For foreign investment to be admitted into Sudan and Saudi Arabia under the present laws, there are certain substantive and procedural requirements which have to be initially satisfied. Once these requirements have been duly met, a foreign investor in either country will be entitled to claim the protection measures which will be discussed in later chapters, and may also enjoy certain incentives. In the following pages, it is proposed to examine these initial requirements, and to see how far Sudan and Saudi Arabia agree or disagree in this respect.

What investments are eligible?

The first basic requirement is that an investment must be a ‘foreign investment’ of the kind that falls within the scope of the investment policy embodied in the investment laws and treaties. What, then, is the meaning of the term ‘foreign investment’ in Sudanese and Saudi investment laws and treaties?

Foreign investment ultimately involves three parties: the capital exporting countries – of which the foreign investors are usually nationals, the foreign investors themselves, and the capital-importing country.

‘Foreign private investment’ means simply an investment made by a foreigner; thus there are two components, namely, the ‘foreign investor’ and the ‘investment’. Each of these components needs to be dealt with separately, first in respect of natural persons, and then in respect of juridical persons.

(a) The meaning of ‘foreign investor’

A foreign investor may either be a natural or a juridical person.