joint venture

[E-Creativity]

what's a joint venture ?

thanks :)

[mimosa]

It's something that belongs in the Business Sabla ;)

A joint venture is where two companies invest to form a new company to combine their skills or resources in a way whichwill profit both.

In the Gulf, this has often simply been a case of a foreign investor forming a company with a local national who contributes little other than sponsorship, because foreign-owned companies were not allowed. This has now changed in most Gulf countries (maybe all?).

[E-Creativity]

Thanks mimosa :)

I didn't know what it means ,

it's ok if the admin transferes it to biz sabla

:)

[Arabian Princess]

Intereesting explanation mimosa.

Yes, Joint ventrue happens when two companies decide to open a "third" company togther.
We should distingush between Joint Venture and Merger (many people confuse these two). Merger is when two companies decide to be one.

[E-Creativity]

Thanks 4 the note arabian princess :)

[Faisal]

Mimosa and the princess of arabia said it all but I would add few comments :

Joint Venture is very similar to partnership,however all partners remain seperate bodies having one or more joint investments.This investment could be defined as a registered company (SAOG?) or can just be a project named.Usually up to twenty people or companies can participate, although more allowed in certain professions.All partners could have the same ultimate liability, even a sleeping partner (don't get me wrong:)) a sleeping partner in a joint venture is someone who contributes to funding but takes no part in the day-to-day managment of the venture.Working or sleeping partners in the venture, do not nessecarily take the same share of profits or even capital. As mimosa advised above, it has the advantage of more skills and money available.

In the GCC countries a Joint Venture is usually between a foriegn investor and a citizen.In Oman , the Omani Centre for
Investment Promotion and Export Development (OCIPED), coordinates for private sector project development and in the formation of joint ventures.

Thank You