Saudi Arabia’s investment climate continues to attract foreign businesses. In the first half of 2024, a remarkable 184 foreign companies moved their regional headquarters to the Kingdom.
The Ministry of Investment (MISA) reported this significant surge, attributing it to Saudi Arabia’s unwavering efforts to enhance its investment environment and improve the investor experience.
Second Quarter Growth
In the second quarter alone, 57 companies received investment licenses to relocate their regional headquarters to the Kingdom. This marks an 84% growth compared to the same period in 2023. Additionally, 127 licenses were issued in the first quarter of 2024, bringing the total for the first half of the year to 184.
Investment Licensing Surge
The ministry processed 4,709 ‘Investor Visit’ visa applications, enabling foreign investors to explore opportunities within the Kingdom. Furthermore, the ministry addressed 38 challenges investors faced, including legislative and procedural issues. During this period, investment licenses increased by 49.6%, reaching 2,728 compared to 1,824 in the same period last year. This excludes licenses issued under the Anti-Commercial Cover-Up Law compliance campaign.
Popular Investment Sectors
Most investment licenses focused on construction, manufacturing, professional services, education, technology, information and communications, accommodation, food services, and wholesale and retail trade. The mining and quarrying sector saw the fastest growth in license issuance during the second quarter, with a 209.1% increase compared to last year. Other rapidly growing sectors included wholesale and retail trade, which grew by 96.3%, and other services, which grew by 110.5%.
Supporting Investment Initiatives
The report highlighted key initiatives to support investment in the second quarter of 2024. Notably, the Ministry of Economy and Planning launched the “Sustainability Pioneers” program in Riyadh. This initiative aims to enhance cooperation between leading companies in vital sectors, supporting the country’s transition to a green economy as part of Saudi Vision 2030. It underscores the importance of collaboration between public and private sectors in achieving sustainable development and environmental protection.
Fashion Industry Development
In another initiative, the Fashion Commission, in cooperation with Misk City, launched “The Lab” in Riyadh. This first-of-its-kind studio in the Kingdom aims to advance the fashion industry by providing designers with training and resources to streamline the manufacturing process. The initiative also seeks to enhance investment opportunities within the industry.
Saudi-British Partnership and Global Conferences
The report also mentioned the establishment of the Saudi-British Strategic Partnership Council, focusing on economic partnerships in 13 vital sectors. This council aims to boost trade between the two nations and foster innovation and creativity. Additionally, the Saudi Investment Marketing Authority signed an agreement with the World Association of Investment Promotion Agencies to host the 28th World Investment Conference in Riyadh in November 2024, further positioning the Kingdom as a leader in digital transformation and sustainability.
Advancements in Education
Education remains a cornerstone of Saudi Arabia’s Vision 2030. The report revealed that 13 foreign companies invested in private-public education. It also noted the establishment of eight international schools in Riyadh and the future opening of branches of prestigious international universities in the Kingdom. Saudi universities have also achieved global recognition, with four ranking among the top 100 globally for patent registrations.
These developments highlight Saudi Arabia’s commitment to creating a thriving, diverse economy and a robust education system under Vision 2030.
