RIYADH, 26 July 2007 — The Saudi Arabian General Investments Authority (SAGIA) has announced a remarkable increase in the foreign direct investments in the Kingdom over the last three years.
“The volume of foreign investments in 2006 is estimated at SR68.6 billion, a 51 percent growth compared to 2005 while the volume of the domestic investments amounted to about SR125 billion in the same year registering a growth rate of 9 percent against the previous year,”
Awad Al-Awad, undersecretary of the SAGIA governor said in press statement yesterday.
Awad said SAGIA has been periodically evaluating the investment environment in the Kingdom and conducting the required studies and researches for the development of the investments in cooperation with the local and international research centers including the World Bank.
Awad pointed out that the Kingdom has continued to attract foreign investments from countries such as the United States, Japan and the European Union. He said that the investments from countries other than US, Japan and EU have rose from 38 percent in 2000 to 47 percent in 2006.
Observing that the largest portion of the foreign investments were directed to industries of energy and its derivatives in 2006, Awad said “Taking into account the fact that the Kingdom has the largest and most important economy in the region, it will not be a strange matter if foreign investments flow into the country.”
Awad also noted that the decision of the Ministry of Commerce and Industry to reduce the establishment cost of new companies will positively contribute to increase the number of investment companies in the country, and will lead to doubling the local investments, notably the small and medium projects as well as in the industries based on technology.