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According to the business law in Saudi Arabia: a founder’s agreement helps in establishing a strong relationship between the partners to bring into line the goals set for the company. The Kingdom of Saudi Arabia implemented the new Foreign Investment Act in 2000. The act aims to liberalize the foreign investment laws in the country. The SAGIA was also created under this new act. According to which, foreign investors & entities are allowed to invest in all industries and services except for those who are mainly excluded from foreign investment. Example of the exempted industries are services related security, military manufacture, oil exploration or production, among others.
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