Investment Licenses in Saudi Arabia Grow 135% in Q3
The number of investment licenses issued in Saudi Arabia grew by 135.4% on a yearly basis in the third quarter of the year, registering 2,192 licenses.
This information was provided by Saad Alshahrani, the Deputy Minister for Economic Affairs and Investment Studies at the Ministry of Investment.
Distribution of Licenses
Alshahrani further stated that from the beginning of the year until the third quarter, a total of 5,648 investment licenses were issued; 80% concentrated in the sectors of construction, manufacturing, educational activities, information technology, communications, wholesale and retail trade, and vehicle repair.
Quarterly Increase
The number of licenses in the third quarter increased by 34% and 20.5% compared to the first and second quarters, respectively.
Attracting Diverse Investments
The Kingdom is striving to attract broad investments in various fields as part of Vision 2030, which aims to diversify the economy away from oil.
New Investment Opportunities
In recent weeks, Saudi Arabia announced several investment opportunities in new sectors, including the health sector, which aims to increase its contribution to the GDP from 199 billion riyals currently to 318 billion riyals by 2030.
The private sector’s share is expected to reach about 145 billion riyals, according to Health Minister Fahd Al-Jalajel.
Plans have also been announced to inject investments of $100 billion from both the private and public sectors in the aviation sector by 2030, in addition to attracting investors through privatization.
Other Sector Developments
Other sectors highlighted include a joint project between Italian company Pirelli and the Public Investment Fund to manufacture tires in Saudi Arabia at a cost of $533 million.
This follows an agreement with Hyundai to establish a highly automated car manufacturing plant with investments estimated at $480 million.
The Fund previously announced a partnership with Lucid for electric vehicles and launched “Ceer,” the first local brand for electric car manufacturing.
Strength Points
The Kingdom is working hard to attract investments. The Saudi Investment Minister considered many of the challenges faced by countries around the world as “strength points” for Saudi Arabia.
He noted that the Kingdom has one of the lowest capital costs, enjoys a high level of competitiveness, has a good credit rating, and there is stability in targeted investments over the long term with no fluctuations from year to year.
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