JEDDAH, 21 September 2003 — Investment opportunities in the Kingdom are likely to exceed $1 trillion (SR3.75 trillion) within the next 20 years, according to Prince Abdullah ibn Faisal ibn Turki, chairman of the Saudi Arabian General Investment Authority (SAGIA).
Addressing a seminar on “Investment Opportunities in Saudi Arabia” in Dubai yesterday, he identified electricity, water, communications, petrochemicals, gas, agriculture, railways, information technology, tourism, education, minerals and infrastructure projects as potential areas for new investments in the country.
The SAGIA chief said his organization had issued more than 2,000 licenses to establish projects worth more than $15 billion (SR56.25 billion) over the past months.
“The investment climate in Saudi Arabia has become more attractive to both national and international investors since the implementation of the Foreign Investment Law,” he told the seminar organized on the sidelines of the annual meetings of the International Monetary Fund and World Bank.
Prince Sultan ibn Salman, secretary-general of the Supreme Commission for Tourism, Finance Minister Dr. Ibrahim Al-Assaf, Hamad Al-Sayyari, governor of the Saudi Arabian Monetary Agency, and Khaled Al-Yahya, chairman of the Saudi Railways Organization also attended the seminar.
Prince Abdullah described the Saudi economy as the largest free market economy in the Middle East, accounting for 25 percent of the gross national product of Arab countries.
“Saudi Arabia enjoys a strong and stable financial system,” he said spelling out the Kingdom’s investment attractions. The quality of banking services in the Kingdom is a major feature as Saudi banks have gained high ratings in terms of the volume of capital, liquidity and profitability, he pointed out.
Referring to the foreign investment law, he said it allows full ownership of a project’s capital. Foreign investors enjoy all the benefits received by Saudis including industrial loans. Transfer of capital and profits, ownership of commercial and residential real estates and protection of investment are other attractions.
Prince Abdullah noted SAGIA’s efforts in facilitating and speeding up investment procedures. He also hoped that the insurance law and the new stock market law would help boost investments in the Kingdom.
Presenting a paper on “Tourism Development in Saudi Arabia,” Prince Sultan ibn Salman said tourism would create 1.5 million to 2.3 million jobs by the year 2020.
Al-Assaf said the seminar was aimed at keeping the participants abreast with new investment opportunities in Saudi Arabia. He said the Saudi Fund for Development would continue to finance projects in Arab and Islamic countries.
