"Saudi Arabia has become key to the stability of the world economy and this is reflected in the number of investors who are lining up to invest in the Kingdom," said Prince Naif. "Thanks to the economic reforms, our rankings on various crucial indices have gone up phenomenally in the last few years," he said.

The Saudi leadership, he said, is aware of the importance of innovation. "This is the reason why we have focused on turning our economy into one that is based on knowledge," he said, and referred to the huge investments in the field of education. "We have set up scientific universities such as the King Abdullah University of Science and Technology (KAUST) and have increased the budget of all universities to make them more competitive."

Prince Naif said Saudi Arabia has always played a stabilizing role on the world stage. "We have always tried to maintain a fine balance between the needs of the producers and the consumers. Our membership of the G20 indicates our responsible position."

Referring to the huge foreign direct investment inflows, Prince Naif said this is proof of the world's faith in our economy. "The economic reforms that we have unleashed in the last few years are paying off. Everyone wants to invest in Saudi Arabia because the investments are safe and risk-free. This is just the beginning. We will continue on the path of reforms and will provide more and better returns and incentives to those who are willing to invest in Saudi Arabia."

The Saudi economy now is the top recipient of foreign direct investment in the Middle East, ahead of Turkey and the UAE. According to the United Nations Conference for Trade and Development it is the eighth largest in the world.

Prince Naif congratulated the Saudi Arabian General Investment Authority (SAGIA) for taking the lead in providing an impetus to the process of turning the Kingdom's industrial oil-based economy into a knowledge-based economy. He also appreciated the role played by various ministries in helping sustain the investment climate in the country. In acknowledgment of their role, key ministries were recognized at the event.

He later presented mementos to Minister of Municipal and Rural Affairs Prince Mansour bin Miteb, Justice Minister Mohammed Al-Issa, Petroleum and Mineral Resources Minister Ali Al-Naimi, Finance Minister Ibrahim Al-Assaf, Minister of State for Foreign Affairs Nizar bin Obaid Madani, Commerce and Industry Minister Abdullah Zainal Alireza, Labor Minister Adel Fakieh and Culture and Information Minister Abdul Aziz Khoja. Additionally 100 businesses were recognized for their contributions to the economy and increasing Saudi employment.

Over the last four years of the Gulf Competitiveness Forum, innovation was discussed as a means of developing competitiveness — to build sustainability, promote responsible development, and drive economic growth — but this year innovation takes center stage as a means to solve those challenges.

“The GCF has become a major forum for stakeholders from business, knowledge institutions and government, who respond more effectively to unique challenges that the Middle East region, rather the world at large, is facing today,” said SAGIA Gov. Amr Al-Dabbagh, noting the goal of the forum would be “to effectively develop and facilitate innovation that drives wealth.”

He said the authority was interested in maximizing returns from the nation’s cluster-based industries.

A point of particular pride this year for the sponsoring Saudi Arabian General Investment Authority is the rise of the nation in the World Bank Ease of Doing Business Survey. In five years the Kingdom has moved from a middle-of-the-pack 67th to No. 11 on the list ranking 183 nations.

The authority had set a goal to be among the top 10 in 2010 as part of its 10x10 initiative, but nobody appears to be disappointed by the progress. Over the five-year period, the country has radically changed it business environment. It is among the top five economic reformers globally. Its nearest Middle East competitor is Bahrain, which was ranked 28th.

“The criteria applied this year to honor these companies are their contributions to the employment of Saudi job seekers and the increase in the size of their internal purchasing,” said Al-Dabbagh. He also praised several programs, including the King Khalid Prize for Responsible Competitiveness, the Youth Most Competitive Initiative and the Saudi Oxford Program for Advanced Leadership.

More than 500 people from 30 countries attended the opening. The key sessions begin Sunday. Included in the list of speakers are the Kingdom’s ministers of labor and energy, former prime ministers Tony Blair of the United Kingdom and Jean Chretien of Canada; CEOs of Boeing, Rolls Royce, Alcoa, SABIC, Ernst & Young, SABIC and the Cleveland Clinic Foundation among others; and a host of business leaders and officials from the GCC and around the globe.

SAGIA also honored the Saudi media for their role in promoting the positive indicators of the Kingdom's economy. Prominent among those who received honors were Saudi Research and Marketing Group CEO Azzam Al-Dakhil, Al-Eqtisadiah Editor in Chief Abdul Wahab Al-Fayez, Arab News Editor in Chief Khaled Almaeena and Business Development Manager of Asharq Al-Awsat Mosaed Al-Zayani.

The forum is the only event of its kind bringing a unique mix of people to create a dialogue with respect to the positive impact organizational and national competitiveness can have on local, regional and global economic and social development.

— With input from Ghazanfar Ali Khan