Today foreign investments play an essential role in the economies of the majority of the countries. FDIs expand the economies of the states as well as greatly benefit the investors once the investment is successful. Countries with fast-growing economies like Saudi Arabia are the best spots for such an investment.
The economic growth of Saudi Arabia is expected to accelerate to 7% this year. Such a massive growth comes from the increase in the price and demand for oil. Saudi historically has been one of the leading exporters of oil in the world, and in 2022 the expected growth in oil output is 13%. With ongoing events in the world, investing in the oil industry in Saudi Arabia would be a wise decision.
Besides oil, Saudi Arabia is developing its VISION2030 project to increase FDI, improve the overall economy, and promote Saudi Arabia’s culture. The National Industrial Developments and Logistics Program is one of the programs that makes Saudi Arabia so attractive for investment. It aims to transform the Kingdom into a leading powerhouse and a global logistics hub. Thanks to this program, Saudi Arabia added five new shipping lines, launched multiple utility-scale renewable energy projects, and launched the “Saudi-Made” program. Established in 2017, The Financial Sector Development Program aims to enable financial institutions to grow the private sector and develop an advanced capital market.
The program has already brought the Saudi Stock Exchange “Tadawul” to the global indices “FTSE” and “MSCI.” It has also significantly increased support in financial technology for startups. Another exciting program is the Human Capability Development Program which strives to develop citizens’ capabilities, prepare them for the future, and support them in seizing opportunities. This program allowed for the continuation of educational processes during the Covid-19 pandemic and has significantly increased the number of research publications and global partnerships.
Recently, the Saudi Ministry of Investment drafted a law that improves the conditions for foreign investors. It provides equal treatment for local and foreign investors. According to the law, foreign investors will not face any discrimination; they will be able to manage freely, sell, dispose of, and own economic projects and properties that are necessary for the operation of the business. Foreign investors will further be permitted to conclude commercial contracts and acquire, liquidate or sell any company. They will also be able to transfer funds from inside and outside the Kingdom freely. Moreover, Saudi Arabia has the advantage of being located at one of the top trading points in the world. Whether you’re looking to expand your company’s presence or launch your brand for the first time, you can get in touch with our consultants at email@example.com