New Restrictions for Foreign Investors in Certain Business Sectors

According to recent legislation, the Law On Foreign Investments (Law No. 25/79), the Business Registration Act (Law No. 18/2014), and the Business Registration Regulation (Regulation No. 2014/R-168), restrictions have been imposed on foreign investors in certain business sectors. The photography and related activities sector is entirely restricted for foreign investors. The souvenir trading and related business sector (wholesale and retail trade) is also entirely restricted for foreign investors. However, foreign investors may engage in the passenger transfer services sector with 51% local shareholding. The same holds true for the water sports and related activities sector. Foreign investors may participate in these sectors with 51% local shareholding. The operation of bonded warehouses in customs areas is also restricted for foreign investors. Investors seeking approval for business ventures in these sectors are advised to take the aforementioned restrictions into consideration. The announcement was made on 27th May 2015, 09 Sha’aban 1436.