RIYADH — The balance of Saudi Arabia’s foreign direct investment (FDI) recorded an annual growth of six percent, reaching SR808 billion in 2023, according to the Ministry of Investment. The ministry report showed that FDI flows amounted to about SR72 billion during the last year, and this figure is three times higher than that of the FDI flows recorded during the year 2017.
Referring to the investment achievements made my Saudi Arabia in the year 2023, the ministry noted that the diversity and multiplicity of initiatives, launched in the Kingdom, have contributed to it becoming an attractive home for investments in many sectors and fields. “This provided an incubating environment for them, reflecting the strength and confidence of the world in the Saudi economy. These investments deepened the impact of the private sector and enhance its growth, increasing its contribution to the gross domestic product and creating new jobs,” the ministry pointed out.
According to the ministry report, published by Minister of Investment Eng. Khalid Al-Falih on the X social media platform, the contribution of foreign investment to the gross domestic product (GDP) reached 2.4 percent in 2023, achieving the year’s target. The gross fixed capital formation achieved its highest level ever, which is SR1.1 trillion, exceeding the target of the National Investment Strategy for the year 2023, with annual growth over the year 2022 amounting to 9 percent. The formation of fixed capital from the GDP reached 28 percent while the National Investment Strategy targets 30 percent by the year 2030.
More than 8,500 foreign investment licenses have been issued during the year 2023 and this recorded a growth of 100 percent compared to the previous year 2022, during which 4,300 licenses were issued. In addition to this, more than 200 international companies issued their licenses to establish regional headquarters in Riyadh. Since the launching of Saudi Vision 2030, the number of valid investment licenses reached more than 26,000 licenses by the end of 2023.
With regard to foreign investment in industry, the ministry report pointed out that the number of advanced industrial investment opportunities reached 50 investment opportunities worth SR96 billion and the percentage of foreign and joint investments out of the total industrial sector investments reached 37 percent until May 2023. The value of foreign and joint investments in the industrial sector reached more than SR542 billion until May 2023.
It is noteworthy that Saudi Arabia launched four new special economic zones in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City, north of Jeddah. It contributes to attracting investments from various parts of the world, by providing an incubator environment characterized by investment systems and attractive competitive advantages. This enhances Saudi Arabia’s global position to be a destination for quality global investments, and open broader economic horizons, by providing jobs and localizing technology and industries. It contributed to attracting investments worth more than SR30 billion, and signed eight agreements with various government agencies to empower these areas and facilitate doing businesses.
Read the full article here
