegiven
unless thefollowing conditions havebeensatisfied:
(i) foreign natural person shallhaveentered thecountry
legally andsatisfies theconditions prescribed inthe
Residence Regulations;WT/ACC/SAU/24
Page3Mode(s) ofSupply Measures Relevant Laws andRegulations
(ii) theforeign person must posses occupational proficiency
oracademic qualification needed inSaudi Arabia,
provided thatnoSaudi national withthesame
qualification isavailable orthatthenumber ofavailable
Saudi nationals doesnotsatisfy demand;
(iii) theforeign person shallhaveentered intoacontract with
andguaranteed byaSaudi employer oranon-Saudi
Foreign Investment Capital law.employer whois
authorized under the
Thepositions ofallpersonnel officers, cashiers, civilsecurity
guards, transactions pursuers contacting government, and
receptionists arereserved forSaudi nationals inallcompanies
whether Saudis orforeigners.Decision oftheCouncil ofMinisters #50
dated 21/4/1415 AH
(5)Relationship between modes
ofsupply-- --
B.SPECIFIC SERVICE SECTOR ORSUB-SECTOR
1.BUSINESS SERVICES
A.Professional Services
(a)Legal Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Notpermitted. Ministerial Order #116 dated 12/7/1400 AH
Ministerial Order #1190 dated
16/2/1402 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
Foreign persons arenotallowed topresent cases inthecourts.
(5)Relationship between modes
ofsupply--WT/ACC/SAU/24
Page4 Mode(s) ofSupply Measures Relevant Laws andRegulations
(b)Accounting &Auditing Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Only inpartnership between certified Saudi andforeign
accountants.Royal Degree #m/4dated 18/2/1414 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply--
(c)Taxation Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Only inpartnership between certified Saudi andforeign
accountants.Royal Degree #m/4dated 18/2/1414 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply--
(d)Architectural Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Permitted inaccordance withMinisterial Resolution #264dated
16/9/1402 AHMinisterial Resolution #264dated
16/9/1402 AH
(4)Presence ofnatural persons None other thanhorizontal measures -
(5)Relationship between modes
ofsupply--WT/ACC/SAU/24
Page5Mode(s) ofSupply Measures Relevant Laws andRegulations
(e)Engineering Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Permitted inaccordance withMinisterial Resolution #264dated
16/9/1402 AHMinisterial Resolution #264dated
16/9/1402 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply--
(i)Veterinary Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Subject tolicense from Ministry ofAgriculture.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply--
B.Computer &Related Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply--
D.RealEstate Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Notpermitted
(4)Presence ofnatural persons None other thanhorizontal measures
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page6 Mode(s) ofSupply Measures Relevant Laws andRegulations
F.Other Business Services
(a)Advertising Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Subject toalicense from Ministry ofInformation.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply--
(b)Market Research &Public Opinion Polling Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Only inpartnership between qualified Saudi andforeign
marketing personsRoyal Degree #m/4dated 18/2/1414 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
(c)Management Consulting Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Only inpartnership between qualified Saudi andforeign
Management consultants.Royal Degree #m/4dated 18/2/1414 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page7Mode(s) ofSupply Measures Relevant Laws andRegulations
(m)Related Scientific andTechnical Consulting Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Only inpartnership between qualified Saudi andforeign with
technical Knowledge.Ministerial Resolution #106 dated
28/7/1417 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
(n)Maintenance &repair ofEquipment Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
(p)Photographic Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Subject toalicense from Ministry ofInformation.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
(q)Packaging Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page8 Mode(s) ofSupply Measures Relevant Laws andRegulations
2.COMMUNICATION SERVICES
A.Postal Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Notpermitted Serviced bytheGovernment
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
B.Courier Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Subject toalicense from theMinistry ofPTTandsubject tothe
condition ofajoint-venture between aSaudi andaforeign
company.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
C.Telecommunication Services
(1)Cross-border supply Call-back services notpermitted
(2)Consumption Abroad None
(3)Commercial presence Notpermitted Serviced bytheGovernment
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page9Mode(s) ofSupply Measures Relevant Laws andRegulations
D.Audiovisual Services
(1)Cross-border supply Notpermitted
(2)Consumption Abroad None
(3)Commercial presence Notpermitted
(4)Presence ofnatural persons None other thanhorizontal measures
(5)Relationship between modes
ofsupply
3.CONSTRUCTION AND RELATED ENGINEERING SERVICES
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures
Subject tolicense from theMinistry ofPublic Works and
Housing.Minstrel Resolution 29dated 17/1/1395 AH
Contractor Classification Regulation
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
4.DISTRIBUTION SERVICES
D.Franchising
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page10 Mode(s) ofSupply Measures Relevant Laws andRegulations
4.EDUCATION SERVICES
C.General &Higher Education Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures
Subject tolicense from theMinistries ofEducation, Higher
Education, General Presidency ofGirls Education, TheGeneral
Organization ofTechnical Education andTraining.
(4)Presence ofnatural persons None other thanhorizontal measures
(5)Relationship between modes
ofsupply
6.ENVIRONMENTAL SERVICES
Sewage, Refuse disposal, andSanitation
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures
(4)Presence ofnatural persons None other thanhorizontal measures
(5)Relationship between modes
ofsupply
7.FINANCIAL SERVICES
B.Banking &Other Financial Services
(1)Cross-border supply Notpermitted Currently, theBanking Control Lawprohibits
anyone other thanalicensed banktooffer
banking services intheKingdom.
(2)Consumption Abroad NoneWT/ACC/SAU/24
Page11Mode(s) ofSupply Measures Relevant Laws andRegulations
(3)Commercial presence Foreign commercial ispermitted intheform ofajoint-stock
company incorporated inSaudi Arabia, orasabranch ofa
foreign bank.
Foreign shareholders ’participation inajoint-stock Saudi Bank
maygouptoamaximum of40%.
Foreign participation issubject tolicense bytheMinster of
Finance andNational Economy, upon therecommendation of
SAMA, andsubject totheapproval oftheCouncil ofMinisters.Banking Control Law
Based onthedecisions oftheCouncil ofthe
Ministers.
Banking Control Law
(4)Presence ofnatural persons None other thanhorizontal measures
(5)Relationship between modes
ofsupply
8.HEALTH RELATED AND SOCIAL SERVICES
A.Hospital Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures
Subject tolicense from Ministry ofHealthMinisterial Order #244 dated 26/10/1407 AH
(4)Presence ofnatural persons None other thanhorizontal measures
Subject tolicense from Ministry ofHealth
(5)Relationship between modes
ofsupply
9.TOURISM AND TRAVEL RELATED SERVICES
A.Hotels &Restaurants
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page12 Mode(s) ofSupply Measures Relevant Laws andRegulations
B.Travel Agencies andTour Operators Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Subject toreciprocity. Ministerial Order #1/1/4/8/10 dated
29/6/1400 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
10.RECREATIONAL CULTURAL AND SPORTING SERVICES
D.Recreational Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
D.Sporting Services
(1)Cross-border supply None
(2)Consumption Abroad Notpermitted Royal Degree #M/55 dated 19/10/1407 AH
(3)Commercial presence Notpermitted Ministerial Resolution #226dated
13/9/1407 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page13Mode(s) ofSupply Measures Relevant Laws andRegulations
11.TRANSPORT SERVICES
A.Maritime Transport Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Intheform ofJoint-Venture companies between Saudi national
andforeigner, withtheshare proportion tobedetermined bythe
Foreign Capital Investment Committee. Theshare offoreigners
limited toamaximum of49%.Ministerial Order #53dated 24/3/1403 AH
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
C.AirTransport Services
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Notpermitted
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply
E.RAIL TRANSPORT SERVICES
Passenger ,freight pushing andpushing &towing
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence Notpermitted Serviced bytheGovernment
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupplyWT/ACC/SAU/24
Page14 Mode(s) ofSupply Measures Relevant Laws andRegulations
F.ROAD TRANSPORT SERVICES
(1)Cross-border supply None
(2)Consumption Abroad None
(3)Commercial presence None other thanhorizontal measures.
(4)Presence ofnatural persons None other thanhorizontal measures.
(5)Relationship between modes
ofsupply