Saudi Arabia boosts FDI attraction

Saudi Arabia is an economic and financial giant in the Middle East region and globally. 

The Saudi country has great economic potential as a result of its wealth and important sources of financing, such as hydrocarbons. 

Through its Vision 2030 plan, drawn up years ago, the Saudi Arabian state aims to diversify its economy so as not to depend exclusively on oil and gas as the main source of wealth generation. This means investing in all kinds of sectors, such as infrastructure, renewable energies, new technologies, tourism and even sports, in order to promote investment in them and to have solid alternative sources of financing. 

To this end, the Kingdom is cooperating with many important countries on the international stage, which provide it with experience and training to develop those sectors in which it currently has less capacity to develop, and is trying to promote investment, both nationally and internationally.

For some time now, there has been a growing flow of foreign direct investment into the Saudi market, which is good news for Saudi Arabia's coffers, and the Kingdom aims to attract foreign direct investment (FDI) worth 100 billion dollars a year by the end of the current decade.

Net foreign direct investment flowing into the Saudi market during the third quarter of this year recorded the highest quarterly level this year despite its annual decline, according to data released on Monday by the General Statistics Authority. Which is good data.

Net investments amounted to 16 billion rials (4.26 billion dollars) during the July-September period, a decrease of 24% compared to the same quarter last year. Thus, on a quarterly basis, net foreign direct investment increased by more than a third.

The government aims to attract foreign direct investment worth 100 billion dollars a year by the end of the current decade, according to plans outlined in the Vision 2030 plan that seeks to diversify the Saudi economy away from a heavy reliance on oil, the country's main source of national income.

During the ‘Future Investment Initiative’ conference, which Riyadh hosted in September, Investment Minister Khalid Al-Falih said that the indicators show positive growth.

Al-Falih said during one of the events at the conference, which has become an annual event to attract foreign investors, that the road to reaching the 2030 investment target will be ‘difficult’ but ‘achievable’.

Last year, foreign direct investment flows to Saudi Arabia amounted to some 26 billion dollars, more than the government's target.