Andersen

In light of the economic policies pursued by the Kingdom of Saudi Arabia, the pace of foreign direct investment is progressing. This field is considered a significant axis within the general strategy for economic construction represented in the kingdom’s vision 2030. It has made a substantial progress in the past years, based on the facilities, laws, and flexible amendments compatible with the criteria of the kingdom’s vision to increase foreign investments and the sustainable credit standing of Saudi Arabia. At the height of a collapse in oil prices nearly four years ago, the country preserved its credit reputation, compared to other oil-producing countries. The advantages of the national economic arena for investment in general, with projects in all sectors, are characterized by unlimited prospects. That was evident through the interest of international investment bodies to reach the Saudi market in recent years.

The leadership in the Kingdom of Saudi Arabia showed a direct interest in foreign investment, which was demonstrated through the important visits that King Salman bin Abdulaziz and his Crown Prince Mohammed bin Salman made to several major countries. On every stay at this level, more investments were pouring into the country. That was evidenced by large business owners, investors, and large institutions’ keenness to establish direct bilateral relations with senior officials in Saudi Arabia. Not to forget the extensive international activities that occurred in Saudi Arabia and investments in general. These activities and events also attracted large numbers of parties intending to have a stake in the strategic economic workshop taking place in the country.

Hence, it was not surprising that the volume of foreign direct investment in Saudi Arabia reached $ 4.6 billion during the year of 2019. According to the United Nations Organization for Trade and Development (UNCTAD), an increase of 9 percent over its level in 2018 at a time when foreign investments declined. According to the UNCTAD’s report that this was not the case for Saudi Arabia. What is striking about the Saudi arena’s investment activity, is the polarization in the past year notably involving sectors that are not related to oil and gas. This point is critical in the significant development process that is taking place in the country because it constitutes a catalyst for a movement aimed at raising the level of participation of non-oil sectors in the gross domestic product.

The diversity of income sources is not a new axis in Saudi. Still, it witnessed a significant progress in the wake of Saudi 2030 vision. Due to the presence of renewed ground to support it in all sectors, including local and foreign partnerships that exist on the scene, which are also witnessing an increasing presence in this field. For example, the volume of foreign investments in Saudi Arabia had increased last year in mining with a deal amounting to $ 2.2 billion, strengthening the steps towards further expansion in other non-oil sectors. From here, we can expect a further increase in the volume of this type of investments in the coming stage, with a continuous expansion of other fields.

Figures issued by the United Nations confirm that the march of economic construction in Saudi Arabia is proceeding with steady and varied steps forward. It will continue until the goals on which the “kingdom’s vision” is achieved in building a national economy befitting Saudi Arabia, its capabilities, reputation, and position on the regional and global arenas.