Sudan offers 6 free zones for investment to Saudi businessmen
February 8, 2015 (KHARTOUM) – Sudanese investment minister, Mustafa Osman Ismail, has offered Saudi businessmen to invest in six free trade zones within the framework of the strategy of his ministry to encourage Arab investment in the country.
He called for the need to utilise this investment opportunity to promote economic ties between the two countries, pointing to Sudan’s strategic location which allows access to 500 million people in the Common Market for Eastern and Southern Africa (COMESA).
Ismail added the six free zones would give tax-free products access to COMESA markets according to trade agreements signed among those countries, saying the zones also offer various investment activities such as manufacturing, importing, re-exporting, leasing and warehousing.
The two sides agreed to hold a forum next March to lay out investment opportunities by a specialised team from Sudan’s ministry of investment in major to investors in major Saudi cities.
He stressed that Sudan’s new investment law addressed 37 obstacles which used to hinder foreign investment in the country, pointing to recent constitutional amendments which gave the president powers of granting lands for investment purposes instead of the states.
He pointed to the establishment of a special body for land granting, removing and compensation, emphasising that decisions of this body are not subject to appeal.
Disputes over land ownership remained to be a major hurdle to foreign investment in Sudan.
In 2013, hundreds of Om Doum residents in Khartoum staged demonstrations, blockading the main street and setting tires on fire to express fury against what they say are government plans to give away part of their lands to a Saudi investor.
The minister also mentioned several advantages of the new investment law including simplification of procedures, tax and customs exemptions for production inputs, freedom to transfer profits abroad.
Ismail pointed that the problem of the fluctuations of exchange rate will be resolved by allowing investors to transfer their money at the market rate at the time of deposit irrespective of the value of the Sudanese pounds.
The chairman of the CSCC, Abdel-Rahman al-Zamil, for his part, underscored strong ties between Khartoum and Riyadh, pointing to the desire of Saudi businessmen to invest in the Sudanese market particularly as the investment environment sees positive developments.
He pointed to the importance of investment in various economic sectors in the Sudanese market such as the feedstuffs, suggesting promotion of investment opportunities in the free zones through consultancy offices inside Saudi Arabia.
Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output. As a result Sudan had been unable to come up with hard currency needed by individuals or businesses who want to import or send profits overseas.
Other investors complain of unfavourable investment laws and bureaucratic hurdles they face when they come to Sudan.
(ST)