The Kingdom of Saudi Arabia is surpassing expectations in its efforts to draw investments, as reported by the Kingdom’s Investment Minister, Khalid Al-Falih.
Al-Falih conveyed these developments at the third Saudi Capital Market Forum (SCMF) in Riyadh, where he participated in a panel with Faisal Alibrahim, the Minister of Economy and Planning, and Mohamed AlTuwaijri, the vice chairman of the Saudi National Development Fund’s Board of Directors.
Organized under the banner “Powering Growth”, the forum kicked off on February 19. The two-day gathering has seen the convergence of specialists from the financial world, state representatives, exporters, and investors, engaging in discussions aimed at enhancing the financial markets sector of the Kingdom.
Khaled Alfalih, during the SCMF, highlighted the Kingdom’s investment landscape and its future targets as part of Vision 2030.
Since the inception of Vision 2030 in 2016, the country’s GDP has nearly doubled, soaring from SAR2.6 trillion to more than SAR4 trillion. This impressive growth has positioned Saudi Arabia as the 16th largest economy within the G20 nations.
Signaling robust investment activity, the gross capital formation has increased markedly, from less than 22 percent to nearly 28 percent by the third quarter of 2023. This exceeds the initial benchmarks of the National Investment Strategy, setting the stage for further expansion towards the 30 percent objective, as noted by Al-Falih.
In the realm of foreign direct investment (FDI), Saudi Arabia has witnessed a significant uptick, with FDI stocks bolstering by 52 percent post-Vision 2030. The year-over-year FDI flows have escalated as well, from under 1 percent of GDP to above 3 percent, with an ambitious aim to reach 4 percent of GDP on the horizon.
These strides reflect the Kingdom’s commitment to diversification of its economy and its determination to be recognized as a premier global investment destination. The strategic reforms and the establishment of an investor-friendly climate are drawing considerable attention from international investors.
Adding to this economic narrative, Saudi Arabia’s Finance Minister Mohammed Al Jadaan informed SCMF attendees that the non-oil sector is anticipated to maintain growth above 5 percent in the medium term, signaling a robust and healthy expansion beyond the oil industry.