Open for business: $15bn in deals signed at Saudi investment forum

Crown Prince Mohammed bin Salman with Brazilian President Jair Bolsonaro at the FII forum in Riyadh. (SPA)
Updated 30 October 2019

Open for business: $15bn in deals signed at Saudi investment forum

  • Foreign firms setting up in Saudi Arabia increase by 30%
  • Aramco IPO announcement ‘expected in days’

RIYADH: Saudi Arabia signed $15 billion in deals on Tuesday on the first day of the Future Investment Initiative (FII) forum in Riyadh.

The number of business licenses granted to foreign investors from July to September was the highest since 2010, said Invest Saudi, the government organization that facilitates and monitors foreign investment; 809 new foreign companies set up in the Kingdom, a 30 percent increase on the same period last year.

The record levels of deal making continued the positive momentum in inward investment, said Ibrahim Al-Omar, governor of SAGIA, the Saudi Arabian General Investment Authority. “As Saudi Arabia welcomes investors and decisionmakers from across the globe to this annual global investment platform, the agreements exchanged here today reflect the strength and diversity of the economy,” he said. “Under Vision 2030, Saudi Arabia is undergoing am ambitious program of economic reform, and the world is taking notice.”

The Kingdom this month rose 30 places to 62nd in the World Bank’s annual league table for ease of doing business, and was the world’s most improved and reforming economy. “The indicators are clear,” Al-Omar said. “Saudi Arabia is not only open for business, it’s the economy of the future.”

Among more than 20 deals signed at the forum were a $700 million investment agreement between SAGIA and Modular Middle East, a prefabricated building company, and a $200 million agreement between SAGIA and Shiloh Minerals through which the British company will develop its production capacity and invest in upstream mining in Saudi Arabia.

Saudi Aramco was high on the list of deals by value. Transactions with partners from around the world included a $1 billion deal with Spanish pipeline company Tubacex. There were also deals between Saudi entities and American, Brazilian and Norwegian companies.

Yasir Al-Rumayyan, governor of the Kingdom’s Public Investment Authority and chairman of Aramco, launched the third annual forum in front of 6,000 delegates and about 300 global investment chiefs and policymakers.

“This is more than double the first FII,” he told them. “The growth has been incredible. Until now it has been an annual conference, today it is an institution, and it will be a global hub to build relationships.

“Here we don’t see politicians just talking politics, asset managers just talking about assets, philanthropists just talking about society. Here we bring it all together — diversity, cooperation and friendship.”

The forum’s opening day was attended by Saudi Crown Prince Mohammed bin Salman, King Abdullah of Jordan, President Jair Bolsonaro of Brazil, Indian Prime Minister Narendra Modi and White House special adviser Jared Kushner.

Informal discussions were dominated by speculation about the initial public offering of Saudi Aramco. Sources expect an announcement within days, with share trading on the Saudi exchange, the Tadawul, at the beginning of December.

India to invest $1.46 trillion to lift virus-hit economy

Updated 15 August 2020

India to invest $1.46 trillion to lift virus-hit economy

  • Modi announced a national digital heath plan under which every Indian will get an identity card containing all health-related information
  • Modi said the government has identified 7,000 infrastructure projects to offset the economic impact of the pandemic
NEW DELHI: India’s prime minister said Saturday his country has done well in containing the coronavirus pandemic and announced $1.46 trillion infrastructure projects to boost the sagging economy.
The key lesson India learnt from the pandemic is to become self-reliant in manufacturing and developing itself as a key supply chain destination for international companies, Prime Minister Narendra Modi said.
“The coronavirus epidemic is a big crisis, but it can’t stall India’s economic progress,’’ Modi said in a speech from New Delhi’s 17th century Mughal-era Red Fort to mark 74 years of the country’s independence from British rule. He wore an orange and white turban with a long scarf around his neck.
He also said that three vaccines are in different phases of testing in India and it will start mass production as soon as it got a green light from scientists. “Detailed plans are in place for large-scale production of corona vaccine and making it available to every Indian,” he said.
India’s coronavirus death toll overtook Britain’s this week to become the fourth-highest in the world as the country reported over 2.5 million confirmed cases, just behind the US and Brazil.
Modi also announced a national digital heath plan under which every Indian will get an identity card containing all health-related information.
The celebrations were curtailed on Saturday because of the pandemic, with invitations going only to 4,000 guests instead of normal 20,000, media reports said.
The International Monetary Fund projected a contraction of 4.5 percent for the Indian economy in 2020, a “historic low,” but said the country is expected to bounce back in 2021.
Modi said the government has identified 7,000 infrastructure projects to offset the economic impact of the pandemic.
“Infrastructure will not be created in silos anymore. All infrastructure has to be comprehensive, integrated and linked to each other. Multi-modal connectivity infrastructure is the way forward,” he said.
He said that India saw a record 18 percent jump in foreign direct investment in the past year, a signal that the international companies are looking at the country.
Modi didn’t refer to China directly, but India is trying to capitalize on its rival’s rising production costs and deteriorating ties with the United States and European nations to become a replacement home for large multinationals.
Referring to border tensions with China in the Ladakh area, he said Indian forces had given a befitting response in the mountainous region where thousands of soldiers from the two countries remain in a tense standoff since May. India said 20 of its troops died in hand combat with Chinese troops on June 15.
“Whether it’s terrorism or expansionism, India is fighting the challenges bravely,” Modi said in apparent references to threats from neighboring Pakistan and China.