The Kingdom of Saudi Arabia has been surpassing expectations in drawing investment flows, as articulated by the country’s Investment Minister, Khalid Al-Falih.
This sentiment was shared during a discussion at the third Saudi Capital Market Forum (SCMF) in Riyadh, which also featured Faisal Alibrahim, the Minister of Economy and Planning, and Mohamed AlTuwaijri, vice chairman of the Saudi National Development Fund.
The conference, themed “Powering Growth,” commenced on February 19 and spanned two days. It served as a convergence point for financial experts, governmental authorities, exporters, and investors to engage in dialogues aimed at bolstering the financial markets in Saudi Arabia.
Khalid Al-Falih highlighted the investment landscape and future ambitions of the Kingdom in line with Vision 2030 during his participation in the first day of the SCMF.
Significant economic strides have been marked since the introduction of Vision 2030 in 2016, with Saudi Arabia’s GDP nearly doubling from SAR2.6 trillion to over SAR4 trillion. This robust growth has secured the kingdom’s rank as the 16th largest economy within the G20 nations.
The level of gross capital formation, indicative of investment activities, has seen a remarkable increase from below 22 percent to nearly 28 percent by the third quarter of 2023. This not only exceeds the National Investment Strategy’s initial goals but also sets a trajectory towards a 30 percent target, as stated by Al-Falih.
The realm of foreign direct investment (FDI) has also experienced a surge, with FDI stocks rising by 52 percent since the dawn of Vision 2030. Moreover, the year-on-year FDI flows have escalated from below 1 percent of GDP to over 3 percent. The kingdom is on the verge of achieving its ambitious aim of hitting a 4 percent GDP mark.
Saudi Arabia’s steadfast commitment to diversifying its economy and cementing its status as a leading global investment destination is evident. The country’s strategic reforms and emphasis on cultivating an investor-friendly climate are drawing notable attention from investors worldwide.
In conjunction with these developments, Saudi Arabia’s Finance Minister Mohammed Al Jadaan conveyed to the SCMF attendees that the non-oil sector is anticipated to sustain growth above 5 percent in the medium term. He pointed out that the non-oil GDP has been flourishing, with growth rates exceeding 4 percent and expectations set for a continued upward trend.