Saudi Arabia aims to increase the net foreign direct investment flowing into the country by 1816% within 10 years from 2021 to 2030, doubling it by more than 19 times.
This comes with the launch of Crown Prince Mohammed bin Salman, National Investment Strategy, which aims to increase net foreign direct investment inflows to the Kingdom to 388 billion riyals ($103.5 billion) annually by 2030.
Foreign direct investment amounted to 20.2 billion riyals ($5.4 billion) last year 2020, according to the “Al-Eqtisadiah” newspaper.
These goals coincide with several government measures taken by the government, and still are, to facilitate foreign investment in Saudi Arabia, targeting the injection of 27 trillion riyals into the economy until 2030, in addition to the strength of the Saudi economy as the largest economy in the region and the trillion government spending within it, and the expected strong economic growth after recovery from Corona pandemic.
This comes in addition to the huge economic projects that attract foreign companies to win a share of these projects, including “NEOM”, “Red Sea”, “Amaala”, “Qiddiya” and other projects, in addition to the partnership program with the private sector “Sharek”, which is expected to Attracts more investment.
The data achieved during the second quarter of this year indicated that Saudi Arabia is actually on its way to the target by 2030, as it attracted record foreign direct investments of about 51.9 billion riyals (13.8 billion dollars) during the second quarter of 2021, compared to 3.1 billion riyals ($ 826 million) during The same period last year, an increase of 1574%, and a value of 48.8 billion riyals ($13 billion).
The net foreign direct investment flowing into Saudi Arabia during the second quarter of 2021 is the highest value ever achieved, according to the available data.
Foreign direct investment flowing into Saudi Arabia during the second quarter of this year is close to what was attracted during the last three years “2018, 2019 and 2020”, reaching 15.9 billion riyals in 2018, 17.1 billion riyals in 2019, and 20.2 billion riyals in 2020. .
The foreign investment flowing into Saudi Arabia during the second quarter of 2021 also increased by about 589% from the second largest quarterly inflows historically, which amounted to 7.53 billion riyals in the fourth quarter of 2016, which reflects the size of the huge rise that occurred.
The rise in the second quarter of 2021 came, after the net foreign direct investment flowing to Saudi Arabia during the past year 2020 increased by 18.3%, to reach about 20.2 billion riyals ($ 5.4 billion) compared to 17.1 billion riyals ($ 4.6 billion) in 2019.
The foreign direct investment flowing into Saudi Arabia during 2020 is the largest in 4 years (since 2016 when it amounted to 27.95 billion riyals), despite the outbreak of the Corona pandemic, which led to a decline in foreign direct investment globally.
Data from the United Nations Conference on Trade and Development (UNCTAD) indicate a sharp decline in total foreign direct investment flows globally in 2020 by 42%, compared to 2019 levels.
The rise in foreign direct investment into Saudi Arabia comes in light of the Kingdom’s Vision 2030 reliance on attracting huge foreign investments to diversify sources of income away from oil as a major goal of the vision.
The Kingdom has taken many measures to attract foreign investments and facilitate their flow into the Saudi economy, which has made it significantly ahead in global business climate, environment and competitiveness indicators.
The Line Project in NEOM
Among those steps, Saudi Arabia intends to stop contracting with any foreign company or commercial institution that has a regional headquarters in the region other than the Kingdom, as of early 2024, and this includes the authorities, institutions and funds affiliated with the government or any of its agencies.
This comes to ensure that the main products and services that are purchased by the various government agencies are implemented on the territory of the Kingdom with appropriate local content.
The decision will not affect the ability of any investor to enter the Saudi economy or continue to deal with the private sector, and the relevant controls will be issued during the current year.
This is in line with the announcement of the objectives of the strategy of the capital of the Kingdom, Riyadh 2030, during the Forum of the Future Investment Initiative, which was held recently, during which 24 international companies announced the intention of moving their regional headquarters to Riyadh.