(Source: Arab News, Jeddah, Saudi Arabia)By Rodolfo C. Estimo Jr, Arab News, Jeddah, Saudi Arabia
Aug. 23--RIYADH -- The Malaysian Embassy has announced that a number of Saudi investors will be traveling to Malaysia after Ramadan to explore investment opportunities in the East Coast Economic Region (ECER).
"The embassy has received a number of inquiries during the past few days from Saudi businessmen on the tax incentives offered by Malaysia to foreign investors. Some of them personally visited us," Ambassador Dato Syed Omar Al Saggaf told Arab News on Sunday.
He said that most of the inquiring Saudis were interested in investing in agriculture, manufacturing, petrochemicals, the special economic zone, and culture and heritage.
Al Saggaf said that the renewed Saudi interest in investment in Malaysia comes on the heels of a visit last month of a delegation headed by Prince Abdul Aziz Faisal Al Saud following a visit to the Kingdom in May of an ECER investment delegation led by National Corridor Development adviser Tun Abdullah Ahmad Badawi.
"The delegation sought investors in the oil and gas industry, particularly in the downstream industry," Al Saggaf said.
In a statement, Datuk Jebasingam Issace John, chief executive officer of ECER Development Council, said in a statement that firm commitments from Saudi investors are expected by the end of 2010.
Al Saggaf said tax incentives were offered in various sectors.
"In tourism, there are customized incentives based on merit, income tax exemption of 100 percent for five years for eco-tourism and an investment tax allowance (ITA) of 100 percent on qualifying capital expenditure for five years," the envoy-professor said.
He added that other incentives offered include stamp duty exemption on land acquired for development and withholding tax exemption on royalty and technical fees for ten years; and import duty and sales tax exemption on machinery, equipment and consumables that are not produced locally but are used directly in the activity.
Incentives are also offered to Saudi companies developing infrastructure for industrial parks.
"These include 100-percent income tax exemption for ten years starting from the year the company derives its statutory income. And an investment tax allowance (ITA) of 100 percent on qualifying capital expenditure for five years," Al Saggaf said.
The ambassador added that incentives are also offered in the areas of manufacturing, petrochemical, special economic zone, agriculture, education and culture and heritage.
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Copyright (c) 2010, Arab News, Jeddah, Saudi Arabia
Distributed by McClatchy-Tribune Information Services.
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