Saudi Minister of Investment Khalid Al-Falih confirmed at the “Future Investment Initiative” conference held in Riyadh that the Kingdom is on the right track to attract more foreign direct investments, despite the great challenges it faces to achieve the goal of reaching $100 billion annually by 2030, according to… What was reported by Bloomberg Agency.
Al-Falih said in an interview with Bloomberg that the recent results of investment flows are “very positive,” noting that “all fundamental indicators point to the rise, and all signals are green.” He added, “Achieving this goal will be a steep but possible path,” referring to the great economic challenges and opportunities available on the horizon.
Direct foreign investments
Last year, foreign direct investment flows to Saudi Arabia amounted to about $26 billion, according to Bloomberg, which exceeds the government’s goal that it was seeking to achieve, but it is still considered the lowest since 2020.
This data was recently modified and raised from $19 billion to reflect a new methodology in line with International Monetary Fund standards.
Saudi Arabia seeks to quadruple the volume of direct investment flows by 2030, in a move aimed at easing the financial burdens on its plan to diversify the Kingdom’s economy and reduce dependence on oil.
Al-Falih explained that achieving these goals requires structural changes, as he announced the launch of new legal reforms to facilitate foreign investment and reduce bureaucratic complications, and it is expected that these laws will come into force starting next year.
This reform comes within the framework of Saudi Arabia’s efforts to provide a more attractive investment environment in line with the ambitions of Saudi Vision 2030, which seeks to create new economic sectors such as technology and mineral exploration, and train national competencies in these fields.
Attracting major international companies
The Minister of Investment’s announcement coincided with a global gathering of senior figures in the financial and business sector in Riyadh, where prominent figures such as Jane Fraser, CEO of Citigroup, Larry Fink, Chairman of BlackRock, and David Solomon, CEO of Goldman Sachs, attended.
During the conference, Goldman Sachs announced its plans to open a new office in the financial district in Riyadh next year, after obtaining a regional headquarters license (RHQ) in Saudi Arabia, as it became the first major international bank to obtain this license earlier this year, according to what the agency reported.
With the aim of strengthening the foreign presence, Saudi Arabia requires foreign companies seeking to sign lucrative contracts with the government or entities associated with it to establish a regional headquarters within the Kingdom.
So far, the Kingdom has granted about 540 licenses to these regional headquarters, and this strengthens its position as a major destination for foreign investments in the region.
