Investment Minister Highlights Growth As Nearly 600 Global Companies Establish Headquarters In Saudi Arabia

Minister of Investment Eng. Khalid Al-Falih revealed that nearly 600 global companies have now set up their regional headquarters in Saudi Arabia. The number of registered investment licenses has jumped from 4,000 in 2018 and 2019 to 40,000 today. Total investments have also doubled, reaching SAR 1.2 trillion, which represents 30% of the Saudi economy.

Al-Falih highlighted the significant role of the private sector in these developments. "Seventy-two percent of investments came from the private sector, while the Public Investment Fund's (PIF) portfolio and companies account for only 13%. This underscores Saudi Arabia's position as a strong global investment destination, thanks to its attractive economic environment and diverse investment opportunities across various sectors," he stated.

The minister attributed this growth to economic reforms under Saudi Vision 2030. These reforms have boosted the local market's competitiveness, attracting major international firms. The rapid increase in foreign direct investment flows reflects growing investor confidence in Saudi Arabia’s economy and stability.

During a panel discussion titled "Ministerial Perspective on the Role of the Government to Enable the Private Sector," Al-Falih discussed these topics. This event was part of the third edition of the two-day PIF Private Sector Forum held in Riyadh.

Al-Falih emphasized Saudi Arabia’s economic diversification, noting that non-oil activities now make up 52% of total GDP. Even during times when oil activity declined due to production policies, the non-oil sector maintained a growth rate between 4% and 5%.

The minister also pointed out that Saudi Arabia's economy has exceeded SAR 4 trillion (around $1.1 trillion). This marks unprecedented growth in foreign investment inflows since launching Vision 2030.

Foreign Investment Milestones

Since Vision 2030 began, total foreign investment stock has doubled to SAR 900 billion. This progress reaffirms Saudi Arabia’s swift advancement towards its investment and economic objectives.

The minister elaborated on how the private sector has been pivotal in driving national economic growth since Vision 2030's inception. Significant improvements have been made in creating an inviting investment environment.

This comprehensive strategy continues to position Saudi Arabia as a key player on the global investment stage, with ongoing efforts to enhance its economic landscape further.

With inputs from SPA