Alshahrani: Fueling Local Investments Stimulates Saudi Economy

Dr. Saad A. Alshahrani, Deputy Minister at the Ministry of Investment highlighted the importance of local investments in driving the Saudi economy forward. At the Priority Summit in Miami, USA, he highlighted the Gulf and Middle East’s strong economic performance, attracting more foreign investments.

Alshahrani Talks about Remarkable Growth in Local Investment

Dr. Alshahrani pointed out the significant strides Saudi Arabia has made over the past three years, with substantial growth in both local and foreign investments. Additionally, in 2022, KSA’s fixed capital formation increased by 29%, with foreign investment balance and inflows up by 16% and 20%. Expectations for 2023 indicate continued growth in investment indicators.

Alshahrani Discusses Surge in Investment Opportunities & Licenses

Alshahrani highlighted the surge in investment licenses, with 9,000 issued in 2023 compared to just 400 in previous years. Before the implementation of the National Investment Strategy, there were about 200 investment opportunities. Today there are approximately 1,600 diverse investment opportunities across various sectors, supported by 40 initiatives and four pillars.

National Investment Strategy:  Commitment to Diversification

Alshahrani highlighted that the National Investment Strategy reflects KSA’s commitment to diversifying its economy and stimulating growth through strategic investments. Additionally, he said that KSA’s incentive program, featuring 30-year tax breaks, aims to attract global investors to sectors such as manufacturing and technology.

Economic Transformation Post Vision 2030

Before Vision 2030, Saudi Arabia’s economy heavily relied on oil, as stated by Alshahrani. However, the Kingdom is now committed to transforming its economy to be more productive and varied, recognizing the need for diversification. This includes expanding into sectors such as manufacturing, technology, tourism, sports, entertainment, artificial intelligence, construction, real estate, and petrochemical industries.

Promoting Saudi Arabia as Global Investment Destination

Alshahrani’s participation in the summit reflects the Ministry of Investment‘s role as a vision partner in all activities of the Future Investment Initiative (FII) Institute. The aim is to promote KSA as a global investment destination and to enhance the attraction of quality investments. Furthermore, he noted that the United States and China are among the top G20 countries investing in Saudi Arabia. Saudi-Chinese partnership in developing semiconductor chips is a pivotal step in KSA’s journey to becoming a center for high-tech investments and sustainable economic progress.

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