The executive regulation of the foreign investment system in Article Twenty-one (46) of the Penal Code stipulates the following: (1) Differences between the Commercial Register’s data on the data contained in the investment license issued by the Authority with the specifications of the Gulf or Saudi Arabia or international accredited. In addition to using the name or logo of a global or local commercial agency without a license, or using  publications or seals or means of advertising in a trade name contrary to the name authorized by the Commission. As well as when there is no investment license for the branches of the company and marketing centers, and when providing false data or misleading information to the Authority, or in the case of submission of contracts of implementation of a fake does not exist in reality.

Penalties:

In the event one of the violations mentioned in the Executive Regulations of the Foreign Investment Law was made, a decision by the Board of Directors shall cancel the license. The establishment shall then have two options: either the execution of the decision or a lawsuit against the decision of the Board of Directors within 60 days from the date of receipt of the decision or being informed by the General Authority for Investment. The plaint letter of the establishment shall be certified by the Chamber of Commerce or filed in accordance with the procedure before the Board of Grievances.

The Foreign Investment Regulation states the rest of the penalties in Article 12, which are:

withhold all or some of the incentives and privileges prescribed by the foreign investor;

A fine of no more than 500,000 (five hundred thousand Saudi Riyals)

Cancellation of foreign investment license

The Authority shall inform the foreign investor in writing when it falls under any of the irregularities stipulated by the Law to remove the violation within a period of time determined by the Commission in proportion to the removal of the violation.

This leads us to mention some rights of the foreign investor during the validity of the license:

As mentioned above, the right to obtain an appropriate time limit for the removal of violations that are monitored, the right to own property in accordance with the provisions of the system of ownership of non-Saudis and the right to make use of all the advantages and incentives and guarantees that being benefited by the national project in accordance with foreign investment regulations.

The rights of the foreign investor after the revocation of the license:

We have stated that they have the right to appeal against the Commission’s decisions to the Grievances Committee. They also have the right to appeal against the decision of the Grievances Committee before the Board of Grievances after their knowledge of the decision. The right to issue a license for liquidation, the right to renew the one-time residence of the revoked license, the right to a one-time exit and return of the revoked license and the right to obtain exit and return of the escorts.

The right of the applicant to issue a new investment license:

They have the right to obtain a new investment license if the request is not decided, the right to reply to the new license application, the right to refuse the issuance of the new license is reasoned, and they have the right to appeal against the rejection decision directly before the Board of Grievances.

The General Investment Authority shall have the right to ask the licensed applicant / applicants in any government or private department inside or outside the Kingdom to verify the accuracy of the data or information provided by the applicant. Investigators may not object to this procedure. All services of the investor / investor or the establishment only after the removal of the violations and payment of all the fines on the establishment and bring it up. That is one of the penalties for committing the offenses mentioned in Article 20 of the Regulations of the Regulations of the foreign investment system, even if removed before the Authority’s knowledge of the occurrence of that violation