Saudi Deputy Minister Cites Local Investments As Key To Economic Growth

On February 24, 2024, Dr. Saad Alshahrani, the Saudi Investment Deputy Minister for Economic Affairs and Investment Studies, highlighted the pivotal role of local investments in driving the Saudi economy forward. Speaking from the Priority Summit in Miami, USA, Dr. Alshahrani shared insights into the economic strides made by the Kingdom of Saudi Arabia, particularly noting the significant uptick in both local and foreign investments over the past three years.

Dr. Alshahrani underscored the impressive growth in fixed capital formation, which saw a 29% increase in 2022 alone. Furthermore, he detailed the advancements in foreign investment, with amounts and flows rising by 16% and 20% respectively during the same period. These figures underscore a robust economic environment conducive to further growth in 2023.

The issuance of investment licenses has seen a remarkable surge, with nearly 9,000 licenses granted in 2023 compared to a mere 400 in previous years. This exponential growth reflects the Kingdom's expanding investment landscape. Dr. Alshahrani also pointed out the expansion of investment opportunities within Saudi Arabia. Prior to the launch of the National Investment Strategy (NIS), investment opportunities stood at around 200. Today, investors can explore approximately 1,600 opportunities across various high-quality industries and regions within the Kingdom, facilitated by 40 initiatives and four pillars.

Dr. Alshahrani emphasized that the NIS is a testament to Saudi Arabia's dedication to diversifying its economy and stimulating growth through strategic investments. He highlighted the comprehensive incentives program as part of this strategy, which includes benefits such as 30-year tax exemptions aimed at attracting and supporting global investors in critical sectors like manufacturing and technology.

This focus on economic diversification and investment growth not only positions Saudi Arabia as an attractive destination for foreign investments but also underscores its role in shaping the economic landscape of the Gulf region and the Middle East.

With inputs from SPA