Foreign Investment has intensified in KSA in recent years. To fulfil its Vision 2030 and position itself as a lure for investors achieving Vision 2030.
Written by: Waseem Razouk
The provision of facilities and services in Saudi Arabia has resulted in an exceptional investment base and environment, thanks to the country’s vast oil and financial wealth.
At the start of 2023, foreign investments totalling 8.1 billion Saudi riyals were brought into Saudi Arabia. A 10.3% rise from the previous year.
Saudi Arabia experienced a qualitative leap in its economy. It is expanding by 8.7% due to the recent rise in oil prices. This increase in oil prices led to revenue growth, which resulted in a budget surplus for the country.
Additionally, by luring in foreign capital into eighteen industries, including re-export, tourism, transportation, and services, the Kingdom hopes to diversify its revenue streams.
The launch of several economic projects, including the largest floating port in the world, Oxagon City (NEOM), the tourism project and the Rig Project. Along with the provision of incentives and support for foreign investments, these are what make the Kingdom an appealing environment for foreign investment.
Saudi Arabia’s investment-attracting factors for foreigners
- The Kingdom of Saudi Arabia created customs-based cities and economic zones.
- The Kingdom offers substantial exemptions from customs to foreign investors in their projects.
- Providing infrastructure facilities, real estate ownership, and licence issuance.
- Making it easier to hire workers and enabling energy conservation to support Saudi Arabia’s industrial environment.
- Giving overseas investors tax breaks while bolstering the ecosystem to draw in capital.
- Offering financial and legal incentives to international investors, along with Saudi Arabian government involvement in projects.
Saudi Arabian foreign investment rules
- The investor’s desired project or activity must fall under one of the categories of endeavours approved by the Saudi government.
- The foreign investor must meet the qualifications and have experience in the industry in which he wishes to invest.
- The foreign investor must abide by all regional agreements, rules, and regulations within which the Kingdom of Saudi Arabia conducts business.
- Neither in Saudi Arabia nor in his native country, nor in any other country, may the foreign investor have a criminal, financial, or commercial conviction against him.